Myers v. Newell

By Judge William H. Ledbetter, Jr.

The only issue in this declaratory judgment suit is whether a lease renewal clause that provides for “rent to be negotiated [at the time of renewal] but. .. not to exceed a 20% increase” is enforceable.

Facts

The plaintiffs (Myers and Reynolds) leased store space in Mechanics-ville from the defendant (Newell) for a five-year term beginning May 1, 1989, and ending April 30, 1994. The rent was $150,000.00 payable in monthly installments of $2,500.00. Paragraph (8) of the lease provides:

Lessor agrees to give Lessee an option to renew this lease for an additional 5…