Friday, January 6, 2012

Court reviews whether the terms of a sublease makes the sublessee liable for paying property taxes

2850 PARKWAY GENERAL PARTNERSHIP, v. C. DAN SCOTT, et al. (Tenn. Ct. App. January 5, 2012)

Plaintiff brought an action for declaratory judgment, asking the Court to declare that while plaintiff's sublease required it to pay the property taxes, the master lease required the lessor to pay the property taxes, and asked the Court to declare the lessor liable for the property taxes. Following trial, the Trial Court declared that the sublessee was liable for the property taxes, as it agreed to pay under the sublease. On appeal, we affirm the Judgment of the Trial Court on the grounds that under the fact of this case, plaintiff is equitably estopped to avoid paying property taxes, as agreed to in the sublease.

Opinion available at: