Marwood Corporation v. Janesville Spatz Limited Partnership (Registered Name)

CourtCourt of Appeals of Wisconsin
DecidedApril 16, 2020
Docket2019AP001408
StatusUnpublished

This text of Marwood Corporation v. Janesville Spatz Limited Partnership (Registered Name) (Marwood Corporation v. Janesville Spatz Limited Partnership (Registered Name)) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marwood Corporation v. Janesville Spatz Limited Partnership (Registered Name), (Wis. Ct. App. 2020).

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. April 16, 2020 A party may file with the Supreme Court a Sheila T. Reiff petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2019AP1408 Cir. Ct. No. 2018SC2876

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT IV

MARWOOD CORPORATION AND GLORIA WOODMAN SURVIVOR’S TRUST, JEFFREY WOODMAN, TRUSTEE,

PLAINTIFFS-APPELLANTS,

V.

JANESVILLE SPATZ LIMITED PARTNERSHIP (REGISTERED NAME) A/K/A JANESVILLE ASSOCIATES LIMITED PARTNERSHIP (PARTNERSHIP NAME),

DEFENDANT-RESPONDENT.

APPEAL from an order of the circuit court for Rock County: KARL HANSON, Judge. Affirmed. No. 2019AP1408

¶1 FITZPATRICK, P.J.1 Marwood Corporation and the Gloria Woodman Survivor’s Trust, by its trustee, Jeffrey Woodman (which will be referred to collectively as “Marwood”), appeal an order of the Rock County Circuit Court denying Marwood’s motion for summary judgment on Marwood’s eviction claim against Janesville Spatz Limited Partnership (“Spatz”) and granting Spatz’s request on summary judgment that Marwood’s eviction claim be dismissed.2 The circuit court determined that Marwood is equitably estopped from asserting its eviction claim against Spatz.

¶2 I affirm the circuit court’s summary judgment order, but for a reason different than that given by the circuit court. I conclude that Marwood’s eviction claim fails because Marwood was required to provide to Spatz a notice of default

1 This appeal is decided by one judge pursuant to WIS. STAT. § 752.31(2)(a) (2017-18). All references to the Wisconsin Statutes are to the 2017-18 version unless otherwise noted. 2 Marwood asserted claims against Spatz for breach of contract and unjust enrichment. Those claims were also dismissed by the circuit court. Marwood does not challenge on appeal the dismissal of its unjust enrichment claim. See State v. Allen, 2004 WI 106, ¶26 n.8, 274 Wis. 2d 568, 682 N.W.2d 433 (stating that an issue not argued is forfeited). Marwood does, however, assert that the circuit court erred by dismissing the breach of contract claim, but fails to develop a separate argument explaining why dismissal of that claim was an error. Assertions that are not supported by reasons or legal authority will not be decided on appeal. State v. Pettit, 171 Wis. 2d 627, 646-47, 492 N.W.2d 633 (Ct. App. 1992) (appellate courts do not decide issues that are inadequately briefed). Accordingly, I do not address whether those two claims were properly dismissed on summary judgment and will not mention those claims again.

In addition, Spatz sought on summary judgment a declaration by the circuit court as to: (1) the amount presently owing to Marwood under the terms of the lease agreement between the two parties; and (2) the monthly rent rate for the leased premises as of July 20, 2018. The circuit court denied Spatz’s request that the court determine the total amount owing under the parties’ lease, but granted the motion as to the determination of the rental rate as of July 20, 2018. Following the circuit court’s summary judgment ruling, the parties reached an agreement regarding the amount owing from Spatz, and Spatz withdrew its request for a declaration by the court concerning the amount of unpaid rent. The court’s summary judgment rulings as to those issues are not challenged on appeal.

2 No. 2019AP1408

to terminate the tenancy pursuant to WIS. STAT. § 704.17(3)(a), but failed to provide proper notice under that statute.

BACKGROUND

¶3 The following material facts are taken from the summary judgment submissions of the parties and are not in dispute.

¶4 In August 1994, Lawrence Woodman, Gloria Woodman, and Marwood Corporation (those two persons and that corporation will be referred to collectively as “the Lessors”) entered into a lease with Spatz3 for a parcel of real estate located in Janesville. The Lessors leased the real estate to Spatz for a period of twenty years. According to the terms of the lease, the lease automatically extended for eight consecutive five-year periods.

¶5 The lease specifies annual rent, to be paid in equal monthly installments, for the first ten years of the lease.4 The lease provides that on October 1, 2004, and every five years thereafter, the initial annual base rate increases according to a formula specified in the lease. The formula uses the Consumer Price Index and is subject to a minimum and maximum increase. In addition to the annual base rate, Spatz agreed to pay as “additional monthly rent” a specified monthly amount for sewer costs.

¶6 The lease provides in paragraph 4 that “[t]he rent, and all other sums payable by [Spatz] … [under the lease] shall be paid without notice, demand,

3 More specifically, the Lessors entered into a lease with Janesville Associates Limited Partnership, which the parties agree is also known as Janesville Spatz Limited Partnership. 4 For convenience, I will refer this as the “initial annual base rate.”

3 No. 2019AP1408

counterclaim, set off, deduction or defense and without abatement, suspension, deferment, or reduction.” The lease also provides in paragraph 4 that “[a]ny rental payment not made by the tenth of the month shall be subject to a late fee of One Hundred Dollars ($100.00)” and that “[i]f more than two (2) payments per calendar year are more than ten (10) days late it may be considered an act of default by [the] Lessor[s] and [the] Lessor[s] shall have the right to terminate this Lease without further notice to [Spatz].”

¶7 The Lessors and Spatz disputed how much the initial annual base rate was to increase in October 2004, but later agreed on an amount. After the Lessors and Spatz agreed on that increased base rate amount, Spatz paid rent thereafter at that agreed-upon increase to the initial annual base rate until August 2018.

¶8 The second increase to the initial annual base rate was to take place on October 1, 2009. Spatz did not increase its monthly rent payments and, instead, continued to pay the annual base rate amount agreed to in 2004. The Lessors did not at that time demand an increase to the monthly rent payments paid by Spatz.

¶9 In February 2013, the parties entered into an “Addendum to Lease Agreement,” which increased the number of five-year lease extension periods from eight to nine, allowing Spatz to lease the property, potentially, until 2059. At the time the Addendum was entered into, neither party raised the issue of Spatz’s failure to increase its rental payments in 2009.

¶10 Another increase to the initial annual base rate was, according to the terms of the lease, to take place on October 1, 2014. Spatz did not increase its monthly rent payments at that time and continued to pay the rate agreed to in

4 No. 2019AP1408

October 2004. The Lessors did not at that time demand an increase in Spatz’s monthly rent payments.

¶11 Lawrence Woodman and Gloria Woodman are both deceased, and their interests in the leased property were transferred to trusts(s). 5 Following Gloria’s death, an audit of the lease with Spatz was undertaken as part of the accounting of the assets of the Gloria Woodman Survivor’s Trust. The audit revealed that Spatz had not increased the rental payments in 2009 or 2014 as required by the lease and, as a result, owed Marwood back rent.

¶12 On May 14, 2018, Marwood’s counsel sent a letter to Spatz.6 The May 14 letter stated in relevant part that an audit of the lease by Marwood had “revealed a substantial amount of back rent is due and owing” from Spatz.

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