Joyner v. Adams,

87 N.C. App. 570, 361 S.E.2d 902 (1987)

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Nature of the Case

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Facts

Joyner (P) made a lease development deal with Brown to develop property that she owned. The lease was amended to substitute Adams (D) when Brown had financial difficulties. Annual rent increases under the original contract were suspended, and D was only required to pay a fixed rate until September 1980 at which time D was obligated to subdivide all of the undivided land. A failure to comply with this provision would then result in a penalty to pay rent due under the original lease. By September 1980, all the lots were subdivided, and all had buildings on all lots except one. A lease for the final lot was not executed until late 1982. P then filed a suit for the penalty rents due under the terms of the original lease. Summary judgment was granted to P. On remand the trial court found that P intended the escalation clause to require D to complete or at least be ready to begin construction of all buildings planned for the lot. There was no meeting of the minds and on what events would trigger the rent escalation clause. Because D wrote the contract, the court found against D on the ambiguities and awarded P $93,695.75. Both parties appealed.