Case Title: Fairchild Square Co. v. Green Mountain Bagel Bakery, Inc.

Citation: 163 Vt 433, 658 A.2d 31

Docket Number: 

State: vermont

Court: Vermont Supreme Court

Date: 1995-01-27T00:00:00Z

Document:
FAIRCHILD_SQ_CO_V_GREEN_MTN_BAGEL_BAKERY.93-493; 163 Vt 433; 658 A.2d 31

[Filed 27-Jan-1995]

[Motion for Reargument Denied 29-Mar-1995]

NOTICE:  This opinion is subject to motions for reargument under V.R.A.P. 40
as well as formal revision before publication in the Vermont Reports. 
Readers are requested to notify the Reporter of Decisions, Vermont Supreme
Court, 109 State Street, Montpelier, Vermont 05609-0801 of any errors in
order that corrections may be made before this opinion goes to press. 


                            No. 93-493


Fairchild Square Company                     Supreme Court

                                             On Appeal from
     v.                                      Chittenden Superior Court

Green Mountain Bagel Bakery, Inc.            September Term, 1994
d/b/a Burlington Bagel Bakery, Inc.,
and Andrew B. Golbert


Matthew I. Katz, J.

Sandra A. Strempel of Dinse, Erdmann & Clapp, and Arthur S. Barrett, Jr. of
 Heilmann, Ekman & Associates, Burlington, for plaintiff-appellant 

Lawrence Miller and Barbara R. Blackman of Miller & Faignant, P.C., Rutland,
 for defendants- appellees 


PRESENT:  Gibson, Dooley, Morse and Johnson, JJ., Crucitti, D.J., Specially
          Assigned 

     MORSE, J.  Plaintiff Fairchild Square Company, a corporate landlord
renting space to defendant, Green Mountain Bagel Bakery, appeals from a
Chittenden Superior Court grant of summary judgment in favor of the tenant
and its employee, Andrew Golbert.  The trial court held that plaintiff had
waived recovery for negligently caused fire damages under the terms of the
parties' lease.  We affirm. 

     Fairchild is the owner of the Huntington Building, a four-story office
and apartment structure in Burlington.  Green Mountain leased the first floor
of the building.  Defendant 

 

Andrew Golbert was the president of Green Mountain.  One day in June 1989,
Golbert failed to turn off a gas-fired water boiler before leaving the Bakery
for the night.  That night the boiler started a fire, causing damage to the
Bakery and other parts of the Huntington Building. 

     Landlord sued tenant and Golbert for negligence to recover its losses. 
All parties moved for summary judgment.  The court granted defendants' motion
for summary judgment, ruling that landlord had waived any recovery against
tenant and Golbert under Article 35 of the lease, which stated: 

     Article 35.  Fire insurance:  It is acknowledged and understood by
     the parties hereto that such insurance for fire and extended
     coverage as Lessor elects to purchase shall be for the sole benefit
     of the lessor, and that such insurance shall not cover Lessee's
     personal property, trade fixtures, leasehold improvements, and
     other appurtenances, and that in the event of damage to or loss of
     any such items, Lessor shall have no obligation to repair or
     replace same.  Lessor and Lessee hereby release and waive all
     right of recovery against each other or any one claiming through
     or under each of them by way of subrogation or otherwise and
     arising out of any loss by fire or other similar casualty.

(Emphasis added.)

     On appeal, landlord argues that (1) it did not waive its right to
recover for negligence; (2) even if it waived recovery for damages to the
leased premises, it did not waive damages to parts of the Huntington Building
not leased by tenant; and (3) even if it waived recovery as to Green
Mountain, it did not waive its right to sue Golbert individually for his
negligence. 

                                I.

     Whether landlord waived its right to recover against tenant for
negligently caused fire damage depends on the intent of the contracting
parties as determined by the terms of the contract.  The trial court relied
almost exclusively on the final sentence of Article 35 in holding 

 

the landlord had waived the right to damages:  "Lessor and Lessee hereby
release and waive all right of recovery against each other or any one
claiming through or under each of them by way of subrogation or otherwise and
arising out of any loss by fire or other similar casualty." 

     Landlord, on the other hand, relies primarily on our policy with respect
to exculpatory contract language as set out in Colgan v. Agway, Inc., 150 Vt.
373,