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Posted by: Tanja Trezise on Apr 30, 2013

Court: TN Court of Appeals

Attorneys 1:

Leo Bearman, Jr., Charles K. Grant, and Elizabeth B. McCostlin, Memphis, Tennessee, for Plaintiff/Appellant, Captain D’s Realty, LLC

Attorneys 2:

Henry C. Shelton, III, Memphis, Tennessee, for Defendant/Appellee, EP-D, Ltd.

Judge(s): KIRBY

This appeal involves the interpretation of a commercial lease. The lease gave the plaintiff tenant two successive options to extend the term of the lease, provided the tenant gave timely notice of its intent to exercise the renewal option. The tenant exercised the first renewal option, but did not give timely notice of intent to exercise the second option. The lease also contained language giving the tenant a grace period to exercise the option if the lessor gave notice that the lessor had not received notice of renewal. The lessor did not give the written notice to the tenant. The tenant filed a lawsuit against the defendant lessor, seeking a declaratory judgment and damages for breach of contract. The plaintiff tenant asserted in the lawsuit that the tenant had the grace period to exercise the renewal option because the lease required the lessor to give written notice, and the lessor had failed to do so. Both parties filed dispositive motions based on their interpretations of the lease. Construing the lease, the trial court held that the grace period was never triggered so the tenant’s renewal option lapsed and granted a judgment in favor of the lessor. The tenant appeals. Discerning no error, we affirm.