Jaraysi v. Sebastian

The trial court erred in finding that the landlord breached a subsequent oral agreement to provide security, additional lighting, and to complete construction of an office building across the street from lessee's nightclub, as there was no evidence that the landlord waived the as-is or the maintenance and repair clauses in the lease, or engaged in a course of conduct or business practice whereby he obligated himself to provide such.

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This appeal concerns a dispute between a landlord and a former tenant. Lee Jaraysi, Nazareth Management, LLC, and Nazareth Plaza, LLC, the owner and operators of Nazareth Plaza shopping center in Marietta collectively, “Jaraysi” or “Nazareth”, sued lessee Alberto Sebastian and lease guarantor, Sebastian Auto Sales, Inc., collectively, “Sebastian”, for breach of contract and damage to real property. Following a bench trial, the court found in favor of Sebastian on these claims and in favor of Jaraysi on Sebastian’s counterclaim. On appeal, Jaraysi contends the trial court erred by refusing to enforce the lease or to award monetary damages on his claim for property damage to the leased premises. For the reasons that follow, we affirm in part, reverse in part, and remand the case for further proceedings consistent with this opinion.

Jaraysi owns the Nazareth Plaza shopping center in Marietta. In October 2005, Nazareth leased space in the shopping center to Sebastian for use as a night club. Jaraysi also owns an unfinished office building located across the street from the shopping center, and Sebastian understood that Jaraysi would be completing construction by May 2006. Jaraysi did not complete construction of the office building by May 2006; nonetheless, Sebastian and Nazareth signed an amendment to the lease in October 2006. As amended, the term of the lease ran from October 1, 2006, through September 30, 2010, and the monthly rent increased to $8,800 for the first year with scheduled increases of three percent each year thereafter. In addition to some other special stipulations, the amended lease provided that “space will be leased out in ‘AS IS’ condition. Under this agreement, no work, whatsoever, is required to be done by the Landlord.” Otherwise, the parties understood and agreed “except as amended by this Lease Amendment, all of the terms, conditions, and provisions of the Lease shall remain in full force and effect.”

Jaraysi v. Sebastian

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