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Southmont Development Co. v. Randle
Citations: 605 So. 2d 1205; 1992 Ala. LEXIS 761; 1992 WL 187192Docket: 1910584
Court: Supreme Court of Alabama; August 7, 1992; Alabama; State Supreme Court
The plaintiff, Southmont Development Company, appeals a judgment favoring the defendant, Roy Randle, following a nonjury trial regarding a commercial lease. On April 7, 1980, Southmont leased space to Randle, who operated Rocky Ridge Pharmacy. The lease included an automatic four-year renewal option if neither party provided termination notice by May 31, 1987. Randle informed Southmont in a January 16, 1984 letter that Donald Goggans would operate the pharmacy, asserting he remained liable under the lease. Randle sold the pharmacy to Goggans on January 17, 1984, without notifying Southmont of the sale or intent not to renew the lease. Southmont did not terminate the lease as required by the agreement, and it received rental payments from the pharmacy until the premises were vacated on November 1, 1990. Southmont sued Randle for breach of lease, with stipulated damages of $10,500 and potential attorney fees. The trial court found for Randle, leading to Southmont's appeal. The appellate court notes that findings from a nonjury trial are presumed correct unless unsupported by evidence. Randle's letter indicated he would remain liable, and his claim that the letter served as notice of lease assignment was contradicted by his assertion of continued liability. The case is distinguished from Morrow v. Wood, based on the specific circumstances. In Morrow, the court determined that the lease renewal clause was not an automatic renewal, despite the tenant's failure to notify the landlord of lease termination within the specified timeframe. The trial court found that the landlord was unaware of the renewal clause until two years post-signing, and there was a conflicting prior agreement between the parties. Randle's lease renewal was executed according to the lease agreement. The court reversed the previous judgment and remanded the case for Southmont to receive $10,500 and to assess the appropriateness of attorney fees. Additionally, Southmont successfully leased the vacated premises to a third party on March 1, 1991, claiming rental for the period from November 1, 1990, to February 28, 1991.