Twenty-Nine Street Corridor, LLC v. Taj Corporation

CourtCourt of Appeals of Virginia
DecidedAugust 8, 2023
Docket1305224
StatusUnpublished

This text of Twenty-Nine Street Corridor, LLC v. Taj Corporation (Twenty-Nine Street Corridor, LLC v. Taj Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Twenty-Nine Street Corridor, LLC v. Taj Corporation, (Va. Ct. App. 2023).

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Humphreys, Malveaux and Fulton UNPUBLISHED

Argued by videoconference

TWENTY-THIRD STREET CORRIDOR, LLC MEMORANDUM OPINION* BY v. Record No. 1305-22-4 JUDGE MARY BENNETT MALVEAUX AUGUST 8, 2023 TAJ CORPORATION, ET AL.

FROM THE CIRCUIT COURT OF ARLINGTON COUNTY Daniel S. Fiore, II, Judge

Mark P. Friedlander, Jr. (Friedlander & Friedlander, PC, on briefs), for appellant.

Patrick J. McDonald (Cameron/McEvoy, PLLC, on brief), for appellees.

Twenty-Third Street Corridor, LLC (“Twenty-Third Street”) appeals from an order of the

circuit court dismissing its counterclaim against Taj Corporation and Shahjahan Mia

(collectively, “Mia”). Twenty-Third Street argues that the court erred in finding that the parties

agreed to amend their lease as represented by Mia and that Twenty-Third Street failed to carry its

burden of proving Mia owed unpaid rent. For the following reasons, we affirm.

I. BACKGROUND

“When reviewing a circuit court’s decision on appeal, we view the evidence in the light

most favorable to the party who prevailed below . . . and grant them the benefit of any reasonable

inferences” that flow from the evidence. Lively v. Smith, 72 Va. App. 429, 432 (2020).

* This opinion is not designated for publication. See Code § 17.1-413(A). Twenty-Third Street and Mia1 entered into a written deed of lease for an Arlington

County commercial property on June 17, 2013. Mia operated a restaurant in the leased premises.

The lease contained no express provision concerning modification of its terms.

Following a dispute about rent, Twenty-Third Street evicted Mia in July 2021. Mia filed

a complaint, and, later, an amended complaint, alleging breach of contract and wrongful eviction

and interference with contract and business expectancy. Mia also sought damages from

Twenty-Third Street. Twenty-Third Street filed an answer and counterclaim, later amended,

asserting that Mia had breached the lease by failing to pay rent. The company further alleged

that Mia owed $72,878 in unpaid rent and late fees.

A. Mia’s Evidence at Trial

Mia testified that prior to the COVID-19 pandemic, he did a “very reasonable business.”

He was in regular contact with Twenty-Third Street’s representative, Stratis Voutsas

(“Voutsas”), and the relationship between the two men was “good.” Mia and Voutsas frequently

talked by phone or in meetings at the restaurant.

In March 2020, Mia called Voutsas about his rent and told him it was “very hard to keep

open the restaurant” because of the pandemic. Voutsas told Mia he would “take care of your

rent” by “giv[ing] you three months at least. Then I will work with you the rest of COVID

getting back to the actual rent.” Voutsas later testified that in June 2020, Twenty-Third Street

provided its tenants with a “COVID-19 Rent Abatement Letter” informing them that the

company would completely abate rents for the month of April 2020. However, Mia testified that

he never received the letter. Instead, when asked whether his April 2020 rent had been abated,

Mia reiterated that when he had problems keeping the restaurant open in 2020, Voutsas told him,

“I will take care of that.” Mia stated that Voutsas ultimately “g[a]ve April, May, June, three

1 Mia testified that he was the owner of Taj Corporation. -2- months, free rent. That’s the reason I kept the restaurant open.” However, Mia later fell behind

in the rent, beginning in December 2020 and continuing through March 2021.

On March 17, 2021, Mia and Voutsas met at the restaurant to discuss rent. Mia testified

Voutsas told him that if he paid $16,000, Voutsas would “clean up everything.” Mia would then

pay rent of $4,000 per month for April and May 2021, after which, Voutsas said, “you have to

come to full rent.” Mia understood this to mean that $16,000 would pay off his rent arrears and

that going forward, his balance owed would be “[z]ero.”

Alford Sibil, a server in Mia’s restaurant, testified that he was present during the meeting.

The restaurant was closed at that hour, and Sibil was sitting on a couch “very close” to where

Voutsas and Mia were sitting. Sibil heard the men discussing rent, and stated that Voutsas told

Mia, “if you pay me [$]16,000” there would be “a zero balance.” Mia asked Sibil to bring a soda

for Voutsas, and when Sibil returned, Mia was writing a check that he then gave to Voutsas.

Sibil stated that he heard the conversation between Mia and Voutsas “very clearly” and denied

that the two men argued. He also denied hearing any demand by Voutsas that Mia make a

$20,000 payment toward rent or any discussion that Mia owed $40,000 in rent.

Mia introduced into evidence Exhibit 11, a photocopy of a $16,000 check drawn on an

account of Taj Corporation. Signed by Mia and dated March 18, 2021, the check indicated in its

subject line that it was for “rent payment Dec rent 20/Jan Feb March 2021.” Below the check’s

image on the photocopy appeared a handwritten notation stating, “3/17/2021 Received

[r]eduction [t]owards [r]ent,” followed by a signature. Immediately below was another notation

stating, “[a]greed to pay 4000 in April and May as reduction in rent,” followed by the same

signature. Voutsas acknowledged that it was his signature that appeared below each of the

handwritten notations and that he signed the photocopy at the March 17, 2021 meeting.

-3- In addition to the $16,000, Mia testified that he paid Twenty-Third Street $4,000 rent in

both April and May 2021 and that he resumed payment of full rent in June 2021. He also

introduced into evidence a copy of his check for full rent for July 2021.

Sometime after the meeting, Twenty-Third Street provided Mia with a document, entitled

“Customer Balance Detail,” that indicated that as of March 18, 2021, Mia’s rent was in arrears in

the amount of $27,567.83. Then, in July 2021, Voutsas delivered a “5-Day Notice to Cure”

letter to the restaurant. The letter stated that Mia was in arrears on rent and that through July 9,

2021, he owed $72,878 in rent and fees. Attached to the letter was a fifteen-page “Tenant

Statement” detailing Mia’s rent payments from 2013 through July 2021. The statement reflected

that Mia’s check in the amount of $16,000 had been credited on March 18, 2021. It further

reflected that in both April and May 2021, Mia made rent payments of $4,000 and that he had

resumed paying full rent in June 2021. However, the statement also included a June 2021

notation indicating that Mia owed $20,673.21 for a “Probation Credit Reversal for not bringing

account current on May 31, 2021 per notice.” Mia testified that he was never notified that any

rent credits he had received were “probationary.” He also stated that prior to receiving the cure

letter, he had never received any notice of default.

After receiving the letter, Mia called Voutsas and asked him why he was being asked to

pay over $72,000 when “you told me if I pay [$]16,000 we are even.” He also challenged the

$72,878 figure, noting that the “Customer Balance Detail” had only represented arrears

amounting to about $27,500. Mia stated that while questioning Voutsas’ figures, he wrote

“balance here” next to the $27,567.83 “Total Due” on the “Customer Balance Detail.” Mia said

that in response to his questions, Voutsas assured him that “I will fix it up. . . . So you will

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