Indian Acres Club of Thornburg, Inc. v. Estate of Glover

37 Va. Cir. 478 (1996)

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Indian Acres Club of Thornburg, Inc. v. Estate of Glover

Virginia Circuit Court
37 Va. Cir. 478 (1996)

Facts

Indian Acres Club of Thornburg, Inc. (the club) (plaintiff) was a property owners’ association. In 1986, the club’s board of directors passed resolutions that prohibited the club’s corporate officers from binding the club to any contract concerning the lease or exclusive use of the club’s real estate without board approval, as well as any contract for a term exceeding one year. Glover was the lessee of a long-term lease (the Glover lease) of certain real estate owned by the club. The Glover lease contained a non-assignment clause. In 1988, the club’s president, Ritter, signed an addendum on the club’s behalf, without obtaining board approval, that purported to remove the non-assignment clause from the Glover lease. Glover then attempted to assign the lease to Crowe (defendant), who was a member of the club’s board when the board passed the resolutions, voted in favor of the resolutions, and even seconded the motion for the adoption of one of the resolutions. The club sued Glover’s estate (defendant) and Crowe and sought declaratory relief. Glover’s estate and Crowe argued that the lease addendum signed by Ritter was effective because, as the club’s president, Ritter had the implied authority to change a material provision of the lease. Alternatively, Crowe argued that the lease addendum was effective based on Ritter’s apparent authority.

Rule of Law

Issue

Holding and Reasoning (Ledbetter, J.)

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