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C and K Market, Inc. v. Roccasalva

Summarized by: 

Date Filed: 10-26-2011
Case #: A145200
Armstrong, J. for the Court; Haselton, P.J; & Duncan, J.
Full Text Opinion: http://www.publications.ojd.state.or.us/A145200.pdf

Property Law: If a landlord accepts payment on a lease, despite prior default on payment, the lease is not terminated for default, as the acceptance of payment stands opposed to the landlord's intention to terminate the lease.

Roccasalva leased space to operate a liquor store within C and K Market (C and K) in 2006. He paid a base rent for the building, and a additional rent for equipment. The lease stated that if Roccasalva did not remedy default within 10 days of notice, C and K could terminate the lease. In October 2007, C and K realized that Roccasalva had paid only the base rent, and not rent for equipment. C and K notified and invoiced Roccaslava for the past-due rent. Roccaslava did not pay. In November 2009, C and K declared to Roccaslava in a letter that it would terminate the lease on December 1, if payment was not received. Roccaslava continued to not pay the equipment rental, but paid the base rent for December and January, to which C and K accepted payment. Roccaslava argued that C and K's acceptance of rent money resulted in a waiver of C and K's right to evict, as they attempted in January. The Court of Appeals agreed, stating that the landlord could not accept Roccaslava's partial rent if it wished to terminate the lease. H and K's acceptance of payment was incompatible with the termination of the lease. Therefore, H and K continued the lease when it accepted Roccaslava's payments for December and January. Affirmed.