Larsen v. Timothy's Ice Cream Inc., No. Spbr 9505 29502 (Oct. 12, 1995)
Opinion of the Court
FACTS
The court finds the following facts: The plaintiff is the owner of a commercial building known as 70 Reef Road, Fairfield, Connecticut. Effective April 15, 1988, the plaintiff rented the premises at 70 Reef Road, Fairfield, Connecticut to Timothy's Ice Cream Inc. The term of the written lease expired on April 1, 1993. The rent for the entire term was to be paid at the rate of $1500.00 per month. During the term of the lease the parties modified the rental payments, due to the defendant's cash flow to the sum of $375.00 per week for the first four weeks of each calendar month, for the total payment of $1500.00 per month rent.
The lease contained the following option clause. "I will have the option to rent the premises for an additional period of five years. The terms and provisions of a renewal lease shall be agreed at the time of renewal." The lease was prepared by the defendant. Neither the plaintiff nor the defendant consulted with an attorney during the preparation and execution of the lease. The lease contained no method for the exercising of the option. The lease was silent as to whether the option must be exercised in writing. There was no hold over provision in the lease. The lease did not contain any other terms or provisions for the five year option period.
During the period of the initial lease the plaintiff became concerned about the defendant's ability to continue to comply with the terms of the lease. The defendant failed to pay for minor repairs as set forth in the lease, failed to provide a certificate of insurance as required by the lease and failed to maintain the premises in a safe condition as required by the lease terms. Furthermore the defendant's principal officer, Timothy Larkin stated to the plaintiff that his business was poor. The parties orally modified the written lease requiring that the $1500 rent be paid on a weekly basis instead of a monthly basis. The rent remained at the same rate. On March of 1992 the plaintiff became even more concerned about the defendant's ability to continue on with the lease, when the CT Page 12405 plaintiff read a newspaper article indicating that Mr. Larkin had placed Timothy's Ice Cream Inc. at 70 Reef Road Fairfield on the market for sale as well as another Timothy's Ice Cream, Inc. location in Shelton Connecticut.
When April 1, 1993 arrived the plaintiff and the defendant, acting by Timothy Larkin, did not speak or correspond with each other about the continuation of occupancy or any other terms and conditions of the continued occupancy. The plaintiff testified that as of April 1, 1993 she did not intend to renew the lease. On April 2, 1993 the plaintiff received a certified letter from the defendant. She signed the certified, mail receipt for the letter. The letter was dated March 30, 1993. The letter stated as follows "Timothy's Ice Cream, Inc. does hereby exercise our five year lease option for the premises located at 70 Reef Road, Fairfield, Connecticut. We assume all terms and conditions of our original lease agreement shall remain the same and shall include an additional five year option commencing April 1, 1998." This notice was signed Timothy Larkin, Timothy's Ice Cream, Inc.
The plaintiff never responded to the defendant's letter. The plaintiff and the defendant never conversed concerning this particular letter nor did they discuss the terms and conditions of the occupancy or the property after April 1, 1993. The plaintiff felt that the option clause required the parties to sit down and discuss the matter and without that conference and agreement there was no valid exercise of the option term. The defendant felt that the option has been exercised upon the same terms and conditions of the prior written lease.
On or about April 1, 1993 the defendant tendered a $375.00 rent check. The defendant tendered each and every weekly check totalling $1500.00 per month on time after April 1, 1993. The plaintiff deposited each of the weekly rental checks tendered by the defendant. The plaintiff did not return any rental checks nor object to the payment of those checks.
On April 17, 1995 the plaintiff caused a notice to quit to be served on the defendant, Timothy's Ice Cream Inc. The notice to quit was served on Timothy Larkin, manager, Timothy's Ice Cream, Inc. and service was made at 70 Reef Road, Fairfield, Connecticut in accordance with Connecticut General Statutes §
The defendants filed two special defenses. The first special defense claims that the lease had been extended for an additional five year period commencing April 1, 1993 and therefore there is no lapse of time. The second special defense stated: "in the event the written lease terminated as alleged by the plaintiff in paragraph 6 of her complaint, then the lease continued as a verbal year to year tenancy."
Written memoranda and post trial memoranda were submitted by both parties. The case was tried on July 31, 1995. The decision in this case will be made based upon the facts as stated.
DISCUSSION OF LAW
A commercial lease is controlled by common law rules. Thomasv. Roper,
Therefore there is no automatic month to month tenancy when the rental agreement does not fix a definite term in a commercial tenancy. Connecticut General Statutes §
The original version of §
The 1976 session of the legislature created an entirely new series of acts known as the Landlord and Tenant Act. P.A. 76-95,P.A. 76-435. These statutes are essentially Connecticut GeneralStatutes §§
In 1979 Connecticut General Statutes §
Summary process statutes are in derogation of common law and must be strictly construed. Jo-Mark Sand and Gravel Co. v.Pantanella,
Prior to 1866, common law held that if a tenant, both commercial and residential, held over after the expiration of a CT Page 12409 fixed tenancy of a year, he was responsible to the landlord for another year upon the same terms. Bacon v. Brown,
The 1866 statute, General Statutes § 5021, changed the common law. "The effect of the statute is to abrogate this common-law rule and a mere holding over with consent of the landlord no longer creates a tenancy from year to year, but such a tenancy can only be established by proof of an agreement of both of the parties." Shulman v. Hartford Public Library, supra, 432. For one hundred and thirteen years until P.A. 79-571, the month to month tenancy of a holdover tenant was the Connecticut rule. This rule applied to all tenancies, commercial and residential alike.
Now, with the inclusion of Connecticut General Statutes §
This is the principal issue raised by this case. It is an issue not yet ruled on in Connecticut. How does the summary process statute operate in a commercial setting and what is its effect on a commercial lease which is creature of common law and continue to be ruled on and interpreted by common law not contract standards? This issue is of interest to the Connecticut CT Page 12410 Supreme Court. Sullivan v. Nameaug Walk-In Medical Center P. C.,
"It is axiomatic that the process of statutory interpretation involves a reasoned search for the intention of the legislature."In re Valerie D.
Connecticut case law holds that the fact that a tenant holds over after a lease expires is not alone sufficient to create a new lease. DiCostanzo v. Tripodi,
A new lease may also be created by implication. Welk v.Bidwell, supra 607. A lease by implication can be found if the tenant holds over and circumstances reasonably suggest an intention to renew the lease. Freshwater Pond Apartments v.Olivera, H-730, March 4, 1986, (Goldstein, J.). In the usual oral residential and commercial month to month tenancies if a tenant continues occupancy into the next month and there has been no communication whatsoever between the landlord and the tenant, a court would ordinarily find a new lease by implication arose on the first day of the month, and, as a result the tenant would be liable for the entire month's rent. Webb v. Johnson, H-861, June 3, 1988 (Doyle, J.). "A person's intention in any regard is to be inferred from his conduct." Kiernan v. Borst,
The parties tried this case on the theory of whether or not the "option clause" of the lease was a "covenant to renew a lease" or "covenant to extend a lease." Our case law recognizes a technical distinction between a covenant to renew a lease and a covenant to extend a lease. Johnson v. The Mary Oliver CandyShops, Inc., supra 89; City Coal Co. v. Marcus,
Any lease, by agreement of the parties may provide for a tenancy beyond the minimum terms therein, in two well-recognized ways: one, by means of a covenant to renew the lease for a certain specified term upon the expiration of the term of the original lease, which covenant contemplates a further lease to be entered CT Page 12412 into by the parties; the other, by means of what are termed agreements for extension. These latter come into existence by use of a great variety of phrases, such as `the privilege of two more years if desired' or `with right to remain for a further period of _______________ if he so elect' or `the privilege of continuing this lease for ______________.' When such expressions are used, the original lease operates as a continuous one, and the holding for a term exceeding the minimum provided in the agreement, does not require any additional instrument to give it validity. The statute of frauds is satisfied by the original lease, if it is one required to be in writing.
City Coal Co. v. Marcus, supra 459.
This distinction is particularly important if a question of satisfaction of the statute of frauds is involved. David A.Altschuler Trust v. Blanchette, supra 572. The parties agreed that there was no new written instrument renewing this particular lease. They do not contest the fact that each week the $375.00 agreed upon rent was tendered and accepted without objection by the plaintiff until the service of the 1995 notice to quit.
The plaintiff claims that the "option clause" of the lease is a covenant to renew and thus there is a requirement of a new written instrument. The plaintiff claims that there was not a valid exercise of the option to renew for five years and the lease was no longer in full force and effect.
The defendant on the other hand claims that this "option clause" was a covenant to extend. It claims that the original lease operates as a continuous lease. There is no requirement for the satisfaction of the statute of frauds since the original lease was already executed by the parties to be charged.Connecticut General Statutes 652-550. David A. Altschuler Trustv. Blanchette, supra 572. The defendant further argues that the parties had agreed upon the $375.00 per week, i.e. $1500.00 per month rent and the lease was extended for an additional five year period of time upon the same terms and conditions by its payment and the plaintiff's acceptance of without any objection for more than a two year period of time after April 1, 1993.
In support of its argument the defendant cites Corthouts v.Connecticut Fire Safety Services Corporation, 2 Conn. Cir. Ct. 34 (1963). The defendant claims Corthouts holds that an extension of CT Page 12413 the lease pursuant to an option contained in the lease does not require a new document, if, in the existing lease, at least three of the elements for a valid lease are certain: (1) the commencement, (2) the continuance, (3) the end of the term. If the lease requires of the lessee no notice of the extension, mere continuation of occupancy at the end of the original term coupled with the payment of the rent for the new term is a sufficient exercise of the lessee's option for an extension. Corthouts v.Connecticut Fire Safety Services Corporation, supra 38-39.
Corthouts v. Connecticut Fire Safety Services Corporation, involved a commercial lease which contained the following provision, "The Lessee shall have the privilege and option to extend this lease for a period of one year from the date of expiration of the term hereof, as originally limited. The exercise of said option shall act as and shall be an extension of this lease on the same terms and conditions as those recited therein, except that the rental to be paid shall be increased to $200.00 per month". When the original one year term of this lease was over the defendant continued to occupy the premises for an additional five months paying $175.00, the original rental, for each month by a check which had printed on its face in "full payment of rent." At no time did the defendant inform the plaintiff that it was occupying the premises under its option extension nor did the defendant request that the security deposit of $175.00 be applied to the last month's rental of the original term. The defendant then quit the premises. The plaintiff found another tenant at a lesser rent and sued the defendant for breach of the additional one year lease remaining. The trial court held that the defendants continued occupancy was a mere holding over and therefore it was a tenant at sufferance. There was no exercise of an option to extend the lease. But the Appellate Division of the Circuit Court reversed and directed judgment for the plaintiff holding that the option to extend was exercised by the actions of the parties.
The defendant points out in the Corthouts case that at no time did the defendant inform the plaintiff that it was occupying the premises under option to extend. Timothy's Ice Cream, Inc. clearly sent a notice on March 30, 1993 exercising its option and therefore the defendant argues that Corthouts is decisive in this particular case.
CONCLUSION CT Page 12414
Corthouts v. Connecticut Fire Safety Services Corporation, validates an option to extend without a new written document if in the existing lease at the three of elements for a valid lease are certain; (1) the commencement, (2) the continuance and (3) the end of the term. There must be a meeting of minds of all the parties as to each of the essential terms and conditions of the lease for there to be a contract. Welk v. Bidwell, supra 607.
The court finds that two of the three elements in Corthouts have not been met.
(1) The commencement date of April 1, 1993 was clearly agreed to by the parties.
(2) The continuance term did not involve a meeting of the minds. The plaintiff clearly operated under the incorrect impression of law that under Connecticut General Statutes §
47a-3d the tenant's holding over created a month to month tenancy. The defendant was under the impression that the five year option term was in effect(3) There was no agreement as to the end of the term. There was no specific agreement that the additional five year option period commencing on April 1, 1998 was agreed to or consented to by the plaintiff. Furthermore the original lease contained a right of first refusal. No evidence was provided to show that the parties had a meeting of minds as to whether or not that right of first refusal would still be in full force and effect. Didriksen v. Havens,
136 Conn. 41 ,44 (1949), Johnson v. The Mary Oliver Candy Shops, supra 89, Ackerman v. Loforese,111 Conn. 700 ,704 (1930), City Coal Co. v. Marcus, supra 459.
At common law the holding over after the termination of the lease for one year created a new term for one year. Bacon v.Brown, supra 338. This rule was nullified by statute in 1866. After 1866 the statute was applicable to both commercial and rental premises. The Appellate Division of the Circuit Court inCorthouts indicated that Connecticut General Statutes §
This court has found that the clause in question is not a covenant to extend because it does not meet the last two prongs of the three prong requirement of Corthouts v. Connecticut FireSafety Services Commission, supra 38. The court further holds that this clause cannot be a covenant to renew because a covenant to renew a lease requires a new written instrument and there was no such new written instrument. City Coal Co. v. Marcus, supra 459.
Under Welk v. Bidwell, supra 607 this court has found that there was no meeting of the minds concerning the ending of the term nor the exact terms and conditions of the continuation of the lease. Under these circumstances and the findings of fact already made this court will not find a lease by implication.Chomko v. Patmon,
What is the legal status and relationship of the parties after April 1, 1993. The tenant did not occupy under an extended written five year lease based upon this court's finding that the option to extend was not properly exercised. The court has found there was no option to renew. Furthermore the defendant is not operating under a year to year lease. The common law rule was modified by state in 1866 after the case of Bacon v. Brown, supra 338. Connecticut General Statutes §
A tenancy at sufferance arises when a person who came into possession of land rightfully continues in possession wrongfully after his right thereto has terminated. Welk v. Bidwell, supra 608-09, Rivera v. Santiago,
The plaintiff in her complaint alleges only one count seeking the eviction of the defendant, "lapse of time." To prove "lapse of time" there must be a tenancy which has lapsed. Bermudez v.CT Page 12416Rodriguez, H-798, December 17, 1986, (Aronson, J.); Duprey v.Bourgue, H-514, February 8, 1984 (Aronson, J.); Welk v. Bidwell,
supra 607-09, Lombardi v. Dunning, SNBR-435,
It appears that the plaintiff is without a statutory remedy to evict the defendant. There is no allegation of a nuisance or serious nuisance. The defendant is not a tenant under a lease thus there can be no grounds for lapse of time or non payment of rent. Since the defendant once had operated under a lease there can be no eviction under Connecticut General Statutes §
The plaintiff has no remedy for violation of the material terms of the lease. "Termination of lease" and "no right to occupy premises," two of the reasons contained in the notice to quit are not valid statutory grounds for eviction. ConnecticutGeneral Statutes §
Judgment will enter for the defendant. The plaintiff has failed to sustain her burden of proof as to the allegations of lapse of time under Connecticut General Statutes §
BY THE COURT, KEVIN TIERNEY, JUDGE CT Page 12417
Case-law data current through December 31, 2025. Source: CourtListener bulk data.