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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. Such things are no more elections than those in the late, unlamented Soviet Union.

  2. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  3. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  4. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  5. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

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