Justia U.S. 4th Circuit Court of Appeals Opinion SummariesArticles Posted in Landlord - Tenant
Expo Properties, LLC v. Experient, Inc.
Expo Properties owns an office complex in which they leased to Experient. When the lease term ended, the parties dispute the condition the premises should be in when defendant vacated, and who should pay for any work to put the premises into that condition.The Fourth Circuit affirmed the district court's grant of summary judgment to Experient, holding that the Estoppel Certificate did not satisfy the requirements of Maryland contract law for modification of a contract. Therefore, contrary to Expo Properties' contention, the Estoppel Certificate did not modify the Lease under Maryland law. Furthermore, the Lease unambiguously does not allocate all costs for all maintenance and repairs, no matter what, to the tenant. Consequently, the district court properly held that Expo Properties' parol evidence was inadmissible. View "Expo Properties, LLC v. Experient, Inc." on Justia Law
NCO Financial Systems, Inc. v. Montgomery Park, LLC
This case arose out of disputes between the parties involving a twelve year commercial lease of office space in Baltimore, Maryland. The Fourth Circuit held that the district court misconstrued the lease agreement and misapplied Maryland law in concluding that Montgomery Park had a duty to endeavor to relet the premises and minimize its damages as a condition precedent to recovering against NCO. The panel held that the lease agreement's language incorporated the common law mitigation-of-damages doctrine, which holds that a plaintiff cannot recover damages which it could have reasonably avoided. Therefore, Montgomery Park's recovery should only have been reduced by the amount of rent that NCO could demonstrate would have been recovered by reasonable efforts to re-let the space.The court also held that the district court, in evaluating the commercial reasonableness of Montgomery Park's mitigation efforts, applied the wrong standard. The court held that reasonable commercial efforts to mitigate damages did not require Montgomery Park to favor NCO’s space over other vacant space in the building, but rather, commercial reasonableness only required Montgomery Park to reasonably market NCO's space on an equal footing with the other spaces that it was seeking to rent. Accordingly, the court vacated the district court's judgment and remanded for further proceedings. View "NCO Financial Systems, Inc. v. Montgomery Park, LLC" on Justia Law
Giron de Reyes v. Waples Mobile Home Park LP
Plaintiffs filed suit challenging a mobile home park's policy requiring all occupants to provide documentation evidencing legal status in the United States to renew their leases as violating the Fair Housing Act (FHA). The Fourth Circuit vacated the district court's grant of summary judgment for the mobile home park, holding that plaintiffs have made a prima facie case that the policy disparately impacted Latinos in violation of the FHA, satisfying step one of the disparate impact analysis, and that the district court therefore erred in concluding otherwise. The court also held that the district court seriously misconstrued the robust causality requirement described in Tex. Dep't of Housing & Cmty. Affairs v. Inclusive Communities Project, Inc., 135 S. Ct. 2507, 2513 (2015), and erroneously rejected plaintiffs' prima facie claim that the policy disparately impacted Latinos. Accordingly, the court remanded for further proceedings. View "Giron de Reyes v. Waples Mobile Home Park LP" on Justia Law
NCO Financial Systems, Inc. v. Montgomery Park, LLC
The parties are involved in a dispute over a 12-year commercial lease of office space in Baltimore, Maryland. NCO, the lessee, claims that it properly exercised a right of early termination of the lease and that, during the course of the lease, it was overcharged for rent based on erroneous calculations of the space’s square footage. Montgomery Park, the lessor, claims that NCO failed to satisfy the lease’s specific conditions for early termination and that NCO now owes rent for the remainder of the lease term. The court reversed the district court’s ruling that NCO effectively exercised the right of early termination, and affirmed its ruling rejecting NCO’s overcharge claims. Accordingly, the court remanded for further proceedings on Montgomery Park’s claim that NCO breached the lease agreement in failing to pay rent. View "NCO Financial Systems, Inc. v. Montgomery Park, LLC" on Justia Law
Zoroastrian Center v. Rustam Guiv Found.
As part of a joint effort to construct a Zoroastrian worship center, the parties signed a ninety-nine-year lease on a parcel of property owned by Rustam Guiv in the Vienna area of Fairfax County, Virginia. After Rustam Guiv terminated the lease, the Center filed suit seeking a declaratory judgment to reinstate the lease. After removal, the district court granted summary judgment to Rustam Guiv and awarded attorneys’ fees. The court concluded that Rustam Guiv presented sufficient evidence to show complete diversity between the parties, thereby establishing subject matter jurisdiction in federal court. The court also concluded that the undisputed material facts show that The Center breached the lease. Therefore, the court affirmed the district court's dismissal of the complaint in its entirety. The court concluded, however, that the attorneys' fee award must be vacated where the district court correctly identified Rustam Guiv as the prevailing party but made no effort to narrow the fee award to its successful claims. Under Virginia law governing contractual fee-shifting provisions, the prevailing party is entitled to recover attorneys’ fees for work performed only on its successful claims. View "Zoroastrian Center v. Rustam Guiv Found." on Justia Law
Elderberry of Weber City, LLC v. Living Centers – Southeast
Elderberry filed suit in the Western District of Virginia alleging breach of a lease for a skilled nursing facility against Living Centers, FMSC, and Continium, and breach of a guaranty contract against Mariner. Separately, in the Northern District of Georgia, Mariner filed a declaratory judgment action against Elderberry, seeking a declaration that it had no obligations under the guaranty. The two actions were consolidated in the Western District of Virginia. The district court denied the parties’ cross motions for summary judgment but held that the guaranty was enforceable against Mariner. The district court entered judgment in favor of Elderberry on all counts and found defendants jointly and severally liable for accrued and future damages, plus pre- and post-judgment interest. The court held that Elderberry lost its right to rent that accrued after it terminated the lease on August 24, 2012; Elderberry is, however, entitled to any rent that accrued prior to termination of the lease; and Elderberry is entitled to non-rent damages that accrued prior to termination of the lease. Given the Georgia Supreme Court’s most recent pronouncement on that state’s statute of frauds, combined with Georgia’s parol evidence rule, the court held that the guaranty satisfies the Georgia statue of frauds. Accordingly, the court affirmed in part, vacated in part, and remanded with instructions. View "Elderberry of Weber City, LLC v. Living Centers - Southeast" on Justia Law