Question
Answer the issue directly. Yes or No. (2) Provide an analysis of the facts against the rule (Statute of Frauds). Your format should follow Conclusion-Rule-Analysis-Conclusion
Answer the issue directly. Yes or No.
(2) Provide an analysis of the facts against the rule (Statute of Frauds). Your format should follow Conclusion-Rule-Analysis-Conclusion format.
Blue Max Inn, Inc. v. Holtzner (Md. App., 2016)
FACTS
Ms. Holtzner was the owner of property located at 11415 Philadelphia Road, White Marsh, Maryland. There are two structures located on the property: her residence and a larger building that has been used as a restaurant. Since approximately 2001, Blue Max has operated a bar and restaurant known as "The Rustic Inn" in the second structure.
In 2008, the then-owner of Blue Max, Michael Bayne, entered into an agreement to sell the stock in the corporation to Neal Rider.
Rider and Holtzner executed a writing (the "2008 Agreement") that stated in its entirety:
October 2008
To Who It May Concern:
I, Rosemary Holtzner, Owner of the premises, 11415 Philadelphia Road, White Marsh, Maryland 21162 will hereby lease the above mentioned property to NEAL RIDER President of Blue Max Inn Inc. trading as the Rustic Inn starting October 2008.
/s/ Rosemary Holtzner
/s/ Neal Rider
It is undisputed that Rider and Holtzner orally agreed to a monthly rent and that the rent was timely paid.
As time passed, Holtzner noticed an increase in the number of motorcycles and what she perceived to be motorcycle gangs frequenting The Rustic Inn. Holtzner voiced her concerns. According to Holtzner, Rider responded by walking into the bar area and bringing back an individual who was a member of a local motorcycle gang or club. Holtzner testified that this individual threatened her.
Shortly thereafter, Holtzner notified Rider that she was cancelling the lease and that he had thirty days to vacate the premises.
Holtzner said that no agreement, oral or otherwise, was ever made regarding the term (duration) of the Lease. Rider disagreed. To support his contention, Rider references an agreement between Rider and A&M Amusements, LLC., dated October 16, 2008. In that agreement, which was also signed by Holtzner, A&M Amusements agreed to lease coin-operated amusement machines to Rider for an initial term of ten years and continuing in ten year increments thereafter.
Rider also testified an oral contract was made between the parties that would allow Rider to rent the property from Holtzner until they retire or sell the business. Holtzner denies the oral contract.
ISSUE
Could Neal Rider enforce the 2008 Agreement and oral agreements forming a lease contract against Rosemary Holtzner?
RULE
Maryland Statute of Frauds for Leases
Under Maryland law, a leasehold interest in land for a term of one year or more must be in writing to comply with the statute of frauds. [Md. Ann. Code (1974, 2010 Repl.) 5-101 & 5-102 of the Real Property Article ("RP")]
Under Maryland law, acourt will not decree specific performance of a contract unless it is definite and certain in all its terms and free from ambiguity." Trotter v. Lewis, 185 Md. 528, 532 (1946).
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