Fiore v Paradise International Corporation Ltd et Al

• Jurisdiction: Belize
• Judge: Shanks, J.
• Judgment Date: 03 February 2000
• Court: High Court (Belize)
• Docket Number: 518 of 2000
• Date: 03 February 2000

High Court

Shanks, J.

518 of 2000

Fiore

and

Paradise International Corp. Ltd. et al.

Appearances:

Ms. S. Musa for the plaintiff.

Mr. Zuniga for the defendant.

Landlord and Tenant - Lease agreement for the operation of a deli/bar — Breach — Lease contained option clause for the renewal of the agreement — Respondent purported to terminate the agreement on the grounds of an alleged breach by plaintiff — Whether the defendant was entitled to cancel or refuse to renew the lease agreement — Whether the plaintiff was entitled to renew the lease under the option clause — Finding that the defendants were not entitled to terminate the agreement since they had failed to comply with the termination provisions in the agreement and furthermore had not shown any admissible evidence of a breach of the contract by the plaintiff — Finding that the defendants were in breach of the contract by failing to allow a renewal of the lease pursuant to the option which had been properly exercised by the plaintiff — Damages of $35,000.00 awarded to represent plaintiff's loss of eleven month's business.

Shanks, J.

1 This is a claim for damages by Paola Fiore against Paradise International Corporation Ltd. for breach of a Lease Agreement dated the 3rd December, 1997. The Lease is for a deli/bar at the Paradise Resort Hotel in San Pedro. I was referred to the relevant Clauses of the Lease as follows:

2 “Mrs. Paola Fiore will:

• “(5) be responsible for a good reputation as this reflects on Resort Hotel;

• (6) abide with all rules and regulations set by law with respect to Food Handling Certificates for all staff and maintain a high standard of conduct and service;

• (11) pay Paradise Resort Hotel 10% of any food and bar tabs charged by the guests of the Paradise Resort Hotel for the months December 1997 to May 1998. With effect from June 1998, the lease holder will pay Paradise Resort Hotel 5% of any food and bar tabs.”

“In consideration of the above Ms Paola Fiore will be granted a one year lease with an option to renew for a further year and would pay Paradise Resort Hotel lease payment of two months in advance in the first instance and thereafter on the first day of each month in advance rental payment, BZ$1,500.00 per with a grace period of 15 days maximum.

At the end of each lease year, Paradise International Corporation will have the option to negotiate for the following year's rental for the buildings, which cannot be increased by more than 20% percent annually.

Failure to comply with any condition set in this Agreement will result in the issuing of a letter of warning and a grace period of one month in order to allow lease holder to rectify any discrepancies. If following the grace period conditions are still not complied with, it may lead to the cancellation of this contract.”

3 Ms. Fiore took up occupation of the deli/bar and started business there and the business as far as she was concerned was progressing well until the 12th of May, 1998 when Mr. Zuniga acting for the defendant wrote a letter which recited those conditions (5) and (6), which I have read out and then set out six, “negative comments” which had apparently been received from clients from the hotel about Ms. Fiore. The letter ended as follows: “I have been instructed to write you and demand that you rectify these breaches during the next month failing which the Lease Agreement may be cancelled.”

4 That clearly was in reliance on the provision for termination which I have just read. In reaction to that, Ms. Fiore went and had a look at a book which is maintained in the hotel where visitors write their comments along the lines set out in Mr. Zuniga's letter but she told me that they were all from one particular group of people who had complained, quite unjustifiably, about something that arose which I need not go into. Mr. Zuniga has also produced to the court three letters apparently from clients of the hotel which set out other which may have formed the subject matter of his letter of the 12th of May, 1998.

5 Although the letter said that there may be a cancellation after a month in fact nothing happened at all and business continued well and Ms. Fiore told me that guests were happy and enjoyed the bar and the facilities she offered. Then came Hurricane Mitch on, I think, the 25th of October, 1998. In the Hurricane, the bar premises were badly damaged and became unusable after that and Ms. Fiore told me that she made contact with the owners of the hotel (in particular a Japanese gentleman called Mr. Nakogawa) who she contacted through his agent, Mr. Shabano. Those two gentlemen came to the island to San Pedro on or around the 7th or 8th of November, 1998. They met Ms. Fiore, they shook her by the hand, thanked her and said that there would be a meeting the next day....