Lead Opinion
The Sherwin-Williams Company appeals from a summary judgment entered in the Superior Court (Cumberland County, McKinley, A.R.J.) in favor of Roger Ton-dreau, Bertha Morin, Germaine Caron, Bernadette Tondreau and G & F, Inc.,
In May of 1966, Sherwin-Williams entered into a written lease with Germaine Caron, Roger Tondreau, Bernadette Tondreau, Bertha Morin, and Lillian Racine. The lease provided that Sherwin-Williams would occupy certain retail premises owned by the lessors, located on Maine Street in Brunswick, and would pay a monthly rent of $275, “plus 6% of net retail sales made from demised premises in excess of $25,000 annually.” The lease further provided:
The parties agree that computation of such additional rent shall be made and adjustments payable within 60 days following the end of the lease year. Net retail sales as used herein shall not include wholesale, sales to dealers or transfers of merchandise to or from this branch for or on behalf of the Tenant or it’s [sic] affiliates.
As the result of several lease extensions, these terms remained in effect through July of 1991. In November of 1988, the original lessors sold the property and assigned the lease to G & F, Inc.
In February of 1991, the plaintiffs instituted the present action against Sherwin-Williams, alleging that it had been breaching the lease since first occupying the premises by excluding from the calculation of net retail sales the amount representing sales to builders and contractors.
On an appeal of a summary judgment, we consider the evidence in the light most favorable to the nonprevailing party and review the trial court’s decision for errors of law. Chasse v. Mazerolle,
The threshold question in the present case is whether the contract of the parties is ambiguous. This is a question of law, and one that we review de novo. Maine State Employees Assn. v. Department of Corrections,
When there is an ambiguity in a written contract, and the record does not completely eliminate the possibility of an issue of material fact concerning the intent of the parties, summary judgment is inappropriate. Baybutt Constr. Corp. v. Commercial Union Ins.,
The trial court found determinative of the parties’ intent in this case the holding in State v. Cohen,
Here, the trial court pointed to 17A Am. Jur.2d, Contracts § 362 (1991) to support its conclusion that “the lack of evidence as to either party’s discussion of the term ‘retail’ requires this court to rely heavily upon [Cohen and other cases where the terms appear in a tax context] to discern the previously adjudicated meaning of the terms wholesale and retail.” In relevant part, section 362 provides:
*731 Where words or terms having a definite legal meaning and effect are knowingly used in a written contract or other instrument, the parties thereto will be presumed to have intended such words or terms to have their proper legal meaning and effect, in the absence of any contrary intention appearing in the instrument. This rule applies, for instance, where words or terms have been adjudicated to have a certain meaning. Accordingly, where it has been decided that certain language in a contract indicates a certain intention, such intention must be inferred from the use of such language in other similar contracts. Where, however, it appears by the evidence that such words and phrases as “agreement promised,” “promised and agreed,” “promise and agreement,” “understood and agreed,” “in consideration of marriage,” and “marriage settlement and gift” were not used by the parties in their technical, legal sense, such meaning will not be given them in the interpretation of a contract.
Id. (footnotes omitted). While there may be circumstances in which certain words used in contracts will always have a definite legal meaning and effect in the absence of clear contractual language to the contrary, see, e.g., Heist v. Dunlap & Co.,
The entry is:
Judgment vacated; remanded for further proceedings consistent with the opinion herein.
ROBERTS, RUDMAN and DANA, JJ., concurring.
Notes
. Two of the plaintiffs named in the complaint, Germaine Caron and Bernadette Tondreau, are deceased. Although there has been no amendment to the complaint, the personal representatives of both deceased plaintiffs have been participating in this litigation on behalf of the estates.
. The complaint contained a second count seeking the "fair market value of the benefit received” by Sherwin-Williams. The trial court granted no relief on this count and the plaintiffs have not challenged this determination on appeal.
Concurrence Opinion
with whom COLLINS, Justice, joins concurring in part and dissenting in part.
I concur with the court’s conclusion that the Superior Court erred in entering a summary judgment in favor of the plaintiffs. I also agree that the lease language is ambiguous, and that relevant extrinsic evidence is admissible to aid the trial court in construing the contract. Further, the trial court’s construction of the lease is entitled to a deferential review. See Titcomb v. Saco Mobile Home Sales, Inc.,
When construing the intent of the parties to interpret an ambiguous contract term, a court gives considerable weight to the conduct of the parties. See Blue Rock Indus. v. Raymond Int'l, Inc.,
Thus, the only evidence in the record to aid the factfinder in construing this ambigú
I would vacate and remand to the Superior Court for entry of judgment for Sherwin-Williams.
