Tiller v. Nelson

679 So. 2d 1095, 1996 Ala. Civ. App. LEXIS 99, 1996 WL 76210
CourtCourt of Civil Appeals of Alabama
DecidedFebruary 23, 1996
Docket2940680, 2941053
StatusPublished
Cited by1 cases

This text of 679 So. 2d 1095 (Tiller v. Nelson) 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
Tiller v. Nelson, 679 So. 2d 1095, 1996 Ala. Civ. App. LEXIS 99, 1996 WL 76210 (Ala. Ct. App. 1996).

Opinion

ROBERTSON, Presiding Judge.

Mary Jane Tiller and Donald R. Nelson entered into a lease agreement in 1990, whereby Nelson agreed to lease a building situated on a 110' x 400' lot to Tiller for a term of five years, with Tiller having the option to purchase the property at any time during the term of the lease. On March 1, 1994, Tiller requested that Nelson extend the term of the lease so that she would qualify for a business loan from her bank. Nelson agreed to extend the term of the lease in exchange for an increase in the rent and a modification of the size of the lot. Tiller agreed to the changes and signed a document [1097]*1097prepared by Nelson that purportedly recorded the changes agreed upon.

Nelson sought to annul the lease on June 10,1994, contending that Tiller had violated a condition in the lease that required her to properly maintain the property and to purchase “adequate liability insurance coverage, naming [Nelson] as co-insured.” On June 11, 1994, Tiller attempted to exercise her purchase option under the lease by delivering to Nelson a contract for sale along with a check for $1,000 as earnest money. Nelson refused to honor the purchase option, insisting that he had terminated the lease.

Nelson filed an eviction action against Tiller in the Baldwin County District Court. Thereafter, Tiller filed a complaint against Nelson in the Baldwin County Circuit Court; count one of Tiller’s complaint sought a declaration of her rights under the lease, and count two sought specific performance of her option to purchase the leased property. Tiller subsequently amended her complaint to allege fraud and misrepresentation (count three), and she requested a jury trial.

Upon agreement of the parties, a consent judgment was entered against Tiller in the eviction action. Tiller appealed that judgment to the circuit court and her appeal was consolidated with her pending circuit court action. After the consolidation, Nelson filed a motion for summary judgment, with a supporting narrative statement, on counts one and two of Tiller’s complaint. Nelson also filed a motion for summary judgment in his eviction action. On March 20, 1995, the trial court granted both motions for summary judgment. The trial court subsequently denied Tiller’s motion to alter, amend, or vacate the judgments.

Tiller amended her complaint a second time on April 13, 1995, adding claims for wrongful eviction (count four) and abuse of process (count five). Nelson moved to strike the amended complaint; the trial court granted his motion on May 5, 1995. Tiller’s motion to alter, amend, or vacate the trial court’s judgment was denied.

On July 18, 1995, the trial court entered a summary judgment for Nelson on Tiller’s fraud claim (count three), thereby disposing of the only remaining issue.

Tiller appeals the summary judgment on count one (declaratory judgment), count two (specific performance), and count three (fraud) of her complaint and the order striking the second amended complaint. Tiller also appeals the summary judgment for Nelson in the eviction action.

An appellate court reviewing a summary judgment uses the same standard used by the trial court. Southern Guaranty Ins. Co. v. First Alabama Bank, 540 So.2d 732 (Ala.1989). A summary judgment is proper when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Rule 56(c)(3), Ala.R.Civ.P. Like the trial court, the appellate court views the evidence and resolves all reasonable doubts in favor of the nonmovant. Specialty Container Mfg., Inc. v. Rusken Packaging, Inc., 572 So.2d 403 (Ala.1990). The burden is on the movant to show that there exists no genuine issue of material fact; however, once a party moving for a summary judgment makes a prima facie showing that no genuine issue of material fact exists, then the burden shifts to the nonmovant to rebut the prima facie showing. McClendon v. Mountain Top Indoor Flea Market, Inc., 601 So.2d 957 (Ala.1992). After the movant has made a prima facie showing that he is entitled to a judgment as a matter of law, the opposing party must show by substantial evidence that there is a genuine issue of material fact that would require a resolution by a factfinder. Johnson v. Citizens Bank, 582 So.2d 576 (Ala.Civ.App.1991).

I. Declaratory Judgment and Specific Performance

Count one of Tiller’s complaint sought a declaration of her rights under the lease. Specifically, Tiller asked the trial court to determine the validity of the lease, to define the valid terms of the lease as modified on March 1, 1994, and to determine if she had properly exercised her purchase option. Count two sought specific performance of the [1098]*1098purchase option. The trial court, without specifically addressing any of Tiller’s requests, entered an order stating, in pertinent part, that “there is no genuine issue of material fact and ... Donald R. Nelson is entitled to judgment as a matter of law as to Counts one (Declaratory Judgment) and two (Specific Performance) of the plaintiff’s complaint.” The practical effect of this order was to invalidate the lease because of Tiller’s failure to provide liability insurance and to nullify Tiller’s attempt to exercise the purchase option.

In determining the validity of the lease, we must consider whether Nelson waived his right to strict compliance with the terms of the lease. “Whether there [has been] a waiver of strict compliance is a question of fact, [and] the burden of proof [rests] upon the party relying on the waiver.” B.K.W. Enterprises v. Tractor & Equip. Co., 603 So.2d 989, 992 (Ala.1992) (quoting Killen v. Akin, 519 So.2d 926, 929 (Ala.1988)).

The lease between Nelson and Tiller required that Tiller “maintain adequate liability insurance coverage, naming [Nelson] as a co-insured.” In his deposition, Nelson testified that Tiller had “never” provided liability insurance coverage on the leased property and that he had never received notice of insurance. Nelson also testified that in the four and one-half years before Tiller filed her complaint, he never talked to her about the insurance required by the lease.

The lease also stated that Tiller was to use the building to operate “a laundry and for no other different object or purpose.” Nevertheless, Nelson testified that he knew that Tiller was operating a “baby bed business” and that he had not objected to this violation of the lease. Nelson further testified that Tiller violated the terms of the lease because, he said, she did not properly maintain the building and grounds. Again, Nelson testified that he had never talked to Tiller about this alleged violation of the lease.

The foregoing facts constitute substantial evidence from which a jury could determine that Nelson had waived his right to strict compliance with the terms of the lease. Therefore, we hold that the trial court erred by entering the summary judgment on count one of Tiller’s complaint.

Because we hold that a question of fact remains concerning the validity of the lease, the summary judgment as to count two, specific performance of the purchase option, cannot be supported on the basis that the lease was invalid. Moreover, we note that questions of fact exist as to whether Tiller validly exercised the purchase option.

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Bluebook (online)
679 So. 2d 1095, 1996 Ala. Civ. App. LEXIS 99, 1996 WL 76210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tiller-v-nelson-alacivapp-1996.