AMERICAN MULTI-CINEMA, INC., APPELLANT,
v.
C.G. GULF PROPERTY ASSOCIATES, L.P., APPELLEE
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In this commercial lease dispute, the Florida Court of Appeal reversed summary judgment for the landlord, holding that the percentage rent computation formula in paragraph 19 of the lease cannot apply when the landlord has not reentered the premises after default, even though the tenant remains in possession.
The percentage rent formula in paragraph 19 cannot apply because it is expressly designed to serve as a basis for calculating percentage rent only after the landlord has followed the default procedure and reentered the premises. The challenged language means the tenant is bound to pay amounts due even if the landlord elects to reenter, but does not apply the percentage rent formula when reentry has not occurred.
[1] A commercial lease's percentage rent computation formula, designed for post-default reentry, does not apply when the landlord elects not to reenter and the tenant remains…
[2] Language in a commercial lease stating the tenant remains liable for rent amounts "notwithstanding any entry or re-entry by Landlord" means the tenant is bound to pay amo…
Previewing 2 of 3 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“The percentage rent formula in paragraph 19 is designed to serve as a basis for calculation of percentage rent due after the landlord has followed the default procedure contained in the lease and has reentered the premises.”
Establishes the critical limitation on when the percentage rent formula applies—only after reentry following default procedures
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceAmerican Multi-Cinema, Inc. leased commercial property from C.G. Gulf Property Associates, L.P. under a lease containing a percentage rent provision i…
The full statement of facts, procedural history, and disposition for this case are member content.
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[*143] GRIFFIN, Judge.
American Multi-Cinema, Inc. (“tenant”) appeals a summary final judgment entered in favor of C.G. Gulf Property Associates, L.P. (“landlord”) in which it was determined that the landlord was entitled to percentage rental payments under a commercial lease. We reverse because the percentage rent computation formula contained in paragraph 19 of the lease,1 on which the landlord relies, plainly cannot apply in this case. The percentage rent formula in paragraph 19 is designed to serve as a basis for calculation of percentage rent due after the landlord has followed the default procedure contained in the lease and has reentered the premises. Here it is undisputed that the landlord elected not to reenter and the tenant remains in possession.
The landlord relies on the following language in an earlier portion of paragraph 19:
Tenant covenants and agrees notwithstanding any entry or re-entry by Landlord ... to pay and be liable for on the days originally fixed herein for the payment thereof, amounts equal to the several installments of rent and other charges reserved as they would, under the term of this Lease, become due if this Lease had not been terminated or if Landlord had not entered or re-entered as aforesaid.... (emphasis added)
According to the landlord, this language means the percentage rent computation formula applies whether or not there is reentry. We disagree. That provision plainly means that the tenant is bound to pay amounts due under the lease even if the landlord elects to reenter the premises. Besides, there is no dispute that appellant has the obligations referenced in the quoted passage. The issue is whether the formula applies. Absent application of the percentage rent formula, there are material issues of disputed fact concerning whether percentage rent is owed and, if so, in what amount.
REVERSED and REMANDED.
COBB, and COWART, JJ., concur. . "For the purposes of this Section, it shall be deemed that the percentage rent for any period after any such default and entry by Landlord would have been at a monthly rate thereafter equal to the average monthly percentage rent which Tenant was obligated to pay ... from the commencement hereof to the date of such default."