Lay Bros., Inc. v. Golden Pantry Food Stores, Inc.

616 S.E.2d 160, 273 Ga. App. 870, 2005 Fulton County D. Rep. 1948, 2005 Ga. App. LEXIS 629
CourtCourt of Appeals of Georgia
DecidedJune 22, 2005
DocketA05A1338
StatusPublished
Cited by16 cases

This text of 616 S.E.2d 160 (Lay Bros., Inc. v. Golden Pantry Food Stores, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lay Bros., Inc. v. Golden Pantry Food Stores, Inc., 616 S.E.2d 160, 273 Ga. App. 870, 2005 Fulton County D. Rep. 1948, 2005 Ga. App. LEXIS 629 (Ga. Ct. App. 2005).

Opinion

JOHNSON, Presiding Judge.

Lay Brothers, Inc. appeals the trial court’s grant of partial summary judgment to Golden Pantry Food Stores, Inc. We affirm for the reasons set forth below.

This case was previously before this court in Golden Pantry Food Stores v. Lay Bros., Inc., 1 in which Golden Pantry appealed the trial court’s judgment, entered on a jury verdict, in favor of Lay Brothers. As we explained, this suit arose

following the expiration of a lease between Golden Pantry, as lessee, and Harold and Edwina Lay, as lessors. Lay Brothers, Inc., asserts that, through an assignment, it is the successor in interest to Harold and Edwina Lay and is thus authorized to bring this action. Lay Brothers and Golden Pantry are business competitors in the business of convenience stores.
The Lays leased the premises to Golden Pantry to operate a convenience store for ten years, plus a five year *871 extension. At the end of that period Golden Pantry was to vacate the premises and remove its trade fixtures. After this was done, inspection of the premises under current environmental rules revealed some fuel contamination on the site and damage to the premises.
After the term of the lease, Lay Brothers acquired the premises and began preparations to operate its own gasoline station and convenience store on the site. Even though Golden Pantry’s lease ended in October 1998 and Lay Brothers wanted to take possession on November 1, 1998, Lay Brothers could not start operation of the convenience store until August 1999.
Because Golden Pantry allegedly did not surrender the premises on time and in proper condition, Lay Brothers filed this action contending that Golden Pantry (1) failed to surrender the premises within a reasonable time after the termination of the lease, (2) removed improvements that should have remained on the premises, (3) failed to repair damage to the premises caused by its removal of trade fixtures, (4) failed to turn over the premises in as good a condition as when the premises was leased, and (5) thus breached the lease. Lay Brothers also contended that it was entitled to an award of attorney fees and expenses of litigation under OCGA § 13-6-11. 2

We reversed the judgment and remanded the case because the trial court erred in denying Golden Pantry’s motion for directed verdict on lost profit damages. 3 We also provided that, if raised during further proceedings, the trial court should consider “in accordance with our time-honored principles of contract construction,” the validity of the lease assignment and whether under the terms of the lease Golden Pantry was entitled to remove a canopy from the premises. 4

On remand, Golden Pantry renewed its motion for summary judgment, which the trial court granted in part. Lay Brothers contends the trial court erred in finding (i) the canopy was a trade fixture as a matter of law and the parties intended to treat the canopy as a trade fixture in unambiguous language, (ii) Lay Brothers was limited to nominal damages on its claim for damage to the leased premises, and (iii) Lay Brothers could not recover attorney fees. We disagree.

*872 To prevail on a motion for summary judgment, the moving party must demonstrate that there is no genuine issue of material fact, and that the undisputed facts, viewed in a light most favorable to the party opposing the motion, warrant judgment as a matter of law. 5 Our review is de novo. 6

1. At issue is whether Golden Pantry breached the lease by removing a canopy which Golden Pantry had installed on the premises to provide shelter over the gasoline pumps. Evidence showed the canopy was secured by four columns bolted to concrete footers set in the ground.

The trial court found the lease unambiguously provided that Golden Pantry could remove trade fixtures from the premises on or within a reasonable time after the end of the lease term. Lay Brothers contends the trial court failed to consider whether the lease’s provision that structures and improvements are to become property of the lessor conflicts with the provision that trade fixtures may be removed by Golden Pantry, and the lease is therefore ambiguous. “The cardinal rule of contract construction is to ascertain the intention of the parties. To this end the whole instrument, together with its circumstances, must be considered.” 7

Where no matter of fact is involved, the construction of a plain and definite contract, if needed, is a matter of law for the court; a contract is not ambiguous, even though difficult to construe, unless and until an application of pertinent rules of interpretation leaves it uncertain as to which of two or more possible meanings represents the true intention of the parties. 8

Section 13.1 of the lease provides that upon its termination Golden Pantry will surrender to the lessor all buildings, structures, and improvements located thereon; however, this provision also states that trade fixtures do not become part of the premises and may be removed by Golden Pantry at any time or within a reasonable time after the end of the lease term. There is no ambiguity because Golden Pantry’s right to remove trade fixtures is the specific exception to the general rule that buildings, structures, and other improvements will remain the property of the lessor on lease termination. “Under general rules of contract construction, a limited or specific provision *873 will prevail over one that is more broadly inclusive.” 9 Accordingly, the trial court did not err in concluding that the lease unambiguously provides that Golden Pantry may remove trade fixtures from the premises.

Lay Brothers also contends that the trial court erred in finding the canopy to be a trade fixture as a matter of law. We disagree.

In determining the parties’ intent as to the meaning of “trade fixture,” the trial court turned to the judicial construction of the term, as it was authorized to do. “The laws which exist at the time and place of the making of a contract, enter into and form a part of it; and the parties must be presumed to have contracted with reference to such laws and their effect on the subject matter.” 10 In Georgia, trade fixtures are defined as articles annexed to the realty by a tenant for the purpose of carrying on a trade. 11

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Bluebook (online)
616 S.E.2d 160, 273 Ga. App. 870, 2005 Fulton County D. Rep. 1948, 2005 Ga. App. LEXIS 629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lay-bros-inc-v-golden-pantry-food-stores-inc-gactapp-2005.