T-3 Martinsville, LLC v. U.S. Holding, LLC

911 N.E.2d 100, 2009 Ind. App. LEXIS 1253, 2009 WL 2486056
CourtIndiana Court of Appeals
DecidedAugust 14, 2009
Docket55A01-0810-CV-462
StatusPublished
Cited by23 cases

This text of 911 N.E.2d 100 (T-3 Martinsville, LLC v. U.S. Holding, LLC) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
T-3 Martinsville, LLC v. U.S. Holding, LLC, 911 N.E.2d 100, 2009 Ind. App. LEXIS 1253, 2009 WL 2486056 (Ind. Ct. App. 2009).

Opinion

OPINION

CRONE, Judge.

Case Summary

T-3 Martinsville, LLC, and MS Mar-tinsville, LLC ("Landlords"), bring this interlocutory appeal of the rulings against them in the trial court's "Ruling on Motions for Summary Judgment." US Holding, LLC ("USH"), John W. Bartle, and Hoosier Enterprises IX, Inc. ("Hoosier") (sometimes collectively referred to as "Ap-pellees"), cross-appeal the rulings against them in the aforementioned order. We affirm. 1

Issues

Landlords raise one issue, which we restate as follows:

I. Whether Landlords were required to provide USH with notice and an opportunity to cure its default under a lease for nonpayment of rent.

We also address the following issues raised on cross-appeal: 2

II. Whether the trial court's use of compound interest in determining *104 the amount USH owes Landlords is ripe for appellate review;
III. Whether the trial court erred in declining to find that USH's default has been cured;
IV. Whether the trial court erred in finding that specific performance of USH's option to purchase is premature; and
V. Whether the trial court erred in entering summary judgment in favor of Landlords and against Hoosier on its counterclaims.

Facts and Procedural History 3

The center of the current controversy is a lease ("the Lease"), to which Landlords and USH are parties, and the nonpayment of rent thereunder. The relevant facts are undisputed. On April 1, 2004, Rynard III, LLC ("Rynard"), owner of the Grandview Convalescent Center ("Grandview") located in Martinsville, Indiana, entered into the Lease with USH, as tenant, and Bartle, as guarantor, wherein USH agreed to lease Grandview for a term of twenty years. Contemporaneously with the Lease, USH entered into a sub *105 lease agreement with Hoosier, wherein Hoosier subleased Grandview for a term of twenty years to operate a comprehensive care nursing facility. Subsequently, Landlords purchased Grandview from Rynard. On March 24, 2006, Rynard, as seller, and Landlords, as purchasers, entered into an "Assignment and Assumption Agreement," wherein Rynard assigned and Landlords assumed Rynard's rights and obligations under the Lease.

The Lease included the following relevant provisions:

10. Events of Default and Landlord's Remedies.
10.1 Events of Default. The occurrence of any of the following shall constitute an event of default on the part of Tenant hereunder ("Event of Default"):
10.1.1 The failure to pay within five (5) business days of the date when due any Rent, taxes or assessments, utilities, premiums for insurance or other charges or payments required of Tenant under this Lease;
10.1.2 Any other material default by Tenant (or any Affiliate thereof) under any agreement between Tenant (or any Affiliate) and Landlord or any Affiliate of Landlord other than this Lease, which default is not cured within any applicable cure period provided in such agreement; provided, however, so long as Tenant is not in default of the monetary obligations of this Lease, then any matter which would fall within the seope of the Section 10.1.2 shall not constitute an Event of Default;
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10.1.5 Any revocation of the nursing home license for Facility of termination of the certification under the Medicare and/or Medicaid programs (or any successor program);
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10.1.8 The filing by tenant of a voluntary petition under any federal bank-ruptey law or under the law of any state
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10.1.9 The failure to perform or comply with any other term or provision of the Lease not requiring the payment of money (except a default under Section 10.1.5 or 10.1.8), including, without limitation, the failure to comply with the provisions hereof pertaining to the use, operation and maintenance of the Premises; provided, however, the default described in this Section 10.1.9 is curable and shall be deemed cured, if: (a) within ten (10) business days of Tenant's receipt of a notice of default from Landlord, Tenant gives Landlord notice of its intent to eure such default; and (b) Tenant cures such default within thirty (30) days after such notice from Landlord, unless such default cannot with due dili-genee be cured within a period of thirty (30) days because of the nature of the default or delays beyond the control of Tenant, and cure after such thirty (80) day period will not have a material and adverse effect upon the Premises, in which case such default shall not constitute an Event of Default if Tenant uses its best efforts to cure such default by promptly commencing and diligently pursuing such cure to the completion thereof, and such default does not cause Landlord to be in default of any other agreement to which Landlord is a party; provided, however, no eure period for such default shall continue for more than ninety (90) days from Tenant's receipt of notice of such default from Landlord;
10.1.10 There shall be no cure period in the event of breach by Tenant of (a) the obligation to obtain insurance as provided in Section 4, (b) the provisions *106 of Section 21,[ 4 ] or (c) the provisions of Section 23,[ 5 ] and .
10.1.11 All notice and cure periods provided herein shall run concurrently with any notice or cure periods provided by applicable law.
10.2 Remedies. Upon the occurrence of an Event of Default, Landlord may exercise all rights and remedies under this Lease and the laws of the State of Indiana available to a lessor of real and personal property in the event of a default by its lessee. Without limiting the foregoing, Landlord shall have the right to do any of the following:
10.2.1 Sue for the specific performance of any covenant of Tenant under this Lease as to which Tenant is in breach;
10.2.2 Enter upon the Premises, terminate this Lease, dispossess Tenant from the Premises and/or collect money damages by reason of Tenant's breach, including, without limitation, the acceleration of all rent which would have accrued after such termination and all obligations and liabilities of Tenant under this Lease which survive the termination of the Term; provided however, Landlord shall use reasonable efforts to mitigate its damages;
10.2.3 Elect to leave this Lease in place and sue for rent and/or other money damages as the same come due; provided, however, Landlord shall use reasonable efforts to mitigate its damages[.]

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Cite This Page — Counsel Stack

Bluebook (online)
911 N.E.2d 100, 2009 Ind. App. LEXIS 1253, 2009 WL 2486056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/t-3-martinsville-llc-v-us-holding-llc-indctapp-2009.