Wednesday, October 14, 2009

Court examines maintenance covenant and forfeiture clause of lease agreement in lease breach case

DONNA MARIE RICHMOND, ET AL. v. JEAN FRAZIER CORRECTION (Tenn. Ct. App. August 5, 2009)

This appeal concerns the termination of a lease and the subsequent initiation of a detainer action. Donna Marie Richmond, Harry Richmond, II, and Rebecca R. White ("Lessors") alleged that the lessee, Jean Frazier ("Ms. Frazier"), defaulted on the Church Hill Lease ("Lease") as a result of the deteriorating condition of the Church Hill Shopping Center. When Ms. Frazier refused to relinquish the premises after termination of the Lease, Lessors filed the detainer action to reclaim the property. After a trial, the Chancery Court held that Ms. Frazier did not break the Lease because of the prior course of conduct of the parties and that Ms. Frazier took reasonable care of the premises. Based on the plain language of the Lease agreement and the factual findings of the trial court, we reverse.

Opinion may be found at the TBA website:
http://www.tba2.org/tba_files/TCA/2009/richmondd_CORR_080509.pdf