Mariner Healthcare, Inc. v. Foster

634 S.E.2d 162, 280 Ga. App. 406
CourtCourt of Appeals of Georgia
DecidedJuly 11, 2006
DocketA06A0775, A06A0776
StatusPublished
Cited by41 cases

This text of 634 S.E.2d 162 (Mariner Healthcare, Inc. v. Foster) 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
Mariner Healthcare, Inc. v. Foster, 634 S.E.2d 162, 280 Ga. App. 406 (Ga. Ct. App. 2006).

Opinion

Ruffin, Chief Judge.

Brian Center Nursing Care/Austell, Inc., a subsidiary of Mariner Healthcare, Inc., (collectively, “Mariner”) leased five nursing homes (the “Facilities”) from William Foster. After the written leases had expired, Mariner remained in possession of the Facilities, and Mariner and Foster attempted to negotiate a new written lease. No new lease was agreed upon, and Foster eventually leased the Facilities to another company. Mariner did not vacate the Facilities, and Foster filed a declaratory judgment action seeking a determination of the rights of the parties. Mariner counterclaimed, seeking a declaratory judgment that it had a contractual right of first refusal to re-lease the *407 Facilities and arguing that Foster breached an oral contract and is bound by promissory estoppel.

The parties filed cross-motions for summary judgment. On the issue of the existence of a right of first refusal, the trial court granted Foster’s motion for summary judgment and denied Mariner’s motion for partial summary judgment. The trial court denied Foster’s motion for summary judgment on Mariner’s claim for promissory estoppel. The trial court also denied Mariner’s motions to transfer venue and for judgment on the pleadings. We granted Mariner’s motion for interlocutory appeal in Case No. A06A0775, and Foster cross-appeals in Case No. A06A0776. For reasons that follow, we affirm in Case No. A06A0775 and reverse in Case No. A06A0776.

We conduct a de novo review of both the law and the evidence on appeal from the grant or denial of a motion for summary judgment. 1 We view the evidence in a light most favorable to the nonmovant in order “to determine whether a genuine issue of material fact exists and whether the moving party was entitled to judgment as a matter of law.” 2

Mariner and Foster entered into two leases, one for the Facilities located in Thomasville, Jeffersonville, Lumber City, and LaGrange, and one for the Facility in Powder Springs. The leases gave Mariner a right of first refusal as to any re-lease of the Facilities under the following conditions:

Lessor covenants during the Lease Term not to sell ... or agree to re-lease effective upon the termination of this Lease, any one or more of the Facilities without first giving Lessee at least thirty (30) days written notice (the “Offer Notice”) specifying the terms of said sale ... or lease, . . . which Offer Notice shall be deemed to constitute an offer by Lessor to sell... or lease such Facility or Facilities to Lessee on the same terms and conditions ... as set forth in the offer notice.

The two leases ended on March 31, 2003. While Mariner and Foster negotiated for either an extension of the leases or new leases, Mariner remained in possession of the Facilities and continued to pay rent. The parties discussed “a partial renewal of the Leases for a period of six (6) months commencing on April 1, 2003 and ending on September 30, 2003.” Although Foster disputes that he agreed to these terms, viewing the negotiations in the light most favorable to *408 Mariner, they resulted in a six-month extension of the leases. Mariner did not vacate the Facilities after the six-month extension had expired, and negotiations for a new lease continued unsuccessfully into the fall of 2003.

On December 15,2003, Foster entered into a written lease for the Facilities with Triad Health Management of Georgia, LLC. He did not provide Mariner with a right of first refusal. The next day, December 16, 2003, Foster notified Mariner that the Facilities had been leased to Triad effective January 1, 2004, and asked for “an orderly transition of the [Facilities] to [Triad’s] control.” Mariner did not vacate the Facilities, and this litigation ensued.

The trial court found that Mariner was a tenant at will in December 2003 and, as such, would only be entitled to a right of first refusal if that right were a general term or condition of the original leases that continued to govern the at will relationship. It concluded that the right of first refusal was not a general term or condition of the leases and could not be enforced by Mariner once it was a tenant at will. Accordingly, the trial court denied Mariner’s motion for partial summary judgment and granted Foster’s motion for summary judgment as to the right of first refusal issue. It also denied Mariner’s motion for judgment on the pleadings and motion to transfer venue. The trial court denied Foster’s motion for summary judgment on Mariner’s promissory estoppel claim because it found that, while no enforceable contract right existed, there was “some evidence of a promise made and reliance upon that promise to [Mariner’s] detriment.”

1. Preliminarily, we note that in both cases Mariner’s counsel has repeatedly failed to provide adequate citation to the record, frequently referring to spans of 100 to 200 pages as the source for specific quotes upon which it relies. References to the record in briefs should contain specific page numbers. 3 We caution Mariner’s counsel that our rules “are designed to facilitate the consideration of enumerated errors, and . . . compliance with such rules is not optional.” 4 Future violations of the Court’s rules may result in sanctions. 5

Case No. A06A0775

2. Mariner challenges the trial court’s holding that it could not enforce a right of first refusal. Mariner contends that when the leases were extended beginning in April 2003, Foster agreed that the terms *409 and conditions of the leases would continue in force so long as the parties continued to negotiate. Mariner bases its argument on (1) comments made by Foster’s representative relating to the March 2003 negotiations to the effect that negotiations would continue as long as Mariner continued to pay rent, and (2) on a letter relating to the lease extension stating that “[a]ll other terms and conditions of the above-referenced Leases shall continue in full force and affect [sic].” But none of this evidence, even when viewed in a light most favorable to Mariner, contains a specific time frame. And, assuming there was an extension of the leases, it terminated on September 30, 2003. Any lease beyond that time was, at best, an oral agreement for an indefinite period of time, hence unenforceable. 6 Under Georgia law, “[w]here no time is specified for the termination of a tenancy, the law construes it to be a tenancy at will.” 7 The trial court properly concluded that in December 2003, no written lease agreement for a specific time period governed the relationship between Mariner and Foster, and that Mariner was a tenant at will. 8

“ ‘One who is a tenant at will by virtue of his holding over after the expiration of the term of his lease holds the premises subject to the general terms and conditions specified in the lease, except so far as modified by mutual agreement.’ ”

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Bluebook (online)
634 S.E.2d 162, 280 Ga. App. 406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mariner-healthcare-inc-v-foster-gactapp-2006.