Pearson v. Henrickson

983 S.W.2d 419, 336 Ark. 12, 1999 Ark. LEXIS 6
CourtSupreme Court of Arkansas
DecidedJanuary 7, 1999
Docket98-918
StatusPublished
Cited by33 cases

This text of 983 S.W.2d 419 (Pearson v. Henrickson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pearson v. Henrickson, 983 S.W.2d 419, 336 Ark. 12, 1999 Ark. LEXIS 6 (Ark. 1999).

Opinion

Annabelle Clinton Imber, Justice.

This is an appeal from an award of to the tenant in an unlawfuldetainer action. The trial court ruled that the surrender of the leased premises by the tenant-defendants, the Henricksons, to the landlord-plaintiff, Mr. Pearson, pursuant to a consent order did not preclude the Henricksons from claiming damages for loss of their leasehold interest. The jury returned a verdict in favor of the Henricksons, and awarded them $13,525.00 in damages. Mr. Pearson then filed a motion for á new trial on grounds that the award was excessive, contrary to the law, and against the preponderance of the evidence. The motion was deemed denied pursuant to Ark. R. App. P. — -Civ. 4(c). On appeal, Mr. Pearson contends that the trial court erred when it instructed the jury that they could award damages for loss of leasehold interest and when it denied his motion for a new trial. We affirm.

In late 1991, Joseph and Mary Ann Henrickson leased a building from Tom Pearson for the purpose of opening a coffee house and framing gallery. The term of the lease was from October 1, 1991 to September 30, 1994, with the rent initially set at $800.00 per month for the first year, $1,000.00 per month for the second year, and then $1,100.00 per month for the third and final year of the lease. The lease agreement required the Henricksons to make certain substantial repairs to the interior of the building in exchange for a waiver of the deposit and the first three months’ rent. The agreement also obligated Mr. Pearson to repair the roof and exterior of the building, and to provide and install air conditioning equipment in “good and operable condition.”

Both parties proceeded with the repairs and renovations contemplated in the lease agreement. However, prior to opening the coffee house in February of 1992, the Henricksons experienced problems with the repairs undertaken by Mr. Pearson. Specifically, the roof leaked and the air conditioner failed to work properly. Water ran down the walls of the coffee house and onto the tables and floor, damaging art displayed for sale and prompting complaints by customers. When the summer months arrived, the temperature exceeded 100 degrees for the entire month of July, causing food to spoil. The Henricksons notified Mr. Pearson about these problems. Although there is some dispute as to when and what repairs were subsequently undertaken, the water and air conditioning problems were never remedied while the Henricksons were tenants.

On June 2, 1993, the Henricksons were served with a notice to vacate, which stated that they were in breach of their lease for failure to pay rent and late charges. The Henricksons refused to vacate, asserting that they were still paying monthly rent and that no late charges had ever been assessed. On July 26, 1993, Mr. Pearson filed a complaint for possession of the premises and for past-due rent and late charges. After the Henricksons were served with the complaint and with an intent to issue a writ of possession, they counterclaimed for damages to foodstuffs, artwork, art supplies, for loss of business income, and for loss of value to their leasehold interest. On September 10, 1993, the parties entered into a consent order, whereby the Henricksons agreed to vacate the premises. The consent order specifically stated that its entry “shall not be reflective as to the ultimate remaining issues of the Plaintiffs Complaint . . . and to the issues contained in the Defendant’s Answer and Counterclaim.”

At the trial, Ms. Henrickson testified that she and her husband expended over $14,000.00 on repairs to the interior and courtyard of the building. She testified that her framer, who was paying her rent, quit because of the water leaks and the lack of air conditioning. During her testimony, photographs were admitted into evidence that showed the condition of the leased premises both before and after the repairs, along with a videotape that depicted the damage caused by water leaking from the air conditioner and the roof. Ms. Henrickson also testified that they were claiming $600.00 for damaged posters and loss to foodstuffs.

The jury was instructed that the Henricksons were claiming two elements of damage in their counterclaim for wrongful eviction: (1) damage to foodstuffs, artwork, and art supplies; and (2) the loss of value to their leasehold interest. The trial court also instructed the jury that the amount expended by the Henricksons to prepare the leasehold for occupancy was not to be considered as the measure of damages, but that the jury could consider that amount in determining the value of the remaining leasehold interest. The jury returned a verdict in favor of the Henricksons on their counterclaim for wrongful eviction against Mr. Pearson, with an award of $13,525.00 in damages.

Mr. Pearson’s first point on appeal is that the trial court erred when it instructed the jury that they could consider loss of leasehold interest as an element of the damages claimed by the Henricksons. Mr. Pearson argues that the Henricksons waived this element of damages by voluntarily surrendering the premises and their leasehold interest. In response, the Henricksons contend that the consent order specifically preserved their claim for loss of leasehold interest and, further, that the leasehold was involuntarily surrendered under threat of legal process. We agree.

The consent order stipulated that its entry would not reflect on the issues “contained in the Defendant’s Answer and Counterclaim.” In their counterclaim, the Henricksons alleged that Mr. Pearson’s actions constituted wrongful eviction, causing damage to their “leasehold interest and the value of their lease.” Thus, the consent order was a specific reservation of their right to claim damages to their leasehold interest. Mr. Pearson’s argument that the Henricksons waived any right to damages for loss of leasehold interest is clearly not supported by the terms of the consent order. In Ingram v. Wirt, 314 Ark. 553, 864 S.W.2d 237 (1993), we defined waiver as:

[V] oluntary abandonment or surrender by a capable person of a right known by him to exist, with the intent that he shall forever be deprived of its benefits. It may occur when one, with full knowledge of material facts, does something which is inconsistent with the right or his intention to rely upon that right. The relinquishment of the right must be intentional.

(citing Continental Ins. Cos. v. Stanley, 263 Ark. 638, 569 S.W.2d 653 (1978)). The Henricksons did not abandon their leasehold rights with the intent to be forever deprived of their benefit. Rather, they specifically reserved those rights according to the express terms of the consent order. We, therefore, conclude that the Henricksons did not waive their right to recover damages for loss of value to their leasehold interest.

Additionally, when a tenant surrenders a premises under the threat of legal process already issued, that surrender will not be considered voluntary. See Woods v. Kirby, 238 Ark. 382, 382 S.W.2d 4 (1964); Fleming v. Cooper, 224 Ark. 10, 271 S.W.2d 772 (1954). Here, the Henricksons agreed to the consent order in the face of imminent eviction and a pending lawsuit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

John M. Davis v. Ed Hickman, P.A., and Travelers Insurance Co.
2020 Ark. App. 188 (Court of Appeals of Arkansas, 2020)
KW-Dw Props., LLC v. Ark. State Highway Comm'n
2019 Ark. 95 (Supreme Court of Arkansas, 2019)
Thy N. Tran v. Thi T. Vo
2017 Ark. App. 618 (Court of Appeals of Arkansas, 2017)
R&L Carriers Shared Services, LLC v. Markley
2017 Ark. App. 240 (Court of Appeals of Arkansas, 2017)
Smith v. Hopper
2015 Ark. 210 (Supreme Court of Arkansas, 2015)
Hartman v. Edwards
2014 Ark. App. 480 (Court of Appeals of Arkansas, 2014)
Ford Motor Co. v. Washington
2013 Ark. 510 (Supreme Court of Arkansas, 2013)
D & D Parks Construction Co. v. Martin
414 S.W.3d 402 (Court of Appeals of Arkansas, 2012)
Delta Regional Airport Authority v. Gunn
386 S.W.3d 693 (Court of Appeals of Arkansas, 2011)
Williams v. State
2010 Ark. 89 (Supreme Court of Arkansas, 2010)
Lamar Advantage Holding Co. v. Arkansas State Highway Commission
253 S.W.3d 914 (Supreme Court of Arkansas, 2007)
Waste Management of Arkansas, Inc. v. Roll Off Service, Inc.
199 S.W.3d 91 (Court of Appeals of Arkansas, 2004)
South Central Arkansas Electric Cooperative v. Buck
117 S.W.3d 591 (Supreme Court of Arkansas, 2003)
Wal-Mart Stores, Inc. v. Tucker
120 S.W.3d 61 (Supreme Court of Arkansas, 2003)
Jag Consulting v. Eubanks
72 S.W.3d 549 (Court of Appeals of Arkansas, 2002)
Cadillac Cowboy, Inc. v. Jackson
69 S.W.3d 383 (Supreme Court of Arkansas, 2002)
Tyson Foods, Inc. v. Davis
66 S.W.3d 568 (Supreme Court of Arkansas, 2002)
J.E. Merit Constructors, Inc. v. Cooper
44 S.W.3d 336 (Supreme Court of Arkansas, 2001)
Moore v. Pulaski County Special School District
43 S.W.3d 204 (Court of Appeals of Arkansas, 2001)
Fewell v. Pickens
39 S.W.3d 447 (Supreme Court of Arkansas, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
983 S.W.2d 419, 336 Ark. 12, 1999 Ark. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pearson-v-henrickson-ark-1999.