Jury Must Decide If Tenant’s Damages Go Beyond Ordinary Wear & Tear

February 23, 2023

What Happened: A diesel-fuel vehicle repair business leased a building for use solely as an “equipment service and prep facility for fire trucks and other vehicles.” The problems began when the landlord’s manager discovered significant cracks in the building’s concrete. In addition to the broken concrete, the landlord found oil spills, unauthorized structural changes to the office, and other damages when the five-year lease ended.

What Happened: A diesel-fuel vehicle repair business leased a building for use solely as an “equipment service and prep facility for fire trucks and other vehicles.” The problems began when the landlord’s manager discovered significant cracks in the building’s concrete. In addition to the broken concrete, the landlord found oil spills, unauthorized structural changes to the office, and other damages when the five-year lease ended. The landlord claimed that the tenant violated its lease duty not to damage the property or use “any device which might overload the capacity of any floor.” The tenant claimed that the damages were just wear and tear and refused to pay for damages and restoration. Litigation ensued, with both sides asking the court for summary judgment.

Ruling: The federal North Carolina court rejected the motions (except in rejecting the landlord’s claim for attorneys’ fees) and ordered the case to go to trial.

Reasoning: There were just too many things that needed to be determined to award summary judgment, including with regard to the meaning of the lease, the extent of the damage, and how the tenant used the premises. It was up to the jury and not the judge to decide these disputed issues, the court concluded.  

  • Rutt Rental, LLC v. Atl. Coast Fire Trucks, LLC, 2022 U.S. Dist. LEXIS 212204, 2022 WL 17178740

 

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