A decision without a published opinion is authority only in the case in which such decision is rendered and should not be cited in any other case in any court for any other purpose, nor should any court consider any such decision for any purpose except in
the case in which such decision is rendered. See Rule of Appellate Procedure 30 (e)(3).
NO. COA01-571
NORTH CAROLINA COURT OF APPEALS
Filed: 4 June 2002
GEORGE S. COOK,
Plaintiff,
v
.
Guilford County
No. 00 CVD 4800
PHIL GIURINTANO, d/b/a
TRUCK STUFF,
Defendant.
Appeal by plaintiff from judgment entered 11 October 2000,
nunc pro tunc to July 17, 2000, by Judge Joseph E. Turner in
Guilford County District Court. Heard in the Court of Appeals 18
February 2002.
Randolph M. James, P.C. for plaintiff-appellant.
Forman Rossabi Black Marth Iddings & Slaughter, P.A., by Amiel
J. Rossabi, for defendant-appellee.
BIGGS, Judge.
George S. Cook (plaintiff) appeals from judgment entered in
favor of Phil Giurintano, d/b/a Truck Stuff (defendant), following
a non-jury civil trial. We affirm in part and reverse in part.
In June, 1998, defendant rented a commercial building, in
Greensboro, North Carolina, in order to operate a truck
accessories business at the site. The property was owned by
plaintiff, and managed by Bissell Properties, through their agent,
Garth Miller (Miller). A lease was signed by the parties which
included a provision requiring plaintiff to repair any leaks in theroof. Defendant assumed occupancy of the building on 21 July 1998.
From the time defendant moved in, he experienced continuous
problems with the roof leaking. In August and September, 1998,
defendant notified Miller several times that the roof leaked, and
in September and October, 1998, plaintiff made repairs to the roof.
However, the roof continued to leak, and in February, 1999,
defendant informed plaintiff that he would no longer pay rent
because plaintiff had failed to repair the roof. In February,
1999, plaintiff brought a civil ejectment action against defendant
for failure to pay rent. The record does not include a judgment or
order entered on this claim.
In May, 1999, the parties met and reached an agreement that
defendant's rent would be reduced to $1250 a month and that
plaintiff would repair the leaking roof within a reasonable time.
During the following months, defendant paid the reduced rent.
However, in October, 1999, when he tendered to plaintiff a check
for twelve-fifty, the bank processed it as $12.50, rather than
$1250.00, the amount owed. Between May and October, 1999, the roof
was not repaired; in November and December, 1999, and January,
2000, defendant again complained to plaintiff about the leaking
roof. Plaintiff's attempts to repair the roof were unsuccessful;
consequently, defendant refused to pay rent after December, 1999.
When the roof was still not repaired by June, 2000, defendant
vacated the premises.
In February, 2000, plaintiff instituted a second suit for
summary ejectment, based upon defendant's failure to pay rent. Defendant answered asserting plaintiff's breach of contract,
failure of consideration, estoppel, and unclean hands; defendant
also counterclaimed for damages for breach of contract, unfair and
deceptive trade practices, and specific performance. On 10 July
2000, the case was heard before the trial court in a non-jury civil
trial. On 11 October 2000, nunc pro tunc 17 July 2000, the trial
judge entered judgment in favor of defendant. The court concluded
that [a]s of November 30, 1999, Plaintiff constructively evicted
Defendant from the leased premises as a result of Plaintiff's
failure to prevent leakage from the roof into the Premises, thereby
breaching the lease agreement between the parties. The court
ordered plaintiff to pay $34,012.50 in damages to defendant for
constructive eviction and breach of contract, and dismissed all
other claims by both parties. Plaintiff appeals from this order.
I.
When the trial court sits as a fact finder, its findings of
fact generally have the weight of a jury verdict and are conclusive
on appeal if supported by competent evidence. K & S Enters. v.
Kennedy Office Supply Co., 135 N.C. App. 260, 264, 520 S.E.2d 122,
125 (1999). 'The applicable standard of review on appeal where,
as here, the trial court sits without a jury, is whether competent
evidence exists to support its findings of fact and whether the
conclusions reached were proper in light of the findings.' Lewis
v. Edwards, 147 N.C. App. 39, 48, 554 S.E.2d 17, 23 (2001) (quoting
In Re Foreclosure of C and M Inv., 123 N.C. App 52, 54, 472 S.E.2d
341, 342 (1996) aff'd in part, rev'd in part, 346 N.C. 127, 484S.E.2d 546 (1997)). This standard applies even though the
evidence might sustain findings to the contrary. Williams v.
Insurance Co., 288 N.C. 338, 342, 218 S.E.2d 368, 371 (1975).
II.
Plaintiff argues first that the trial court erred in finding
that he constructively ejected defendant from the premises as of
30 November 1999.
To prevail on a claim of constructive eviction, a tenant must
establish that the landlord's acts or omissions deprive the tenant
of the 'beneficial enjoyment of the premises to which he is
entitled under his lease,' causing his tenant to abandon them, K
& S Enters., 135 N.C. App. at 266, 520 S.E.2d at 126 (quoting
Marina Food Assoc., Inc. v. Marina Restaurant, Inc., 100 N.C. App.
82, 92, 394 S.E.2d 824, 830, disc. review denied, 327 N.C. 636, 399
S.E.2d 328 (1990)), or that the landlord's breach of duty renders
the premises untenable. Marina Food Associates, 100 N.C. App. 92,
394 S.E.2d 830 (evidence that landlord failed to repair or replace
roof held sufficient to find constructive eviction). The tenant
must also establish that the landlord's breach of contract
proximately caused his abandonment. McNamara v. Wilmington Mall
Realty Corp, 121 N.C. App. 400, 466 S.E.2d 324, disc. review
denied, 343 N.C. 307, 471 S.E.2d 73 (1996). In addition, the
tenant must show that he vacated the premises within a reasonable
time after the landlord's breach of contract. ARE-100/800/801
Capitola, LLC v. Triangle Labs., Inc., 144 N.C. App. 212, 550
S.E.2d 31 (2001) (where defendant remains in possession ofpremises, he may not maintain action for constructive eviction).
In the case sub judice, plaintiff asserts that the trial
court's conclusion that defendant was constructively evicted was
not supported by competent evidence that the leaking roof either
rendered the premises untenable or deprived defendant of the
beneficial enjoyment of the premises. Plaintiff also contends
that there was no competent evidence supporting the trial court's
conclusion that defendant vacated the premises in a reasonable
time. We disagree with both of plaintiff's assertions.
In its order, the trial court found that from the onset of
Defendant's possession of the Premises, Defendant experienced
repeated and continual leaking into the Premises from the roof and
possibly from the walls. The trial court also found that
defendant had complained repeatedly about the roof and that
plaintiff's attempts to repair the roof were unsuccessful. We
conclude that there is competent evidence in the record to support
these findings and that the court's findings are sufficient to
establish that the leaking roof rendered the premises untenable or
deprived defendant of the beneficial enjoyment of the property.
Regarding defendant's obligation to vacate the premises within
a reasonable time, this Court has held that [w]hat constitutes a
reasonable time for abandonment depends on the circumstances of
each case and is an issue of fact for the [fact-finder].
McNamara, 121 N.C. App. at 405, 466 S.E.2d at 328. In McNamara,
the tenant-jeweler abandoned his store after the landlord leased
the adjoining space to a very noisy aerobics studio. Althoughplaintiff remained in the store for seven to eight months after the
problem began, this Court upheld the trial court's finding of
constructive eviction, noting that the plaintiff had complained to
the landlord for over six months in an effort to resolve the
situation, before abandoning the store. On the other hand, in K
& S Enters., 135 N.C. App. 260, 520 S.E.2d 122, the tenant remained
on the premises for over three and a half years despite a leaking
roof. Further, although he left several phone messages, defendant
never wrote to plaintiff expressing his dissatisfaction. On these
facts, this Court held that the defendant failed to prove that he
was disturbed in his use and possession of the property, or that
plaintiff's failure to fix the roof rendered premises untenable.
The Court also found defendant did not abandon the premises in a
reasonable time.
In the instant case, the trial court found that defendant was
in frequent contact with plaintiff regarding the leaking roof; that
he agreed in May, 1999, to remain on the premises on the condition
that the roof would be repaired; that after reaching this
agreement, defendant continued to press for roof repairs; and that
he vacated the premises six months after informing plaintiff that
he would no longer pay rent unless the roof were fixed. We
conclude that competent evidence supports these findings, and that
the findings support the trial court's conclusion that the
defendant vacated the building within a reasonable time.
We hold that the trial court did not err in its conclusion
that plaintiff constructively evicted defendant by failing to stopthe roof from leaking; accordingly, this assignment of error is
overruled.
III.
Plaintiff argues next that the trial court erred in its
calculation of damages. We agree.
A plaintiff who has been constructively evicted may recover
general damages measured by the value, at the time of eviction, of
the unexpired term, less any rent reserved. Marina Food Assoc.,
100 N.C. App. at 93, 394 S.E.2d at 831. The rent reserved is
simply the rent due under the lease:
The parties have discussed . . . the use of
the words rent reserved[,] [but we] cannot
give any particular significance to the term
reserved. It is a word which has been
combined with rent by lawyers since
antiquity probably with little understanding
of its history or specific meaning. . . .
[T]he term rent reserved has reference to
the [fact that] . . . the owner reserves the
right to collect rent.
Norcomo Corp. v. Franchi Const. Co., Inc., 587 S.W.2d 311, 319 (Mo.
App. 1979). The calculation of these damages was discussed by the
North Carolina Supreme Court in Ross v. Perry, 281 N.C. 570, 576,
189 S.E.2d 226, 229 (1972):
Ordinarily the value of a lease is the
difference between the rental value of the
unexpired term and the rent reserved in the
lease. . . . If a forfeited lease is worth
nothing more than the stipulated rent, the
lessee has sustained no damage. He suffers a
loss only when his lease is worth more than
the rent he pays, that is, only when his lease
is a bargain.
Thus, the tenant is entitled, as the measure of his damages, to
the difference between the rental value of the premises for theterm, in the condition as contracted to be, and the rental value in
their actual condition. Brewington v. Loughran, 183 N.C. 559,
564, 112 S.E. 257, 259 (1922). Moreover, as a general rule, . .
. the stipulated rent, in the absence of other evidence [is]. . .
regarded as the fair rental value of the demised premises in the
condition as called for in the lease. Id. In the instant case,
the only evidence regarding the fair rental value of the premises
was the amount of rent agreed upon in the original lease. At the
time that defendant was constructively evicted, the rent remaining
on the lease as initially agreed to was $40,500 (3 months at $1500
and 18 months at $2000), but only $35,250 under the revised lease
(3 months at $1250 and 18 months at $1750). The proper measure of
defendant's damages is $5250, the difference between the original
rental and the reduced rental, starting from the date that
defendant was constructively evicted. The trial court, however,
awarded defendant damages in the amount of the total rent remaining
under the lease. We conclude that the trial court erred in its
calculation of damages.
IV.
Plaintiff next argues that the trial court erred in its
determination of the terms of the accord and satisfaction reached
by the parties in May, 1999. We disagree.
Accord and satisfaction is 'a method of discharging a
contract, or settling a cause of action arising either from a
contract or a tort, by substituting for such contract or cause of
action an agreement for the satisfaction thereof, and an executionof such substitute agreement.' Prentzas v. Prentzas, 260 N.C.
101, 103, 131 S.E.2d 678, 680 (1963) (quoting Walker v. Burt, 182
N.C. 325, 109 S.E. 43 (1921)). The existence of accord and
satisfaction turns on a central factual issue: whether there was
a meeting of the minds and therefore an agreement[.] Metric
Constructors, Inc. v. Hawker Siddeley Power Engineering, 121 N.C.
App. 530, 540, 468 S.E.2d 435, 441 (1996). The 'accord' is the
agreement between the parties in which 'one of the parties
undertakes to give or perform, and the other to accept, in
satisfaction of a claim,' and the 'satisfaction' 'is the
execution or performance, of such agreement.' Zanone v. RJR
Nabisco, 120 N.C. App. 768, 772, 463 S.E.2d 584, 587 (1995)
(quoting Sharpe v. Nationwide Mut. Fire Ins. Co., 62 N.C. App. 564,
565, 302 S.E.2d 893, 894, cert. denied, 309 N.C. 823, 310 S.E.2d
353 (1983)), disc. review denied, 342 N.C. 666, 467 S.E.2d 738
(1996).
In the present case, the trial court found that the parties
met in May, 1999, and reached an agreement that (1) the rent would
be reduced, (2) defendant would be compensated for certain damages
he had incurred due to the leaking roof, (3) defendant would pay
rent owed for the months before the agreement was reached, and (4)
plaintiff would repair the roof. At trial, the parties presented
contradictory testimony regarding whether plaintiff or defendant
agreed to repair the roof; each party testified that the other had
assumed responsibility for any further repairs. The resolution of
this issue was a matter of fact, for the existence of accord andsatisfaction is generally a question of fact. Griffin v. Sweet,
120 N.C. App. 166, 171, 461 S.E.2d 32, 35 (1995), disc. review
denied, 342 N.C. 655, 467 S.E.2d 712 (1996). We conclude that
competent evidence supported the trial court's finding that
plaintiff had agreed to repair the roof. This assignment of error
is overruled.
V.
Finally, plaintiff argues that the trial court erred by not
entering judgment against defendant for a breach of the modified
lease. This assignment of error is without merit. Plaintiff
argues that he did not constructively evict defendant and that
defendant breached the lease by withholding rent. We have
concluded that the trial court did not err in finding constructive
eviction. Plaintiff also alleges defendant's violation of the
lease in October, 1999, when he tendered in payment a check for
twelve-fifty, which was processed by the bank as $12.50, rather
than $1250.00. Plaintiff
asserts that defendant breached his lease
by failing to repay the amount owed for October, 1999. The trial
court found that defendant was in violation of the lease by his
failure to send the full amount for October, 1999, and reduced the
damage award by a corresponding amount. We conclude, therefore,
that any error in the trial court's failure to enter judgment on
this issue is harmless. This assignment of error is overruled.
In sum, we affirm the trial court's ruling that defendant was
constructively evicted and its dismissal of the parties' other
claims. We reverse the court's calculation of the measure ofdamages, and remand for entry of judgment consistent with this
opinion.
Affirmed in part, reversed and remanded in part.
Chief Judge EAGLES and Judge MCCULLOUGH concur.
Report per Rule 30(e).
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