SOUTHPARK MALL LIMITED PARTNERSHIP, Plaintiff, v. CLT FOOD
MANAGEMENT, INC., and FLAMER'S OF SOUTHPARK, INC. Defendants
Landlord and Tenant--summary ejectment--commercial lease
The trial court did not err by its entry of summary ejectment in favor of plaintiff based on
defendants' failure to pay rent within five days after notice as contained in section 24.1 of the
commercial lease, because: (1) the plain and ordinary meaning of the lease language
unambiguously required defendants to cure the default within five calendar days of plaintiff's 2
July 1999 notice letter; (2) defendants failed to cite any precedent from this state holding that the
term days in a lease agreement is ambiguous as a matter of law or that the word should be
construed beyond its ordinary usage to mean business days; (3) defendants failed to show any
evidence that the parties to the lease intended the word days to mean business days; and (4)
even if the lease was construed to mean business days, the payment was still untimely.
Appeal by defendants from judgment entered 17 December 1999
by Judge Fritz Y. Mercer in Mecklenburg County District Court.
Heard in the Court of Appeals 22 February 2001.
*** Converted from WordPerfect ***
Robinson, Bradshaw & Hinson, P.A., by Douglas M. Jarrell,
for plaintiff-appellee.
Parker, Poe, Adams & Bernstein, L.L.P., by John W.
Francisco; John T. Daniel, for defendants-appellants.
TYSON, Judge.
Defendants, CLT Food Management, Inc. (CLT) and Flamer's
of Southpark, Inc. (Flamer's) (collectively defendants),
appeal the trial court's entry of judgment awarding plaintiff,
Southpark Mall Limited Partnership (Southpark), possession of
the premises at issue. We affirm the trial court's order for the
reasons stated below.
Southpark owns Southpark Mall, a shopping complex in
Charlotte, North Carolina. On 28 January 1992, Southpark's
predecessor-in-interest executed a written lease agreement (the
lease) with Flamer's. The lease provided Flamer's with space inSouthpark Mall's food court for operation of a fast-food
restaurant. Flamer's subleased the premises to CLT with
landlord's consent in September 1993. Flamer's remained liable
under the lease in the event of default by CLT.
The lease required CLT to make monthly rental payments to
Southpark on the first day of each month. Section 24.1 of the
lease addressed CLT's ability to cure a default, and Southpark's
remedy for CLT's failure to cure:
If at any time Tenant shall fail to remedy
any default in the payment of any amount due
and payable under this lease for five (5)
days after notice . . . then in any such
event Landlord may, at Landlord's option and
without limiting Landlord in the exercise of
any other right or remedy Landlord may have
on account of such default, and without any
further demand or notice . . . terminate this
lease by giving Tenant written notice of its
election to do so, as of a specified date not
less than thirty (30) days after the date of
giving such notice.
(emphasis supplied). The lease further provided that any notice
required by the lease shall be deemed to have been given, made
or communicated, as the case may be, on the date the same was
deposited in the United States mail . . . .
CLT defaulted under the lease by failing to pay the rent due
1 July 1999. On 2 July 1999, Southpark sent a letter by
certified mail to CLT giving notice of the default. The letter
stated that if Southpark did not receive CLT's rent payment
within five (5) days after the date of this notice, it could
terminate the lease without giving tenant any further notice or
opportunity to cure such default. CLT received the notice on 6
July 1999. CLT did not cure its default on 7 July 1999, within five
days of Southpark's 2 July 1999 notice letter. CLT did pay July
rent to Southpark on 9 July 1999, seven days after notice of the
default. On 12 July 1999, Southpark notified CLT and Flamer's
that the lease terminated effective 31 August 1999, due to CLT's
failure to timely cure its 1 July 1999 default. CLT refused to
vacate the premises at Southpark Mall, and became a holdover
tenant.
On 8 September 1999, Southpark filed a Complaint in Summary
Ejectment against CLT and Flamer's, seeking immediate possession
of the leased premises. The matter was heard at a non-jury trial
on 6 December 1999. On 17 December 1999, the trial court entered
judgment in favor of Southpark. The trial court found that
Section 24.1 of the lease unambiguously required that CLT remedy
any default within five days after notice. The trial court
found that CLT failed to timely pay its monthly rent on 1 July
1999, and that Southpark notified CLT of the default on 2 July
1999. The trial court concluded that CLT defaulted under the
lease, and that it failed to cure its default by 7 July 1999, as
required by the lease. The trial court entered an order of
ejectment awarding Southpark immediate possession of the
premises. CLT and Flamer's appeal.
Defendants argue that the phrase five (5) days after
notice contained in section 24.1 of the lease is ambiguous, and
therefore must be construed in favor of CLT and Flamer's.
Defendants assert that the phrase should be construed as
business days, and that CLT's 9 July 1999 payment timely cured
the default within five business days. We disagree, and affirm
the trial court's entry of judgment and order of ejectment.
Where the language of a contract is clear, the contract must
be interpreted as written. Howard v. Oakwood Homes Corp., 134
N.C. App. 116, 120, 516 S.E.2d 879, 882, disc. review denied, 350
N.C. 832, 539 S.E.2d 288 (1999), cert. denied, 120 S. Ct. 1161,
145 L. Ed.2d 1072 (2000) (citation omitted). As with contracts,
the rule of interpretation for leases is that a word in a lease
should be given its natural and ordinary meaning. Charlotte
Housing Authority v. Fleming, 123 N.C. App. 511, 514, 473 S.E.2d
373, 375 (1996) (citation omitted).
In Charlotte Housing Authority, we noted that where a non-
technical word is not defined in a lease, we must interpret the
word consistent with its plain dictionary meaning: The word 'guest' is not defined in Ms.
Fleming's lease; accordingly, it should be
given its natural and ordinary meaning.
See, Martin v. Ray Lackey Enterprises, 100
N.C. App. 349, 354, 396 S.E.2d 327, 331
(1990) (holding that the rules governing
interpretation of a lease are the same as
those governing interpretation of a
contract); E.L. Scott Roofing Co. v. State
of N.C., 82 N.C. App. 216, 223, 346 S.E.2d
515, 520 (1986) (holding that when a term is
not defined in a contract, the presumption is
that the term is to be given its ordinary
meaning and significance).
Id. We noted that Webster's Third New International Dictionary
defines 'guest' as 'a person to whom hospitality is extended,
. . . one invited to participate in some activity at the expense
of another.' Id. (citation omitted). Thus, where the party at
issue was not on the leased premises by way of invitation, he was
not a guest as contemplated by the lease. Id. at 515, 473
S.E.2d at 376; see also, IRT Property Co. v. Papagayo, Inc., 338
N.C. 293, 296, 449 S.E.2d 459, 461 (1993), (non-technical words
in a lease must be interpreted consistent with ordinary meaning).
Black's Law Dictionary defines day as [a]ny 24-hour
period; the time it takes the earth to revolve once on its axis.
Black's Law Dictionary 402 (7th ed. 1999). The American Heritage
College Dictionary defines day as [t]he period of light
between one dawn and nightfall; the interval from sunrise to
sunset. The American Heritage College Dictionary 354 (3d ed.
1997). The plain meaning of day does not encompass anything
more than the regular passage of twenty-four hours. Its ordinary
meaning does not convey any information as to when the average
business is open for operation.
Defendants failed to cite any precedent from this Stateholding that the term days in a lease agreement
is ambiguous as
a matter of law, or that the word should be construed beyond its
ordinary usage to mean business days. Defendants have also
failed to show any evidence that the parties to the lease
intended the word days to mean business days. Hassan Aris,
CLT's Business Manager, was defendants' sole witness at trial.
Aris testified that he understood that [he] had to deliver [the
rent] check by July 7, and that delivery on that date was
required under the lease.
When the language of a contract is plain and unambiguous,
its construction is a matter of law for the court. Marsh Realty
Co. v. 2420 Roswell Ave., 90 N.C. App. 573, 576, 369 S.E.2d 113,
115 (1988) (citing DeTorre v. Shell Oil Co., 84 N.C. App. 501,
353 S.E.2d 269 (1987)). We hold, consistent with the plain and
ordinary meaning of the lease language, that section 24.1 of the
lease unambiguously required defendants to cure CLT's default
within five calendar days of Southpark's 2 July 1999 notice
letter.
Assuming, arguendo, that the lease were construed to mean
business days, CLT's 9 July 1999 payment was untimely.
Southpark Mall was open for business from Friday, 2 July 1999,
through Wednesday, 7 July 1999, five business days following
Southpark's notice of default.
Southpark's letter, mailed 2 July 1999, did not specifically
state that CLT's July rent must be received by 7 July 1999.
Defendants argue that Southpark's letter did not give CLT proper
notice of when a cure was due. This argument is unpersuasive. Southpark's letter unambiguously stated that if Southpark did not
receive CLT's payment within (5) days after the date of this
notice, Southpark could terminate the lease without giving
tenant any further notice or opportunity to cure such default.
If CLT was confused by Southpark's notice letter, CLT could have
consulted the lease provisions to determine the period for curing
a default.
Defendants attempt to justify CLT's failure to cure the
default prior to 9 July 1999 by stating that, [w]hen a
representative of CLT received the Notice Letter on Tuesday, July
6, 1999, he believed that he had five 'business days' from the
date of the Notice Letter (or until July 9, 1999) to cure the
default. CLT further argues as excuse that it could not prepare
Southpark's rent check until 9 July 1999 because its bookkeeper
was out of the office until that date. Southpark is not
responsible for CLT's failure to inform its representatives about
the terms of its own lease, nor for CLT's failure to maintain
bookkeeping services to timely pay its rentals.
The trial court's entry of judgment and order of ejectment
in favor of Southpark is hereby affirmed.
Affirmed.
Judges MARTIN and TIMMONS-GOODSON concur.