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Judges rule on lease dispute involving hospital

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The Indiana Court of Appeals concluded that a hospital did owe rent to the property owner for a broken lease involving a third party, but the damages the trial court ordered the hospital pay need to be reconsidered.

Sisters of St. Francis Health Services Inc. had a lease agreement with EON Properties in Schererville beginning in 2000. Over the years, the hospital’s office space was reduced and portions were leased to two separate tenants. When EON entered into a lease agreement with these new tenants, the hospital’s rent was reduced accordingly. As part of its lease with Ameriquest, EON required through a third amendment with the hospital’s lease that the hospital be responsible for the last two years of Ameriquest’s lease if the company vacated before its five-year lease ended. EON would be responsible for the first 3 years if Ameriquest left early.

Ameriquest ended up vacating after only 29 months, so EON sought the last two years’ lease payments from the hospital. The hospital refused to pay, so EON filed this lawsuit for breach of lease and quantum meruit. The hospital counterclaimed for breach of lease and quantum meruit because EON increased the hospital’s rent payments and allegedly accepted overpayments from Sisters of St. Francis. The trial court granted summary judgment for EON and ordered the hospital pay more than $180,000.

In Sisters of St. Francis Health Services, Inc. v. EON Properties, LLC, No. 45A05-1110-PL-587, the Court of Appeals upheld the finding that the hospital was liable for the last two years of the Ameriquest lease, rejecting Sisters of St. Francis’ claim that Ameriquest had to occupy the premises for 36 months and had to properly exercise its option to vacate before the hospital could be held liable under the amendment to the hospital’s lease. But those terms were in the lease agreement between EON and Ameriquest, and the hospital was not a party to those terms.

The trial court did err by granting summary judgment in favor of EON with respect to the amount of damages the hospital owed as there are genuine issues of material fact regarding whether Sisters of St. Francis should receive credits for a security deposit, its claimed overpayments under the second lease amendment, and the improperly increased rent that EON doesn’t dispute. The trial court is to continue with the underlying litigation on the damages issue.

 

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  1. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  2. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  3. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

  4. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

  5. ACLU. Way to step up against the police state. I see a lot of things from the ACLU I don't like but this one is a gold star in its column.... instead of fighting it the authorities should apologize and back off.

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