Property Manager Had “Corporate Authority” to Evict Under Agreement

Facts: A doctor rented space in a medical office building owned by a real estate corporation. The corporation sued the doctor for nonpayment of rent. The building's property management company notified the doctor that he had 60 days in which to vacate the space; otherwise, the building's property manager would evict him. When the doctor refused to move out of the building at the end of the 60-day period, the corporation asked the trial court for an eviction hearing.

During the eviction hearing, the doctor claimed that the property manager did not have “corporate authority” to evict him after the 60-day period had expired. However, the property management company testified that it had an agreement with the corporation giving it—and the property manager—the authority to evict any of the building's tenants for nonpayment of rent.

The agreement, signed on behalf of the corporation by its president, stated: “Owner authorizes Property Manager to institute legal action either in the name of the Owner or in the name of the Property Manager and at the Owner's expense to enforce the collection of rent or other income for the property and to evict residents for nonpayment of rent or material violation of the lease. In connection therewith, Property Manager may engage an attorney at the Owner's expense.” Moreover, the property manager testified that the corporation's president hadn't objected to the eviction after being notified about the situation.

A trial court granted the corporation's request to evict the doctor. The doctor appealed.

Decision: The appeals court upheld the trial court's decision.

Reasoning: On appeal, the doctor argued that the corporation could not evict him from the medical office building because its property manager did not have the corporate authority to do so. However, the appeals court pointed out that, under state law, the president of a corporation generally had the authority to sign contracts on its behalf. Here, the agreement giving both the property management company and the property manager the authority to evict the building's tenants for nonpayment of rent was signed by the president of the corporation. Therefore, the property manager had the authority to evict the doctor.

• Aurora Medical Park, LLC v. The Kidney and Hypertension Center, PLC, and Rabadi, June 2010