Case Title: The Pantry, Inc. v. Mosley

Citation: 

Docket Number: 1110759

State: alabama

Court: Alabama Supreme Court

Date: 2013-05-03T00:00:00Z

Document:
Rel: 5/3/13 
Notice: T h i s 
o p i n i o n i s s u b j e c t t o f o r m a l 
r e v i s i o n b e f o r e 
p u b l i c a t i o n i n 
t h e 
advance 
s h e e t s o f 
Southern Reporter. 
R e a d e r s a r e r e q u e s t e d t o 
n o t i f y t h e 
Reporter of 
Decisions, 
Alabama A p p e l l a t e C o u r t s , 300 D e x t e r Avenue, Montgomery, Alabama 36104-3741 ((334) 229¬
0 6 4 9 ) , o f 
any 
t y p o g r a p h i c a l o r o t h e r e r r o r s , i n 
o r d e r t h a t c o r r e c t i o n s may 
be 
made b e f o r e 
t h e o p i n i o n i s 
p r i n t e d i n 
Southern Reporter. 
SUPREME COURT OF ALABAMA 
OCTOBER TERM, 2012-2013 
1110759 
The Pantry, 
Inc. 
v. 
Kaycee A. Mosley and 
Alana M. Byrd 
1110839 
Herndon O i l 
Corporation 
v. 
Kaycee A. Mosley and 
Alana M. Byrd 
Appeals from Baldwin C i r c u i t Court 
(CV-09-901320) 
1110759, 1110839 
BRYAN, J u s t i c e . 
The 
P a n t r y , 
I n c . 
("The 
P a n t r y " ) , 
and 
Herndon 
O i l 
C o r p o r a t i o n 
("Herndon 
O i l " ) , 
the d e f e n d a n t s 
below, 
a p p e a l 
s e p a r a t e l y f r o m a judgment e n t e r e d on a j u r y v e r d i c t i n f a v o r 
of Kaycee A. M o s l e y 
("Kaycee") and A l a n a M. B y r d 
("Alana"), 
p l a i n t i f f s 
below. 
These a p p e a l s p r i m a r i l y c o n c e r n whether 
Kaycee 
and 
A l a n a ' s 
mother, 
M u r e l 
M o s l e y 
("Murel"), 
u n r e a s o n a b l y w i t h h e l d consent t o Herndon O i l ' s assignment 
of 
a 
l e a s e between M u r e l 
and 
Herndon 
O i l . 
We 
r e v e r s e 
the 
judgment and remand the case. 
F a c t u a l Background 
and P r o c e d u r a l H i s t o r y 
In 
1994, M u r e l e x e c u t e d a l e a s e agreement i n which 
she 
l e a s e d t o Herndon O i l a g a s o l i n e s t a t i o n / c o n v e n i e n c e s t o r e and 
the u n d e r l y i n g l o t l o c a t e d i n L o x l e y . 
The 
o r i g i n a l term of 
the 
l e a s e was 
f o r f i v e 
y e a r s . 
The 
l e a s e agreement gave 
Herndon O i l the o p t i o n of renewing the l e a s e e v e r y f i v e y e a r s , 
w i t h a t o t a l o f f i v e a d d i t i o n a l f i v e - y e a r terms. 
The l e a s e 
agreement p r o v i d e d t h a t M u r e l was t o r e c e i v e r e n t a l payments 
i n the amount of $650 p e r month f o r the o r i g i n a l 
f i v e - y e a r 
term, $800 per month f o r the 
f i r s t renewed f i v e - y e a r 
term, 
2 
1110759, 1110839 
$1,000 p e r month f o r 
t h e second renewed f i v e - y e a r term, $1,100 
p e r month f o r t h e t h i r d renewed f i v e - y e a r term, $1,200 p e r 
month f o r t h e f o u r t h renewed f i v e - y e a r term, and $1,300 p e r 
month 
f o r t h e 
f i f t h 
renewed 
f i v e - y e a r 
term. 
The 
l e a s e 
agreement c o n t a i n e d t h e f o l l o w i n g p r o v i s i o n a d d r e s s i n g Herndon 
O i l ' s 
r i g h t t o a s s i g n t h e l e a s e : "Herndon [ O i l ] s h a l l 
be 
e n t i t l e d t o t r a n s f e r o r a s s i g n t h i s agreement w i t h t h e w r i t t e n 
consent of [ M u r e l ] , h e r h e i r s , e x e c u t o r s o r a s s i g n s [ ] (which 
s h a l l not be u n r e a s o n a b l y w i t h h e l d ) . " 
On June 4, 2009, Herndon 
O i l ' s 
a t t o r n e y s e n t M u r e l a 
l e t t e r s e e k i n g h e r consent t o a s s i g n t h e l e a s e t o The P a n t r y . 
The l e t t e r s t a t e d , i n p e r t i n e n t p a r t : 
"Herndon [ O i l ] has e n t e r e d 
i n t o an A s s e t 
Purchase 
Agreement t o [ s e l l a s s e t s r e g a r d i n g ] s e v e r a l c e r t a i n 
of i t s r e t a i l g a s o l i n e / c o n v e n i e n c e s t o r e l o c a t i o n s 
to 
The 
P a n t r y , 
I n c . (the ' P a n t r y ' ) , a 
p u b l i c l y -
t r a d e d 
company 
t h a t 
o p e r a t e s 
more 
than 
1,400 
convenience s t o r e s i n t h e s o u t h e a s t e r n U n i t e d S t a t e s 
under the t r a d e name 'Kangaroo E x p r e s s . ' One o f t h e 
Herndon [ O i l ] b u s i n e s s l o c a t i o n s b e i n g [ a s s i g n e d ] t o 
the P a n t r y i s t h e l o c a t i o n i t l e a s e s from you a t US 
[ H i g h w a y ] 90 
and 
E a s t 
Union 
Avenue 
i n L o x l e y . 
Herndon [ O i l ] w i l l a s s i g n i t s 
i n t e r e s t i n t h e l e a s e 
to 
t h e 
P a n t r y , 
and 
t h e 
P a n t r y 
w i l l 
assume 
the 
o b l i g a t i o n s of Herndon [ O i l ] 
as of t h e c l o s i n g d a t e . 
" I have e n c l o s e d an E s t o p p e l 
C e r t i f i c a t e 
and 
Consent f o r e x e c u t i o n by you as t h e l e s s o r under the 
e x i s t i n g l e a s e . 
3 
1110759, 1110839 
" I f you or your a t t o r n e y s have any comments or 
q u e s t i o n s , 
p l e a s e 
c o n t a c t 
me 
as soon as 
p o s s i b l e . 
T h i s t r a n s a c t i o n i s s c h e d u l e d t o c l o s e on June 
25, 
2009, [ a n d ] 
we would 
l i k e t o get 
t h i s 
c e r t i f i c a t e 
e x e c u t e d as soon as p o s s i b l e . 
"Beth P i e r c e , a l o c a l 
r e a l e s t a t e agent i n the 
M o b i l e a r e a , has worked w i t h Herndon [ O i l ] f o r many 
y e a r s 
and 
i s 
a v a i l a b l e 
l o c a l l y 
t o 
p i c k 
up 
the 
document when 
i t i s 
s i g n e d . 
Ms. 
P i e r c e 
may 
be 
c o n t a c t e d 
a t [ t h e f o l l o w i n g t e l e p h o n e number] 
" I thank you i n advance f o r your c o o p e r a t i o n 
and 
prompt a t t e n t i o n t o 
t h i s m a t t e r . 
I f you have 
any 
a d d i t i o n a l 
q u e s t i o n s , 
p l e a s e 
do 
not 
h e s i t a t e 
t o 
c o n t a c t 
me." 
B e t h P i e r c e , Herndon O i l ' s 
r e a l - e s t a t e agent, 
t e s t i f i e d 
a t t r i a l t h a t she v i s i t e d M u r e l ' s house, s e e k i n g t o speak w i t h 
her about the assignment. 
Kaycee, one 
of M u r e l ' s d a u g h t e r s , 
answered the door and 
t o l d P i e r c e t h a t M u r e l was 
u n a v a i l a b l e 
because she was 
i l l and t h a t Pat M o s l e y ("Pat"), M u r e l ' s 
son, 
was h a n d l i n g M u r e l ' s b u s i n e s s a f f a i r s . 
At the t i m e , M u r e l 
had 
g i v e n 
Pat her power of a t t o r n e y . 
P i e r c e t e s t i f i e d t h a t 
she 
l e f t her b u s i n e s s c a r d w i t h Kaycee and asked her t o have Pat 
c o n t a c t h e r . 
P i e r c e f u r t h e r s t a t e d t h a t she went t o M u r e l ' s 
house a second time and t h a t , when no one answered the door, 
she 
l e f t her b u s i n e s s c a r d on the door. 
P i e r c e never a c t u a l l y 
spoke w i t h M u r e l or Pat about the assignment. 
4 
1110759, 1110839 
On June 25, 2009, Herndon O i l a s s i g n e d t h e l e a s e t o The 
P a n t r y , 
w i t h o u t 
M u r e l ' s 
c o n s e n t . 
There 
i s no 
e v i d e n c e 
i n d i c a t i n g 
t h a t M u r e l , P a t , or 
t h e i r 
r e p r e s e n t a t i v e e v e r 
d i s c u s s e d t h e assignment w i t h Herndon O i l 
or The P a n t r y b e f o r e 
the assignment was made. P i e r c e t e s t i f i e d t h a t t h e assignment 
was p a r t o f a l a r g e r t r a n s a c t i o n 
between Herndon O i l 
and The 
P a n t r y 
i n which 
Herndon 
O i l t r a n s f e r r e d 
i t s a s s e t s 
— 
p r i m a r i l y f e e - s i m p l e ownership 
i n t e r e s t s -- i n a p p r o x i m a t e l y 
40 convenience 
s t o r e s t o The P a n t r y . 
P i e r c e t e s t i f i e d t h a t 
the 
t o t a l 
t r a n s a c t i o n was 
worth 
"somewhere 
[around] 
$40 
m i l l i o n " b u t t h a t she d i d not know the s p e c i f i c v a l u e o f t h e 
assignment o f M u r e l ' s l e a s e . 
A t t h e time of the 
assignment, 
M u r e l was 83 y e a r s o l d . 
On 
J u l y 2, 2009, M u r e l ' s 
a t t o r n e y s e n t Herndon 
O i l ' s 
a t t o r n e y a l e t t e r s t a t i n g , i n p e r t i n e n t p a r t : 
"The 
[Mosley] 
f a m i l y w i l l not consent t o the 
s u b l e a s e 
of 
t h e i r 
g a s o l i n e / c o n v e n i e n c e 
s t o r e i n 
L o x l e y , Alabama t o The P a n t r y .... The monthly l e a s e 
amount i s not commensurate 
w i t h t h e 
f a i r 
market 
v a l u e of l i k e p r o p e r t i e s i n t h e a r e a . 
I f you would 
l i k e t o d i s c u s s a 
f a i r amount, p l e a s e c o n t a c t me 
i m m e d i a t e l y . 
"Meanwhile, 
The 
P a n t r y 
... 
has, 
w i t h o u t 
a u t h o r i z a t i o n , moved i n t o the L o x l e y S t o r e and i s 
c o n d u c t i n g b u s i n e s s . 
T h i s i s i n v i o l a t i o n of t h e 
Herndon [ O i l ] 
Lease. 
I f we are unable t o r e s o l v e 
5 
1110759, 1110839 
t h i s i s s u e a m i c a b l y , 
I w i l l have no c h o i c e b u t 
t o 
f i l e 
s u i t a g a i n s t Herndon O i l and The 
P a n t r y 
Herndon O i l never o b t a i n e d consent t o the assignment, and 
the l e a s e agreement was never r e n e g o t i a t e d . 
In November 2009, 
M u r e l 
sued Herndon 
O i l , a l l e g i n g 
b r e a c h 
of 
c o n t r a c t 
and 
c o n v e r s i o n . 
M u r e l 
l a t e r amended her 
c o m p l a i n t 
t o add 
The 
P a n t r y as a d e f e n d a n t and t o add c l a i m s 
a l l e g i n g 
c o n s p i r a c y 
and u n j u s t e n r i c h m e n t . 
M u r e l d i e d w h i l e the case was p e n d i n g , 
and 
her 
d a u g h t e r s , 
Kaycee 
and 
A l a n a , 
were 
s u b s t i t u t e d 
as 
p l a i n t i f f s . 
A j u r y 
t r i a l 
was 
h e l d i n October 2011. 
A t 
t r i a l , 
the 
p r i m a r y i s s u e was whether M u r e l had u n r e a s o n a b l y w i t h h e l d her 
consent t o the assignment of the l e a s e . 
A l a n a 
t e s t i f i e d 
a t 
t r i a l r e g a r d i n g M u r e l ' s concerns w i t h the a s s i g n m e n t : 
"Q. 
[ B y c o u n s e l f o r Kaycee and A l a n a : ] D i d your 
mother have concerns about somebody t a k i n g over from 
Herndon 
[ O i l ] ? 
"A. 
Yes, 
she d i d , because she says t h e y ' r e 
i n t h e r e w i t h a l e a s e because the o t h e r 
l e a s e 
not 
t h e r e w i t h a l e a s e because the o t h e r 
l e a s e 
was 
up. 
"Q. 
Now, 
e x p l a i n t h a t . What do 
you mean 
the 
o t h e r l e a s e was 
up? 
"A. 
W e l l , the f i v e - y e a r l e a s e from Herndon O i l 
was 
up. 
And when [The] 
P a n t r y went i n , t h e y 
s h o u l d 
have had us t o r e n e g o t i a t e a n o t h e r l e a s e w i t h them 
because t h e y ' r e i n t h e r e w i t h no s i g n e d l e a s e . 
6 
1110759, 1110839 
"  
"Q. D i d you e v e r have c o n v e r s a t i o n s 
w i t h your 
mother about why she d i d n ' t — 
o t h e r than The P a n t r y 
d i d n ' t have a l e a s e , you j u s t 
t o l d us t h a t , about 
any 
o t h e r 
r e a s o n s 
t h a t 
she was 
c o n c e r n e d 
about 
somebody o t h e r than Herndon 
[ O i l ] g o i n g 
i n t o 
t h i s 
s t o r e ? 
"A. W e l l , she — she t h o u g h t t h a t [Herndon O i l ] 
wasn't g i v i n g h e r enough r e n t because some 
o t h e r 
p e o p l e had t o l d h e r t h e r e n t s a t t h e o t h e r s t a t i o n s 
were l o t s , 
l o t s h i g h e r than h e r s . And she j u s t 
— 
she 
d i d n ' t 
f e e l 
l i k e 
she was 
g e t t i n g t h e 
f a i r 
s h a r e . " 
Pat 
t e s t i f i e d 
t h a t he began h a n d l i n g 
M u r e l ' s 
b u s i n e s s 
a f f a i r s around 2003 and t h a t he o b t a i n e d 
M u r e l ' s power o f 
a t t o r n e y 
i n 2003 o r 2004. 
A t 
t r i a l , 
P a t t e s t i f i e d , i n 
p e r t i n e n t p a r t : 
"Q. 
[By c o u n s e l f o r 
t h e Kaycee and A l a n a : ] A t 
some p o i n t , d i d 
you see documents t h a t your mother 
r e c e i v e d v i a FedEx[, 
s e e k i n g 
h e r consent t o t h e 
a s s i g n m e n t ] ? ... 
"A. Yes, s i r , I saw t h i s . ... 
"Q. And t h e — d i d 
you and your mother have an 
o c c a s i o n 
t o t a l k 
about whether o r n o t you would 
agree t o have someone e l s e come i n 
on t h e l e a s e ? 
"A. Yes, s i r 
"Q. And what was t h e d e c i s i o n o f your mother 
i n 
terms o f h a v i n g t h e l e a s e a s s i g n e d ? 
"A. W e l l , we wanted t o f i n d out 
who The P a n t r y 
was, 
f i r s t t h i n g . 
7 
1110759, 1110839 
"Q. 
L e t me 
ask you 
t h a t : D i d you know The 
P a n t r y ? 
"A. 
No, s i r . 
"Q. 
Had you ever 
had any d e a l i n g s 
w i t h 
The 
P a n t r y ? 
"A. 
No, s i r , o n l y Herndon 
[ O i l ] . 
"  
"Q. 
Were you a b l e t o f i n d out i f 
The P a n t r y was 
an Alabama company? 
"A. 
No, s i r , I d i d n ' t know who t h e y were. 
"Q. 
D i d you — d i d t h a t g i v e you or your mother 
concerns about s i g n i n g a l e a s e w i t h a company t h a t 
you d i d not know? 
"A. 
Yes, s i r . 
"Q. 
And t h e p e o p l e t h a t you d i d not know? 
"A. 
Yes, s i r . 
"Q. 
D i d i t g i v e you concerns about h a v i n g 
an 
out o f s t a t e company i n v o l v e d ? 
"A. 
Out of s t a t e was not t h e p o i n t . 
We 
j u s t 
r e a l l y 
wanted t o know who 
t h e y 
were, you know, 
coming i n t o t h e p r o p e r t y . 
"Q. 
The — 
d i d you attempt t o c o n t a c t 
them, 
e i t h e r y o u r s e l f or t h r o u g h your 
a t t o r n e y ? 
"A. 
I c o n t a c t e d you and you c o n t a c t e d them. 
"  
8 
1110759, 1110839 
"Q. 
[By c o u n s e l f o r Herndon O i l : ] W e l l , d i d you 
c o n t a c t W a l l e y H i n e s l e y , the a t t o r n e y who wrote the 
l e t t e r , 
as 
he 
r e q u e s t e d 
you 
do 
i f you 
had 
any 
q u e s t i o n s ? 
"A. 
No, 
s i r , I never c o n t a c t e d 
him. 
"Q. 
You never c o n t a c t e d him. 
D i d you make any 
i n q u i r y as t o who 
the a s s i g n e e was. 
The P a n t r y , 
The 
Kangaroo back then? 
"A. 
Only when I c o n t a c t e d 
Mr. 
R i l e y [ , 
P a t ' s 
c o u n s e l ] . 
"  
"Q. 
The 
P a n t r y 
i s a p u b l i c l y t r a d e d company. 
I t ' s 
on NASDAQ, has more than a thousand 
s t a t i o n s . 
I t ' s 
a much b i g g e r o p e r a t i o n than a p r i v a t e l y 
h e l d 
o p e r a t i o n 
by 
D a v i d 
Herndon. 
D i d 
you 
make 
any 
e f f o r t , 
e i t h e r 
by 
i n q u i r i n g 
from Herndon 
[ O i l ] or 
The 
P a n t r y , 
or 
Google, 
or 
Yahoo, 
or 
your 
s t o c k b r o k e r , 
or 
the 
W a l l 
S t r e e t 
J o u r n a l , or 
any 
o t h e r o u t s i d e agency t o f i n d out who The P a n t r y was? 
"A. 
S i r , i t ' s not my p l a c e when someone wants 
t o come i n t o our p r o p e r t y . 
I t ' s t h e i r p l a c e t o come 
d e a l w i t h us. 
"  
"Q. 
You haven't h e a r d a n y t h i n g about The 
P a n t r y 
t h a t would make them u n d e s i r a b l e t e n a n t s , have you? 
"A. 
No, 
s i r . But 
I would a p p r e c i a t e someone 
coming t o our house and 
t a l k i n g t o us about them 
coming i n t h e r e so we would know t h a t we were g o i n g 
t o have good t e n a n t s . " 
Pat a l s o t e s t i f i e d t h a t he b e l i e v e d the l e a s e agreement 
was 
u n f a i r 
t o M u r e l 
and 
t h a t he 
c o n s i d e r e d Herndon 
O i l ' s 
9 
1110759, 1110839 
assignment r e q u e s t as an o p p o r t u n i t y t o r e n e g o t i a t e the 
l e a s e 
agreement. 
When Herndon O i l sought M u r e l ' s consent t o 
the 
assignment, Herndon O i l was 
p a y i n g 
her $1,100 per month i n 
r e n t . 
Pat o p i n e d t h a t the a c t u a l r e n t a l v a l u e of the 
p r o p e r t y 
a t 
t h a t 
time 
was 
$4,000 
per 
month. 
Kaycee 
and 
A l a n a 
i n t r o d u c e d , over Herndon O i l ' s o b j e c t i o n , e v i d e n c e i n d i c a t i n g 
t h a t some o t h e r g a s o l i n e s t a t i o n s / c o n v e n i e n c e 
s t o r e s i n the 
a r e a were p a y i n g 
r e n t a l amounts of between $2,000 per month 
and 
$4,960 per month. 
P i e r c e , Herndon 
O i l ' s 
r e a l - e s t a t e 
agent, 
t e s t i f i e d 
t h a t some o f t h o s e o t h e r 
p r o p e r t i e s were 
l a r g e r 
and 
d i f f e r e n t i n type than M u r e l ' s p r o p e r t y . 
Pat 
t e s t i f i e d 
t h a t 
i n 2004 he 
had 
approached P i e r c e about 
the 
p o s s i b i l i t y 
o f 
r e n e g o t i a t i n g 
the 
l e a s e agreement. 
P i e r c e 
i n d i c a t e d 
t h a t 
Herndon 
O i l would 
l i k e l y 
be 
u n w i l l i n g 
t o 
r e n e g o t i a t e , and the l e a s e agreement was never 
r e n e g o t i a t e d . 
Pat 
t e s t i f i e d 
as 
f o l l o w s 
r e g a r d i n g 
the 
p o s s i b i l i t y 
of 
r e n e g o t i a t i n g 
the 
l e a s e agreement when Herndon O i l sought 
consent f o r the assignment: 
"Q. 
[By c o u n s e l 
f o r Herndon O i l : ] The 
f a c t i s 
t h a t you wanted t o n e g o t i a t e 
the 
c o n t r a c t , 
d i d n ' t 
you, 
the 
l e a s e ? 
"A. 
Yes, s i r . 
10 
1110759, 1110839 
"Q. You t e s t i f i e d i n your p r e v i o u s 
d e p o s i t i o n 
t h a t you had c o n t a c t e d t h e Herndon O i l Company more 
than once t o g e t them t o r e v i s e t h e l e a s e agreement; 
i s t h a t 
c o r r e c t ? 
"A. Yes, s i r , t h a t was y e a r s e a r l i e r . 
"Q. 
Yeah. And i t seemed t o you 
t h a t 
t h i s 
assignment agreement was t h e o p p o r t u n i t y 
t h a t you 
had 
been 
l o o k i n g f o r t o g e t them t o r e w r i t e t h e 
l e a s e agreement; i s t h a t 
c o r r e c t ? 
"A. I t was an o p p o r t u n i t y 
t o have my mother 
have some f a i r n e s s because t h e y took advantage o f 
her 
e a r l i e r i n h e r l i f e t h a t I d i d 
n o t know about. 
I would never have l e t her s i g n t h a t l e a s e f o r 
what 
she s i g n e d i t f o r . 
"Q. 
... 
[ T ] h i s whole 
case, 
t h e n , i s r e a l l y 
about a l e a s e 
t h a t you d i d n ' t 
l i k e from t h e v e r y 
time you saw i t , i s t h a t c o r r e c t , i n 2003? 
"A. The whole case i s . 
"Q. 
Yeah. 
"A. T a k i n g up f o r my mother, who was done 
wrong. 
"  
"A. I would be happy t o t a l k t o The 
P a n t r y . 
I t ' s n o t t h a t I want t o run them o u t . I j u s t want 
t o 
t a l k t o The P a n t r y i n o r d e r t o r e n e g o t i a t e t h e 
l e a s e . 
I would be happy t o t a l k t o anyone who would 
want t o come i n t o r e n e g o t i a t e 
t h a t l e a s e , s i r . 
I t 
i s — 
I mean, t h a t i s 
not a q u e s t i o n o f d o i n g t h a t . 
I t ' s n o t I t h i n k The 
P a n t r y 
a r e bad p e o p l e o r 
a n y t h i n g , I j u s t t h i n k my mother g o t screwed o v e r . " 
Pat f u r t h e r t e s t i f i e d : 
11 
1110759, 1110839 
"Q. 
[By c o u n s e l f o r Kaycee and A l a n a : ] I s money 
the o n l y r e a s o n 
t h a t your mother would n o t consent 
to t h e assignment? 
"A. No, s i r . She wanted t o know who The P a n t r y 
was a l s o . 
I mean, money was — 
"Q. I s t h a t p a r t o f i t ? 
"A. 
P a r t o f i t , 
y e s . But she wanted t o know 
who was g o i n g i n t o h e r p r o p e r t y 
a l s o . " 
The 
t r i a l 
c o u r t e n t e r e d a judgment as a m a t t e r o f law 
("JML") on t h e c o n s p i r a c y c l a i m , b u t t h e t r i a l c o u r t a l l o w e d 
the c l a i m s o f b r e a c h o f c o n t r a c t and c o n v e r s i o n t o go t o 
t h e 
j u r y .
1 
The j u r y r e t u r n e d a v e r d i c t a g a i n s t Herndon O i l on 
t h e 
b r e a c h - o f - c o n t r a c t 
c l a i m , awarding $70,280 i n compensatory 
damages, and a g a i n s t 
Herndon O i l and The 
P a n t r y 
on t h e 
c o n v e r s i o n 
c l a i m , awarding $1 i n compensatory damages and 
$620,000 i n p u n i t i v e damages. 
The 
t r i a l 
c o u r t 
e n t e r e d a 
1The 
t r i a l c o u r t d i d 
n o t appear t o i n s t r u c t t h e j u r y on 
the u n j u s t - e n r i c h m e n t 
c l a i m , and t h e j u r y d i d 
n o t r e t u r n a 
v e r d i c t on t h a t c l a i m . 
We note t h a t , 
" i f , i n a case o f c l a i m s t o be t r i e d by a j u r y , ... 
the 
t r i a l c o u r t does n o t o f r e c o r d f o r m a l l y r e s e r v e 
or 
s e v e r 
a c l a i m f o r s e p a r a t e 
d i s p o s i t i o n , t h e 
o m i s s i o n o f t h a t c l a i m from t h e judgment 
a c t u a l l y 
e n t e r e d 
w i l l be deemed a judgment on t h e m e r i t s o f 
t h a t c l a i m adverse t o t h e c l a i m a n t . " 
A l f a 
L i f e I n s . Corp. v. J a c k s o n , 906 So. 2d 143, 153 
( A l a . 
2005) . 
12 
1110759, 1110839 
judgment 
on the j u r y 
v e r d i c t . 
Herndon O i l and The P a n t r y 
f i l e d a postjudgment m o t i o n f o r a JML o r , a l t e r n a t i v e l y , f o r 
a new 
t r i a l o r t o a l t e r , amend, o r v a c a t e the judgment; 
the 
t r i a l c o u r t d e n i e d t h a t m o t i o n . 
Herndon O i l and The P a n t r y 
a l s o 
f i l e d a postjudgment motion s e e k i n g a r e m i t t i t u r o f the 
p u n i t i v e damages and r e q u e s t i n g a h e a r i n g on t h e i r m o t i o n . 
F o l l o w i n g a h e a r i n g , the t r i a l c o u r t d e n i e d the motion f o r a 
r e m i t t i t u r . 
Herndon O i l and The P a n t r y a p p e a l e d s e p a r a t e l y , 
and we c o n s o l i d a t e d the a p p e a l s f o r the purpose o f w r i t i n g one 
o p i n i o n . 
S t a n d a r d o f Review 
"When r e v i e w i n g a r u l i n g on a m o t i o n f o r a JML, 
t h i s C o u r t uses the same s t a n d a r d the t r i a l 
c o u r t 
used i n i t i a l l y i n d e c i d i n g whether t o g r a n t o r deny 
the 
m o t i o n f o r a JML. 
Palm Harbor Homes, I n c . v.  
C r a w f o r d , 
689 
So. 
2d 
3 
( A l a . 1997) . 
R e g a r d i n g 
q u e s t i o n s of f a c t , the u l t i m a t e q u e s t i o n i s whether 
the 
nonmovant has p r e s e n t e d s u f f i c i e n t e v i d e n c e t o 
a l l o w the case t o be s u b m i t t e d t o the j u r y f o r a 
f a c t u a l r e s o l u t i o n . 
C a r t e r v. Henderson, 598 So. 2d 
1350 ( A l a . 
1992) . The nonmovant must have p r e s e n t e d 
s u b s t a n t i a l e v i d e n c e i n o r d e r t o w i t h s t a n d a motion 
f o r a JML. 
See § 12-21-12, A l a . Code 1975; West v.  
Founders 
L i f e A s s u r a n c e Co. of F l o r i d a , 547 So. 2d 
870, 
871 
( A l a . 1989). 
A 
r e v i e w i n g 
c o u r t 
must 
d e t e r m i n e whether the p a r t y who b e a r s the burden o f 
p r o o f has p r o d u c e d s u b s t a n t i a l e v i d e n c e c r e a t i n g a 
f a c t u a l d i s p u t e 
r e q u i r i n g 
r e s o l u t i o n by the 
j u r y . 
C a r t e r , 598 So. 2d a t 1353. 
In r e v i e w i n g a 
r u l i n g 
on a motion f o r a JML, t h i s C o u r t views the e v i d e n c e 
i n 
the 
l i g h t most f a v o r a b l e t o t h e nonmovant and 
13 
1110759, 1110839 
e n t e r t a i n s such r e a s o n a b l e i n f e r e n c e s as t h e 
j u r y 
would have been 
f r e e t o draw. 
I d . 
R e g a r d i n g a 
q u e s t i o n of law, however, 
t h i s 
C o u r t i n d u l g e s no 
p r e s u m p t i o n of c o r r e c t n e s s as t o t h e t r i a l c o u r t ' s 
r u l i n g . 
R i c w i l , I n c . v. S.L. Pappas & Co., 599 So. 
2d 1126 ( A l a . 1992)." 
W a d d e l l & Reed, I n c . v. U n i t e d I n v e s t o r s L i f e I n s . Co., 8 
75 
So. 2d 1143, 1152 ( A l a . 2003). 
A n a l y s i s 
On a p p e a l , Herndon O i l argues t h a t i t 
was e n t i t l e d t o a 
JML on t h e b r e a c h - o f - c o n t r a c t c l a i m . 
As n o t e d , t h e l e a s e 
agreement between Herndon O i l 
and M u r e l r e q u i r e d Herndon O i l 
t o o b t a i n M u r e l ' s w r i t t e n consent b e f o r e Herndon O i l c o u l d 
a s s i g n t h e l e a s e . 
Herndon O i l 
d i d not o b t a i n M u r e l ' s consent 
t o t h e assignment o f t h e l e a s e t o The P a n t r y . 
However, t h e 
l e a s e agreement a l s o p r o v i d e d t h a t M u r e l ' s consent " s h a l l not 
be u n r e a s o n a b l y w i t h h e l d . " 
Herndon O i l 
argues t h a t i t 
d i d 
not 
b r e a c h t h e l e a s e 
agreement by 
f a i l i n g 
t o o b t a i n 
M u r e l ' s 
consent t o t h e assignment because, i t s a y s , her consent was 
u n r e a s o n a b l y w i t h h e l d . 
As t h e t e n a n t , Herndon O i l 
had t h e burden o f p r o v i n g t h a t 
M u r e l , t h e l a n d l o r d , a c t e d u n r e a s o n a b l y i n 
w i t h h o l d i n g consent 
t o t h e assignment. 
Rowley v. C i t y o f M o b i l e , 676 So. 2d 316, 
318-19 ( A l a . C i v . App. 1995) 
("A t e n a n t has t h e burden o f 
14 
1110759, 1110839 
p r o v i n g t h a t the l a n d l o r d a c t e d u n r e a s o n a b l y i n w i t h h o l d i n g 
consent 
t o 
an 
a s s i g n m e n t . " ) . 
The 
r e a s o n a b l e n e s s 
of 
a 
l a n d l o r d ' s f a i l u r e t o consent t o an assignment o f a l e a s e i s 
j u d g e d 
i n 
accordance 
w i t h 
a 
c o m m e r c i a l - r e a s o n a b l e n e s s 
s t a n d a r d . 
676 So. 2d a t 318 
( c i t i n g Homa-Goff I n t e r i o r s , I n c . 
v. Cowden, 350 So. 2d 1035, 1038 
( A l a . 1 9 7 7 ) ) . 
In a r g u i n g t h a t M u r e l u n r e a s o n a b l y w i t h h e l d her consent 
t o the assignment, Herndon O i l f o c u s e s on e v i d e n c e i n d i c a t i n g 
t h a t M u r e l ' s consent was 
w i t h h e l d i n l a r g e p a r t based on a 
b e l i e f t h a t the l e a s e agreement was u n f a i r and t h a t i t s h o u l d 
be r e n e g o t i a t e d . 
C e r t a i n l y , the e v i d e n c e i n d i c a t e s t h a t P a t , 
who had M u r e l ' s power o f a t t o r n e y , c o n s i d e r e d the r e q u e s t f o r 
consent t o the assignment as an o p p o r t u n i t y t o r e n e g o t i a t e the 
l e a s e agreement. Pat 
t e s t i f i e d : 
"Q. 
[By c o u n s e l f o r Herndon O i l : ] The 
f a c t i s 
t h a t you wanted t o n e g o t i a t e the c o n t r a c t , 
d i d n ' t 
you, the l e a s e ? 
"A. 
Yes, s i r . 
"  
"Q. 
... [ I ] t 
seemed t o you t h a t t h i s assignment 
agreement was 
the 
o p p o r t u n i t y 
t h a t 
you 
had 
been 
l o o k i n g 
f o r t o 
g e t 
them 
t o 
r e w r i t e 
the 
l e a s e 
agreement; i s t h a t c o r r e c t ? 
15 
1110759, 1110839 
"A. I t was an o p p o r t u n i t y t o have my mother 
have some f a i r n e s s because t h e y took advantage o f 
her 
e a r l i e r i n 
h e r l i f e t h a t I d i d 
n o t know about. 
I would never have l e t h e r s i g n t h a t l e a s e f o r 
what 
she s i g n e d i t f o r . 
"Q. 
... 
[ T ] h i s whole 
case, 
t h e n , 
i s r e a l l y 
about a l e a s e t h a t you d i d n ' t 
l i k e 
from t h e v e r y 
time you saw i t , i s t h a t c o r r e c t , i n 2003? 
"A. The whole case i s . 
"  
"A. I would be happy t o t a l k t o The 
P a n t r y . 
I t ' s n o t t h a t I want t o r u n them o u t . I j u s t want 
t o t a l k t o The P a n t r y i n o r d e r t o r e n e g o t i a t e t h e 
l e a s e . 
I would be happy t o t a l k t o anyone who would 
want t o come i n 
t o r e n e g o t i a t e t h a t l e a s e 
" 
S i m i l a r l y , A l a n a 
t e s t i f i e d about M u r e l ' s concerns 
w i t h 
the p r o p o s e d assignment: 
"[S]he 
t h o u g h t t h a t 
[Herndon 
O i l ] 
wasn't g i v i n g h e r enough r e n t because some o t h e r p e o p l e had 
t o l d h e r t h e r e n t s a t t h e o t h e r 
s t a t i o n s were 
l o t s , 
l o t s 
h i g h e r than h e r s . 
And she j u s t — 
she d i d n ' t f e e l 
l i k e she 
was g e t t i n g t h e f a i r s h a r e . " 
That p o s i t i o n i s 
a l s o r e f l e c t e d 
i n t h e J u l y 2, 2009, 
l e t t e r M u r e l ' s a t t o r n e y 
s e n t 
Herndon 
O i l ' s a t t o r n e y , s t a t i n g t h a t consent t o t h e assignment o f 
t h e 
l e a s e would n o t be g r a n t e d 
u n l e s s t h e l e a s e agreement was 
r e n e g o t i a t e d . 
That l e t t e r 
s t a t e d , i n p e r t i n e n t p a r t : "The 
monthly l e a s e amount i s 
not commensurate w i t h t h e f a i r market 
16 
1110759, 1110839 
v a l u e 
o f l i k e p r o p e r t i e s i n the a r e a . 
I f you would l i k e 
t o 
d i s c u s s a f a i r amount, p l e a s e 
c o n t a c t me 
i m m e d i a t e l y . " 
Alabama a p p e l l a t e 
c o u r t s 
a p p a r e n t l y 
have not 
a d d r e s s e d 
the 
s p e c i f i c 
i s s u e whether 
a 
l a n d l o r d 
a c t s 
r e a s o n a b l y 
by 
r e f u s i n g c o n s e n t t o an assignment i n o r d e r t h a t the 
l a n d l o r d 
may 
t o e x t r a c t a h i g h e r 
r e n t than c a l l e d f o r i n the 
l e a s e 
agreement. 
However, 
s e v e r a l 
o t h e r 
j u r i s d i c t i o n s 
have 
c o n c l u d e d t h a t i t i s u n r e a s o n a b l e f o r a l a n d l o r d t o 
w i t h h o l d 
consent t o an assignment of a l e a s e or t o a s u b l e a s e i n o r d e r 
t h a t the 
l a n d l o r d may 
charge a h i g h e r 
r e n t or o t h e r w i s e 
t o 
improve 
the 
l a n d l o r d ' s 
economic 
p o s i t i o n . 
One 
l e a d i n g 
a u t h o r i t y has 
s u c c i n c t l y s t a t e d the r u l e and 
i t s r a t i o n a l e , 
w h i c h we now 
adopt: 
" I t 
i s 
... 
u n r e a s o n a b l e t o deny consent i n 
o r d e r 
t h a t 
the 
l a n d l o r d may 
charge 
a h i g h e r 
r e n t 
than 
o r i g i n a l l y c o n t r a c t e d f o r , s i n c e the l e s s o r ' s d e s i r e 
f o r a b e t t e r b a r g a i n than c o n t r a c t e d f o r has 
n o t h i n g 
t o do w i t h the p e r m i s s i b l e purposes of the r e s t r a i n t 
on 
a l i e n a t i o n , t h a t 
i s , t o 
p r o t e c t 
the 
l e s s o r ' s 
i n t e r e s t i n the p r e s e r v a t i o n o f the p r o p e r t y and 
the 
performance of the l e a s e c o v e n a n t s . " 
29 R i c h a r d A. L o r d , 
W i l l i s t o n on C o n t r a c t s 
§ 74:22 a t 379-80 
(4th ed. 2003) . 
See, e.g.,
2 N o r v i l l e v. C a r r - G o t t s t e i n Foods 
2Some of the cases t h a t f o l l o w c o n c e r n an assignment, 
and 
some c o n c e r n a 
s u b l e a s e . 
17 
1110759, 1110839 
Co., 
84 P.3d 
996, 
1001 
( A l a s k a 2004) 
("It i s not 
r e a s o n a b l e 
f o r a l a n d l o r d t o deny consent i n o r d e r 
t o charge a 
h i g h e r 
r e n t 
than 
he 
o r i g i n a l l y 
c o n t r a c t e d 
f o r . " ) ; 
Campbell 
v. 
 
W e s t d a h l , 
148 
A r i z . 
432, 
438, 
715 
P.2d 
288, 
294 
(Ct. 
App. 
1985) 
("A 
l a n d l o r d ' s 
r e f u s a l 
t o consent 
t o 
an 
assignment 
because the l a n d l o r d i s unhappy w i t h the low 
r e n t 
p r o v i d e d 
under 
the 
e x i s t i n g 
l e a s e 
i s u n r e a s o n a b l e . " ) ; 
K e n d a l l 
v. 
 
E r n e s t P e s t a n a , 
I n c . , 40 C a l . 3d 488, 
220 C a l . R p t r . 818, 
709 
P.2d 
837 
(1985) 
( s t a t i n g 
t h a t 
i t was 
not 
c o m m e r c i a l l y 
r e a s o n a b l e 
f o r a l a n d l o r d t o deny consent i n o r d e r t h a t 
the 
" I n g e n e r a l 
terms, 
the 
d i f f e r e n c e between 
an 
assignment 
and 
a 
s u b l e a s e 
i s t h a t 
an 
assignment 
t r a n s f e r s 
the 
l e s s e e ' s 
e n t i r e 
i n t e r e s t 
i n 
the 
p r o p e r t y , 
whereas 
a 
s u b l e a s e 
t r a n s f e r s 
o n l y 
a 
p o r t i o n of t h a t i n t e r e s t , w i t h the o r i g i n a l 
l e s s e e 
r e t a i n i n g a r i g h t of r e e n t r y a t some p o i n t 
d u r i n g 
the u n e x p i r e d term of the l e a s e . 
"...[W]hether 
the 
t e n a n t ' s 
t r a n s f e r 
of 
h i s 
l e a s e h o l d i n t e r e s t 
c o n s t i t u t e s an assignment or 
a 
s u b l e a s e 
i s not 
l e g a l l y 
s i g n i f i c a n t as t o whether 
the 
l a n d l o r d a c t s 
' u n r e a s o n a b l y ' i n 
r e f u s i n g 
t o 
consent 
" 
69 Am. 
J u r . P r o o f of F a c t s 3d 191, C i r c u m s t a n c e s E s t a b l i s h i n g  
L a n d l o r d ' s U n r e a s o n a b l e W i t h h o l d i n g 
of Consent t o Assignment  
or S u b l e a s e § 4 ( 2 0 0 2 ) ( f o o t n o t e s o m i t t e d ) . 
See, e.g., 
K e n d a l l 
 
v. E r n e s t 
P e s t a n a , 
I n c . , 40 C a l . 3d 488, 
493 
n.2, 
220 
C a l . 
R p t r . 818, 
820 n.2, 
709 P.2d 
837, 
839 n.2 
(1985) ("Since the 
p r e s e n t case i n v o l v e s an assignment r a t h e r t h a n a s u b l e a s e , 
we 
w i l l speak p r i m a r i l y i n terms of a s s i g n m e n t s . 
However, 
our 
h o l d i n g a p p l i e s e q u a l l y t o s u b l e a s e s . " ) . 
18 
1110759, 1110839 
l a n d l o r d may charge a h i g h e r r e n t than o r i g i n a l l y c o n t r a c t e d 
f o r ) ; 1010 Potomac A s s o c s . v. G r o c e r y M f r s . of A m e r i c a , I n c . , 
485 A.2d 
199, 210 
(D.C. 
1984) 
( " [ I ] t i s u n r e a s o n a b l e f o r a 
l a n d l o r d t o w i t h h o l d consent t o a s u b l e a s e s o l e l y t o e x t r a c t 
an economic c o n c e s s i o n o r t o improve i t s 
economic 
p o s i t i o n . " ) ; 
Fernandez v. Vazquez, 
397 So. 2d 1171, 1174 
( F l a . D i s t . C t . 
App. 1981) 
("Denying consent s o l e l y on the b a s i s o f p e r s o n a l 
t a s t e , 
c o n v e n i e n c e 
or 
s e n s i b i l i t y 
or 
i n o r d e r 
t h a t 
t h e 
l a n d l o r d may charge a h i g h e r r e n t than o r i g i n a l l y c o n t r a c t e d 
f o r have been h e l d a r b i t r a r y reasons f a i l i n g the t e s t s o f good 
f a i t h and r e a s o n a b l e n e s s under commercial l e a s e s . " ) ; Funk v. 
Funk, 102 
Idaho 521, 
524, 
633 P.2d 
586, 
589 
(1981) 
("[N]o 
d e s i r a b l e p u b l i c p o l i c y i s s e r v e d by u p h o l d i n g a l a n d l o r d ' s 
a r b i t r a r y r e f u s a l of consent ... where ... i t i s a p p a r e n t t h a t 
the 
r e f u s a l 
t o consent was 
w i t h h e l d f o r p u r e l y 
f i n a n c i a l 
reasons and t h a t the l a n d l o r d wanted the l e s s e e s t o e n t e r i n t o 
an e n t i r e l y new 
l e a s e agreement w i t h 
s u b s t a n t i a l 
i n c r e a s e d 
f i n a n c i a l 
b e n e f i t s 
t o the 
l a n d l o r d . " ) ; 
D.L. 
Dev., 
I n c . v.  
Nance, 894 S.W.2d 258, 260 
(Mo. C t . App. 1995) 
( s t a t i n g t h a t 
a l a n d l o r d ' s c o n d i t i o n i n g consent t o a p r o p o s e d s u b l e a s e on a 
r e n e g o t i a t i o n 
of 
the 
l e a s e 
was 
u n r e a s o n a b l e 
because 
i t 
19 
1110759, 1110839 
e s s e n t i a l l y amounted t o " h o l d i n g t h e 
consent t o 
t h e s u b l e a s e 
hostage f o r t h e 
ransom o f r e n e g o t i a t i n g t h e 
l e a s e " ) ; Economy  
R e n t a l s , 
I n c . v. G a r c i a , 112 N.M. 748, 
819 P.2d 1306 (1991) 
( s t a t i n g t h a t a l a n d l o r d ' s r e f u s i n g t o c o n s e n t t o 
a s u b l e a s e 
was 
u n r e a s o n a b l e where t h e 
l a n d l o r d ' s r e a l m o t i v a t i o n was 
t o 
i n c r e a s e t h e l a n d l o r d ' s 
economic b e n e f i t 
from t h e l e a s e ) ; 
F i r s t American Bank o f N a s h v i l l e , N.A. v. Woods, 781 S.W.2d 
588, 
590 (Tenn. C t . 
App. 1989) ( s t a t i n g 
t h a t a 
l a n d l o r d ' s 
d e s i r e t o 
e x t r a c t an economic c o n c e s s i o n may not be r e a s o n a b l y 
c o n s i d e r e d by a l a n d l o r d i n d e t e r m i n i n g 
whether t o w i t h h o l d 
c o n s e n t ) ; and Morgan P r o d s . , L t d . v. Park P l a z a o f Oshkosh,  
I n c . , 229 Wis. 
2d 231, 
239, 598 N.W.2d 626, 630 (Ct. App. 
1999) 
( " [ I ] t i s n o t 
c o m m e r c i a l l y r e a s o n a b l e i f t h e 
s o l e b a s i s 
f o r a consent d e n i a l i s so t h a t a l a n d l o r d can 
charge a h i g h e r 
r e n t than t h e 
c o n t r a c t 
r e n t . " ) .
3 
3 A l t h o u g h Alabama has 
n o t 
d i r e c t l y a d d r e s s e d the 
q u e s t i o n 
p r e s e n t e d h e r e , t h i s C o u r t has s t a t e d : 
"'"'"There i s 
an i m p l i e d covenant t h a t 
n e i t h e r 
p a r t y 
s h a l l do a n y t h i n g which w i l l have t h e e f f e c t 
of d e s t r o y i n g o r i n j u r i n g t h e r i g h t s o f t h e o t h e r 
p a r t y t o r e c e i v e t h e f r u i t s o f 
t h e 
c o n t r a c t ; ... i n 
e v e r y c o n t r a c t t h e r e 
e x i s t s an i m p l i e d covenant o f 
good f a i t h and f a i r d e a l i n g . " ' " 
( q u o t i n g S e l l e r s v.  
Head, 261 A l a . 212, 
73 So. 2d 747, 
751 ( 1 9 5 4 ) ) [ ] . 
See 
a l s o Restatement 
(Second) o f C o n t r a c t s § 205 
(1981) ("Every c o n t r a c t imposes upon each p a r t y a 
20 
1110759, 1110839 
A c c o r d i n g l y , 
we 
c o n c l u d e t h a t i t i s u n r e a s o n a b l e f o r a 
l a n d l o r d t o w i t h h o l d c o n s e n t t o an assignment of a l e a s e i n 
o r d e r 
t h a t 
the 
l a n d l o r d 
may 
e x t r a c t 
h i g h e r 
r e n t 
than 
c o n t r a c t e d 
f o r 
i n 
the 
l e a s e 
agreement. 
The 
purpose 
of 
a 
consent p r o v i s i o n i s t o p r o t e c t the 
l a n d l o r d ' s 
i n t e r e s t 
i n 
p r e s e r v i n g the p r o p e r t y 
and 
i n the performance of the 
l e a s e 
c o v e n a n t s , 
not 
t o p r o t e c t 
the 
l a n d l o r d ' s 
g e n e r a l 
economic 
p o s i t i o n . 
W i l l i s t o n , s u p r a . 
Thus, i n t h i s case, M u r e l ' s 
and 
P a t ' s 
d e s i r e t o r e n e g o t i a t e 
the 
l e a s e agreement was 
not 
a 
r e a s o n a b l e 
ground f o r w i t h h o l d i n g consent t o the assignment. 
Kaycee 
and 
A l a n a 
argue 
t h a t 
M u r e l ' s 
consent 
was 
r e a s o n a b l y 
w i t h h e l d , 
c o n t e n d i n g t h a t 
t h i s case i s on 
p o i n t 
w i t h Rowley, 
s u p r a . 
In Rowley, 
the 
t e n a n t , 
a 
r e s t a u r a n t 
p r o p r i e t o r , i n f o r m e d the l a n d l o r d , the C i t y of M o b i l e , 
t h a t 
she had found someone w i l l i n g t o a c c e p t an assignment of 
her 
d u t y 
of 
good 
f a i t h 
and 
f a i r 
d e a l i n g 
i n 
i t s 
performance 
and 
i t s e n f o r c e m e n t . " ) . ' 
Hunter 
v. 
 
W i l s h i r e C r e d i t Corp., 927 So. 2d 810, 
813 n.5 
( A l a . 
2005) ( q u o t i n g L l o y d N o l a n d Found., I n c . v. C i t y 
of  
F a i r f i e l d 
H e a l t h c a r e 
A u t h . , 
837 
So. 
2d 
253, 
267 
( A l a . 
2 0 0 2 ) ) . " 
Shoney's LLC v. MAC 
E a s t , LLC, 
27 So. 3d 1216, 
1220 
n.5 
( A l a . 
2009) 
. 
21 
1110759, 1110839 
l e a s e . 
676 
So. 
2d 
a t 
318. 
However, 
the 
t e n a n t 
never 
i d e n t i f i e d 
the p o t e n t i a l 
a s s i g n e e and never p r e s e n t e d the 
l a n d l o r d w i t h a p r o p o s a l f o r the assignment. 
The t e n a n t sued 
the l a n d l o r d , a l l e g i n g t h a t i t 
had b r e a c h e d the l e a s e c o n t r a c t 
by u n r e a s o n a b l y w i t h h o l d i n g i t s consent t o t h e assignment of 
the 
l e a s e . 
The 
C o u r t o f 
C i v i l A p p e a l s c o n c l u d e d t h a t the 
l a n d l o r d ' s w i t h h o l d i n g of i t s 
consent was r e a s o n a b l e , s t a t i n g 
t h a t the t e n a n t " d i d not p r o v i d e the [ l a n d l o r d ] w i t h the name 
o f , o r any i n f o r m a t i o n about, a p r o p o s e d a s s i g n e e . " 
676 So. 
2d a t 320. 
The C o u r t of C i v i l A p p e a l s i n Rowley e x p l a i n e d : 
" [ B ] e c a u s e we b e l i e v e a l a n d l o r d cannot r e a s o n a b l y 
be e x p e c t e d t o consent t o an assignment o f a l e a s e 
w i t h o u t 
knowing 
the 
i d e n t i t y 
o f , 
and 
h a v i n g 
p e r t i n e n t i n f o r m a t i o n about, a p r o p o s e d a s s i g n e e , we 
t h i n k 
the 
b e t t e r 
r e a s o n e d 
d e c i s i o n s 
are 
t h o s e 
h o l d i n g 
t h a t 
a 
l a n d l o r d 
does 
not 
u n r e a s o n a b l y 
w i t h h o l d 
consent 
t o 
an 
assignment 
u n l e s s 
the 
l a n d l o r d 
i s p r e s e n t e d w i t h 
— 
and 
r e j e c t s 
— 
a 
p r o s p e c t i v e 
a s s i g n e e who 
i s ready 
t o assume 
the 
l e a s e 
and 
who 
meets 
c o m m e r c i a l l y 
r e a s o n a b l e 
s t a n d a r d s . 
"'[A] c o n d i t i o n p r e c e d e n t t o the 
l e s s o r ' s 
d u t y t o a c c e p t a s u b l e s s e e i s the t e n d e r t o 
him of a s u i t a b l e t e n a n t as a s u b l e s s e e . 
Thus, b e f o r e the 
[ l e s s o r s ] c o u l d p o s s i b l y 
be h e l d l i a b l e f o r f a i l u r e t o consent t o a 
t r a n s f e r of the l e a s e , the [ l e s s e e ] had the 
burden o f p r o v i n g t h a t i t had t e n d e r e d a 
p e r s o n who was "ready, w i l l i n g and a b l e " t o 
22 
1110759, 1110839 
t a k e over t h e l e a s e and who, a t t h e v e r y 
l e a s t , 
met 
r e a s o n a b l e 
c o m m e r c i a l 
s t a n d a r d s . ' 
"Jack F r o s t S a l e s , I n c . v. H a r r i s T r u s t & Sav. Bank, 
104 
I l l . App. 3d [933] a t 944, 60 
I l l . Dec. [703] a t 
711, 
433 N.E.2d [941] a t 949 
[(1982)] 
( c i t a t i o n s 
o m i t t e d ) . " 
676 So. 2d a t 319-20. 
T h i s 
case, 
however, i s f a c t u a l l y 
d i s t i n g u i s h a b l e from 
Rowley. 
In Rowley, t h e t e n a n t never p r o v i d e d the l a n d l o r d 
w i t h the i d e n t i t y o f , or any i n f o r m a t i o n about, t h e p r o p o s e d 
a s s i g n e e . 
Thus, t h e l a n d l o r d ' s w i t h h o l d i n g of i t s consent was 
r e a s o n a b l e 
i n t h a t case. 
C o n v e r s e l y , 
i n t h i s case, 
Herndon 
O i l s e n t a l e t t e r t o M u r e l i n d i c a t i n g i t s i n t e n t i o n t o a s s i g n 
the 
l e a s e 
t o The 
P a n t r y , 
d e s c r i b e d 
i n the 
l e t t e r as 
"a 
p u b l i c l y - t r a d e d 
company 
t h a t 
o p e r a t e s 
more 
than 
1,400 
c o n v e n i e n c e s t o r e s i n t h e s o u t h e a s t e r n U n i t e d S t a t e s under t h e 
t r a d e name 'Kangaroo E x p r e s s . ' " 
Thus, t h e r a t i o n a l e f o r t h e 
l a n d l o r d ' s w i t h h o l d i n g i t s consent i n Rowley i s 
not p r e s e n t i n 
t h i s 
case. 
We r e c o g n i z e t h a t Pat t e s t i f i e d t h a t consent was w i t h h e l d 
not o n l y because he wanted t o r e n e g o t i a t e t h e l e a s e agreement, 
but 
a l s o because he and M u r e l "wanted t o f i n d out who 
The 
P a n t r y was." 
Pat t e s t i f i e d t h a t he " d i d n ' t know who 
[The 
23 
1110759, 1110839 
P a n t r y was]," t h a t "we 
r e a l l y wanted t o know who t h e y were," 
and t h a t he "would a p p r e c i a t e someone coming t o our house and 
t a l k i n g t o us about them coming i n t h e r e so we would know t h a t 
we were g o i n g t o have good t e n a n t s . " 
Rowley s t a t e s t h a t a 
t e n a n t has the burden of p r o v i d i n g s u f f i c i e n t i n f o r m a t i o n t o 
the 
l a n d l o r d 
i n d i c a t i n g 
t h a t 
t h e 
t e n a n t 
"'had 
t e n d e r e d 
a 
p e r s o n who 
was 
"ready, 
w i l l i n g 
and 
a b l e " t o t a k e over 
the 
l e a s e and who, 
a t the v e r y l e a s t , met r e a s o n a b l e 
commercial 
s t a n d a r d s . ' " 
676 So. 2d a t 320 
( q u o t i n g Jack F r o s t 
S a l e s ,  
I n c . v. H a r r i s T r u s t & Sav. Bank, 104 
I l l . App. 3d 933, 
944, 
60 
I l l . Dec. 703, 711, 433 N.E.2d 941, 949 ( 1 9 8 2 ) ) . 
However, 
i n t h i s case, Herndon O i l more t h a n once a t t e m p t e d t o engage 
M u r e l and Pat r e g a r d i n g the p r o p o s e d assignment, 
but t o no 
a v a i l . 
F u r t h e r m o r e , 
even 
i f t h o s e 
a t t e m p t s 
had 
been 
s u c c e s s f u l , i n t h i s case any a d d i t i o n a l i n f o r m a t i o n p r o v i d e d 
t o M u r e l and Pat r e g a r d i n g the p r o p o s e d assignment would have 
made no d i f f e r e n c e . 
There i s no e v i d e n c e i n d i c a t i n g t h a t The 
P a n t r y was u n a b l e t o a c c e p t the assignment or t h a t i t d i d not 
meet r e a s o n a b l e commercial s t a n d a r d s . 
In f a c t , Pat 
t e s t i f i e d 
t h a t he had 
not h e a r d a n y t h i n g about 
The 
P a n t r y b e i n g 
an 
u n d e s i r a b l e t e n a n t , t h a t he "would be happy t o t a l k t o 
The 
24 
1110759, 1110839 
P a n t r y 
t o r e n e g o t i a t e 
the l e a s e , " and 
t h a t 
" [ i ] t ' s 
not 
[ t h a t he] t h i n k s The P a n t r y are bad p e o p l e . " 
Had Herndon O i l 
p r o v i d e d M u r e l and Pat a d d i t i o n a l i n f o r m a t i o n about The 
P a n t r y 
b e f o r e 
the 
assignment, 
t h a t 
i n f o r m a t i o n 
would 
not 
have 
a l l e v i a t e d M u r e l ' s and P a t ' s o v e r r i d i n g c o n c e r n t h a t the l e a s e 
agreement was 
u n f a i r 
and 
s h o u l d 
be 
r e n e g o t i a t e d . 
As 
Pat 
conceded a t 
t r i a l , 
t h a t c o n c e r n i s what t h i s "whole c a s e " i s 
about. 
However, 
as 
we 
have 
c o n c l u d e d , 
the 
d e s i r e 
t o 
r e n e g o t i a t e the l e a s e agreement was not a r e a s o n a b l e ground on 
w h i c h t o w i t h h o l d consent t o the assignment of the 
l e a s e . 
We 
c o n c l u d e t h a t M u r e l u n r e a s o n a b l y w i t h h e l d consent t o 
the assignment of the l e a s e from Herndon O i l t o The 
P a n t r y . 
Thus, Herndon O i l had the r i g h t under the l e a s e agreement t o 
a s s i g n 
the 
l e a s e 
t o The 
P a n t r y 
d e s p i t e M u r e l ' s 
f a i l u r e 
t o 
c o n s e n t . 
T h e r e f o r e , 
Herndon O i l d i d not b r e a c h the 
l e a s e 
agreement, and we r e v e r s e the judgment e n t e r e d a g a i n s t Herndon 
O i l on the b r e a c h - o f - c o n t r a c t 
c l a i m . 
Herndon O i l and 
The 
P a n t r y 
a l s o argue t h a t t h e y were 
e n t i t l e d 
t o a JML 
on 
the 
c o n v e r s i o n 
c l a i m b r o u g h t 
a g a i n s t 
them. 
We agree. 
We note i n i t i a l l y t h a t "Alabama law 
d e f i n e s 
c o n v e r s i o n 
as 
the 
e x e r c i s e 
of 
dominion 
of 
a n o t h e r 
over 
25 
1110759, 1110839 
p e r s o n a l p r o p e r t y t o the e x c l u s i o n of or i n d e f i a n c e of the 
owner's r i g h t . " 
D a v i s v. H u n t s v i l l e Prod. C r e d i t A s s ' n , 
481 
So. 2d 1103, 
1107 
( A l a . 1985) 
(emphasis added). 
See a l s o 1 
M i c h a e l L. R o b e r t s 
and Gregory S. Cusimano, Alabama T o r t 
Law 
§ 29.01 
(5th ed. 2010) 
( s t a t i n g t h a t c o n v e r s i o n " i s a w r o n g f u l 
t a k i n g 
or 
w r o n g f u l 
d e t e n t i o n 
or 
i n t e r f e r e n c e , 
i l l e g a l 
assumption of ownership or i l l e g a l use or misuse of 
a n o t h e r ' s 
p e r s o n a l p r o p e r t y " ) . 
"An a c t i o n f o r c o n v e r s i o n 
w i l l not l i e 
f o r 
the t a k i n g of r e a l p r o p e r t y 
... nor 
w i l l i t l i e f o r the 
t a k i n g of p e r s o n a l p r o p e r t y t h a t has been i n c o r p o r a t e d 
i n t o 
r e a l p r o p e r t y . " 
B a x t e r v. S o u t h T r u s t Bank of Dothan, 584 
So. 
2d 801, 
805 
( A l a . 1991). 
The c o n v e r s i o n c l a i m appears t o be 
based s o l e l y on the a l l e g a t i o n t h a t Herndon O i l and The 
P a n t r y 
" c o n v e r t e d " 
the 
l e a s e d p r e m i s e s 
i n 
t h i s 
case 
t h r o u g h 
the 
a l l e g e d w r o n g f u l 
assignment of Herndon O i l ' s 
l e a s e t o 
The 
P a n t r y ; t h e r e i s no e v i d e n c e i n d i c a t i n g t h a t p e r s o n a l p r o p e r t y 
u n i n c o r p o r a t e d 
i n t o the 
r e a l p r o p e r t y was 
c o n v e r t e d .
4 
Even 
assuming, w i t h o u t d e c i d i n g , t h a t an assignment c o u l d g i v e r i s e 
to 
a " c o n v e r s i o n " 
i n t h i s way, 
the c o n v e r s i o n 
c l a i m 
f a i l s ; 
4 T h i s i s r e f l e c t e d by the 
t r i a l c o u r t ' s i n s t r u c t i n g 
the 
j u r y 
t h a t 
" i f you 
f i n d 
t h a t 
t h e r e 
was 
no 
b r e a c h 
of 
the 
c o n t r a c t by Herndon O i l ... , then the P l a i n t i f f [ s ] ha[ve] 
no 
r i g h t t o r e c o v e r under the c l a i m of c o n v e r s i o n . " 
26 
1110759, 1110839 
because Herndon O i l 
had 
t h e 
r i g h t under t h e 
l e a s e agreement t o 
a s s i g n t h e l e a s e t o The P a n t r y and The P a n t r y thus had 
t h e 
r i g h t t o occupy and 
use 
t h e 
p r e m i s e s , n e i t h e r Herndon O i l nor 
The P a n t r y c o u l d be l i a b l e f o r 
c o n v e r s i o n . 
A c c o r d i n g l y , we 
a l s o r e v e r s e t h e 
judgment e n t e r e d a g a i n s t Herndon O i l 
and 
The 
P a n t r y on t h e c o n v e r s i o n c l a i m . 
Based on t h e f o r e g o i n g , we r e v e r s e t h e judgment e n t e r e d 
a g a i n s t Herndon O i l 
and 
The P a n t r y , and 
we remand t h e 
case 
f o r 
p r o c e e d i n g s 
c o n s i s t e n t w i t h 
t h i s 
o p i n i o n . 
Because we a r e 
r e v e r s i n g 
t h e 
t r i a l 
c o u r t ' s 
judgment, 
we 
p r e t e r m i t 
c o n s i d e r a t i o n o f 
t h e 
o t h e r arguments r a i s e d by Herndon O i l and 
The P a n t r y . 
1110759 — REVERSED AND REMANDED. 
Moore, C.J., 
and S t u a r t , B o l i n , 
P a r k e r , Murdock, Shaw, 
Main, and Wise, J J . , 
concur. 
1110839 — REVERSED AND REMANDED. 
S t u a r t , B o l i n , P a r k e r , Murdock, Shaw, Main, and 
Wise, J J . , 
concur. 
Moore, C.J., 
d i s s e n t s . 
27