Sengul v. CMS Franklin, Inc.

265 P.3d 320 (Alaska 2011) · Alaska Supreme Court · December 9, 2011

Summary

The Alaska Supreme Court held that a commercial landlord constructively evicted the tenant by locking the tenant out of the leased premises and posting rent-demand signs without complying with the lease's legal-process requirements. The court also held that the tenant did not waive its contractual right to rent abatement because the lease made the abatement mandatory and the tenant's conduct did not establish implied waiver or prejudice. The case was remanded for recalculation of damages.

Holdings

  1. Sengul's lockout of CMS's storefront, posting of rent-demand signs, and threatened repetition of the lockout substantially interfered with CMS's use of the premises and constituted at least a constructive eviction.
  2. CMS did not waive its contractual entitlement to rent abatement.
  3. Any unpaid rent must be calculated using the lease's monthly rental amount, not an annualized seasonal rental value.
  4. The court declined to consider Sengul's arguments concerning the improvement-damages setoff and Manus's personal liability because the issues were inadequately briefed and abandoned.

Questions Presented

  1. Whether Sengul's lockout of CMS's storefront and related conduct constituted constructive eviction.
  2. Whether CMS waived its contractual right to rent abatement by failing to invoke the provision earlier and by making statements about paying rent.
  3. Whether unpaid rent should be calculated using the lease's monthly rental amount rather than an annualized or seasonal rental value.
  4. Whether Sengul adequately presented challenges to the superior court's improvement-damages award and Manus's personal liability.

Disposition

reversed_and_remanded

Cases Cited (14)

  • Ben M. v. State, Dep't of Health & Soc. Servs., Office of Children's Servs., 204 P.3d 1013, 1018 (Alaska 2009)(applied)
  • Norville v. Carr-Gottstein Foods Co., 84 P.3d 996, 1000 n.1 (Alaska 2004)(applied)
  • Miscovich v. Tryck, 875 P.2d 1293, 1302 (Alaska 1994)(applied)
  • Klosterman v. Hickel Inv. Co., 821 P.2d 118, 122 (Alaska 1991)(applied)
  • Hrubes v. Smith, Mem. Op. & J. No. 626, 1992 WL 12549972, at *2-3 (Alaska June 30, 1992)(applied)
  • King v. Petroleum Servs. Corp., 536 P.2d 116, 120 (Alaska 1975)(distinguished)
  • Carr-Gottstein Foods Co. v. Wasilla, LLC, 182 P.3d 1131, 1133-34, 1140 (Alaska 2008)(distinguished)
  • Dillingham Commercial Co. v. Spears, 641 P.2d 1, 7-8 & n.10 (Alaska 1982)(applied)
  • Milne v. Anderson, 576 P.2d 109, 112 (Alaska 1978)(applied)
  • Anchorage Chrysler Ctr., Inc. v. DaimlerChrysler Corp., 129 P.3d 905, 917 (Alaska 2006)(applied)

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