Turks Head Realty Trust v. Shearson Lehman Hutton, Inc.

736 F. Supp. 422, 1990 U.S. Dist. LEXIS 5629, 1990 WL 61102
CourtDistrict Court, D. Rhode Island
DecidedMay 10, 1990
DocketCiv.A. 89-0210 L
StatusPublished
Cited by10 cases

This text of 736 F. Supp. 422 (Turks Head Realty Trust v. Shearson Lehman Hutton, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turks Head Realty Trust v. Shearson Lehman Hutton, Inc., 736 F. Supp. 422, 1990 U.S. Dist. LEXIS 5629, 1990 WL 61102 (D.R.I. 1990).

Opinion

MEMORANDUM AND ORDER

LAGUEUX, District Judge.

This matter is before the Court for decision following a six day bench trial. This *424 case involves an office building in Providence known as the Turks Head Building. This building, constructed in the early part of this century, acquired its name from the presence of the sculptured head of a turbaned Turk protruding from the structure. The Turk gazes onto the intersection of Westminster and Weybosset Streets in the financial district of downtown Providence, one block removed from this courthouse.

Plaintiff, Turks Head Realty Trust, the present owner of the building, claims here that Shearson Lehman Hutton, Inc. (SLH), the successor lessee of a suite of rooms on the sixth floor, defaulted on its lease obligations, in October 1988, by vacating, abandoning or not occupying the leased premises for fourteen consecutive days. Plaintiff thus seeks damages as provided for under the lease agreement. Plaintiff also claims that defendant’s breach of an oral agreement, whereby the parties purportedly agreed that defendant would extend its lease for three years in exchange for plaintiff’s promise to renovate the sixth floor common areas, entitles plaintiff to recover the sums expended on the renovations prior to the breach. SLH counters that plaintiff wrongfully evicted defendant by changing the locks on the entrance to the SLH suite on October 19, 1988, and that such conduct constituted an eviction which now precludes plaintiff from recovering damages. Defendant has also counterclaimed seeking restitution of rent paid for the period following the lock out, and for rents inadvertently paid to plaintiff from January through April, 1989. After having heard all the evidence, the Court took the matter under advisement. The case is now in order for decision.

FACTS

The parties to this lawsuit are interrelated as follows. Turks Head Corporation and E.F. Hutton and Company, Inc. (Hutton), a stock brokerage house, entered into a lease agreement on April 9, 1981. Hutton agreed to rent suite 600 in the Turks Head Building for a period of ten years. Thereafter, through a series of four amendments, the parties also agreed that Hutton would lease rooms 614-616 adjacent to suite 600. The Turks Head Corporation employed the Niles Management Company, Inc. (Niles) to manage the building. Niles employed C. Jerry Ragosa as an Executive Vice President (based in Boston) and Neil McCrystal as a property manager on site. McCrystal oversaw the day-to-day management of the Turks Head property and reported to Ragosa. In 1984, Turks Head Corporation sold its interest in and title to the Turks Head Building to the Turks Head Realty Trust (for purposes of this opinion Turks Head Corporation and Turks Head Realty Trust will be referred to interchangeably as “Turks Head”). Management of the building remained in the hands of Niles. Hutton’s leasehold interest in the Turks Head property was assumed by Shearson Lehman Hutton, Inc. (SLH) following a merger in 1988.

During the trial, plaintiff introduced three leases which relate to tenancies within the Turks Head Building. Plaintiff first presented an executed copy of the lease between Turks Head and Hutton (Plaintiff’s Ex. 1). Although the document appeared to be a photocopy, it was an executed copy, i.e., the parties had signed this copy directly. A notary public and witnesses also signed the copy directly. Defendant introduced an exact replica also signed directly by the parties (Defendant’s Ex. A). In both copies, a portion of the Default and Remedies provision is blurred and totally illegible. Plaintiff also introduced two leases entered into between Turks Head and other Turks Head Building tenants (Plaintiff’s Ex. 2 and 3). These leases were signed and notarized on the original, pre-printed lease forms.

Paragraph 16 of the pre-printed lease, discussing defaults and remedies under the lease, reads as follows:

16. Defaults and Remedies. If the Lessee shall (i) fail to pay any installment of base rent or other amount due and payable when due, whether or not such payment shall have been demanded; (ii) fail to perform or comply with any of the other conditions or agreements expressed or implied herein and fail to remedy such lack of compliance within 10 *425 days after notice rfrom Lessor of such default; (iii) abandon, vacate or not occupy the premises for 14 consecutive days; (iv) liquidate or cease to exist, admit insolvency, seek relief under any law for the relief of debtors, make an assignment for the benefit of creditors or be the subject of a voluntary or involuntary petition in bankruptcy or receivership or in the event of any like occurrence which, in the sole judgment of the Lessor, evidences the serious financial insecurity of the Lessee or if the estate hereby created shall be levied upon or taken by execution or process of law, then and in any of such cases regardless] of any waiver of consent of any earlier event of default, the Lessor, at its option, may exercise any and all remedies available to the Lessor under law, all of such rights and remedies to be cumulative and not exclusive, including without limitation the following:
(l)(a) Lessor may terminate this lease by 5 days’ notice to Lessee and this lease shall terminate on the date specified therein and Lessee shall quit and surrender the premises by said date and remain liable as set forth below;
(b) Lessor may enter upon the premises forthwith or at any subsequent time without notice or demand (which are hereby expressly waived by the Lessee) and thereby terminate the estate hereby created and expel the Lessee and those claiming under it and remove their effects without being guilty of any manner of trespass and the Lessee shall remain liable as set forth below and the Lessee further agrees that if Lessor shall cause Lessee’s goods or effects to be removed from the premises pursuant to the terms hereof or of any court order, Lessor shall not be liable or responsible for any loss or damage to Lessee’s goods or effects, and the Lessor’s act of so removing such goods or effects shall be deemed to be the act of and for the account of Lessee. (c) In the event of termination under (a) or (b) above, the Lessee shall pay to the Lessor as current liquidated damages (i) the base rent and other amounts payable hereunder up to the time of termination and (ii) thereafter until the expiration of the then current term hereof, whether or not the premises shall be relet and as and when due in accordance with the provisions hereof, the base rent and other sums payable hereunder if this lease had ■remained in effect less the net proceeds to the Lessor of any reletting of the premises, after deducting all expenses in connection with such reletting, including without limitation, all costs, fees and expenses of repossession, brokers, advertising, attorneys, courts, repairing, cleaning, repainting and remodelling the premises for reletting.

Paragraph 16 in the Turks Head/Hutton lease reads word for word like the lease provision above quoted except that the portion in between the brackets and underscored in the Turks Head/Hutton lease is illegible. Plaintiff argues that the illegible portion of the Turks Head/Hutton lease corresponds with the boilerplate language found in the pre-printed lease forms used by plaintiff and its other tenants and thus that language should be incorporated into the Turks Head/Hutton lease.

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Cite This Page — Counsel Stack

Bluebook (online)
736 F. Supp. 422, 1990 U.S. Dist. LEXIS 5629, 1990 WL 61102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turks-head-realty-trust-v-shearson-lehman-hutton-inc-rid-1990.