Stinson, Lyons, Gerlin & Bustamante, P.A. v. Brickell Building 1 Holding Co.

747 F. Supp. 1470, 1990 U.S. Dist. LEXIS 13009, 1990 WL 146764
CourtDistrict Court, S.D. Florida
DecidedSeptember 27, 1990
DocketNo. 89-2424-Civ
StatusPublished
Cited by2 cases

This text of 747 F. Supp. 1470 (Stinson, Lyons, Gerlin & Bustamante, P.A. v. Brickell Building 1 Holding Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stinson, Lyons, Gerlin & Bustamante, P.A. v. Brickell Building 1 Holding Co., 747 F. Supp. 1470, 1990 U.S. Dist. LEXIS 13009, 1990 WL 146764 (S.D. Fla. 1990).

Opinion

MEMORANDUM OPINION, FINDINGS OF FACT, AND CONCLUSIONS OF LAW

JAMES LAWRENCE KING, Chief Judge.

Plaintiffs filed this litigation on an emergency basis on October 30,1989, seeking to enjoin the defendants 1 from continuing a proposed $10,800,000 renovation of its fourteen-story high-rise professional office tower, located at 1401 Brickell Avenue, Miami, Florida.

In March of 1973, the Tenant Law Firm entered into the subject Lease with the Landlord for a period of ten years with two successive five-year options to renew. Effective June 1, 1988, the Tenant exercised its final option renewing the Lease for five years, or until May 31, 1993.

At the time the option was exercised, the Tenant was renting 18,838 square feet of office space, occupying nearly all of the ninth floor. The Law Firm’s space was approximately 11,500 square feet on the ninth floor, with the balance of the space sublet to other law firms located on the eighth floor of the building.

At the time the Lease was originally negotiated and executed, the building was recognized as being located in a prestigious location, occupied primarily by law firms and providing first-class service amenities for the users of the building and their clients.

[1471]*1471In the ensuing eighteen years, there has been a gradual deterioration of the building and its various support systems requiring considerable expense for maintenance and repair. The Landlord, who had been forced to take the building back in foreclosure, found itself attempting to market a “C” quality building that had only a twenty percent occupancy with four remaining tenants at the time of trial.

The Landlord was unable to economically compete with the great number of “A” quality buildings that have been constructed in the immediate Miami business community area in the past eighteen years. The Landlord’s old building did not contain the state-of-the-art health, safety, and amenity features offered to lessees in the newer, first-class buildings. The market had also become saturated with over one million square feet of first-class commercial office space in the market area.

The Landlord was faced with a difficult economic choice; either make the necessary financial commitment to bring the building and its systems up to 1990 competing levels by installing state-of-the-art health, safety, and amenity systems in the building; or continue to compete with newer buildings, with the probability that its building would remain empty. From the evidence, it is clear that the Landlord, in deciding to repair and modernize the building, based his decision upon an economic judgment unrelated in any way to dissatisfaction with the plaintiff Law Firm as a Tenant.

The Tenant Law Firm takes the position that the Lease, which will expire on May 31, 1993, has been breached by the Landlord in that the renovations to the building are so substantial that they have rendered the leased premises essentially unfit for the purposes of the operation of the law office during renovations. The Tenant is in the process of negotiating a new lease in a new building at a different location, which will be ready for occupancy on December 1, 1990. In this suit, the Tenant has sought to enjoin the Landlord from going forward with the proposed repairs and improvements to the 1401 Brickell building until December 1, 1990, at which time the Law Firm proposes to vacate the presently-leased space and move to their new office.

In addition to its claim for injunctive relief, the Tenant seeks to recover the market value of its remaining leasehold interest from December 1, 1990, through May 31, 1993, the present value of its leasehold improvements, and the cost of having to prematurely move and purchase new improvements. (p. 2 Joint Pretrial Stipulation.)

An item of damage, although not designated as such in the pretrial stipulation of August 3, 1990, but upon which the Court permitted the parties to present evidence during the seven-day nonjury trial commencing August 6, 1990, was for the loss of profits suffered as a result of disruptive construction activity by the Landlord. This item of damage (approximating $625,000) has been objected to by the Landlord as not being an issue properly presented in the pleadings for adjudication. Attorney members of the Tenant Law Firm testified that their estimation of lost profits to the plaintiff was $561,000. Additionally, plaintiff seeks, on behalf of three law firm subtenants, the amounts of $35,000, $60,000, and $38,000, respectively, for loss of profits.

The Landlord argues that the construction activities, either undertaken or contemplated by the Landlord, are specifically authorized by the provisions of the lease contract between the parties. In urging the Court to interpret the Lease contract as written, the Landlord points out that the Lease does not contain a covenant of quiet enjoyment and suggests that the following provisions of the Lease, in clear and unambiguous language, permit the renovations and improvements:

13. Landlord shall have the right to make or build additions, alterations, or improvements to the building of which the demised space is a part as landlord deems advisable without liability to the Tenant.
14. ... No claim or compensation shall be made by reason of loss, damage, inconvenience or annoyance arising from the necessity of repairing any portion of [1472]*1472said building, or its plant or appurtenances, however such necessity may occur. 24. Landlord, or any of its agents, shall have the right to enter said premises during all reasonable hours to examine the same or to make such repairs, additions, or alterations as may be deemed necessary for the safety, comfort of occupants thereof, or preservation of said premises or of said building ...

The Landlord suggests that the Court, in enforcing the provisions of the Lease contract, give effect to the contract provisions agreed to by the parties in a manner that is as harmonious as possible with the Tenant’s implied right to quiet enjoyment of the leased premises. In so doing, the Landlord suggests that the Court balance the contractually reserved rights of the Landlord to renovate with the Tenant’s right to protection against “undue interference” and determine whether or not the renovation has proceeded in a responsible, reasonable manner, consistent with sensitivity to the Tenant’s rights and a minimum of disruption and inconvenience.

The parties have stipulated to the following findings of fact (p. 4-6 Joint Pretrial Stipulation) concerning the scope of the remodeling and repair work commenced by the Landlord in July of 1989:

New life and fire safety systems will be installed, including bathrooms for handicapped persons, fire sprinkler systems, a new fire line, and pressurizing of the fire stairs.
Asbestos will be removed.
The existing plaza will be removed and replaced.
The open portion of the plaza under the building will be enclosed.
An enclosure will be built to connect the building tower with the garage.
The perimeter of the building will be excavated and new footings will be poured.

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Bluebook (online)
747 F. Supp. 1470, 1990 U.S. Dist. LEXIS 13009, 1990 WL 146764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stinson-lyons-gerlin-bustamante-pa-v-brickell-building-1-holding-flsd-1990.