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King's Court Racquetball v. Dawkins

A lessees right under a lease to alter the premises "without restriction" is not permission to destroy; the lessee committed acts of willful destruction without accompanying repair by taking possession of a building that it returned with the interior demolished.

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King’s Court Racquetball, Lowell Blankfort, and Rowland Rebele (collectively referred to as K.C.) appeal from a final judgment awarding T.E. Dawkins recovery against them. Four issues are presented for review. They concern the trial court’s finding that K.C. committed waste and the manner by which damages arising therefrom were calculated. We affirm.

Background

According to the record, Dawkins and K.C. were competitors in the racquetball business. Both owned and operated a court. However, the two eventually executed a lease agreement whereby K.C. agreed to rent Dawkins’ facility for approximately three years. Through the lease, K.C. obligated itself to 1) “use [the facility] as a physical fitness related club” and 2) keep the premises “free from waste or nuisance and in a clean condition, and . . . [to] deliver up the premises [at the end of the lease] in a clean and sanitary condition, reasonable wear and tear . . . excepted.” Moreover, Dawkins permitted K.C. to “make improvements” subject to the prior consent of Dawkins if they involved “creat[ing] any openings in the roof or exterior walls.”

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