Horne v. TGM Associates, L.P.

56 So. 3d 615, 2010 Ala. LEXIS 147, 2010 WL 3290983
CourtSupreme Court of Alabama
DecidedAugust 20, 2010
Docket1070766
StatusPublished
Cited by40 cases

This text of 56 So. 3d 615 (Horne v. TGM Associates, L.P.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horne v. TGM Associates, L.P., 56 So. 3d 615, 2010 Ala. LEXIS 147, 2010 WL 3290983 (Ala. 2010).

Opinion

MURDOCK, Justice.

Willie Home and 44 other former tenants of the Harbor Landing apartment complex (“Harbor Landing”) appeal from a summary judgment entered by the Mobile Circuit Court on their claims of breach of contract, wrongful eviction, breach of the covenant of quiet enjoyment, conversion, fraudulent suppression, and intentional infliction of emotional distress or the tort of outrage against TGM Associates, L.P., the entity that managed the complex (“TGM [619]*619Associates”), TGM Harbor Landing, Inc., the owner of Harbor Landing (“TGM Harbor Landing”), and several other defendants. We affirm in part, reverse in part, and remand.

I. Facts and Procedural History

Harbor Landing consisted of a 200-unit complex that comprised IB two-story apartment buildings, an office, and a common area containing a swimming pool, tennis courts, and basketball courts. The complex fronted Mobile Bay to the west and the mouth of Dog River to the north. TGM Associates operated the complex pursuant to a 1995 management agreement with TGM Harbor Landing.1 All but 7 of the plaintiffs in this action rented apartments in buildings 8 through 13 of the complex.

Paragraph 13 of the lease agreement signed by every tenant residing at Harbor Landing provided, in pertinent part:

“13. STRUCTURAL DAMAGE: If the leased premises, or the building in which the leased premises is located shall be damaged by fire or by other unforeseen events, without fault of the lessee, then, and in that event, the lessor shall have the option to decide whether the lessor shall or shall not repair and restore said building or leased premises to their original shape; and if the lessor decides to repair and restore the building or the rented premises as aforesaid, then, from the time such damages occur until the repairs are completed, an equitable abatement of the monthly installments will be allowed. It is agreed, however, that if the damage is such as not to render the leased premises uninhabitable for the purpose for which they are rented, then there shall be no abatement of the rent while the repairs are being made.”

Paragraph 15 of the lease agreement provided, in pertinent part:

“15. TERMINATING LEASE: If either the Lessee or [TGM Associates] desires that this lease terminate at the expiration of its term, including month to month tenancy, one must give to the other WRITTEN NOTICE TO BE RECEIVED NOT LESS THAN THIRTY (30) DAYS PRIOR TO THE EXPIRATION OF THE LEASE TERM. If the written notice is given less than thirty (30) days prior to the expiration date, the Lessee’s obligation to pay rent shall extend to the number of days required to fulfill the thirty (30) day notice period.”

(Capitalization in original.)

In the early morning of August 29, 2005, Hurricane Katrina made landfall as a category 5 hurricane near the Louisiana-Mississippi border. Hurricane Katrina inflicted substantial damage to Harbor Landing, resulting in the condemnation of buildings 1 through 7 in the complex.

Immediately after Hurricane Katrina, TGM Associates, which maintains its headquarters in New York, dispatched teams to help the residents of Harbor Landing, to make damage assessments, and to determine whether the complex could remain open. The record indicates, and the plaintiffs do not dispute, that TGM Associates spent over $200,000 at Harbor Landing in the first month following Hurricane Katrina to clean up debris, to remove excess water from the property, to hire security guards, and to provide direct aid to the residents of the complex.

[620]*620On August 31, 2005, TGM Associates sent a notice to all the residents of Harbor Landing informing them that TGM Associates was offering each of them a “$500 relocation gift check ... to help during these hard times.” All the plaintiffs accepted these “relocation gift” checks, and each signed a document “acknowledging] the receipt of the above referenced relocation gift in the amount of $500.”2 TGM Associates also informed the residents in early September that no rent would be charged in September.

On September 8, 2005, TGM Associates provided written notice to the occupants of buildings 1 through 7 that they must vacate them apartments immediately, which they did. The trial court found, and the parties do not dispute, that the units in buildings 8 through 13 sustained varying degrees of damage, but that all of those units were habitable after Hurricane Katrina.

On September 28, 2005, TGM Associates issued a “Lease Termination Notice” to the remaining tenants at Harbor Landing, including the plaintiffs still residing in buildings 8 through 13. The termination notice stated that because Harbor Landing had “sustained significant structural damage caused by Hurricane Katrina,” TGM Associates judged every apartment in the complex to be “uninhabitable.” Consequently, the termination notice stated that each resident’s lease agreement “will terminate ten (10) days from the date hereof,” 1.e., October 8, 2005. The residents were ordered to “surrender possession of the premises ten (10) days from the date of this notice” and to “remove all personal property from the premises and surrender the keys within the time allowed in this notice.” The termination notice informed residents that “[u]pon timely surrender of possession of the premises, your security deposit will be refunded to you.”

Deposition testimony in the record reveals that before the termination notice was issued, a few of the plaintiffs had been told by TGM Associates’ staff members at Harbor Landing that they would not have to move out of their apartments. When some of the plaintiffs questioned TGM Associates’ staff members at Harbor Landing about the termination notice, at least six of them were told that, if they did not vacate their apartments by October 8, 2005, they would be arrested for criminal trespass, their personal property would be forcibly removed from them apartments, and/or their credit would be ruined by the process of eviction.

On September 29, 2005, the toilet in the apartment of one of the plaintiffs, James Williams, who resided in building 8, was overflowing with raw sewage. Williams went outside and unscrewed an overflow valve adjacent to building 8, which caused raw sewage to flow throughout buildings 8 and 9. The Mobile County Health Department issued an immediate evacuation order for residents in those two buildings as a result of the health hazard caused by the release of the raw sewage. The evacuation order informed residents in buildings 8 and 9 that efforts would be made to “remediate the current threat to public health” so that residents would have “the opportunity to return to these complexes and retrieve their belongings prior to the lease termination date, October 8, 2005.”

As the trial court related in its summary-judgment order:

“Every plaintiff in this case departed by the scheduled October 8 date, with the exception of Willie Home and Demetrius Dudley, who voluntarily left the next [621]*621day. TGM [Associates] did not initiate eviction proceedings against any of the plaintiffs. The plaintiffs turned in their keys and received a full refund of their original security deposits, with the exception of several plaintiffs who owed back rent.”

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56 So. 3d 615, 2010 Ala. LEXIS 147, 2010 WL 3290983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horne-v-tgm-associates-lp-ala-2010.