Primo's, Inc. v. Clayton Common Associates, Ltd.

398 S.E.2d 231, 197 Ga. App. 286, 1990 Ga. App. LEXIS 1244
CourtCourt of Appeals of Georgia
DecidedSeptember 28, 1990
DocketA90A0786
StatusPublished
Cited by3 cases

This text of 398 S.E.2d 231 (Primo's, Inc. v. Clayton Common Associates, Ltd.) 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
Primo's, Inc. v. Clayton Common Associates, Ltd., 398 S.E.2d 231, 197 Ga. App. 286, 1990 Ga. App. LEXIS 1244 (Ga. Ct. App. 1990).

Opinion

McMurray, Presiding Judge.

Plaintiff Clayton Common Associates, Ltd., brought suit against Primo’s, Inc., Primo’s Partners, Ltd. and Dean O. Webb in the State Court of Gwinnett County. In its compliant, plaintiff alleged that on or about February 10, 1986, plaintiff, as landlord, entered into a written lease agreement with Magnetic Food Enterprises, Inc., as tenant, for the rental of certain premises in the Clayton Commons Shopping Center; that, thereafter, defendant Primo’s, Inc. purchased the assets and liabilities of Magnetic Food Enterprises, Inc. and succeeded to all of the rights and obligations of Magnetic Food Enterprises, Inc. as a tenant under the lease; that, on October 30, 1987, defendant Primo’s, Inc. assigned all of its “right, title, interest and obligations” under the lease to defendant Primo’s Partners, Ltd. pursuant to a written “assignment to lease”; that under the terms of the assignment, defendant Primo’s, Inc. remained liable for the performance of the lease in the event of default by defendant Primo’s Partners Ltd.; that defendant Dean 0. Webb, general partner of defendant Primo’s Partners, Ltd. personally guaranteed the partnership’s performance under the lease; that the lease was in default and the rent was in arrears and plaintiff made demand for payment of the rent upon all of the defendants; that no such payments were made; and that defendants were liable to plaintiff for rent, attorney fees and expenses of litigation.

A copy of the lease between plaintiff and Magnetic Food Enterprises, Inc. was attached to the complaint. It had an effective date of March 1, 1986, and a five-year term.

A copy of the “assignment of lease” was also attached to the complaint. It was signed by plaintiff, as “landlord,” defendant Primo’s, Inc., as “assignor,” defendant Primo’s Partners, Ltd., as “assignee,” and defendant Webb, as “guarantor.”

In pertinent part, the assignment provided: “WHEREAS, Landlord and Assignor’s predecessor in title and interest, Magnetic Food Enterprises, Inc., did execute that certain lease dated February 10, 1986 . . . and WHEREAS, Assignor did thereafter purchase and acquire all of the assets and liabilities of Magnetic Food Enterprises, Inc., and did succeed to all of the right, title, interest and obligations of Magnetic Food Enterprises, Inc. as Tenant under the Lease, and WHEREAS, Assignor wishes to assign his rights and obligations under the Lease to Assignee which Assignment requires Landlord’s [287]*287consent, NOW THEREFORE, . . . [for good and valuable consideration], the parties agree to the Assignment of the Lease subject to the following terms and conditions: 1. Subject to the terms and conditions hereinafter provided, Assignee has read and understood the Lease Agreement and hereby agrees to assume all of Assignor’s duties and obligations under the Lease and agrees to attorn to Landlord. In consideration of Assignee’s assumption of all of Assignor’s duties and obligations under the Lease, Assignor hereby agrees to assign to Assignee all of his right, title and interest in and to the Lease. 2. In consideration of Assignee’s assumption of all of Assignor’s duties and obligations under the Lease, Landlord hereby consents to the Assignment to Assignee of all of Assignor’s right, title and interest in and to the Lease. 3. The Lease shall remain in full force and effect and Landlord and Assignor hereby ratify and approve the same. . . . 5. This assignment shall not in any way diminish the liability of Assignor in event of default by Assignee.”

Defendants answered the complaint separately, denying they were indebted to plaintiff. Additionally, defendant Primo’s, Inc. counterclaimed against plaintiff and cross-claimed against the other defendants separately.

Both plaintiff and defendant Primo’s, Inc. moved for summary judgment upon the main claim. The record contains three affidavits pertaining to that claim, to wit: The affidavits of Richard E. Tiede, Ferris M. Anthony and J. Alan Breus.

Tiede is plaintiff’s property manager. In his affidavit, he identified copies of the lease and the assignment of the lease attached to the complaint as true and correct copies. He testified that defendant Primo’s, Inc. and defendant Primo’s Partners, Ltd. consecutively leased plaintiff’s premises; that defendant Primo’s, Inc. leased plaintiff’s premises by assuming the lease of Magnetic Food Enterprises, Inc., a previous tenant; that, thereafter, defendant Primo’s, Inc. assigned its right, title and interest in the lease to defendant Primo’s Partners, Ltd.; that defendant Dean O. Webb personally guaranteed payment of the lease when it was assigned to defendant Primo’s Partners, Ltd.; and that, in mid-April 1988, defendant Primo’s Partners, Ltd. abandoned plaintiff’s premises and failed to make payments under the lease. Tiede further testified that plaintiff made demand upon all defendants for payment pursuant to the terms of the lease and assignment; that no such payments were made; and that, at that time, $46,776.71 plus attorney fees and expenses of litigation was due and owing under the lease.

Anthony is president of defendant Primo’s, Inc. In his affidavit, he testified that in late 1986 or early 1987 defendant Primo’s, Inc. operated a pizza restaurant and delivery unit on plaintiff’s premises; that, previously, the space was occupied by Frank Vardaros who, op[288]*288erating as Magnetic Food Enterprises, Inc., ran a pizza restaurant and delivery unit on the premises and, in fact, had become a limited licensee of defendant Primo’s, Inc.; that he learned that Vardaros had ceased or was about to cease operations at plaintiff’s premises and, therefore, he spoke with plaintiff about the possibility of operating a pizza unit in the space which Vardaros occupied; that defendant Primo’s, Inc. was apprehensive about operating a pizza restaurant and delivery unit upon premises where a previous pizza business failed; and that, therefore, defendant Primo’s, Inc. and plaintiff agreed that defendant Primo’s, Inc. would lease plaintiff’s premises on a month-to-month trial basis with the opportunity of negotiating a long-term lease in the future if the parties were mutually satisfied with the tenancy of defendant Primo’s, Inc. Anthony further testified that defendant Primo’s, Inc. did not purchase or acquire the assets of Magnetic Food Enterprises, Inc.; that defendant Primo’s, Inc. did not succeed to any rights or obligations under the lease between plaintiff and Magnetic Food Enterprises, Inc.; that no agent of defendant Primo’s, Inc. even saw the lease between plaintiff and Magnetic Food Enterprises, Inc. until it was served with the complaint; that defendant Primo’s, Inc. would never assume a lease it had not seen inasmuch as its attorney thoroughly reviews and negotiates every prospective lease; that during the latter part of 1987 defendant Primo’s, Inc. twice contacted plaintiff seeking a long-term lease covering the premises; that plaintiff indicated such a lease would be prepared; but that no such lease was ever executed by plaintiff and defendant Primo’s, Inc.

Anthony further testified that in September 1987 defendant Primo’s, Inc. notified plaintiff that it intended to sell the pizza unit to defendant Webb or some entity with which he was associated; that any lease would have to be negotiated between plaintiff and the new owner; and that defendant Primo’s, Inc. was not requiring the new owner to operate the business at plaintiff’s premises. Regarding the language of the assignment, Anthony testified (1) that at the closing of the sale of the pizza unit, counsel for defendant Webb told him that “such document basically was intended to preclude Primo’s, Inc.

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Bluebook (online)
398 S.E.2d 231, 197 Ga. App. 286, 1990 Ga. App. LEXIS 1244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/primos-inc-v-clayton-common-associates-ltd-gactapp-1990.