By March, 1996, the defendant was in arrears on his lease obligations due to poor sales and the loss of an anchor store in the mall. The plaintiff's general manager for the mall, Patrick Madden, sent the defendant a notice advising him that the was in default of his lease obligation by failing to pay past due rent of $5,153.51 and that if the did not cure that default within ten days, the plaintiff would terminate his lease. Between March and May, 1996, the defendant made a "rent relief" request with the plaintiff. This is an informal process, not part of the lease agreement and entirely discretionary with the plaintiff.
On or about May 6, 1996, the defendant received another letter from Madden advising him that the owed the plaintiff $16,797.13 in rent charges above the minimum rental due under the lease. The letter advised the defendant that his request for rent relief was under consideration but that it did not waive his obligations under the lease. "Furthermore," the letter continued, "failure to maintain current payments halts the review process, as rent relief cannot be considered for any tenant who is not current. Failure to pay rental charges is a serious lease default that must be cured immediately."
On May 9, 1996, Madden sent the defendant another letter advising him that the had failed to pay the annual adjustments to common area maintenance charges, insurance charges, and property taxes for the period July 1, 1994 to June 30, 1995, for which the had been invoiced three months earlier. The letter stated: "Unless we receive full payment for the amount outstanding within 5 days from your receipt of this letter, it is the intent of Connecticut Post Limited Partnership to terminate your Lease, repossess the premises, and pursue recovery of all costs and expenses afforded us under the terms of the Lease. . ."
The defendant responded by handwritten letter dated May 13, 1996. The defendant explained that the was not coming close to breaking even due to the poor retail market and the departure from the mall of one of its anchor stores, Stop Shop. The defendant offered to do a store closing sale, stating: "I could CT Page 627 probably make up the balance by doing a store closing sale if that is what the mall would want. Our lease is up in January anyway but this [is] not my desire and hope it is not yours."1
The defendant then received a notice to quit possession of store no. 2026, a store the had not occupied in nearly five years. Despite the defect in the notice, the defendant met with Madden and reiterated that if the plaintiff wanted him to leave the would do a store closing sale and leave. Madden stated that the recognized that the plaintiff could not "scare" the defendant and that the plaintiff did not wish the defendant to vacate. The two men discussed the possibility of the defendant relocating to a smaller store in the mall. Madden said the would discuss that suggestion with the mall's leasing agent.
From March, 1996 to November, 1996, the defendant paid the plaintiff $5,643.62 per month. This sum was about $600.00 above the minimum monthly rental but about $2,000.00 less than the additional rental charges required under the lease The defendant was unable to generate sufficient revenue to pay the additional charges. On October 25, 1996, prior to the expiration of the lease, the plaintiff brought this action. In December, 1996 and January, 1997, the defendant did pay both the basic monthly rental and the full amount of additional charges. In January, 1997, the plaintiff vacated the store. His lease expired at the end of that month. "Additional facts will be recited as necessary to address the questions presented." State v. Beliveau,
The plaintiff claims damages for the defendant's failure to pay the full amount of additional charges under the lease from March to November of 1996, plus prejudgment interest and attorneys' fees. The defendant interposes several claims in defense.
Section 19.01 of the parties' lease, entitled "RIGHTS UPONDEFAULT," provides:
Notwithstanding any provision herein to the contrary and irrespective of whether all or any rights conferred upon Landlord by this Article XIX are expressly or by implication conferred upon Landlord elsewhere in this lease, in the event of (i) any failure of Tenant to pay any rental or installments thereof, or any other charges or sums whatsoever due hereunder . . . for more than ten (10) days after written notice from Landlord to tenant that such rental, installments, charges or sums were not received on the date required for payment pursuant to this Lease, or (ii) any default or failure by Tenant to perform any other of the terms, conditions, or covenants of this lease to be observed or performed by Tenant for more than twenty (20) days after written notice from Landlord to Tenant of such default (unless such default cannot be cured within twenty (20) days and Tenant shall have commenced to cure said default with twenty (20) . . . then Landlord, besides other rights or remedies it may have under this lease or by law, shall have the right to (a) immediately terminate this Lease and Tenant's right to possession of the leased premises by giving Tenant written notice that this Lease is terminated . . . or (b) have this Lease continue in effect for so long as Landlord does not terminate this Lease and tenant's right to possession of the leased premises, in which event Landlord shall have the right to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the rent and other charges payable by Tenant under this Lease as they become due under this Lease . . . .
"A lease is a contract and questions concerning it are determined in accordance with usual contract law." AmwaxCorporation v. Chadwick,
The provision in the lease providing for notice by the plaintiff to the defendant of the latter's failure to pay rental or other charges and for a period "for more than ten (10) days" before the plaintiff exercises the "rights upon default" provided in § 19.01 is clearly not a condition precedent in the classic sense. Section 2.01 of the Lease provides that rent is due "without any prior demand therefor." Moreover, this court holds that the notice provision in § 19.01 was not a prerequisite to the plaintiff's suing for unpaid rent, for three reasons.
First the prefatory clause to § 19.01 of the lease, and the lease as a whole, reflects that the remedies given in § 19.01 are cumulative to those "expressly or by implication conferred upon Landlord elsewhere in the lease. . . ." The lease and its addenda establish a covenant by the defendant to pay both the minimum rental and other payments and charges provided therein in monthly payments. "Considering a lease as a unilateral contract, or a bilateral contract that has been wholly performed by the lessor the covenant to pay rent at certain fixed periods is a contract for the payment of money in installments, and the failure to pay any instalment of rent as it falls due would constitute a partial breach of the lessee's contract." SagamoreCorp. v. Willcutt,
Second, § 19.01 is inapplicable here. In the context of this case, after rent is due and unpaid, § 19.01 at best merely establishes a ten day waiting period after the Landlord gives notice of the default in rent payments after which the Landlord may continue the lease in effect and the Tenant's right to possession and concurrently sue the Tenant for rent and other charges "as they become due. . . ." Here, the plaintiff does not complain that the plaintiff commenced suit before the expiration of the lease and of his tenancy.
Third, here, a monthly notice by the plaintiff to the defendant would have been superfluous. The plaintiff, in fact, had sent the defendant three letters — on March 7, 1996, May 6, 1996 and May 9, 1996, informing him that the was in default in his payments under the lease. In his letter to Madden dated May 13, 1996 and even more so in a meeting with Madden later that month, the plaintiff explained that because of the poor retail market and the absence of one of the anchor stores at the mall, the would be unable to pay more than the minimum rental payment each month together with common area maintenance charges until the next Christmas season. Under these circumstances, the "[p]laintiff's sending a notice of default [each month] for failure to pay rent would have been a vain and useless act."Pleasure Island, Inc. v. Pepsi-Cola Metropolitan Bottling Co.,
"Under the general rules applicable to oral modification of written contracts, in the absence of statutory restrictions a written lease may be subsequently modified as to the amount of CT Page 631 rent, by oral agreement." Baier v. Smith,
It is true that, as in Baier v. Smith, supra,
III CT Page 632
The defendant next claims that the plaintiff is estopped from claiming amounts in addition to that which the paid in 1996.
The defendant's claim of estoppel is based on the following facts. After the defendant received the notice to quit, the went to Madden's office and told him that if the plaintiff wanted him to leave the mall the would have a going out of business or clearance sale and vacate at the end of May, 1996. The defendant opined that had the done so, the would have been able to sell his inventory and have sufficient funds to pay off the arrearage that had accumulated Madden responded that the recognized that the mall could not "scare him." The court infers that Madden meant that the reason the plaintiff attempted to serve the defendant with a notice to quit was to cause him to pay his arrearage. But the defendant was unable to pay additional monies Moreover, the mall had lost an anchor store, Stop Shop, overall sales had decreased and the last thing the plaintiff wanted was a higher vacancy rate in the mall. The plaintiff did not attempt to evict the defendant. The defendant continued to do business and to tender monthly checks to the plaintiff only for the minimum rent and CAM charges. The plaintiff accepted those checks. In December, 1996 and January, 1997, the defendant tendered, and the plaintiff accepted, the full amount of monthly rent and additional charges.
It is settled that "estoppel always requires proof of two essential elements: the party against whom estoppel is claimed must do or say something calculated or intended to induce another party to believe that certain facts exist and to act on that belief; and the other party must change its position in reliance on those facts, thereby incurring some injury." (Internal quotation marks.) Boyce v. Allstate Insurance Co.,
The gravamen of the defendant's claim of estoppel appears to be that the plaintiff lulled him into not conducting a going out of business sale from which the could have paid off the arrearage which was then due. The claim is flawed and overlooks an important fact.
The claim is flawed because Madden did not prevent the defendant from conducting a going out of business sale. His lease did. Article VII, § 7.02 (b) of the defendant's lease provided in pertinent part: "No auction, going out of business, fire or bankruptcy sale may be conducted or advertised by sign or CT Page 633 otherwise in the leased premises." If the defendant had wanted to conduct such a sale away from the leased premises, the could have done so. Madden's remark that the plaintiff could not "scare" the defendant is no basis for an estoppel. "`The principles of estoppel . . . are reasonably well defined and plain, and we ought not to substitute for them some hazy and indefinite notions whereby in the supposed interests of justice a convenient theory of estoppel is predicated upon facts which do not fairly sustain it.'" DuCotey v. Wilkenda Land Co.,
Nor can estoppel be based on the plaintiff's delay in bringing suit against the defendant until the lease had expired. See Papcun v. Papcun,
"The following additional facts are relevant to this issue."Wagner v. Clark Equipment Company, Inc.,
On the day of trial, November 4, 1997, the defendant orally moved in limine to prevent the plaintiff from offering any evidence regarding the amount of CAM charges being levied or assessed against the defendant because, the argued, the defendant had been "prohibited from obtaining any discovery regarding those calculations based on the plaintiff's representation that such charges were `irrelevant' to the case. The defendant also requested an order, pursuant to Practice Book § 231 (d), prohibiting the plaintiff from introducing evidence regarding CAM charges based on the plaintiff's failure to comply with the discovery request. The court denied those motions and admitted the evidence of the amount of CAM charges for which the defendant was claimed to be liable but afforded the defendant to include in his post-trial brief argument as to why the plaintiff should be precluded from recovering damages for the allegedly unpaid CAM charges based on the position taken by the plaintiff in pretrial discovery.
"We begin our analysis by acknowledging the strength of the precedents and policies urged by the defendant." Newman v.Newman,
"Such orders may include the following . . . (d) The entry of an order prohibiting the party who has failed to comply from introducing designated matters in evidence. . . ." "The purpose of § 231 is to enforce the parties' continuing responsibilities to disclose under Practice Book §§ 224 and 232. Moreover, the purpose of the rules of discovery is to `make a trial less a game of blindman's buff and more a fair contest with the basic issues and facts disclosed to the fullest practicable extent.' United States v. Procter Gamble,
This court's resolution of this issue is informed by the case of Associated Investment Co. Ltd. Partnership v. WilliamsAssociates IV,
Here, the defendant failed to obtain a ruling on the plaintiff's objections to production requests and motion for protective order until the day of trial, eight months after those pleadings had been filed. While it is not the policy of the CT Page 636 courts to preside over the defeat of a party because of an opponent's stonewalling; Tianti v. William Raveis Real Estate,Inc.,
Perhaps perceiving his own culpability in delaying the resolution of the discovery issue until the time of trial, the defendant has couched his claim in terms of foreclosing the plaintiff from asserting an inconsistent position at trial from that which the maintained pre-trial. While avoiding the nomenclature, the essence of the defendant's claim is one of estoppel. But "[a]n essential ingredient of an estoppel is some action or detriment suffered by the party claiming the estoppel in reliance on the act or statement forming the basis for the estoppel. 28 Am.Jur.2d, Estoppel and Waiver, § 28. It is generally held, therefore, that a judicial estoppel does not arise merely from taking an inconsistent position in a proceeding but only when the inconsistency first asserted has been successfully maintained so that it appears unjust to the other party to allow a change. Id. § 70." State v. Anonymous
(1973-9),
The document was introduced through Sherry Perry, an employee of the plaintiff who handles the monthly invoicing of all mall tenants. Ms. Perry testified that she processed and received all payments on the computer and generated the computer reports regarding those payments and the defendant's account. She also had personal dealings with the defendant regarding his payments. She further testified that the document which was made an exhibit was made in the ordinary course of business of the plaintiff, that it was the plaintiff's regular course of business to create such documents, and that the information on the document was made soon after the transaction it reflected had occurred. This satisfied the requirements of Connecticut's Uniform Business Records As Evidence Act, General Statutes §
However, since the document admitted into evidence was a computer print-out, the defendant was entitled to have the plaintiff lay an additional foundation. "`Section
The information in the document which the defendant challenged pertained to CAM charges. Ms. Perry testified that the charges themselves were approved by Madden and her in Connecticut. The information was then communicated to the plaintiff's California office where it is input in a computer there. While she was obviously not in California when the information was input, she reviewed it before it was "run" and expressed no reservation about its accuracy on the printout. Thus, Perry had actual knowledge of the CAM charges, was familiar with computerized records, created computerized records of her own, used computerized records, had an acquaintance with how such records were made, and neither by her testimony nor in her demeanor expressed any doubt as to the accuracy of the CAM charges reflected in the document, which data she and Madden had communicated to the plaintiff's California office. From this direct testimony and inference, which harmonized with other evidence in the case, the court was satisfied that the document was trustworthy and satisfied the requirements of American OilCo. v. Valenti, supra,
"Conformity with the statutory conditions which permit the admission of business records is deemed to provide reasonable indicia of reliability. American Oil Co. v. Valenti, [supra,
While this court was anticipating some showing from the defendant that the amount of CAM charges assessed against him was suspect, no such showing was ever attempted. Because of this and in light of the testimony of Ms. Perry, the court finds that the plaintiff has proved by a preponderance of evidence, that the amount of the defendant's debt to the plaintiff is $23,393.25.
It is by now well-settled that "[t]he failure to produce evidence as to the reasonableness of legal fees where there is an agreement to pay such fees, however, does not justify a trial court in refusing to award them, if the court can rely on its own knowledge in determining their value. Guaranty Bank Trust Co.v. Dowling,
The court is aware that in Sears, Roebuck Co. v. Board ofTax Review,
BY THE COURT
Bruce L. LevinJudge of the Superior Court
