Mill-Spex, Inc. v. Pyramid Precast Corp., MILL-SPE
| Decision Date | 31 December 1985 |
| Docket Number | No. 15350,MILL-SPE,INC,15350 |
| Citation | 101 Nev. 820,710 P.2d 1387 |
| Parties | , a Nevada corporation, Appellant, v. PYRAMID PRECAST CORPORATION, a California corporation, Respondent. |
| Court | Nevada Supreme Court |
Respondent-lessor filed this action to recover rental payments owed by appellant-lessee pursuant to the terms of their lease. The lessee admitted its failure to make rental payments, but counterclaimed for damages resulting from the lessor's alleged breach of the lease agreement. The district court entered judgment in favor of the lessor for the amount of the unpaid rent, and against the lessee as to its counterclaim. The lessee appeals from the district court's ruling on the counterclaim.
The lease agreement provided for a one-year term, with an option to renew for an additional year. The lease further provided that the lessor would make certain repairs on the premises, including repairs to the heating system, lighting, walls of the building, and the surrounding property. The testimony at trial indicates that some of these repairs were never completed. Nevertheless, the lessee opted to renew the lease at the end of the first year. The district court, in its written findings of fact and conclusions of law, concluded the following:
That the exercise by [the lessee] of its option to extend the initial one year lease period for an additional year, constituted a waiver of any claim for damages which [the lessee] may otherwise have had....
That [the lessee] extending the lease term for an additional one year period, continuing to remain on the premises for a period of 13 months thereafter and paying rent for nine months thereafter precluded any recovery by [the lessee] of any damages....
The lessee contends that the act of renewing the lease does not, in itself, constitute a waiver of its right to seek damages. We agree, and therefore reverse.
A waiver is the intentional relinquishment of a known right. Reno Realty v. Hornstein, 72 Nev. 219, 301 P.2d 1051 (1956). A waiver may be implied from conduct which evidences an intention to waive a right, or by conduct which is inconsistent with any other intention than to waive the right. Mahban v. MGM Grand Hotels, Inc., 100 Nev. 593, 691 P.2d 421 (1984). Whether there has been a waiver is ordinarily a question for the trier of fact. Id. at 595, 691 P.2d at 424.
No authority has been cited by respondent, nor are we aware of any, which holds that a lessee's exercise of its right to renew a lease constitutes a waiver of its claims for damages resulting from the landlord's breach of his duty to repair. Even if we construe the district court's conclusion above as a factual finding, we discern no substantial evidence which would support such a finding. Undisputed testimony indicated that it would not have been feasible for the lessee, who utilized the demised premises for a manufacturing operation, to relocate. Furthermore, Jack Hardy, the sole officer, director and shareholder of the lessee-corporation, testified that at the time the lease was renewed, the lessor assured him it would undertake the necessary repairs. Because the foregoing considerations may have motivated the lessee to renew the lease despite the alleged breaches...
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