Griffin Industries, LLC v. Dixie Southland Corporation
162 So. 3d 1062
Fla. Dist. Ct. App.2015Background
- Griffin Industries leased a warehouse from Dixie Southland for a five-year term starting November 1, 2007; rent escalated annually beginning at $10,000/month. The parties performed under the lease for ~1.5 years.
- In April–May 2009 the Town of Davie issued a "Courtesy Correction Notice" about storm-water being pumped into the street; Dixie removed the pipe, capped it, engaged an engineer, and the Town closed its file after reinspection.
- Griffin sent a termination letter on May 26, 2009 asserting illegal discharges continued, vacated in June 2009, and stopped paying rent after July 2009.
- Dixie relet the premises to a new tenant starting December 1, 2009 at $6,000/month and sued Griffin for breach; Griffin counterclaimed and asserted affirmative defenses including constructive eviction and fraudulent inducement.
- After a two-day bench trial the court found Griffin's affirmative defenses lacked credible evidence, entered judgment for Dixie, and awarded damages for rent and sales tax through June 2010; the parties appealed as to liability and damages.
Issues
| Issue | Plaintiff's Argument (Griffin) | Defendant's Argument (Dixie) | Held |
|---|---|---|---|
| Whether Griffin could legally terminate the lease because of an illegal/unpermitted storm-water/drainage condition | Griffin: Dixie created/refused to correct an unpermitted/illegal storm-water system, entitling Griffin to terminate | Dixie: No illegal condition established; Town closed the file, Dixie had remediated/was remediating the issue | Court: Affirmed for Dixie — trial court’s factual finding that Griffin failed to prove an illegal condition or constructive eviction is supported by substantial evidence |
| Constructive eviction / habitability for leased commercial premises | Griffin: Condition made premises unfit for leased use, amounting to constructive eviction | Dixie: No interference with Griffin’s operations; issues were addressed and no fines or active enforcement existed | Court: Griffin did not show the premises were unsafe, unfit, or unsuitable; no constructive eviction established |
| Fraudulent inducement to enter lease (misrepresentation about permits) | Griffin: Broker told Griffin the property "had all the permits," which fraudulently induced the lease | Dixie: Broker testified there was no inquiry about storm-water permits; trial court credited Dixie’s testimony | Held: Trial court credited Dixie; fraud claim not proved |
| Proper measure of damages after Griffin vacated early and Dixie reletted | Griffin: If liable, rent should be limited to July–Nov 2009 per an Early Termination Clause or offset by rents received from new tenant | Dixie: Entitled to recover rent plus sales, property taxes, and insurance not paid by new tenant for remainder of term | Held: Early Termination Clause was not timely invoked (notice required in month 24); Dixie validly elected to relet and hold Griffin liable for the difference between original lease obligations and amounts received from reletting; remanded to recalculate damages consistent with this rule |
Key Cases Cited
- Marquez-Gonzalez v. Perera, 673 So. 2d 502 (Fla. 3d DCA 1996) (landlord generally responsible to correct latent illegal conditions that tenant could not have discovered)
- Barton v. Mitchell Co., 507 So. 2d 148 (Fla. 4th DCA 1987) (failure to remedy conditions materially interfering with business can constitute constructive eviction)
- Holiday Furniture Factory Outlet Corp. v. State, Dep’t of Corr., 852 So. 2d 926 (Fla. 1st DCA 2003) (lessor options after tenant abandons: retake possession, hold for tenant’s account and recover differences, or sue as rent accrues)
- Acoustic Innovations, Inc. v. Schafer, 976 So. 2d 1139 (Fla. 4th DCA 2008) (appellate courts defer to trial court’s credibility and fact findings; review limited to whether supported by competent, substantial evidence)