Green Street 2900 Investors, LLC v. The St. Louis Woodworks, Inc.

CourtMissouri Court of Appeals
DecidedAugust 30, 2022
DocketED110459
StatusPublished

This text of Green Street 2900 Investors, LLC v. The St. Louis Woodworks, Inc. (Green Street 2900 Investors, LLC v. The St. Louis Woodworks, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green Street 2900 Investors, LLC v. The St. Louis Woodworks, Inc., (Mo. Ct. App. 2022).

Opinion

In the Missouri Court of Appeals Eastern District DIVISION FOUR

GREEN STREET 2900 INVESTORS, LLC, ) No. ED110459 ) Respondent, ) Appeal from the Circuit Court of ) the City of St. Louis vs. ) ) Honorable Jason M. Sengheiser THE ST. LOUIS WOODWORKS, INC., ) ) Appellant. ) Filed: August 30, 2022

Introduction

St. Louis Woodworks (“Appellant”) appeals the trial court’s entry of summary judgment

for Green Street 2900 Investors, LLC (“Respondent”) in an unlawful detainer action. Appellant

raises five Points on appeal. In Point I, Appellant argues the trial court erred in failing to grant a

stay in a separate action for specific performance. In Point II, Appellant argues the trial court

erred in granting summary judgment because Appellant was lawfully in possession of the subject

property under a properly executed option to renew the lease. In Point III, Appellant argues the

trial court erred in granting summary judgment because Appellant raised genuine issues of

material fact, namely the right to immediate possession and Respondent’s good faith. In Point

IV, Appellant argues the trial court erred in denying Appellant’s request for discovery. In Point V, Appellant argues summary judgment was granted in error if we determine Appellant’s option

to renew was ambiguous.

We affirm.

Factual and Procedural Background

Appellant has leased space to operate its business at 500 Prospect Avenue since 2003.

The original lease was set to expire in 2008 but provided a pair of five-year renewal options. The

first renewal option set base rent at $5,750.00 per month. The second renewal option provided

the monthly rate would be at “market rent,” defined as “the lesser of rent quoted to prospective

tenants within six (6) months prior to the expiration of the Lease term or rent paid by other

tenants for comparable space within the surrounding area.” The original lease instructed

“Landlord shall provide Tenant with its estimate of the ‘Market Rent’ at lease [sic] five (5)

months prior to the expiration of the first option term and both parties shall work in good faith to

negotiate a mutually agreeable market rent.” The lease continued “this option must be exercised

no later than three (3) months before the expiration” of the lease term, and Appellant must be “in

full compliance with all terms and conditions” of the lease.

The lease has been amended several times. In 2013, the lease was amended the fourth

time. The fourth amendment provided the lease would expire October 31, 2020, and stated

Appellant had an option to renew for a five-year or seven-year term ending in 2025 or 2027,

respectively. The amendment did not mention a “market rent” calculation as in the original lease.

Instead, it provided “the rate shall be at the current market rate as negotiated and agreed between

Landlord and Tenant.” Emphasis added. The amendment provided “words and phrases having

defined meanings in the Lease shall have the same respective meanings” in the amendment

2 unless otherwise defined and “all of the terms and conditions of the Lease shall remain unaltered

and in full force and effect” unless “expressly modified” by the amendment.

On February 5, 2020, Appellant notified Respondent of its intention to exercise the

option to renew through 2027 at $2.00 per square foot. Respondent acknowledged Appellant’s

“intent” to renew and responded with a $6.00 per square foot counteroffer. Respondent added

“the actual exercise of the option and renewal” required compliance with the lease and alleged

Appellant was in violation by “using space that is not subject to any lease agreement.” Appellant

requested documentation supporting Respondent’s $6.00 per square foot counteroffer, to which

Respondent replied with a list of “comparable” rental rates. Appellant contends it did not see

Respondent’s letter until the letter was filed as an exhibit attached to Respondent’s motion for

summary judgment.

On October 26, 2020, Respondent demanded Appellant vacate the premises by

November 10, 2020. Appellant sued for specific performance and declaratory judgment. On

January 6, 2021, Respondent filed this unlawful detainer suit. In the specific performance suit,

the trial court denied Appellant’s motion for a stay of this unlawful detainer action. The specific

performance action is still pending and is not the subject of this appeal. In this unlawful detainer

action, the trial court denied Appellant’s motion for discovery, granted Respondent’s motion for

summary judgment, and awarded possession and damages to Respondent. In its amended order

and judgment, the trial court found the uncontroverted facts demonstrate the parties did not agree

to a new lease rate as required by the fourth amendment’s option to renew and the lease therefore

terminated on October 31, 2020, after which Appellant became a holdover tenant. The trial court

found Appellant’s good faith arguments are not cognizable in an unlawful detainer action.

3 Appellant’s specific performance suit has not been consolidated with Respondent’s unlawful

detainer action, from which Appellant appeals.

This appeal follows.

Standard of Review

Unlawful detainer appeals are reviewed under the same standard as other court-tried civil

cases. Goser v. Boyer, 633 S.W.3d 482, 485 (Mo. App. E.D. 2021). We review the grant of

summary judgment de novo. Green v. Fotoohighiam, 606 S.W.3d 113, 115 (Mo. banc 2020),

reh'g denied (Sept. 29, 2020) (citing Goerlitz v. City of Maryville, 333 S.W.3d 450, 452–53 (Mo.

banc 2011)). Summary judgment is only proper if the moving party establishes there is no

genuine issue as to the material facts and the movant is entitled to judgment as a matter of law.

Id. We review the record in the light most favorable to the party against whom summary

judgment was entered. Id. We apply the same criteria as the trial court but can affirm the grant of

summary judgment on a different basis than that put forward and by any theory supported by the

record. Id.; Septagon Constr. Co. Inc.-Columbia v. Indus. Dev. Auth. of City of Moberly, 521

S.W.3d 616, 622 (Mo. App. W.D. 2017) (citing Mo. Bankers Assoc., Inc. v. St. Louis Co., 448

S.W.3d 267, 270–71 (Mo. banc 2014)). We review challenges to a denial of a motion for

discovery for an abuse of discretion resulting in fundamental unfairness. State v.

Mauchenheimer, 342 S.W.3d 894, 896 (Mo. App. W.D. 2011) (citing State v. Tisius, 92 S.W.3d

751, 762 (Mo. banc 2002)).

Discussion

Point I: Appellant’s Motion for a Stay

Appellant argues the trial court erred in granting summary judgment because it failed to

grant Appellant a stay of the instant unlawful detainer action while Appellant’s separate action

4 for specific performance was pending. Appellant argues it followed the instruction of the

Missouri Supreme Court to raise issues which are not cognizable in an unlawful detainer action

in a separate action for specific performance, then seek a stay of the unlawful detainer action.

Wells Fargo Bank, NA v. Smith, 392 S.W.3d 446, 461 (Mo. banc 2013). Appellant’s Reply Brief

emphasizes the instruction to seek a stay of the unlawful detainer action “in that separate case,”

meaning the specific performance action. Id. Appellant cites Vatterott v. Kay to argue this

procedure makes “good common sense” because the result of a specific performance action may

affect the right to possession in an unlawful detainer action.

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