Griswold v. Income Properties, II

880 S.W.2d 672
CourtCourt of Appeals of Tennessee
DecidedDecember 22, 1993
StatusPublished
Cited by9 cases

This text of 880 S.W.2d 672 (Griswold v. Income Properties, II) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Griswold v. Income Properties, II, 880 S.W.2d 672 (Tenn. Ct. App. 1993).

Opinion

OPINION

LEWIS, Judge.

Plaintiffs Nelson L. Griswold, Jr. and Nancy J. Griswold (the Griswolds), filed a declaratory judgment action against defendant Income Properties, II, a limited partnership (Income Properties), seeking a declaration as to whether Income Properties “is improperly occupying ... leased premises (Mr. Gatti’s site) and has acted in bad faith by denying plaintiff possession of same.” Plaintiffs also sought compensatory damages from Income Properties “for all the past due and unpaid rents accruing while defendant continues to occupy the premises, including pre-judgment interest_”

Income Properties answered setting forth several affirmative defenses including, inter alia, a request to dismiss pursuant to Tennessee Rules of Civil Procedure 12.02(7) and Tennessee Code Annotated section 29-14-107(a), defensive waiver, estoppel, and failure to mitigate. Defendant also filed a counter-complaint against plaintiffs seeking, inter alia, “judgement [sic] against the plaintiffs for nominal damages, compensatory damages including lost interest, pre-judgment interest, punitive damages, and attorneys’ fees in the total sum of not more than $500,000.00 together with the cost of this action.” The plaintiffs then moved to dismiss Income Properties’ suit by filing a Tennessee Rule of Civil Procedure 12.02(6) motion and also the defense of estoppel.

Thereafter Income Properties filed a motion for partial summary judgment “on the issue of breach of contract....”

Plaintiffs then filed their motion for partial summary judgment on the “issue of whether the lease agreement with reference to the Mr. Gatti’s site was properly renewed in accordance with the terms of the lease ...”

The trial court, following argument, denied Income Properties’ motion for partial summary judgment and sustained plaintiffs’ motion to dismiss Income Properties’ counterclaim.

Plaintiffs were subsequently permitted to file an amended complaint. Income Properties then filed an answer and amended counterclaim. However, an order was subsequently entered striking the amended counterclaim.

On 18 December 1992 the trial court heard argument on the plaintiffs’ motion for partial summary judgment and made an oral finding that the plaintiffs’ motion should be granted. An order was subsequently entered reflecting the court’s finding that the base lease was not renewed as to the Mr. Gatti’s site and granting plaintiffs’ motion for partial summary judgment.

Income Properties filed a motion for permission to file a third-party complaint and subsequently orally moved to continue the trial for the following reasons: a) a witness could not attend the hearing, and b) all interested parties were not before the court. The trial court, however, denied the oral motions to continue the trial.

On 11 January 1993 a hearing was held on the issue of damages. The trial court ruled that the plaintiffs were entitled to recover damages in the amount of $4,700.00 per month from 30 June 1991, the date the lease agreement expired, to the present, together with pre-judgment interest and reasonable attorneys’ fees. After a hearing on reasonable attorneys’ fees and the proper computation of pre-judgment interest, judgment was entered in favor of the plaintiffs on 27 January 1993 in the amount of $115,683.86, less any credit to which defendants are entitled on the sums tendered into court.

[675]*675On 25 February 1993 following the entry of the “Final Decree” on 27 January 1993, the trial court granted Income Properties’ motion to file a third-party complaint.

On 1 March 1993 Income Properties filed their appeal from what they contend is the truly final order, the order of 25 February 1993.

The base lease, the lease executed 19 June 1976 which is the source of the claims of all parties, was for a rectangularly shaped tract of land located in the Green Hills section of Davidson County, Tennessee. The property fronts on two adjacent sides with surface streets, and with adjacent private properties on the other two sides. The property occupied by Mr. Gatti’s consists of a rectangle within the property described in the base lease and abuts adjacent private property. The property occupied by Mr. Gatti’s does not abut the street, but there is a provision in the property description which grants ingress and egress to the Mr. Gatti’s property. There is also an easement over a portion of the base lease property in front of the Mr. Gatti’s rectangle allowing for parking of 24 vehicles.

Income Properties and H & M Restaurants, Inc. came to have claims under the base lease as follows:

The Griswolds owned the land in the base lease which is the subject of the instant suit. The Griswolds have owned it at all times pertinent. Mr. Griswold originally operated a restaurant on the property known as Nero’s Cactus Canyon.

The Griswolds separated title of the real property so that the ownership of the land was recorded by a different instrument than the ownership of the structure housing the restaurant. On 19 June 1976 the Griswolds leased the land to Ireland’s Restaurant, Inc. for a term of 15 years ending on 30 June 1991.

The base lease at paragraph 21 provides:

Lessee has the option to renew this lease for three additional five-year periods on the same terms, conditions, and rentals as specified herein, said option to be exercised by notice given in writing by Lessee not less than One Hundred Eighty (180) days prior to the termination date of this lease, or any renewal thereof.”

On 21 June 1976, two days after entering into the base lease, the Griswolds sold the improvements of the land subject to the base lease to Ireland’s Restaurant. At some point between 1976 and 28 May 1980, Ireland’s Restaurant changed its corporate name to Southern Hospitality Corporation. Also between 1976 and 28 May 1980 a second structure was built on the land that is the subject of the base lease.

On 28 May 1980 Southern Hospitality Corporation made a simultaneous assignment of a “portion of its interest in the [base] lease” to Big “O” Ovens, Inc. (first assignee) and then to “Income Properties, II (second as-signee),” with language pertinent to this assignment as follows:

1. Assignor hereby assigns to the First Assignee all of Assignor’s right, title and interest in .and to the lease as the same pertains to the Mr. Gatti’s site and such party simultaneously assigns all of its right, title and interest in and to the lease to Income Properties, II.
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3. It is agreed and understood between Lessor and Southern Hospitality Corporation as Lessee that notwithstanding the consent to the assignments herein by the Lessor that Southern Hospitality Corporation shall not be relieved of its original obligation under the lease.
4. Except as modified herein, the Lease shall not be changed but shall remain in full force and effect with respect to Southern Hospitality Corporation.

The assignment also provided unofficial legal descriptions for the Mr. Gatti’s site and for the Ireland’s site within the base lease premises. Big “O” Ovens, Inc. executed a lease agreement with Income Properties, II on 28 May 1980 allowing Income Properties, II to occupy the second structure. Southern Hospitality Corporation operated Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
880 S.W.2d 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/griswold-v-income-properties-ii-tennctapp-1993.