Court Opinion

ID: 9626789
Source: CourtListenerOpinion
Date Created: 2023-08-22 08:24:07.16832+00
Date Added: 2024-06-11T18:06:33.562246
License: Public Domain

TURSI, Judge
concurring in part and dissenting in part.
Although I concur with the majority in Part I of the opinion, holding that the trial court did not abuse its discretion in its sanction imposed pursuant to C.R.C.P. 35(d)(1), I do agree with the defendant that the trial court’s interpretation of the renewal provision rendered it illusory and, therefore, is in error.
*769The interpretation adopted by the trial court, as quoted by the majority, specifies that any renewal of the option
“is contingent upon the Tenants and the Landlord each acting in their complete discretion, reaching complete agreement prior to the end of the original Lease term ...” (emphasis supplied)
In my view, according the parties total discretion in this manner negates the validity of this interpretation.
For purposes of this dissent, I accept the majority’s conclusion that the original provision as set out in full in its opinion is ambiguous. Nevertheless, it is the duty of the trial court in interpreting the document to apply accepted rules of contract construction. In interpreting the contract provision, the trial court ignored its duty to interpret the provision if at all possible in a manner to make the provision operative, effective, and reasonable. See 4 S. Williston, Contracts § 620 (W. Jaeger 8d ed. 1961). Further, the trial court ignored the duty of the parties to act in good faith. Therefore, rather than vest the parties with complete unbridled discretion concerning negotiations on the renewal option, the court should have construed the contract to require the parties to act in good faith and with fair dealing. See Restatement (Second) of Contracts § 205 (1979).
Accordingly, I would reverse the finding of the trial court in its interpretation of the provision because that interpretation fails to make the provision operative. I would remand the matter to the trial court with directions to reeonstrue the provision requiring good faith negotiation and fair dealing in negotiating any renewal of the lease.