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Property Law Keyed to Kurtz
Abernathy v. Adous
Citation:
149 S.W.3d 884, 85 Ark. App. 242 (2004)Facts
In 1992, the Abernathys built a service station/convenience store in West Memphis and leased it to Griffith Petroleum, Inc. (GPI) for a ten-year term with six consecutive five-year options to renew. The monthly lease payment was $3,995.93, with GPI writing separate checks to the Abernathys’ bank and to the Abernathys directly. The lease provided that the lessee would be in default upon failure to pay rent or upon becoming insolvent, but contained no prohibition against subleasing or assignment. In 1996, GPI executed a “Sublease Agreement” with Maref Quran, and in 1997, Adous was added as a subtenant, eventually becoming the sole subtenant. Adous made monthly payments to GPI, who then paid the Abernathys. In January 2001, GPI failed to pay rent, leading the Abernathys to file an unlawful-detainer action. After GPI defaulted again in April 2001, Adous attempted to pay rent directly to the Abernathys, who refused. The Abernathys terminated the lease in June 2001 due to GPI’s nonpayment and insolvency, but Adous remained on the property and continued to deposit rent into the court registry while awaiting trial.
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