Nord v. Herreid, 51360.

• Decision Date: 08 May 1981
• Docket Number: No. 51360.,51360.
• Citation: 305 NW 2d 337
• Parties: Jerry W. NORD et al., Appellants, v. James R. HERREID et al., Respondents.
• Court: Minnesota Supreme Court

305 N.W.2d 337 (1981)

Jerry W. NORD et al., Appellants, v. James R. HERREID et al., Respondents.

No. 51360.

Supreme Court of Minnesota.

May 8, 1981.

Harry N. Ray, Minneapolis, for appellants.

Rodney M. Hynes, Minneapolis, for respondents.

Considered and decided by the court en banc without oral argument.

SCOTT, Justice.

Plaintiffs Jerry W. Nord (Nord) and Elmer J. Gipson (Gipson) appeal from the April 10, 1980, order of the Rice County District Court directing the entry of judgment in favor of defendants James R. Herreid (Herreid) and Charles E. DeMann II (DeMann), d. b. a. Central Block Partners. We reverse and remand for a trial on the merits.

On September 15, 1977, defendants Herreid and DeMann, as lessors, and plaintiffs Nord and Gipson, as lessees, entered into a 5-year lease agreement for "premises occupied and known as Suite 108-110 situated on the second floor of the Central Block Building." The lease called for rental payments in the amount of $300 per month and provided the lessees with an option to renew and negotiate a new lease for an unspecified period of time. The standard form lease agreement was accompanied by a series of obligations running to the benefit of the lessors relating to the lessees' use of utilities and payment of taxes and assessments. The lease also contained the following provision:

That said Lessees also agree at said Lessee\'s own cost and expense to put and keep said premises in such condition that they will comply with all federal, state and municipal Laws, Charters, Ordinances and Regulations, and furnish at said Lessee\'s own risk, cost and expense any additional plumbing, ventilation, fire escapes or protection or other improvements required by State, Municipal, or other lawful authorities.

(Emphasis added.) Plaintiffs commenced the instant action to recover damages and lost profits occasioned by the alleged breach of the lease agreement by the lessors. Specifically, plaintiffs contend that they were never able to occupy the premises because defendants failed to place the building in a condition fit for occupancy or in a condition in compliance with the state building code by the date that plaintiffs were to occupy the premises. Additionally, they contend that they expended sums of money to ready the suites covered by the lease agreement but that the inadequacy of the building in which the suites were located rendered the leased premises unfit for the purposes for which they were rented.

Defendants' answer to the complaint contains general denials to the allegations contained therein and affirmatively alleges that the written lease agreement fell within the statute of frauds, Minn.Stat. § 513.05, and that any allegations of oral promises contrary to the express terms of that lease are inadmissible under the parol evidence rule. Defendants also allege that the plaintiffs leased the premises "as is" and that plaintiffs, rather than defendants, contracted to render the premises fit for use and occupancy. Defendants also counterclaim for the rent due and payable for the period from October 1977 to May 1978, the time of commencement of this action.

Although the case was scheduled for trial before a jury, prior to trial the defendants moved the court for summary judgment based upon the written lease agreement. By its order dated April 10, 1980, the trial court determined that no genuine issue of material fact existed and that the plaintiffs' complaint failed to state a claim upon which relief could be granted. The trial court then directed the entry of judgment in favor of the defendants, consistent with their counterclaim, in the amount of $9,300, together with defendants' costs and disbursements.

Two issues are presented for our review. First, whether, based upon the pleadings and discovery taken, any genuine issue of material fact exists which would make it inappropriate for the trial court to enter summary judgment in defendants' favor. Second, whether the trial court erred in determining that parol evidence was inadmissible to interpret and explain the lease agreement.

1. Under Rule 56.03, Minn.R. Civ.P., a summary judgment may be granted to either party if "there is no genuine issue as to any material fact." In construing this rule, we have held that "the moving party has the burden of proof and * * * the nonmoving party has the benefit of that view of the evidence which is most favorable to him." Sauter v. Sauter, 244 Minn. 482, 484, 70 N.W.2d 351, 353 (1955); see 2 J. Hetland & O. Adamson, Minnesota Practice 571 (1970). All doubts and factual inferences must be resolved against the moving party. Anderson v. Twin City Rapid Transit Co., 250 Minn. 167, 186, 84 N.W.2d 593, 605 (1957); 2 J. Hetland & O. Adamson, supra at 572. However, as the Anderson court stated, "it is no part of the court's function to decide issues of fact but solely to determine whether there is an issue of fact to be tried." 250 Minn. at 186, 84 N.W.2d at 605. The care with which an inquiry required by Rule 56.03 should be conducted was emphasized by this court in Donnay v. Boulware, 275 Minn. 37, 144 N.W.2d 711 (1966). There, we stated that "summary judgment is a `blunt instrument' and * * * should be employed only where it is perfectly clear that no issue of fact is involved." Id. at 45, 144 N.W.2d at 716.

It appears that several issues of material fact exist in the instant case. Plaintiffs claim that they were never able to operate their beauty parlor because the City of Northfield refused to give them an occupancy permit. They contend that the occupancy permit was denied because the Central Block Building had several serious building-code violations on its first, second and third floors....