1 ... See Te x. R. App . P. 47. 4. 

## COURT OFAPPEALS SECOND DISTRICTOF TEXAS FORT WORTH
NO. 0 2 - 0 7 - 3 0 1 - CV
R OB E R TS T ANT ON , AS AP P E L L ANT SUC CESSOR I N I NTERE ST TO HOSP I TAL I TYI NNOVA TOR S, I NC. V . FO RU M A RLI N G TO N A PPELL EE P R O P E R T IE S , L T D .

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FR O M THE 17TH DI STRI CT CO URT O F TARRA NTCO UN TY

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### MEMORANDU M OPI NI ON 1

----- ----- -- The t r i alco urt gr ant ed su m m ary j udgm entf orA ppe l l eeFor um A r l i ngt on Pr opert i es, Lt d. ( “For um A r l i ngton”) an d f oun d t hatFor um A r l i ngton had pr ope r l y t er m i nat ed a l ea se bet w ee n i tan d Appel l antRobertSt ant on. St ant on
n o w a p p e a l s , a rg u i n g in o n e is s u et h a t th et ri a l c o u rt e rre d b yg ra n ti n g s u m m a ry2

j udgm entbe ca us e a ge nui ne i ss ue ofm at er i alf ac te xi sts a s t o w het hert he le a s e w a sp r o p e r lyt e r m in a t e d . B e c a u s ew eh o ld t h a tt h ele a s ew a sp r o p e r ly t e r mi n a t e d , wea f f i r m. I n Ju l y 1993, H os pi t al i t y I nnov at or s, I nc. ( "Hospi t al i t y" ) en t er ed i nt o a te n -y e a r c o m m e rc i a l l e a s e w i th F o ru m , Ltd ., F o ru m A rl i n g to n ’s p r e d e c e s s o r. Th e l ease pr ovi ded t hat H ospi t al i t y w oul d use t he pr em i ses t o oper at e a dance
c l u b . A n am e n d m e n t t o the l e a se all o w e d H o sp i tal i ty to ren e w for tw o successi ve f i ve- yeart er m s. Sect i on f ourt ee n of t he l ea se r equ i r ed H os pi t al i t y t o m ai nt ai n t hr ougho ut t he l ease t er m an occur r ence- based com p reh ensi ve gener al l i abi l i t y ( “C G L”) i ns ur anc e p ol i cy and t o na m e l an dl ord F or um , Lt d. asan ad di t i ona l i ns ur ed. A ft ert he l ea sew asex ec ut ed, For um A r l i ngt on a cqu i r ed t he pr ope rt y a nd becam e t he successorl andl or d und ert he l ease. T h e T e x a sS e c re ta ryo f S t a t ere v o k e d H o s p i ta l i ty ’sc h a rte r i n F e b ru a ry 199 8, an d a cc or di ng to S t ant on, hebe ca m e t he su cc es so ri n i nt er es tt o t he l ease as H ospi t al i t y’ s sol e st ockho l der . I n 20 03 , how ever , att or ney M i c hael H assett( t he at t or ney w ho r epr esent ed S tan to n i n t he t r i al courti n t hi s case) not i f i ed For um A r l i ngt on i n w r i t i ng t hather epr es ent ed M i dni ghtCount ry Cl ub, I n c . (“M C C ”), d /b/a D e sp e rad o ’s, th e su c c e ss o r to H o sp i tal i ty w i th res p e c t t o t he l ea se , an d t hathi s cl i entw asr ene w i ng t he l ea se . St ant on cont end ed i n t he3

tr i a l co u rttha t M C C w a s a c o rpo rati o n h ec rea ted to s u b l e a se fr o m H o sp i tal i ty and t o oper at e D esper ado’ s. I n 2005, A nge l i nai se l a Ar and a f i l ed a l aw su i tag ai ns tD es per ado ’ s and For um A r l i ngt on, al l egi ng t hatw hi l e shew asatt he cl ub, s he w asi nj ur ed by a
s e c u ri tyg u a rd w o rk i n g th e re . A fte r th el a w s u itw a sfi l e d , F o ru m A rl i n g to n ’s i nsur ance car r i ersenta l ett ert o H ospi t al i t y, not i ng t hatt he l ease r equi r ed H ospi t al i t y t o car ry i nsur ance nam i ng Fo r um A r l i ngton as an addi t i onal i nsur ed
a n d to i n d e m n i fy Fo rum A rl i n g to n . T h e i n su ran c e c a rr i e r r e q u e ste d H o sp i tal i ty to d e fen d a n d i n d e m n i fy F o rum A rl i n g to n w i th res p e c t t o the A ran d a l a w su i t. S ever al m onths l at er , an att or ney f orFor um A r l i ngton senta l ett ert o an att or neyr epr es ent i ng Desp er ado ’ s, not i ng t hathehad pr evi ous l y r equ es t ed a cop y ofan y i ns ur anc e p ol i cy cov er i ng Desp er ado ’ s, t hatt he doc um ent s had not bee n pr ovi ded , an d t hatheunde r st oo d t hatD es per ado ’ s ei t herha d not
m ai nt ai ned an i nsur ance pol i cy orhad f ai l ed t o l i st F o rum A r l i ngton as an add i t i ona l i ns ur ed. Conse que nt l y, For um A r l i ngt on ha d f i l ed a c r os s- ac t i on aga i ns tM C C d/ b/ a Des per ado ’ s f orbr ea ch ofco nt r ac t , cont r i but i on, an d i n d e m n i ty . S u b s e q u e n tl y , M C C fi l e d f o r b a n k ru p tc yp ro te c ti o n , a n d o n F e b ru a ry 8 , 2 0 0 6 , th e l a w su i t w a s re m o v e d fr o m the tr i a l co u rt ’s ac ti v ed o c k e t. O n Fe br uary 27, 2 0 0 6 , S t ant on f i l ed an or i gi nals ui tag ai ns tFor um A r l i ngt on; For um , Lt d.; a nd H enry Rea l Es t at e Servi ce s, L. L. C . s ee ki ng a4

dec l ar at ory j udgm entand t o i nt er pl ea d f unds . H e al l ege d t hatFor um A r l i ngt on had f ai l ed and r ef us ed t o c om pl y w i t h t he l ea se t er m s i n t hat i tf ai l ed t o pr ovi de g a s s e rv i c e , t o l i g h t o r s t r i p e t h e p a r k i n g a r e a s , t o p r o v i d e e l e c t r i c i t y t o t he pr opert y, and t o m ai nt ai n com m on a reasi n t he shopp i ng center . H e al so a l l e g e d tha t h e d i d n o t kn o w w h o h a d the ri g h t t o rec e i v eren t pa y m e n ts bec aus e F or um , Lt d. w ast he or i gi nall and l or d, buthebe l i eve d t hatFor um A rl i n g to n m a yh a v e p u rch a se d th ep rop e rt y , a n d H e n ry h a d d i rec ted S tan to n to
m ak e r entpa ym ent s di r ec t l y t o Henry. St ant on as ke d t he cou rtt o de t er m i ne t he t r ue l and l or d undert he l ea seand t o decl ar e t hatt he l ea sew ass t i l l va l i d a nd i n fullforc e an d effe c t. For um A rl i ngton f i l ed an answ erand coun t er cl ai m assert i ng t hati tw as t he l andl or d und erthe l ease and seeki ng am ong ot herr el i efa decl ar at i on t hat t he l ea seha d t er m i nat ed. Fo r um A r l i ngt on s ubs equ ent l y f i l ed a m ot i on f or part i al sum m ary j udg m ent , seeki ng a decl ar at i on t hat t he l ease had t er m i nat ed by r ea so n ofde f aul tbe ca us e St ant on ha d f ai l ed t o i nde m ni f y Fo r um A r l i ngt on i n the A ran d a l a w su i t a n d b e c a u se h e h a d fai l e d to m a i n tai n a g e n e ral l i a b i l i ty in s u r a n c e p o lic ya n d n a m e F o r u m A r lin g t o n a sa n a d d it io n a l in s u r e d . In h is
r es pons e, St ant on a l l ege d t hatheh ad p r ovi ded For um A r l i ngt on w i t h a
ce rt i f i ca t e o fi ns ur anc e n am i ng F or um A r l i ngt on a s an add i t i ona l i ns ur ed. St ant on a tt ac hed t o hi s r es pons e a ce rt i f i ca t e ofi ns ur anc e s how i ng a n e f f ec t i ve2 ... T e x . C i v . P ra c . &R e m . C o d eA n n . § 3 7 .0 1 0 ( V e rn o n 2 0 0 8 ); Truck

I ns. Exch. v. Musi

ck , 9 0 2 S .W .2 d 6 8 , 6 9 ( T e x . A p p .— F o rtW o rt h 1 9 9 5 , w r it d e n i e d ).

3 ... T e x . C i v . P ra c . & R e m . C o d eA n n . § 3 7 .0 1 0 ; Bower s v. Tayl

or, 263 S .W .3 d 2 6 0 , 2 6 4(T e x . A p p .— H o u s to n [1 s t D i s t.] 2 0 0 7 , n o p e t.).

4 ... See T e x . R . C i v . P . 1 6 6 a (a ), (c); MMP, Ltd. v. Jones , 710 S. W . 2d 59, 6 0 (T e x . 1 9 8 6 ). 5 dat e ofA pr i l 11 , 20 06 . For um A r l i ngton obj ect ed t o t hi s evi dence on r el evancy gr oun ds, ar gui ng t hatt he cert i f i cat e w as notr el evantt o t he i ssue ofw het her S tan to n h a d m a i n tai n e d the req u i red i n su ran c ep o l i c yat th eti m eo f t h eev e n ts gi vi ng r i set o t he 200 5 A r and a l aw su i t . The t r i alcourtsus t ai ned t he obj ec t i on, s tri k i n g th e e v i d e n c e . A fte r a h e a ri n g , th e tri a l c o u rt g ra n te d F o ru m A rl i n g to n ’s
m ot i on, and S t ant on no w appeal s. W e r evi ew decl ar at o ry j u dgm ent s undert he sam e st andar ds as ot her j udg m ent s and decr ees. 2 Thus , w e r evi ew a dec l ar at ory j udgm entde ci ded by
sum m ary j udg m entunder th e sam e st andar d ofr evi ew by w hi ch w e r evi ew su m m ary j udgm ent s gen er al l y. 3A pl ai nt i f fi s ent i t l ed t o s um m ary j udgm enton a c a u s e o fa c t io n ifitc o n c lu s iv e lyp r o v e sa ll e s s e n t ia l e le m e n t so ft h ec la im . 4 W h e n re v ie w in g a s u m m a ryju d g m e n t , w et a k ea st r u ea ll e v id e n c ef a v o r a b le5 ... IHS Cedar s Trea tm en tC tr. of D eSoto, Tex. , I

nc. v. Mas on , 143 S .W .3 d 7 9 4 , 7 9 8 (T e x . 2 0 0 4 ).

6 ... A nadar

ko Petroleum Cor

p. v. Thomps on , 94 S. W . 3d 550, 554 ( Tex. 2 0 0 2 ).

7 ... Id.
8 ... Wend

l andt v. Som m er

s D rug StoresCo. , 5 51 S. W . 2d 488 , 490 ( Tex. C i v . A p p .— A u s ti n 1 9 7 7 , n o w ri t). 6 t o t he nonm ova nt , and w e i ndul ge eve ry r ea so nab l e i nf er enc e a nd r es ol ve any d o u b tsi n th e n o n m o v a n t’sfa v o r. 5 O n a p p e a l , S ta n to n a rg u e sth a t th e tri a l c o u rt e rre d b yg ra n ti n g s u m m a ry j udg m enton For um A r l i ngton’ s decl ar at or y j udg m ent act i on becau se a m at er i al f acti ssue e xi s t sa st o w he t he rt hel e a s ew a sp r op e r l y t e r m i na t e d. W ef i r st
e x a m in e t h e le a s e t o d e t e r m in eo n w h a tg r o u n d sF o r u m A r lin g t o n c o u ld t er m i nat e t he l ea se . The con st r uct i on of an una m bi guous l ea se i s a ques t i on o fl a w. 6 N ei t herpart y c ont end s t hatt he l ea sei s am bi guous . W e t her ef or e l ook att he l ea se ’ s t er m s ast o t er m i nat i on, gi vi ng t ho se t er m s t hei rpl ai n m ea ni ng unl ess doi ng so w oul d cl ear l y def eatthe part i es’ i nt ent i ons. 7 I n d o i n g s o , we a r e m in d fu l o f T e x a sl a w h o l d i n g th a t a l a n d l o rd c a n n o t fo rfe i t a l e a s efo r a t ena nt ’ s f ai l ur e t o c om pl y w i t h l ea sepr ovi si onsw i t houtf i r stm ak i ng de m and f or perf or m anc e u nl es s t he l ea seco nt r ac tco nt ai nsa w ai verofs uch de m and . 87

S ect i on f ourt een oft he l ease r equi r es H ospi t al i t y t o m ai nt ai n an occur r ence- based C G L i nsur ance pol i cy, nam i ng t he l andl or d as an addi ti onal i ns ur ed. The se ct i on a l so r equ i r esH os pi t al i t y t o pr ovi de t o t he l and l or d t he
or i gi nal s oft he pol i cy ordupl i ca t esoft he or i gi nal s. Sect i on se ven t ee n oft he l e a se p ro v id e s t h a t i t i s a n ev e n t of d e fau l t i f H o sp i tal i ty fa i l s to co m p l yw i th
a n yp ro v i s i o n o f th e l e a s e a n d , a fte r n o ti c e , f a ils t o c u reo r a tte m p t to c u re
w i t hi n f i ft ee n day s. N o part i cul ar f or m of not i ce i s r equ i r ed, al t hough s ec t i on t w ent y- seven r equi r es any not i ce gi ven un dert he l ease t o be i n w r i t i ng. A l so unde rsec t i on se ven t ee n, upon an eve ntofde f aul t , t he l and l or d ha s t he opt i on t o t er m i nat e t he l ea seby gi vi ng Hospi t al i t y t w ent y da ys ’ not i ce . Sec t i on se ven t ee n al so pr ovi dest hatt he l and l or d m ay t ak e s uch ac t i on up on a n e ven t ofde f aul tw i t houtf i r stpr ovi di ng a ny d em and w hat so eve r . Thus , unde rt he t er m s of t he l ease, i tw as an evento fd ef aul ti fH ospi t al i t y f ai l ed t o m ai nt ai n an a p p rop ri at e i nsur ance pol i cy nam i ng Fo r um A r l i ngton as an addi t i onal i nsur ed and pr ovi de or i gi nal s ordupl i cat es oft hose pol i ci es t o For um A r l i ngton and al so fai l e d to c u re o r be g i n to c u re i ts fa il u re w i th i n fi ftee n d a y s o f no ti c eo f i ts
nonc om pl i anc e w i t h t he l ea se. I n t he eve ntofs uch de f aul t , For um A r l i ngt on cou l d t er m i nat e t he l ea seupon t w ent y da ys ’ not i cew i t houtf i r stm ak i ng a ny fu rt h e r de m a n d to H o sp i tal i ty th a t i t co m ei n to co m p l i a n c eo r gi v i n g H o sp i tal i ty f urt heroppo rt uni t y t o cur e.8

W e n extde t er m i ne w het herFor um A r l i ngt on e st abl i sh ed asa m att erof l aw t hati tpr ope r l y t er m i nat ed t he l ea sei n a cc orda nce w i t h i t s t er m s. The
sum m ary j udg m entevi de n c e s h o w s t haton M ay 20 , 20 05 , t he i nsur ance ca r r i erf orFor um A r l i ngt on s enta l ett ert o H os pi t al i t y not i f yi ng i tt hatundert he l ease, H ospi t al i t y w as r equi r ed t o i ndem ni f y For um A r l i ngton and t o have nam ed For um A r l i ngt on a s an add i t i ona l i ns ured on a n i ns ur anc e p ol i cy cov er i ng t he pr em i se s. The l ett err equ es t ed tha tH os pi t al i t y de f end an d i nde m ni f y Fo r um A r l i ngton i n t he A r anda l aw sui t , an d i trequest ed a r esponse w i t hi n t w o w eeks. Th en on A ugu st8, 20 05 , an a tt or ney f orFor um A r l i ngton senta l ett ert o an att or ney r epr esent i ng D esper ado’ s. The l ett erst at ed t hat“[ a] s you ar e aw ar e,
w e have pr evi ousl y r equest e d a copy of any and al l i nsur ance pol i ci es w hi ch
coveryourcl i ent , D esper ado’ s. A s of t hi s dat e, w e [ have] notbeen pr ovi ded
w i t h any of t hose docu m ent s. ” The l ett ernot es t h a t t he l ease r equi r ed D es per ado ’ s t o m ai nt ai n a pol i cy ofl i abi l i t y i ns ur anc e and t o ha ve l i st ed For um A rl i n gt on as an addi t i onal i nsur ed. Th e l ett er goes on t o say t hat “[ i ] t i s m y und er st andi ng t haty ourcl i enth as ei t hern otm ai nt ai ned a pol i cy ofi nsur ance orha s f ai l ed t o l i stm y c l i entasan addi t i ona l i ns ur ed on s uch pol i cy. ” The l ett er not es t hat bec aus e of t hi s f ai l ur e, For um A r l i ngt on ha d f i l ed a c r os s- ac t i on a g a i n s t D e s p e ra d o ’si n th e A ra n d a s u i t. T h i sl e tte r c l e a rl yn o ti fi e d D e s p e ra d o ’s9 ... A m . Fl ood Research, I

nc. v. Jones , 192 S . W . 3 d 5 8 1 , 584 ( Tex. 2 0 0 6 ). 9 a ttorn e yo f Fo rum A rl i n g to n ’s b e l i e f th a t h i s c l i e n t w a s n o t i n co m p l i a n c ew i th th e l e a se ag ree m e n t. F u rth e rm o re , i n a n a ffid a v i t fi l e d w i th S ta n to n ’sre s p o n s eto th es u m m a ry j udgm entm ot i on, hes t at ed t hatM C C w asa cor por at i on heha d f or m ed t o r un t w o adj acentni ghtcl ubs on t he l eased pr em i ses. O t herevi dence show s t hat
one of t hos e cl ubs w asD es per ado ’ s. Dur i ng t he exi st enc e o fan att or ney - cl i ent
re l a ti o n sh i p , k n o w l e d g e ac q u i red b ythe atto rne yi s i m p u ted to th ecli e n t. 9 Furt her m or e, i n t he cr os s- ac t i on f i l ed aga i ns tM C C i n t he A r and a l aw su i t , For um A rl i n g to n all e g e d tha t M C C “w a s re q u i red to m a i n tai n a p o l i c y o f ge n e ral l i a b i l i ty i nsur ance” and t hat M C C “br eached t hi s cont r act . ” Thus, by atl eastA ugu st 2 0 0 5 , S tan to n h a d rec e i v e d w ri tten n o ti c etha t he w a s n o t i n co m p l i a n c ew i th th e l e a se term s an d a l so th a t F o rum A rl i n g to n w a s pu rsu i n g ste p s t o as se rti ts l egal r i ghts r esul t i ng f r om t he non com pl i ance. I ft hi s noncom pl i ance conti nued f orf i ft een days w i t hou tStant on cur i ng oratt em pt i ng t o cur e, t hen such
nonc om pl i anc e w oul d cons t i t ut e a n e ven tofde f aul tunde rt he l ea se , an d Fo r um A r l i ngt on c oul d t er m i nat e t he l ea seby gi vi ng t w ent y day s’ not i ce . The evi den ceSt ant on f i l ed w i t h hi s r esp onse t o t he su m m ary j udgm entm ot i on s h o w st h a th e d id n o to b t a in in s u r a n c eu n t il a tle a s tA p r il 2 0 0 6 . T h u s , h e d id10

not cur e hi s noncom pl i ance w i t hi n fi ft een days ofr ecei vi ng no t i ce. A cc or di ngl y, For um A r l i ngt on cou l d t her ea ft er t er m i nat e t he l ea seby pr ovi di ng t w ent y da ys ’ not i cet hati tw asdoi ng s o. O n August31, 2006 , an att or neyf orFor um A r l i ng t on s entSt ant on a l ett eri nf or m i ng hi m t hathe w as st i l l i n defa u l t a n d gi vi ng hi m t w ent y days’ not i cet o c ur e a ny def aul t . The l ett ers t at est hatSt ant on a nd F or um A r l i ngt on had pr evi ous l y e nt er ed i nt o a M ay 25, 2 006 l ett eragr ee m enti n w hi ch St ant on ha d a g ree d to pr ovi de pr oof t hathe had i nsur ance cover age f ort he l eased pr em i se s. The l ett ert hen st at ed t hatS t ant on had f ai l ed t o do so . Al t hough t he l ett ercoul d havebeen m or e c l ea r , i tdi d not i f y St ant on’ s att or neyt hatSt ant on
w as i n vi ol at i on of t he l ease and speci f i cal l y noted th a t t he l ease r equi r ed H ospi t al i t y to m ai nt ai n l i abi l i t y i nsur ance nam i ng Fo r um A r l i ngton as an addi t i onal i nsur ed and t hatStant on had f ai l ed t o pr ovi de pr oof t hat he had such i ns ur anc e d es pi t e p r evi ousr equ es t s and a l ett eragr ee m enton t he su bj ec t . The l e tter did n o t, h o w e v e r, s tate tha t t h el e a se w o u l d b eterm i n a ted i n tw e n ty days. O n S e p tem b e r 2 1 , 2 0 0 6 , F o rum A rl i n g to n ’s atto rne yse n t a l e tter t o St a nt on s t a t i ng t ha tt hel e a s e h a d be e n t e r m i na t e d a so fSe pt e m be r19, 2006 due t o S t ant on’ s unr em edi ed d ef aul tundersect i on f ourt een. I ft he A ugu st 200 6 l ett erw asnots uf f i ci ent l y c l ea rt o c onsti t ute at er m i nat i on l ett er , t he11

S ept em berl ett erdi d cl ear l y gi ve S t ant on no t i ce t hatFor um A r l i ngton w as exer ci si ng i t s r i ght t o t er m i nat e t he l ease. Thu s, at t he l at est , t he l ease te rm i n a te d tw e n tyd a y sa fte r th eS e p te m b e r 2 1 , 2 0 0 6 l e tte r. Th e sum m ary j udg m entevi dence dem onst r at es t hatStant on w a sr e qui r ed t o m ai nt ai n i nsur ance on t he pr em i ses nam i ng Fo r um A r l i ngton as an addi t i onal i ns ur ed and t o pr ovi de t he or i gi nal s orco pi esofs uch pol i cy t o Fo r um A r l i ngt on; t hatas ear l y as 20 05 , For um A r l i ngton had r eason t o bel i eve t hatStant on w as noti n c om pl i anc e w i t h hi s l ea se ; t hati n 2 005 For um A r l i ngt on no t i f i ed St ant on ofi t sb e l i e ft hath e w a sn oti n c om pl i a nc ew i t h hi sl e a s e ; a nd t ha ti n 2006, For um A r l i ngton t er m i nat ed t he l ease f or t he non com pl i ance. The cert i f i cat es of i ns ur anc e t hatSt ant on f i l ed w i t h hi s r es pons e d i d notde m ons t r at e t hathe had cur ed or had beg un t o cur e hi s def aul t w i t hi n f i ft ee n day s of r ec ei vi ng no t i c e o fh i sn on c om pl i a nc e i n 2005. Furt her m or e, al t hou gh S t ant on ar gued t hatt he l ease coul d not have been t er m i nat ed f orf ai l ur e t o pr ovi de p roo f o f i nsur ance because he had pr ovi ded
su ch pr oof t o For um A r l i ngt on, t her e w as no com pet ent evi den cet hatSt ant on had ev erde m ons t r at ed t o For um A r l i ngt on t hathe had obt ai ned i ns ur anc e p r i or t o For um A r l i ngt on’ s exe r ci seofi t s opt i on t o t er m i nat e t he l ea se , de sp i t e F or um A r l i ngt on’ s st at em ent s t o hi m t hat he w as i n vi ol at i on of t he l ea sean d Fo r um A rl i n g to n ’s re p e a ted re q u e sts th a t h ep rov i d ep roo f o f i n su ran c e . A t t h el a tes t,10 ... See Ryl and Group, I

nc. v. Hood, 924 S. W . 2d 120, 122 ( Te x. 1996 ) (“ C o n c l u s o rya ffid a v i tsa ren o t e n o u g h to ra i s efa c t i s s u e s .” ); Resi denti al D ynam i cs, LLCv. Loveless , 1 8 6 S .W .3 d 1 9 2 , 1 9 8 ( T e x . A p p .— F o rtW o rt h 200 6, no p et . ) ( “A concl us or y s t at em enti s onet hatdoe s notpr ovi de t he u n d e rl y i n g fa c tsto s u p p o rt th e c o n c l u s i o n .” ). 12 For um A r l i ngt on no t i f i ed St ant on t hati tw ast er m i nat i ng t he l ea seon S e p te m b e r 2 1 , 2 0 0 6 , a n d S ta n to n d i d n o t fi l eh i sre s p o n s eto th es u m m a ry j ud gm e nt m ot i on w i t h t he c e rt i f i c a t e of i ns ur a nc e a tt a c he d un t i l Nov e m be r14, 2 0 0 6 , m o reth a n tw e n tyd a y s a fte r th ete rm i n a ti o n n o ti c e . T h eo n l ys u m m a ry j udgm entev i de ncet hatheha d e verpr evi ous l y de m ons t r at ed t o Fo r um A r lin g t o n t h a th e h a d in s u r a n c eo n t h ep r o p e rt yw a sa s t a t e m e n tin h isa f f id a v it t hatce rt i f i ca t esofl i abi l i t y i ns uran ce “ hav e b ee n pr ovi ded t o Fo r um A r l i ngt on on m or e t han oneoc ca si on. ” H e di d not st at e w hen he had pr ovi ded pr oofof i n s u ra n c e , a n d s p e c i fi c a l l y , h e d i d n o t a s s e rt th a t h eh a d p ro v i d e d p ro o f b e fo re F o r u m A r l i n g t o n n o t if ie d h im t h a tt h ele a s eh a d b e e n t e r m in a t e d . H is
con cl us ory s t at em enti s notco m pet entevi den cet hathe had pr ovi ded pr oofof in s u r a n c e t o F o r u m A r lin g t o n b e f o r e i tt e r m in a t e d t h ele a s eo rt h a th et im e ly
cur ed orbegan t o cur e hi s noncom pl i ance. 10 St ant on f urt herar gue s t hatt he r ea so n Fo r um A r l i ngt on ga ve hi m f or t er m i nat i ng t he l ea sean d t he gr ound as se rt ed by For um A r l i ngt on i n i t s m ot i on f orsum m ary j udg m entw er e t hathe had f ai l ed t o pr ovi de p roo f o f i n su r ance,13

but t hatFor um A r l i ngton’ s r epl y i n suppo rtoft he m ot i on assert ed f ort he f i r st t i m e t hatt he i ss ue w ashi s f ai l ur e t o m ain taini ns uran ce . Spec i f i ca l l y, he contend e d t hati n i t s r epl y, For um A r l i ngton changed the i ssue t o w het her Fo r um Ar l i ng t on c ou l d pr op e r l y t e r m i na t e t he l e a s e f orSt a nt on ’ sf a i l ur ei n 2006 t o pr ovi de pr oof t hat he had m ai nt ai ned i nsur ance i n 2 00 3. H e cont ends t hat by w ai t i ng un t i l 2006 t o pr ovi de not i ce of def aul t w i t h r es pec t t o 2003, For um A rl i n g to n m a d e i t i m p o s s i b l e fo r h i m to c u re th e d e fa u l t a n d th a t s u c h fa i l u re coul d not be t he basi s f ort er m i nat i on of t he l ease. For um A r l i ngt on’ s m ot i on a l l ege d t hatSt ant on ha d br ea che d t he l ea seby fai l i n g to m a i n tai n i n su ran c e . A n d w h e n F o rum A rl i n g to n req u e ste d H o sp i tal i ty and S t ant on t o pr ovi de pr oof ofi nsur ance, i tw as cont endi ng t hatStant on had f ai l ed t o m ai nt ai n i ns ur anc e a nd w asask i ng hi m t o de m ons t r at e, by pr ovi di ng p ro o f o f i n s u ra n c e , th a t h e w a s n o t i n d e fa u l t. F u rth e rm o re , e v e n i f w ew e re t o i nt er pr etFor um A r l i ngt on’ s su m m ary j udgm entm ot i on asas se rt i ng a s t he gr ound f orter m i nat i on m er el y t hatSt ant on ha d f ai l ed t o pr ovi de pr oofof i nsur ance r at hert han t hathe had f ai l ed t o m ai nt ai n i nsur ance, as s t at ed abov e, t her e w ass uf f i ci ent evi den ce t hat St ant on had f ai l ed t o pr ovi de su ch pr oofan d
n o c o m p e te n t e v i d e n c e th a t S ta n to n p ro v i d e d p ro o f to F o ru m A rl i n g to n b e fo re i tt er m i nat ed t he l ease.14

B e c a u s e S t a n t o n c a u s e d a n e v e n to fd e f a u ltb yf a ilin g t o m a in t a in i ns ur anc e a nd t o pr ovi de t he or i gi nal s orco pi esofan i ns ur anc e p ol i cy t o Fo r um A r l i ngt on a nd byf ai l i ng t o c ur e t hi s nonc om pl i anc e w i t hi n f i ft ee n da ysofbe i ng not i f i ed oft he m att er , and bec aus e For um A r l i ngt on com pl i ed w i t h i t s obl i gat i on
u n d e r th e l e a s e to p ro v i d e tw e n ty d a y s ’ n o ti c e b e fo rete rm i n a ti n g th el e a s e , w e hol d t hatt he t r i alco urtdi d noter rby con cl udi ng as a m att erofl aw t hatFor um A r lin g t o n h a d p r o p e r lyt e r m in a t e d t h ele a s e . A c c o r d in g ly , w eo v e r r u le S t ant on’ s i ssue. H avi ng ov er r ul ed S t ant on’ s sol e i ssue, w e af f i r m t he j udg m entoft he t r i al
c o u rt .

L E E AN N D AUP HI NOT J U S T I C E PA N EL: CA YC E, C. J. ; D A U PH I N O T and M C C O Y, JJ. DEL I VERE D: Apr i l 23, 2009