Noroton Heights Shopping Center, Inc. v. Phil's Grill, LLC

CourtConnecticut Appellate Court
DecidedSeptember 7, 2021
DocketAC44042
StatusPublished

This text of Noroton Heights Shopping Center, Inc. v. Phil's Grill, LLC (Noroton Heights Shopping Center, Inc. v. Phil's Grill, LLC) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noroton Heights Shopping Center, Inc. v. Phil's Grill, LLC, (Colo. Ct. App. 2021).

Opinion

*********************************************** The “officially released” date that appears near the be- ginning of each opinion is the date the opinion will be pub- lished in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the be- ginning of all time periods for filing postopinion motions and petitions for certification is the “officially released” date appearing in the opinion.

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The syllabus and procedural history accompanying the opinion as it appears in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be reproduced and distributed without the express written permission of the Commission on Official Legal Publica- tions, Judicial Branch, State of Connecticut. *********************************************** NOROTON HEIGHTS SHOPPING CENTER, INC. v. PHIL’S GRILL, LLC (AC 44042) Prescott, Moll and Lavery, Js.

Syllabus

The plaintiff landlord brought a summary process action seeking to gain possession of certain property in a shopping center occupied by the defendant tenant pursuant to the parties’ commercial lease. The lease contained a relocation clause, which provided the plaintiff with the ability to require the defendant to vacate the property upon the offer of reasonably similar substitute premises, and to terminate the lease if the defendant refused the substitute location, should the plaintiff elect to redevelop the property. The relocation clause further provided that the plaintiff would be responsible for furnishing the substitute premises and that the defendant would be responsible for performing work in the substitute premises to prepare it for prompt occupancy. After the planning and zoning commission approved the plaintiff’s plan for rede- velopment of the shopping center, the plaintiff sent a substitution notice to the defendant, including plans showing the proposed substitute prem- ises, which had not yet been built. The defendant did not receive this notice and did not become aware of it until more than one year later, at which point the plaintiff informed the defendant that it had waived its relocation rights by not responding to the substitution notice. There- after, the plaintiff served the defendant with a notice to quit and filed the summary process action. The trial court found that the defendant had refused to negotiate with the plaintiff and violated the express language of the lease by refusing to act in good faith with the plaintiff’s relocation plan, and it rendered a judgment of immediate possession for the plaintiff. On appeal, the defendant claimed that the court improperly interpreted the lease’s relocation clause. Held that the trial court’s find- ing that the defendant breached the lease by violating the terms of the relocation clause was clearly erroneous: the language of the relocation clause was clear and unambiguous and provided that the plaintiff was permitted to terminate the lease pursuant to the relocation clause only if the defendant refused to relocate to the substitute premises after receiving valid notice from the plaintiff, and no language in the relocation clause required the defendant to negotiate the terms of relocation or to accept or to reject, in writing, proposed substitute premises before it was built; moreover, the relocation clause implicitly provided that the substitute premises was required to be in existence as a condition precedent to the plaintiff’s ability to give the defendant a valid notice of substitution, as an interpretation to the contrary would yield absurd results because the defendant could be required to quit possession of the property and close its business for an indefinite period of time while the substitute premises was constructed and waive its ability to seek damages from the plaintiff for lost profits during that period, which contradicted the clear terms of an amendment to the lease providing that the plaintiff would reasonably cooperate with the defendant and, in good faith, minimize any material or adverse impact of its redevelop- ment on the conduct of the defendant’s business; furthermore, the notice of substitution that the plaintiff provided to the defendant was not valid, as it was undisputed that the substitute premises had not been constructed at the time that the notice of substitution was issued, thus, a condition precedent to issuing a valid notice of substitution was not fulfilled, and the defendant’s duty to perform under the relocation clause was never triggered. Argued May 10—officially released September 7, 2021

Procedural History

Summary process action, brought to the Superior Court in the judicial district of Stamford-Norwalk, Housing Session at Norwalk, and tried to the court, Spader, J.; judgment for the plaintiff, from which the defendant appealed to this court. Reversed; judgment directed. Scott C. DeLaura, for the appellant (defendant). Abram Heisler, for the appellee (plaintiff). Opinion

LAVERY, J. In this summary process action, the defendant tenant, Phil’s Grill, LLC, appeals from the trial court’s judgment of possession rendered in favor of the plaintiff landlord, Noroton Heights Shopping Cen- ter, Inc. On appeal, the defendant claims that the trial court was incorrect in finding that the defendant vio- lated the relocation clause of a commercial lease exe- cuted by the parties. We agree with the defendant and, accordingly, reverse the court’s judgment of immediate possession in favor of the plaintiff. The following facts and procedural history are rele- vant to this appeal. The plaintiff is the owner of Noroton Heights Shopping Center (shopping center) in Darien. On November 12, 2010, the plaintiff entered into a com- mercial lease with the defendant for retail space (demised premises) located within the shopping center. The lease was for an initial term of five years, commenc- ing on October 1, 2010, and continuing through Septem- ber 30, 2015, and contained three renewal options. At the time the lease was entered into, the plaintiff was contemplating the redevelopment of the shopping cen- ter. As a result, the lease contained a relocation clause. Subsection A of the relocation clause provides in rele- vant part that ‘‘[t]he Landlord may, at its option, before or after the Commencement Date, and during any option renewal period pursuant to Section 40 hereof, elect by notice to the Tenant to require the Tenant to vacate and surrender the Demised Premises, and to substitute for the Demised Premises other reasonably similar space elsewhere in the Shopping Center (the ‘Substitute Premises’) designated by the Landlord (pro- vided that the Substitute Premises contains at least the same square foot area as the Demised Premises) and to move the Tenant to the Substitute Space. Landlord’s notice shall be accompanied by a plan of the Substitute Premises, which such notice shall set forth the square foot area of the Substitute Premises. The Tenant shall vacate and surrender the Demised Premises and shall occupy the Substitute Premises promptly (and in any event not later than fifteen [15] days after the Landlord has substantially completed any work to be performed in the Substitute Premises pursuant to [subsection] B hereof). . . .

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Bluebook (online)
Noroton Heights Shopping Center, Inc. v. Phil's Grill, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noroton-heights-shopping-center-inc-v-phils-grill-llc-connappct-2021.