Skip to main content
A Better Partnership
December 23, 2013

MSC sends dispute over landlord's lease termination to trial despite undisputed demand for compliance and tenant's failure to comply

The Michigan Supreme Court, reversing the Court of Appeals by order, held there was a genuine issue of material fact precluding summary judgment in a breach-of-contract claim.  In Majestic Golf, L.L.C. v. Lake Walden Country Club, Inc., the parties’ lease provided the landlord a right of termination where the tenant failed to comply with the lease after 30-days’ notice.  The landlord sent a letter requesting compliance with an easement provision within 30 days, but the tenant failed to comply.  The Court held that the letter did not entitled the landlord to summary disposition regarding its right to terminate the lease.  Genuine issues of material fact remained regarding whether the letter constituted proper notice under the lease and whether the landlord had waived the termination provision.
 
Justice Markman dissented.  In his view, the tenant was in breach under the lease’s plain language.  The landlord’s letter clearly provided the tenant with notice of the breach.   The parties’ ongoing merger negotiations did not result in an amendment to the lease, nor did the landlord waive the breach when it followed up with the tenant questioning the status of the consent.  Accordingly, Justice Markman would have affirmed the Court of Appeal’s decision.

NOTICE. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you.

By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.

ACCEPTCANCEL

Text

+ -

Reset