HOLMES REGIONAL ENTERPRISES, INC., APPELLANT,
v.
ADVANCED MEDICAL DIAGNOSTICS CORPORATION, APPELLEE
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Holmes Regional Enterprises appealed a trial court decision granting equitable relief to its tenant, Advanced Medical Diagnostics Corporation (AMD), allowing AMD to exercise a lease renewal option despite providing tardy notice. The appellate court affirmed the grant of equitable relief but reversed the award of $6,500 in attorney's fees to the tenant.
The court held that equitable relief may be granted to allow the tenant to exercise a late renewal option under the standards set forth in Dugan v. Haige and Friendship Park Property Corporation v. Shaw, but the tenant cannot recover attorney's fees from the landlord because the landlord breached no lease obligation and the relief was equitable rather than contractual in nature.
[1] Equity may grant relief to a tenant who provides tardy notice of an option to renew a lease, provided the tenant satisfies the tests prescribed by established case law.
[2] A landlord is not liable for attorney's fees when the tenant initiates a lawsuit seeking equitable relief to extend a lease due to the tenant's own failure to provide tim…
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“This extension was not granted pursuant to the terms of the lease. It was a judicial act of equity that saved AMD from severe financial loss after AMD failed to provide a timely notice required by the terms of the lease agreement.”
Establishes that the relief was equitable rather than contractual, saving the tenant from severe loss due to its own failure to meet the contractual deadline.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceHolmes Regional Enterprises and Advanced Medical Diagnostics Corporation entered into a five-year lease agreement that allowed renewal if notice was g…
The full statement of facts, procedural history, and disposition for this case are member content.
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PETERSON, Judge.
The trial court granted equitable relief to the tenant/appellee, Advanced Medical Diagnostics Corporation (AMD), by allowing AMD to remain in possession as lessee of appellant’s premises even though AMD had given tardy notice of its exercise of an option to renew under a written lease agreement. The agreement creating a five-year lease term allowed renewal at any time not later than six months prior to the expiration of the five-year term. The term was to expire on June 30, 1989, but AMD did not give notice until February 7, 1989. In granting the relief, the trial court properly applied the tests prescribed by Dugan v. Haige, 54 So. 2d 201 (Fla.1951), and Friendship Park Property Corporation v. Shaw, 505 So. 2d 456 (Fla.1st DCA), rev. denied, 515 So. 2d 229 (Fla.1987).
We affirm the final judgment but reverse the award of $6,500 attorney’s fees to the tenant, AMD. There is no justification for an award of those fees against a landlord who has done absolutely nothing to breach its lease agreement with tenant. The landlord’s only act was to resist the lawsuit initiated by the tenant who invoked the equity powers of the circuit court to. extend the lease. The tenant sought this relief following its failure to give timely notice required by the contract, and AMD was allowed to continue in possession of the premises under the terms of this lease. This extension was not granted pursuant to the terms of the lease. It was a judicial act of equity that saved AMD from severe financial loss after AMD failed to provide a timely notice required by the terms of the lease agreement.
The trial court granted declaratory relief to AMD by allowing AMD to exercise the option. In Dade Savings and Loan Association v. Broks Center, Limited, 529 So. 2d 775 (Fla.3d DCA 1988), the court found that an attorney’s fee provision in a contract for sale of real estate could not be the basis for an award of fees since the action was for a declaratory judgment, not for enforcement of the contract. Similarly, in the instant case, AMD sought only injunctive and declaratory relief.
Moreover, the language used by the parties in the attorney’s fee provision of the lease agreement in the instant case allowed fees only against the “defaulting” or “breaching” party. The appellant did nothing, affirmatively or passively, to create a default under or a breach of the terms of the lease, and fees cannot be awarded.
We reverse the award of attorney’s fees to AMD.
AFFIRMED in part; REVERSED in part.
COWART, J., and ANTOON, J., II, Associate Judge, concur.
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Citator
Cited By
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Martin L. Robbins, M.D., P.A. v. I.R.E. Real Est. Fund, Ltd., 608 So. 2d 844 (Fla. 3d DCA 1992)…tion have concluded that such actions are not for “enforcement” so as to justify a fee award. See Dade Sav. & Loan Ass’n v. Broks Center Ltd., 529 So. 2d 775 (Fla. 3d DCA 1988); see also Holmes Regional Enters. v. Advanced Medical Diagnostics Corp., 582 So. 2d 822 (Fla. 5th DCA 1991); Ocala Warehouse Invs., Ltd. v. Bison Co., 416 So. 2d 1269 (Fla. 5th DCA 1982). For the foregoing reasons, the judgment and the order awarding fees are reversed with directions to enter judgment declaring the landlords are not e…
Authorities Cited
- Dugan v. Haige, 54 So.2d 201 (Fla. 1951)
- Friendship Park Prop. Corp. v. Shaw, 505 So. 2d 456 (Fla. 1st DCA 1987)
- Dade Sav. & Loan Ass'n v. Broks Ctr., 529 So. 2d 775 (Fla. 3d DCA 1988)