Virginia Commercial Lease Expiry Landlord Arbitrary Lawyers Attorney
VIRGINIA CASE FOR COMMERCIAL LITIGATION
Facts:
The parties entered into a lease agreement for a 20-year period. There was some discrepancy as to when the lease term ended. The lease provided that the tenant had the right to sublet the leased premises to any subsidiary of the tenant. In consolidated cases, plaintiff landlord brought an action against defendant tenant for unlawful detainer. The landlord claimed that the tenant breached a sublease provision of a primary lease and that the primary lease had expired. The tenant claimed that the primary lease term had not expired and that the landlord acted unreasonably and arbitrarily in denying the sublease and that the landlord’s motive was to extract rent concessions.
Issue:
Whether the primary lease term had not expired and that the landlord acted unreasonably and arbitrarily in denying the sublease?
Discussion:
This court held that the Tenant bears the burden of establishing that the Landlord’s action was arbitrary and unreasonable. Because this is a commercial lease, the Landlord’s actions are governed by principles of fair dealing and commercial reasonableness. This court held that the lease term had not expired, but found for the landlord in the second detainer action. After finding that the lease term had not expired, this court looked to whether the landlord acted unreasonably in bringing a second unlawful detainer action based on the lease provision that the tenant had to sublet to a subsidiary. The tenant had notice of the landlord’s position that the intended sublease was a breach of the primary lease and had allowed the tenant 30 days to either rescind the sublease or clarify that the sublessee was a subsidiary. The tenant failed to take appropriate action to correct the breach. The landlord’s refusal to allow the sublease was not unreasonable or arbitrary. Having concluded that tenant rightfully possessed the leasehold and that the Landlord acted reasonably this court determines that the Landlord’s correspondence was in accordance with Provision 1.10 of the Primary Lease. It afforded tenant sufficient notice of the breach and allowed him thirty days to correct its position either by rescinding the sublease or by clarifying that the sublessee, was an affiliate of the tenant in which case the Landlord’s consent would not be required. (Primary Lease Provision 1.10. The Landlord is entitled to proceed on the second unlawful detainer action, because tenant failed to take appropriate action to correct the breach within thirty days.
Judgment:
This court entered judgment for the tenant in the first unlawful detainer action and entered for the landlord in the second unlawful detainer action.
Disclaimer:
These summaries are provided by the SRIS Law Group. They represent the firm’s unofficial views of the Justices’ opinions. The original opinions should be consulted for their authoritative content
Arbitration Virginia Maryland Mediation Alternative Dispute Resolution
Arbitration in Virginia and Maryland
Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private resolution procedure instead of choosing the public court system. An existing dispute can be referred to arbitration by agreement of the parties. Once arbitration is commenced, a party cannot unilaterally withdraw from arbitration.
Mediation, by contrast, is a voluntary process in which two or more parties involved in a dispute work with an impartial party, the mediator, to generate their own solutions in settling their conflict. Unlike a judge or an arbitrator whose decisions may subject one party to win and the other party to lose, mediation is about finding a solution that works for both parties. Mediation is essentially facilitated negotiation.
Alternative Dispute Resolution (ADR), whether Arbitration or Mediation, is an ever-expanding reality in business and other civil disputes. Many contracts require Arbitration instead of litigation in the courts. Some contracts require Mediation before a party can initiate suit for breach.
Arbitration and Mediation require a detailed knowledge of the law applicable to a given case, knowledge of ADR procedures, as well as experience in litigation and negotiation. Based on their years of experience in Arbitration and Mediation, the Virginia & Maryland attorneys at the SRIS Law Group, P.C. will represent your interests with determination and professionalism.
VIRGINIA AND MARYLAND CODE FOR ARBITRATION AND MEDIATION
Va. Code Ann. § 8.01-581.02 Proceedings to compel or stay arbitration
A. On application of a party showing an agreement described in § 8.01-581.01, and the opposing party’s refusal to arbitrate, the court shall order the parties to proceed with arbitration. However, if the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue of the existence of an agreement and shall order arbitration only if found for the moving party.
B. On application, the court may stay an arbitration proceeding commenced or threatened on a showing that there is no agreement to arbitrate. Such an issue, when in substantial and bona fide dispute, shall be forthwith and summarily tried and the stay ordered if found for the moving party. If found for the opposing party, the court shall order the parties to proceed to arbitration
C. If an issue referable to arbitration under the alleged agreement is involved in an action or proceeding pending in a court having jurisdiction to hear applications under subsection A of this section, the application shall be made therein. Otherwise, subject to § 8.01-581.015, the application may be made in any court of competent jurisdiction.
D. Any action or proceeding involving an issue subject to arbitration shall be stayed if an order for arbitration or an application therefor has been made under this section. However, if the issue is severable, the stay may be with respect thereto only. When the application is made in such action or proceeding, the order for arbitration shall include the stay.
E. An order for arbitration shall not be refused on the ground that the claim in issue lacks merit or bona fides or because any fault or grounds for the claim sought to be arbitrated have not been shown.
Md. COURTS AND JUDICIAL PROCEEDINGS Code Ann. § 3-206 Validity of arbitration agreements; agreements between employers and employees
(a) Validity. — Except as otherwise provided in this subtitle, a written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy arising between the parties in the future is valid and enforceable, and is irrevocable, except upon grounds that exist at law or in equity for the revocation of a contract.
(b) Agreement between employers and employees. — This subtitle does not apply to an arbitration agreement between employers and employees or between their respective representatives unless it is expressly provided in the agreement that this subtitle shall apply.
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