Kinstler v. RTB SOUTH GREELEY, LTD. LLC

2007 WY 98, 160 P.3d 1125, 2007 Wyo. LEXIS 108, 2007 WL 1747948
CourtWyoming Supreme Court
DecidedJune 19, 2007
Docket06-218
StatusPublished
Cited by22 cases

This text of 2007 WY 98 (Kinstler v. RTB SOUTH GREELEY, LTD. LLC) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kinstler v. RTB SOUTH GREELEY, LTD. LLC, 2007 WY 98, 160 P.3d 1125, 2007 Wyo. LEXIS 108, 2007 WL 1747948 (Wyo. 2007).

Opinion

BURKE, Justice.

[T1] Appellant, Kort Kinstler, appeals from a judgment entered in favor of RTB South Greeley, LTD., LLC ("RTB"), arising from a failure to pay rent for premises leased from RTB. 1 Mr. Kinstler contends that the failure to pay rent was excused by RTB's material breach of the lease agreement ("Leage"). The district court rejected Mr. Kinstler's claim, finding that Mr. Kinstler had failed to provide RTB with written notice of the default and the opportunity to cure the default as required by the Lease. We affirm.

ISSUES

[T2] Mr. Kinstler's brief raises twenty issues. We will focus on the one issue we find dispositive.

I. Did the district court err in its finding of fact that Mr. Kinstler had not complied with the Lease's requirement to notify RTB of the alleged default, or in its conclusion of law that Mr. Kinstler could not rely on the alleged default as a material breach that excused him from paying rent?

RTB lists two additional issues that we will also address.

I. Should the district court's decision be summarily affirmed, or Mr. Kinstler sane-tioned, because of his failure to comply with the Wyoming Rules of Appellate Procedure?
II. Does the Lease entitle RTB to an award of attorney's fees against Mr. Kin-stler?

*1127 STANDARD OF REVIEW

[18] We review a district court's findings of fact and conclusions of law using a clearly erroneous standard for the factual findings and a de novo standard for the conclusions of law. Belden v. Thorkildsen, 2007 WY 68, ¶11, 156 P.3d 320, 323 (Wyo. 2007). When a district court hears a case without a jury, the clearly erroneous standard is varied slightly:

The factual findings of a judge are not entitled to the limited review afforded a jury verdict. While the findings are presumptively correct, the appellate court may examine all of the properly admissible evidence in the record. Due regard is given to the opportunity of the trial judge to assess the credibility of the witnesses, and our review does not entail re-weighing disputed evidence. Findings of fact will not be set aside unless they are clearly erroneous. A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed.

Id.

FACTS

[T4] On November 11, 2003, Mr. Kinstler and RTB entered into a commercial lease for office space located at 120 North Greeley Highway in Cheyenne, Wyoming. Pursuant to the terms of the Lease, Mr. Kinstler was obligated to pay $1,000 per month for rent plus operating expenses from December 15, 2008, through April 30, 2005. The Lease incorporated a document called a Landlord Work Letter that provided, "In the spring of 2004, Landlord to landscape the area next to the east windows of the north office." The Lease also provided that, "In the event of any alleged default on the part of Landlord, Tenant shall give notice to Landlord and afford Landlord a reasonable opportunity to cure such default." The Lease further stated that, "All notices or other communications required or desired to be given to Landlord must be in writing."

[T5] RTB failed to complete the land-seaping work as required. In response, Mr. Kinstler stopped paying rent in the summer of 2004. RTB evicted Mr. Kinstler from the premises in the fall of 2004.

[T 6] In April 2005, RTB filed a complaint in district court seeking to recover the rents due through April 80, 2005, the expiration date of the Lease. Mr. Kinstler denied liability and affirmatively asserted, inter alia, that RTB's failure to provide the landscaping was a material breach of the Lease that exeused him from paying rent. After a hearing, the district court found in favor of RTB. The court interpreted the Lease as requiring Mr. Kinstler to provide RTB with written notice of any alleged default, and with a reasonable opportunity to cure that default. The district court found that Mr. Kinstler had not complied with the Lease's notice requirement, and concluded that Mr. Kin-stler could not rely upon the alleged default as a material breach that exeused the payment of rent. The district court entered judgment in favor of RTB in the amount of $26,411.52, which included sums for past due rent, late fees, interest, attorney's fees, and costs. This appeal followed.

DISCUSSION

I. Material breach

[%7]) Mr. Kinstler contends that RTB's failure to provide the required landscaping was a material breach of the Lease. He argues that this material breach exeused him from paying rent. Mr. Kinstler argues correctly that, under some cireumstances, one party's material breach of an agreement may excuse the other party's performance under that agreement. See, eg., Williams v. Collins Communications, 720 P.2d 880, 891 (Wyo.1986). In this case, however, the district court found that Mr. Kinstler was not entitled to rely on any alleged breach by RTB because he had not complied with the Lease's requirement to provide notice of an alleged default. The district court explained its rationale as follows:

The Defense argues that this contract is not enforceable because there was a material breach. I think that Item 21-Para-graph 21 requires that notice be in writing because of Paragraph 28.2. 28.2 says "No *1128 tice as to the landlord must all be in writing." So, therefore, it says, "In the event"-this is Paragraph 21-'"In the event of any alleged default on the part of the landlord, tenant shall give notice and afford landlord-and afford landlord a reasonable opportunity to cure."
Now, I've looked through these exhibits to see if any such notice was given. The only thing that comes close, arguably close, is Exhibit Number J, but I don't believe it has any language in there calculated to meet the requirements of Paragraph 21. There was no opportunity to cure language in this particular correspondence. ...

[T8] The notice requirement contained in the Lease is clear and unambiguous and must be enforced as written. Sinclair Oil Corp. v. Republic Ins. Co., 929 P.2d 535, 539 (Wyo.1996); Prudential Preferred Props. v. J & J Ventures, 859 P.2d 1267, 1271 (Wyo.1993). Pursuant to these clear and unambiguous terms, Mr. Kinstler was required to provide RTB with written notice of any alleged default and provide RTB an opportunity to cure it. When a party fails to provide notice of a material breach, if required by the terms of the lease, reliance on that breach to excuse contractual performance is improper. See Brown v. Johnston, 2004 WY 17, ¶32, 85 P.3d 422, 431 (Wyo. 2004) (Lessor could not rely on material breach because he did not give notice of the alleged breach as required.). The district court found that Mr. Kinstler did not provide the required notice. In this appeal, Mr.

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Bluebook (online)
2007 WY 98, 160 P.3d 1125, 2007 Wyo. LEXIS 108, 2007 WL 1747948, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinstler-v-rtb-south-greeley-ltd-llc-wyo-2007.