Mcnair v. United Energy Distrib.S

• Decision Date: 15 September 2010
• Docket Number: No. 4740.,4740.
• Court: South Carolina Court of Appeals
• Parties: Carlisle McNAIR, Appellant,v.UNITED ENERGY DISTRIBUTORS, Respondent.

390 S.C. 44
699 S.E.2d 723

Carlisle McNAIR, Appellant,
v.
UNITED ENERGY DISTRIBUTORS, Respondent.

No. 4740.

Court of Appeals of South Carolina.

Heard June 16, 2010.
Decided Sept. 15, 2010.

699 S.E.2d 724

David M. Ratchford and William R. Calhoun, Jr., of Columbia, for Appellant.

699 S.E.2d 725

John E. Grupp, of Charlotte, and Larry Dwight Floyd, Jr., of Columbia, for Respondent.

THOMAS, J.

Carlisle McNair (McNair) appeals a circuit court order upholding a magistrate's dismissal of his application to eject a lessee from his property. We affirm.

FACTS AND PROCEDURAL HISTORY

On June 26, 2002, United Energy Distributors (United Energy) entered into an agreement to lease twenty acres of real property from James McNair, McNair's father. Pursuant to the lease terms, United Energy was to use the land for “processing, storing, pumping, transferring, and otherwise beneficiating and handling diesel fuel oil and other oils and liquids.”

The signed and dated lease includes an acknowledgement that United Energy paid consideration of $500 “cash in hand” to James McNair. Although the lease does not state a rental amount, the parties agree United Energy was to pay rent of $500 per month during the initial lease term.¹

Regarding the duration of the arrangement and the rent to be paid, the lease provides as follows:

4. The term of this lease shall commence on July 1, 2002, and extend for a period of five years from that date, together with the right to renew said lease for three additional five-year periods upon the condition that upon each of said renewals, the monthly rent shall be increased by 10% of the monthly rent of the preceding period. Such rental shall be paid monthly and in advance and, in the event of a failure of the Lessee to pay any monthly rent for a period of thirty (30) days after having been notified by the Lessor that the rent was in default, the Lessor shall have the right to declare the lease forfeited and terminated by the Lessee.

The lease includes the following provision regarding termination:

5. Lessee shall have the right to terminate this lease at any time by giving written notice to the Lessor of Lessee's election to terminate and upon the giving of such notice Lessee shall have no further liability or obligation of any kind to Lessor hereunder except as follows: Lessee shall be liable for the payment of the monthly rental for the time remaining in the then-current five year period.

James McNair died on October 19, 2004, and McNair inherited the property. In 2005, McNair began receiving the monthly rental payments of $500 from United Energy. McNair, however, believed the fair market rental value of the property was $5,000 per month and claimed to have received an offer to lease the property for $3,500 per month.

On July 3, 2007, after the end of the first five-year lease term, United Energy paid McNair $500 in rent. By letter dated July 12, 2007, McNair's attorney advised United Energy that the lease had expired and it was now a holdover tenant. The letter further instructed United Energy to vacate the premises before the end of the month or renegotiate the lease. By letter dated July 17, 2007, counsel for United Energy advised McNair's attorney that his client had exercised its right to extend the lease for an additional five-year period. Acknowledging that the rent was to increase by ten percent upon extension of the lease, counsel enclosed a check of $50 to McNair as additional rent and advised in a letter sent with the payment that it was “made within the time allowed (30 days) to cure.” Counsel for McNair responded by returning the check for the additional rent to United Energy's attorney along with a letter advising that McNair would begin eviction proceedings after August 1,2007.

On August 20, 2007, McNair filed an application for ejectment with the summary court for Aiken County. In his application, he asserted the rental term had ended. A magistrate heard the matter the following month, and on October 3, 2007, she issued an order

699 S.E.2d 726

holding (1) the lease unambiguously contained an option for the lessee to renew the lease but (2) the lease expired on June 30, 2007, because United Energy had not taken any affirmative action to exercise its option The magistrate further held she lacked jurisdiction to entertain the equitable defenses United Energy sought to present at the hearing.

United Energy appealed the magistrate's order, and the circuit court heard the matter on January 8, 2008. The circuit court later issued an order reversing the magistrate's refusal to adjudicate the equitable matters that United Energy raised and ordered a trial de novo in the magistrate's court.

On August 7, 2008, the matter came before another magistrate for a second hearing. A few days later, the magistrate issued an order holding (1) the lease includes an option to renew, (2) United Energy demonstrated its intent to continue the lease arrangement beyond the initial five-year term by spending more than $600,000 on improvements, and (3) based on Kiriakides v. United Artists Communications, Inc., 312 S.C. 271, 440 S.E.2d 364 (1994), United Energy had exercised its option to renew the lease.

McNair appealed the magistrate's decision to the circuit court, which heard the matter and affirmed the magistrate's order, holding (1) United Energy renewed the lease for a second five-year term, (2) the lease did not expire on June 30, 2007, and (3) the magistrate properly relied on Kiriakides as the controlling authority. McNair appeals.

STANDARD OF REVIEW

Whereas the circuit court maintains a broad scope of review in deciding an appeal of a magistrate's order, this court, when reviewing the circuit court's adjudication of an appeal of an ejectment proceeding in magistrate's court, does so under a more limited standard, under which (1) findings of fact are to be upheld if there is any supporting evidence and (2) absent an error of law, the circuit court's holding is to be affirmed. Bowers v. Thomas, 373 S.C. 240, 244, 644 S.E.2d 751, 753 (Ct.App.2007). Moreover, as with any other appeal before this court, the respondent may argue any additional reasons why we should affirm the appealed ruling, “regardless of whether those reasons have been presented to or ruled on by the lower court.” I'On, L.L.C. v. Town of Mt. Pleasant, 338 S.C. 406, 419, 526 S.E.2d 716, 723 (2000). This court may in its discretion review the additional reasons presented by the respondent and “if convinced it is proper and fair to do so, rely on them or any other reason appearing in the record to affirm the lower court's judgment.” Id....