South Highland Ltd. Partnership v. Southern Family Markets of Clanton, LLC

65 So. 3d 936, 2010 Ala. Civ. App. LEXIS 394, 2010 WL 5130633
CourtCourt of Civil Appeals of Alabama
DecidedDecember 17, 2010
Docket2090614
StatusPublished

This text of 65 So. 3d 936 (South Highland Ltd. Partnership v. Southern Family Markets of Clanton, LLC) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Highland Ltd. Partnership v. Southern Family Markets of Clanton, LLC, 65 So. 3d 936, 2010 Ala. Civ. App. LEXIS 394, 2010 WL 5130633 (Ala. Ct. App. 2010).

Opinion

BRYAN, Judge.

South Highland Limited Partnership (“the landlord”) appeals from a summary judgment in favor of Southern Family Markets of Clanton, LLC (“the tenant”). We affirm.

On October 27, 2007, the landlord sued the tenant, stating a claim that the tenant had breached a lease dated October 31, 1987 (“the 1987 lease”). 1 The landlord alleged that, in the 1987 lease, Joseph S. Bruno and Theresa L. Bruno had leased a building in a shopping center in Clanton (“the leased premises”) to Bruno’s, Inc. (“Bruno’s”), for the operation of a Food Fair grocery store; that the landlord had succeeded to the interests of Joseph S. Bruno and Theresa L. Bruno in the 1987 lease; that Bruno’s had assigned its interest in the lease to the tenant in 2005; and that, in 2006, the tenant had breached the 1987 lease by vacating the leased premises and ceasing to pay rent and other charges due under the 1987 lease.

Answering, the tenant denied that it had breached the 1987 lease. Thereafter, it moved for a summary judgment. In support of its motion, the tenant argued that the primary term of the 1987 lease had expired on May 31, 2003; that Bruno’s had not exercised the option granted it in the 1987 lease to extend its term for a five-year period expiring on May 31, 2008, because, the tenant said, the 1987 lease provided that Bruno’s was to exercise that option by sending the landlord written notice that it was exercising its option by certified mail eight months before the expiration of the primary term of the 1987 lease on May 31, 2008, and Bruno’s had not done so; that the 1987 lease contained a provision titled “Holding Over” that provided that, “[i]n the absence of any written agreement to the contrary, if Tenant should remain in occupancy of the demised premises after the expiration of the lease term, it shall so remain as a tenant from month to month” and that Bruno’s holding over after the expiration of the primary term of the 1987 lease had been on a month-to-month basis pursuant to that provision of the 1987 lease; that Bruno’s assignment of its interest in the 1987 lease to the tenant in 2005 constituted the assignment of its interest in a month-to-month tenancy; and that the tenant had not breached the 1987 lease in 2006 when it vacated the leased premises and ceased paying the rent and other charges due under the 1987 lease because it had given the landlord the notice required by the 1987 lease to terminate its month-to-month tenancy before vacating the leased premis *938 es and ceasing to pay the rent and other charges due under the 1987 lease.

Opposing the tenant’s motion, the landlord argued that the tenant was not entitled to a summary judgment because, the landlord said, a genuine issue of material fact existed regarding whether Bruno’s had exercised its option to extend the 1987 lease until May 31, 2008. The landlord argued that, because the 1987 lease stated that Bruno’s option to extend the 1987 lease “may be exercised by the Tenant giving to the Landlord a notice in writing at least eight (8) months before the expiration of the then current term” (emphasis added), rather than stating that it must be exercised in that manner, a genuine issue of material fact existed regarding whether Bruno’s had exercised its option to extend that 1987 lease in ways other than by a written notice sent by certified mail. The landlord further argued that testimony by its agent Scott Stanford established a genuine issue of material fact regarding whether Bruno’s, through its agent, Mark James, had exercised the option orally in a meeting between Stanford and James in April 2002. The landlord also argued that Stanford’s testimony and an internal Bruno’s e-mail that had been sent to the landlord by facsimile transmission in July 2002 established a genuine issue of material fact regarding whether Bruno’s had exercised its option to extend the 1987 lease by sending the landlord a copy of that internal e-mail. The landlord also argued that evidence establishing that Bruno’s had remained in possession of the leased premises after the expiration of the primary term of the 1987 lease and had continued to pay rent in the amount of $4.75 per square foot, the same rent it had paid before the expiration of the primary term of the 1987 lease, established the existence of a genuine issue of material fact regarding whether that conduct constituted an implied exercise of its option to extend the 1987 lease by Bruno’s. Finally, the landlord argued that evidence establishing that attorneys representing Bruno’s with respect to Bruno’s assignment of its interest in the 1987 lease to the tenant had sent a document titled “Landlord Estoppel Certificate” to the landlord for it to sign in 2005 established a genuine issue of material fact regarding whether Bruno’s had exercised its option to extend the 1987 lease.

With respect to his oral discussion with James in April 2002, Stanford testified:

“[THE TENANT’S COUNSEL] Q. Okay. So you met, talked about an extension in April of 2002 with Mark James, right?
“A. Yes.
“Q During that meeting in April of 2002 with Mark James, did he extend or attempt to extend the lease terms on behalf of Bruno’s, Inc.?
“A. Yes.
“Q. So, it’s your position here today that in that meeting in ApHl of 2002, Bruno’s, Inc., through its representative Mark James, agreed to extend the original tei"m of the lease; is that fair?
“A. Yes, as I recall.
“Q. Now, as I’m asking you these questions about the April face-to-face meeting with Mark James, I know you are referring to some notes to help, refresh your memory, right?
“A Correct.
“Q. And I’ve actually got a copy of those notes. And I’m going to mark them as Exhibit Number 12 to your deposition.
“(Defendant’s Exhibit No. 12 was marked for identification).
“And I’ve asked you whether or not Mark James, as the representative from Bruno’s, Inc., agreed to extend on behalf of Bruno’s, Inc., their term during that April 2002 meeting and you told me that he did, right?
*939 “A. Right.
“Q. Now, you looked at your notes before you answered that question. What part of your notes here that I have got now attached as Exhibit 12—
“A. The third bullet point.
“Q. Okay. And that bullet point I’m going to read it into the record. And if I read it wrong, you can tell me, okay?
“It says, ‘Met with Mark on 4.-23-02. Per Mark, they plan on renewing, no expansion, ivill upgrade to a Food World. Landlord to upgrade the entire center at that time. Rent to remain at $4-75 per square foot, and they would like us to pursue obtaining a traffic light with all parties contributing to the cost.’ That’s what that says?
“A. Correct.
“Q.

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Bluebook (online)
65 So. 3d 936, 2010 Ala. Civ. App. LEXIS 394, 2010 WL 5130633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-highland-ltd-partnership-v-southern-family-markets-of-clanton-llc-alacivapp-2010.