MeadWestvaco Corp. v. Worcester New Bond LLC

25 Mass. L. Rptr. 364
CourtMassachusetts Superior Court
DecidedJanuary 6, 2009
DocketNo. 070921BLS2
StatusPublished

This text of 25 Mass. L. Rptr. 364 (MeadWestvaco Corp. v. Worcester New Bond LLC) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MeadWestvaco Corp. v. Worcester New Bond LLC, 25 Mass. L. Rptr. 364 (Mass. Ct. App. 2009).

Opinion

Fabricant, Judith, J.

This action arises from a dispute over a commercial lease. The plaintiff tenant, MeadWestvaco Corporation, terminated the lease, contending that it had the right to do so because of the landlord’s failure to maintain the roof.2 It seeks damages resulting from roof defects, as well as damages based on certain allegedly improper charges. MeadWestvaco has also joined its sub-tenant, Rand Whitney Industries Corporation, seeking, in substance, indemnification in the event that Rand Whitney’s continued occupancy subjects MeadW-estvaco to liability for holdover rent. The defendant landlord, Worcester New Bond, LLC,3 contends that the roof was adequately maintained, that the tenant had no right to terminate and acted in bad faith in purporting to do so, that the charges were proper, and that the tenant has waived any claim for improper charges; it seeks a declaration that the lease remains in effect, damages for the tenant’s failure to pay rent, and other relief. Before the Court are the landlord’s motion for summaiy judgment on all MeadWestvaco’s claims and on certain of its counterclaims; MeadWestvaco’s motion for summaiy judgment on certain of each side’s claims; and Rand Whitney’s motion for summary judgment on all claims against it. For the reasons that will be explained, the landlord’s motion will be allowed in part and denied in part; MeadWestvaco’s motion will be denied; and Rand Whitney’s motion will be allowed.

BACKGROUND 1. The Roof

The premises in issue consists of 151,519 square feet of space in an old warehouse-type building located at 10 New Bond Street in Worcester.4 Through its predecessor, MeadWestvaco entered into the lease in 2000, for a ten-year period ending in 2010. Inspections prior to the lease identified issues related to the roof, as well as other conditions in the building, and the lease contained provisions to address those issues.

The lease provided, in article III, that the landlord would “perform certain work and improvements” prior [366]*366to the commencement date of the lease, and that no rent would be due until sixty days after the commencement date, defined in article 3.2 as “the date the Landlord’s Work shall be deemed by the Tenant substantially complete.” Under article 3.4, the tenant would be entitled to inspect the work on the commencement date, and “except to the extent to which the Tenant shall have given the Landlord notice as to the respects in which the Landlord has not performed Landlord’s Work or in which the Premises are unacceptable, which notice shall be given by Tenant to landlord within sixty (60) days following the Commencement Date, Tenant shall have no claim that the landlord has failed to perform any of Landlord’s Work or regarding the condition of the Premises on the Commencement Date. As of the Commencement Date, Tenant shall be deemed to have accepted the Premises in their ”as is" condition . . . except for any punch-list items remaining to be completed and any items identified in the sixty (60) day period following the Commencement Date."

The work to be done, set forth on Exhibit C to the lease, included among other items “Landlord to repair or replace existing roof as required to provide weather tight roof.” In addition to the work to be done at the outset, the lease provided at article 7.1 that the landlord would be responsible “to keep in good order, condition and repair the roof’ and specified other portions of the building. The inner surface of the ceiling and other inner portions of the space were the tenant’s responsibility.

The lease provides at article 3.2 for a term of ten years from the commencement date, unless extended under certain provisions, or “sooner terminated as herein provided.” At article 6.2, the lease gives the landlord the right to terminate if the tenant requests to sublet more than -fifty percent of the premises. Under articles 13.2 and 13.3, either the tenant or the landlord would have the right to terminate in the event of fire or other casualty causing damage that could not be repaired within 90 days or eminent domain taking that would prevent the tenant from conducting its business. Under article 14.1, the landlord has the right to terminate, and to reclaim possession, in the event of various specified defaults by the tenant. Article 14.2 addresses default by the landlord; it provides that the landlord is not in default unless it has failed to cure within a reasonable time after notice from the tenant. Article 14.2 is silent as to what if any remedies the tenant may have for default by the landlord. Article 15.5, entitled “Limitation of Liability,” provides that, “In no event shall Landlord ever be liable to Tenant, or Tenant liable to Landlord, for any indirect, special or consequential damages suffered by either from whatever cause.”

MeadWestvaco is in the business of manufacturing envelopes. The lease recited at article 1.3 that it would use the space for “envelope making, printing and packaging operations, general office use and as a warehouse and distribution center.” MeadWestvaco built out part of the space for office use and part for warehouse and manufacturing use. Effective May 1, 2000, it notified the landlord of its acceptance of the space pursuant to article 3.2, and the lease term commenced on that date. MeadWestvaco offers evidence, however, that shortly thereafter it notified the landlord of puddles on the floor that it attributed to roof leaks. The parties offer conflicting evidence as to whether MeadWestvaco informed the landlord of any roof problems over the next three-year period.

In 2002, after the merger between Mead and Westvaco, MeadWestvaco shut down its manufacturing operation at the site, and initiated efforts to sublease portions of the space that it was not using. It notified the landlord of its intention to sublease more than fifty percent of the space, but the landlord did not elect to terminate.

In August 2003, leaking damaged portions of an office area, although the landlord offers evidence to suggest that the leaking at that time may have resulted from work MeadWestvaco had done in the building. Shortly thereafter, MeadWestvaco sent the landlord a notice of default, dated September 25, 2003, asserting that “the failure of the Landlord to keep the roof of the Premises in good order, condition, and repair . . . constitutes a material default.” The letter claimed that the tenant had suffered damages to its inventory and other property, interference with its operations, and interference with its ability to sublease. Thereafter, the landlord made various repairs; the parties offer evidence that would support conflicting inferences as to extent of the problem, the scope of the repairs performed, and their effect.

In October 2003, MeadWestvaco entered into a sublease with Rand Whitney for 30,000 square feet. The sublease included a provision that MeadWestvaco would not be responsible for any claims for damage to the sub-tenant’s property “by reason of roof leaks or any other condition.” At the same time, MeadWestvaco provided a certification of its belief that the landlord “is not in default of any of its obligations under the lease,” subject to completion of certain roof repairs. In June 2004, the sublease was expanded to encompass some 80,000 square feet. Rand Whitney renewed the sublease in January of 2007, for a term coextensive with the lease. Rand Whitney continues to occupy the sub-leased portion of the premises and to conduct its business of cardboard and paper processing and storage there, and continues to pay rent under its sublease.5

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Cite This Page — Counsel Stack

Bluebook (online)
25 Mass. L. Rptr. 364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meadwestvaco-corp-v-worcester-new-bond-llc-masssuperct-2009.