Waterbury Feed Company, LLC v. O'Neil

2006 VT 126, 915 A.2d 759, 181 Vt. 535, 2006 Vt. 126
CourtSupreme Court of Vermont
DecidedNovember 20, 2006
Docket05-268
StatusPublished

This text of 2006 VT 126 (Waterbury Feed Company, LLC v. O'Neil) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waterbury Feed Company, LLC v. O'Neil, 2006 VT 126, 915 A.2d 759, 181 Vt. 535, 2006 Vt. 126 (Vt. 2006).

Opinion

915 A.2d 759 (2006)
2006 VT 126

WATERBURY FEED COMPANY, LLC
v.
Carol O'NEIL.

No. 05-268.

Supreme Court of Vermont.

November 20, 2006.

*761 Present: REIBER, C.J., JOHNSON, SKOGLUND, BURGESS, JJ., and ALLEN, Chief Justice (Ret.), Specially Assigned.

ENTRY ORDER

¶ 1. Tenant, Waterbury Feed Company, LLC, appeals from a judgment in favor of landlord, Carol O'Neil. Following a bench trial, the Washington Superior Court denied all of tenant's claims, awarded landlord damages for unpaid rent, and granted possession of the disputed commercial leasehold to landlord. On appeal, tenant contests the superior court's denial of its claims regarding landlord's obligations: (1) to pay a portion of propane costs; (2) to pay a portion of mowing and plowing costs; (3) to maintain the roof and foundation to prevent heat loss; (4) to install a patio; and (5) not to unreasonably withhold its consent to assignment of the lease. We affirm in part, reverse in part, and remand for further consideration.

¶ 2. Following are the basic facts. Additional facts are described in the context of each of tenant's claims of error. In October 1998, the parties entered into an agreement for tenant to lease a portion of landlord's building, an old grist mill, for the purpose of opening and operating a restaurant. The lease entitled tenant to occupy 44.3% of the square footage of the building, including the basement and portions of the first and second floors. Additionally, the lease allowed tenant use of a stream-side area, overlooking a waterfall, where landlord was obligated to provide a level grade. The lease was for an initial five-year term, with options for three additional five-year terms. The original lease required tenant to pay 44.3% of certain costs, including snow removal, mowing and heating fuel, among others. The lease also required landlord to make certain improvements to the building to prevent heat loss.

¶ 3. Throughout the almost six years tenant leased this space, the parties were in dispute about several obligations under the lease. Landlord complained that tenant did not pay rent on time and failed to pay rental increases, while tenant complained that landlord did not complete improvements as stipulated in the lease. In an attempt to rectify some of the concerns, in April 2000, the parties executed an addendum to the lease. This addendum required landlord to install a patio by May 31, 2000, make certain improvements to the property, and cooperate with solutions identified by an energy audit. Unfortunately, this addendum did not resolve the ongoing issues. Landlord never constructed the patio and the heat-loss problems and heat-cost allocation were never resolved to tenant's satisfaction.

¶ 4. On July 17, 2003, tenant filed a complaint seeking damages on several grounds. Landlord counterclaimed for *762 eviction and unpaid and underpaid rent. The trial court ruled against tenant on all claims, granted possession to landlord, and ordered tenant to pay $22,283.43 in underpaid and unpaid rent.

¶ 5. On appeal, tenant claims that it is entitled to damages because landlord: (1) did not honor the lease's cost-sharing provision with regard to heating fuel; (2) did not pay its share of mowing and plowing costs; (3) did not properly fix and maintain the premises; (4) failed to construct a patio; and (5) unreasonably refused to consent to assignment of the lease. These claims are addressed in turn.

¶ 6. We defer to the trial court's findings unless they are clearly erroneous, and we uphold the trial court's conclusions as long as they are reasonably supported by the findings. Bull v. Pinkham Eng'g Assocs., 170 Vt. 450, 454, 752 A.2d 26, 30 (2000). We review findings in the light most favorable to the judgment, disregarding modifying evidence. Id. ("Findings . . . will not be disturbed merely because they are contradicted by substantial evidence; rather, an appellant must show that there is no credible evidence to support them.").

I.

¶ 7. Tenant first claims that landlord breached the lease by failing to pay a portion of heating fuel costs, and demands 55.7% of its propane expenses. The lease provides, in relevant part:

Lessor represents that the total square footage of the Premises is equal to 44.3% of the total square footage of the Building. . . . Accordingly, Lessee covenants and agrees that, in addition to the Base Rent, Lessee shall pay Lessor 44.3% of the following costs: municipal sewer charges consisting of municipal water charges, snow removal, mowing and heating fuel. . . . Lessor shall deliver to Lessee monthly itemized statements and calculations setting forth the amount that Lessee owes pursuant to this Section, and within fifteen (15) days thereafter Lessee shall pay the same to Lessor.

The trial court found that this provision was never followed with regard to heating fuel. Instead, after consulting with landlord, tenant contracted directly with a propane service. During the brief period when there were other tenants in the building, those tenants paid a pro rata share directly to tenant's account with the propane supplier. Tenant paid the entire propane bill at all other times. Thus, when tenant was the building's sole tenant, it paid for all of the heat. When other parties were using the single boiler, other parties contributed to heating costs. Based on these findings, the trial court concluded that tenant had waived its right to contribution from landlord.

¶ 8. The trial court held that the purpose of the cost-sharing provision was to ensure that tenant would only pay for the propane it used to heat its portion of the building, and that an implicit assumption was that the building would be fully rented before the provision applied. Additionally, the court held that the parties' long-standing, shared departure from the specific terms of this provision constituted a waiver so that landlord did not breach the lease by failing to contribute to propane costs.

¶ 9. "A waiver is a voluntary relinquishment of a known right, and can be express or implied." Anderson v. Cooperative Ins. Cos., 2006 VT 1, ¶ 10, 179 Vt. 288, 895 A.2d 155 (citations omitted). To show an implied waiver, landlord would have to show that she honestly and reasonably believed, based on tenant's conduct, that tenant would forgo asserting some right to which it was otherwise entitled, *763 and that landlord detrimentally relied on that belief. Id. ¶ 11, 895 A.2d 155.

¶ 10. The trial court found that tenant made separate arrangements for fuel on its own and not due to any failure on landlord's part to provide propane. This finding is supported by the testimony at trial and we will not disturb it. Bull, 170 Vt. at 454, 752 A.2d at 30; Lawrence v. Pelletier, 154 Vt. 29, 33, 572 A.2d 936, 939 (1990) (emphasizing that credibility is a matter "accorded to the exclusive determination of the trier of fact"). We do not agree, however, that the court's findings support its conclusion that tenant impliedly waived its right to contribution from landlord for heating fuel costs. Bull, 170 Vt. at 454, 752 A.2d at 30 (explaining that conclusions will be upheld if reasonably supported by the findings).

¶ 11. Although landlord and tenant diverged from the lease language in practice, an implied waiver requires more.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Estate of Elliott
542 A.2d 282 (Supreme Court of Vermont, 1988)
Lawrence v. Pelletier
572 A.2d 936 (Supreme Court of Vermont, 1990)
A. Brown, Inc. v. Vermont Justin Corp.
531 A.2d 899 (Supreme Court of Vermont, 1987)
Anderson v. Cooperative Insurance Companies
2006 VT 1 (Supreme Court of Vermont, 2006)
Bull v. Pinkham Engineering Assocs., Inc.
752 A.2d 26 (Supreme Court of Vermont, 2000)
Agway, Inc. v. Marotti
540 A.2d 1044 (Supreme Court of Vermont, 1988)
Tour Costa Rica v. Country Walkers, Inc.
758 A.2d 795 (Supreme Court of Vermont, 2000)
Doria v. University of Vermont
589 A.2d 317 (Supreme Court of Vermont, 1991)
Northern Security Insurance v. Perron
777 A.2d 151 (Supreme Court of Vermont, 2001)
Cooley Corp. v. Champlain Valley Union High School District 15
477 A.2d 624 (Supreme Court of Vermont, 1984)
Waterbury Feed Co., LLC v. O'Neil
2006 VT 126 (Supreme Court of Vermont, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
2006 VT 126, 915 A.2d 759, 181 Vt. 535, 2006 Vt. 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waterbury-feed-company-llc-v-oneil-vt-2006.