Harold Flynn Et Al. v. Citizens National Bank

This appeal involves a long-term ground lease and leasehold financing. After numerous assignments to successor tenants and several foreclosures, Citizens National Bank (“the Bank”) became the successor tenant under the ground lease. After a fire at the property, the Bank notified the landlord that it intended to surrender the leased property and cease paying rent, according to its interpretation of a separate agreement executed by the parties. The landlord denied that the Bank was entitled to unilaterally surrender the leased property and cease paying rent. The landlord filed a detainer warrant in general sessions court and, after an adverse ruling, appealed to circuit court. The circuit court concluded that the separate agreement did not limit the Bank's liability under the ground lease, as the Bank claimed. Accordingly, the circuit court entered a judgment against the Bank for approximately $130,000 for unpaid rent, taxes, and attorney's fees. The Bank appeals, challenging the circuit court's interpretation of the separate agreement and its award of damages beyond the sum of $25,000. We affirm.