Snyder v. Exum

315 S.E.2d 216, 227 Va. 373, 1984 Va. LEXIS 256
Supreme Court of Virginia·Decided April 27, 1984·No. Record 811674·Published·Cited by 14 cases

Opinion

THOMAS, J.,

delivered the opinion of the Court.

This appeal focuses upon the meaning of a rent acceleration clause in a written lease. We must first determine whether the clause is mandatory or optional. Once we resolve that question, we must then decide whether the lessor, in suing for rent from a defaulting lessee, was required, in light of the acceleration clause, to institute a single suit to collect all the rent at one time or whether he had the option to bring multiple suits to collect the rent as it accrued.

Harry L. Snyder owned an office building in Virginia Beach. On July 24, 1979, Snyder entered into a lease with Joseph L. Exum, Jr., and Jimmie R. Exum (collectively, “Exum”). The lease term was two years, beginning August 7, 1979, and ending August 7, 1981. Rent for the two-year term was $55,200, payable monthly, at the rate of $2,200 per month during the first year, and $2,400 per month during the second year.

*375 Exum abandoned the premises on February 26, 1980, having paid rent thereon through the end of that month. In July 1980, Snyder sued Exum for five months’ rent. The court entered judgment for Snyder on February 3, 1981.

Two days later, on February 5, 1981, Snyder again sued Exum. In this second suit, Snyder sought $28,800, which he alleged represented rent accrued since the first suit plus rent due for the balance of the lease term. Exum filed a demurrer on the ground that the acceleration clause in the lease provides that, upon default, the full amount due for the term of the lease immediately becomes due and payable. Exum alleged further that by failing to sue for the full amount of rent in the first suit, Snyder waived the balance of the rent and was thus barred from bringing a second suit. Exum submitted that to permit the second suit would amount to allowing Snyder to split a single cause of action into multiple parts in violation of well-settled principles. The trial court agreed with Exum, sustained the demurrer, and dismissed the suit. Finding the trial court’s conclusion to be correct, we will affirm its judgment.

The provision in the lease that is central to the resolution of this appeal reads in pertinent part as follows:

In the event of any . . . default by Lessee, all of the rent for the then current term of this lease shall become due and payable, whether or not such rent has accrued, and Lessor, Realtor, and their agents shall have the right to re-enter and resume possession of the property, ... to distrain for rent and also to re-let the property as agent for Lessee for any unexpired balance of the then current term and receive the rent arising from such re-letting. No such entry or re-letting shall constitute either a surrender or termination of this lease except at the option of Lessor or deprive Lessor of any other right, action, or proceeding for rent, possession, or damages by statute or otherwise.

(Emphasis added.) There is no dispute that Exum defaulted. The dispute centers on whether, upon such default, all the rent became due at once or whether it became due, piecemeal, at the discretion of the lessor. The trial court ruled that “the clear and explicit intention of the parties was set out in the lease” and that it was their intention that upon default all the rent became due at once. *376 The trial court thus concluded that the lessor did not have the option to sue for the rent in piecemeal fashion.

On brief and in oral argument, Exum submits that Snyder’s option argument requires the court to transform the word “shall” into the word “may.” Exum argues further that absent such a transformation, Snyder’s appeal must fail. We think Exum’s analysis of the task facing Snyder is accurate. Moreover, we think it significant that Snyder does not dispute Exum’s characterization; Snyder’s counsel admitted in oral argument that the lease does not state explicitly that the landlord has an option with regard to accelerating rent payments.

Despite the apparent difficulty facing Snyder, he contends he is justified in his position for two reasons. He argues first that as a general principle of landlord-tenant law “the invocation of the acceleration clause ... is optional at the decision of the landlord.” In support of this so-called general principle, he relies on comment K to § 12.1 of the Restatement (Second) Property, Landlord and Tenant (1977). Yet, in making this argument, he ignores express language in the Restatement that the guidelines stated therein are subject to the agreement of the parties. Subsections (2) and (3) of § 12.1, to which comment K relates, both begin as follows: “Except to the extent the parties to a lease validly agree otherwise. . . .” Here, whatever may be said for the Restatement, the parties, agreed otherwise. Thus, the trial court correctly focused its analysis upon the agreement of the parties instead of allowing itself to become sidetracked by Snyder’s arguments on the basis of principles that may or may not be general but which are, in this case, inapplicable.

In his second argument, Snyder contends that the last sentence of the acceleration clause gives him an option regarding acceleration of rent. We find no merit in this argument. That sentence makes no mention of the acceleration of rent. All it does is provide that, even if the lessor re-enters or re-lets the premises, the lessor will not forfeit his right to accelerated rent. This means that even if the lessor finds a new tenant he can still collect from the defaulting lessee all the rent provided for in the lease. * In our opinion, instead of giving Snyder an option regarding acceleration of rent, the last sentence of the provision underscores the intention *377 of the parties that where there is a default all the rent will immediately become due.

With regard to the question whether the provision was optional or mandatory, we conclude that the provision was written in clear and unequivocal language and that it means what it says: upon default all the rent, whether accrued or not, “shall become due and payable.” (Emphasis added.) This language is the language of command and was mandatory, not optional. Were we to reach a different conclusion we would have to distort reality and, in effect, make a new contract for the parties. This we will not do. See Wilson v. Holyfield, 227 Va. 184, 313 S.E.2d 396 (1984); Magann Corp. v. Electrical Works, 203 Va. 259, 264, 123 S.E.2d 377, 381 (1962). Thus, at the time Snyder filed his first suit the full amount of the rent was due.

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Snyder v. Exum, 315 S.E.2d 216, 227 Va. 373, 1984 Va. LEXIS 256 (Va. 1984).

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