Grandnorthern, Inc. v. West Mall Partnership

359 N.W.2d 41, 1984 Minn. App. LEXIS 3897
CourtCourt of Appeals of Minnesota
DecidedDecember 11, 1984
DocketC4-84-995
StatusPublished
Cited by4 cases

This text of 359 N.W.2d 41 (Grandnorthern, Inc. v. West Mall Partnership) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grandnorthern, Inc. v. West Mall Partnership, 359 N.W.2d 41, 1984 Minn. App. LEXIS 3897 (Mich. Ct. App. 1984).

Opinion

OPINION

POPOVICH, Chief Judge.

This is a dispute over the status of a commercial lease. Respondent-tenant claimed its lease remained effective having timely exercised its option to extend the lease for an additional five year term. Appellant, the landlord’s assignee, asserted the lease had expired and respondent was a holdover, month-to-month tenant. Finding no genuine issues of material fact, the trial court granted respondent’s motion for summary judgment and declared its lease extended. We agree and affirm.

FACTS

On June 1, 1979, Grandnorthern, Inc. entered into a commercial lease agreement with the then owner of Victoria Crossing Properties, James J. Wengler. Street level retail space in the Victoria Crossing Mall *43 West was leased for a term of two years, expiring May 31, 1981.

Respondent had an option for three additional five year terms, to be exercised by respondent’s written notice to its landlord at least 180 days prior to the expiration of any existing term. Failure to provide written notice with continued occupancy after the original term extended the lease on a month-to-month basis.

About June 1980, Russell Weaver, respondent’s president, learned from his bookkeeper, Pradeep Kuthiala, that Victoria Crossing Mall West might soon be sold. At that time, Kuthiala was also the bookkeeper for respondent’s landlord, James Wengler.

Weaver decided to exercise the option to extend the lease and asked Kuthiala to type a letter to Wengler notifying him of respondent’s intent to exercise the option. Kuthiala typed the letter, dating it June 1, 1980. The following day, Weaver signed and returned it to Kuthiala. Kuthiala, acting as landlord Wengler’s agent, stamped it “received June 02, 1980.” A copy was returned to Weaver and the original filed in Wengler’s landlord file pertaining to respondent. Kuthiala later informed Wen-gler respondent’s lease extension had been received.

During summer 1980, James Crockarell and Laurel March Crockarell began negotiating with Wengler to purchase his interests in Victoria Crossing West. During the negotiations, the Crockarells prepared an “Estoppel Certificate” which they asked each tenant to sign. The certificate required tenants to disclose certain information and representations regarding their tenancy. This included the beginning date of their lease but not the expiration date or whether the lease had been extended or renewed.

William Wengler, respondent’s vice president, signed the estoppel certificate on behalf of respondent on June 27, 1980, but did not indicate respondent had extended its lease.

On September 4, 1980, James Wengler sold Victoria Crossing West to the Crocka-rells and others d/b/a West Mall Partnership on a contract for deed with assignment of leases. James Wengler signed an affidavit stating he was not aware of any lease changes between the dates of any estoppel certificate and the date of sale, except two specific tenants had sent lease renewal letters. His affidavit contained no references to respondent.

In 1981, Claire B. Forsberg approached appellant about renting street level retail space in Victoria Crossing West. She was told no space was available on street level but second floor space might be available if appellant remodeled. Forsberg met with appellant several times during 1981 to work out a solution, but continued to voice her desire for street level space. Respondent asked Forsberg in May 1982 if she would like to sublet respondent’s space.

Appellant refused to approve the sublease, claiming their records did not indicate receipt of respondent’s notice of intent to extend its lease. Appellant claimed respondent was a month-to-month holdover tenant, had no lease to assign to Forsberg, and stated that Forsberg must negotiate a lease directly with appellant. On August 1, 1982, appellant notified respondent it was terminating respondent’s lease.

Appellant contends respondent’s notice of intent to extend its lease was not delivered to the landlord on June 2, 1980. Appellant claims respondent drafted the lease extension notice long after its option to extend had expired, back-dating it to June 1, 1980, solely to sublease its premises to Forsberg.

ISSUE

Did appellant raise a genuine issue of material fact?

ANALYSIS

1. When a summary judgment is appealed, the function of the reviewing court is:

*44 to determine (1) whether there are any genuine issues of material fact and (2) whether the trial court erred in its application of the law.

Betlach v. Wayzata Condominium, 281 N.W.2d 328, 330 (Minn.1979). Appellant claims no errors of law and does not challenge respondent’s right to extend the lease by proper written notice. Rather, appellant contends respondent’s extension letter was fraudulently prepared in June 1982, long after the time for renewal had passed.

2. A motion for summary judgment may be granted when the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, show there is no genuine issue as to any material fact and that a party is entitled to judgment as a matter of law. Minn.R.Civ.P. 56.03; see also Burner Service and Combustion Controls Company, Inc. v. City of Minneapolis, 312 Minn. 104, 106, 250 N.W.2d 224, 226 (1977). The trial court must view the evidence in a light most favorable to the nonmoving party. Sauter v. Sauter, 244 Minn. 482, 484-85, 70 N.W.2d 351, 353 (1955). “All doubts and factual inferences must be resolved against the moving party.” Nord v. Herreid, 305 N.W.2d 337, 339 (Minn.1981). The moving party has the burden to prove there is no genuine issue as to any material fact and that it is entitled to judgment as a matter of law.

(a) To support its allegation of fraud, appellant submitted an affidavit of Laurel March. Minnesota Rule of Civil Procedure 56.05 states:

[Ojpposing affidavits shall be made on personal knowledge, shall set forth such facts as would be admissible in evidence, and shall show affirmatively that the af-fiant is competent to testify to the matters stated therein. * * * [A]n adverse party may not rest upon the mere aver-ments or denials of his pleading but must present specific facts showing that there is a genuine issue for trial.

Id.; see Rosvall v. Provost, 279 Minn. 119, 124, 155 N.W.2d 900, 904 (1968).

Affidavits in opposition to a motion for summary judgment do not create issues of fact if they merely recite conclusions without any specific factual support. Peterson v. American Family Mutual Insurance Company, 280 Minn. 482, 487, 160 N.W.2d 541, 545 (1968).

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Cite This Page — Counsel Stack

Bluebook (online)
359 N.W.2d 41, 1984 Minn. App. LEXIS 3897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grandnorthern-inc-v-west-mall-partnership-minnctapp-1984.