What happens when your landlord decides they want to get into your business, voids your permit, refuses to accept lease payments and builds their own billboard The lease decides. That’s the lesson of Frierson v Delta Outdoor. Here are the facts.
- On January 22 1998 Ethel Frierson agreed to lease land to Delta Outdoor to erect billboard structures on her property in Mississippi. The lease was to commence in May 1998 when an existing billboard lease with Lamar expired.
- Between January 1998 and May 1998 Frierson decided to cancel the lease and erect her own billboard on the property. Frierson instructed Mississippi to revoke the Delta Outdoor permit because she did not have a lease. Delta tried to make payment on the lease but the lease was refused.
- Delta initiated suit seeking performance or damages resulting from breach of the lease.
- Frierson argued that
- (1) she did not have the mental capacity to enter into the lease
- (2) that she expected payment on signing of the lease instead of on construction of the sign
- (3) that she had the right to rescind because no money changed hands at the signing of the lease
- (4) that Delta was in material breech of the lease by failing to pay the lease.
- A trial court and appeals court ruled against Frierson, finding
- (1) “The record is devoid of a single iota of evidence related to Frierson’s mental capacity”
- (2) the terms of the contract clearly indicated that payments commenced on completion of the billboard and Frierson had no reason to expect otherwise.
- (3) Sufficient consideration existed in the form of a promise by Delta to make lease payments in the future
- (4) That Frierson could not say that there was no payment when she refused to accept payment.
The appeals court sent the matter back to the trial court to resolve things by specific performance or by holding a hearing and awarding damages.
Billboard Insider’s take: A well written lease is your protection against an opportunistic landlord who has second thoughts after signing a lease. We wonder if this matter was settled by performance or by damages.
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