206 So. 3d 755
Fla. Dist. Ct. App.2016Background
- Charbonier Food Services leased restaurant space from 121 Alhambra Tower, LLC under a ten-year commercial lease beginning 2011; paragraph 51 set the Base Rent as the greater of a fixed schedule or a percentage of gross sales with a special adjustment beginning January 2015.
- From 2011–2014 Charbonier paid all rent. In October 2015 Alhambra began charging an extra $10,000/month, asserting paragraph 51 authorized adding an "Additional Fixed Base Rent" beginning 2015.
- Charbonier disputed that interpretation and tendered a lower payment for September 2015; Alhambra served a seven-day pay-or-quit notice and later sued for eviction and damages while also moving to compel Charbonier to deposit disputed rents into the court registry under section 83.232.
- The trial court agreed with Alhambra’s reading, ordered Charbonier to deposit one-half of the disputed rent and sales tax into the court registry and later entered a final judgment of eviction after Charbonier did not deposit the funds.
- Charbonier appealed, challenging the trial court’s contractual interpretation and the order requiring registry deposits; the appellate court retained jurisdiction under Fla. R. App. P. 9.130(a)(3)(c)(ii).
Issues
| Issue | Plaintiff's Argument (Charbonier) | Defendant's Argument (Alhambra) | Held |
|---|---|---|---|
| Whether paragraph 51 is plain or ambiguous and how the Base Rent adjustment beginning 2015 should be read | Paragraph 51 is ambiguous; Charbonier contends the lease does not authorize the extra $10,000/month as Alhambra charges | The lease unambiguously authorizes adding the additional fixed amount beginning Jan 2015, and thus higher rent is due | The court held the lease language is ambiguous and susceptible to more than one reasonable interpretation; extrinsic evidence is required to determine parties’ intent |
| Whether the trial court properly ordered Charbonier to deposit disputed rents into the court registry and whether eviction judgment should stand | Because the lease is ambiguous and Charbonier disputed the rent in good faith, it should not have been compelled to deposit disputed sums and should not have been summarily evicted | Alhambra argued the rent demand was proper and registry deposit was warranted under section 83.232 | The appellate court reversed the registry-deposit order and the eviction judgment, remanding for consideration of extrinsic evidence to ascertain intent and correct rent obligations |
Key Cases Cited
- Merlot Commc’ns, Inc. v. Shalev, 840 So. 2d 446 (Fla. 3d DCA 2003) (contract interpretation reviewed de novo)
- Hahamovitch v. Hahamovitch, 174 So. 3d 983 (Fla. 2015) (unambiguous contracts enforced according to plain language)
- Washington Nat. Ins. Corp. v. Ruderman, 117 So. 3d 943 (Fla. 2013) (when ambiguous, court must ascertain parties’ intent)
- Crawford v. Barker, 64 So. 3d 1246 (Fla. 2011) (plain meaning of contract controls; confine interpretation to four corners when unambiguous)
- Richter v. Richter, 666 So. 2d 559 (Fla. 4th DCA 1995) (same principle regarding contract plain meaning)
- Real Estate Value Co., Inc. v. Carnival Corp., 92 So. 3d 255 (Fla. 3d DCA 2012) (contract ambiguous if reasonably susceptible to more than one interpretation)
- Pan Am. W., Ltd. v. Cardinal Commercial Dev., LLC, 50 So. 3d 68 (Fla. 3d DCA 2010) (definition of ambiguity in contracts)
- Friedman v. Virginia Metal Prods. Corp., 56 So. 2d 515 (Fla. 1952) (extrinsic evidence may be used to explain or clarify an ambiguity)
- Se. Fire Ins. Co. v. Lehrman, 443 So. 2d 408 (Fla. 4th DCA 1984) (use of extrinsic evidence to determine parties’ intent when contract ambiguous)
