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Northside Station Associates v. Maddry

North Carolina Court of Appeals
413 S.E.2d 319 (1992)


Facts

Northside Station Associates (Northside) (plaintiff) leased property to Stanley and Margaret Hryniuk for a term ending on June 30, 1989. Under the terms of the agreement, if the tenant remains in possession after the lease expires and does not execute a new lease, he becomes a tenant from month-to-month and must thereafter pay one-and-a-half times the rent indicated in the lease. Stanley later entered into a second agreement with Carolyn Maddry (defendant) wherein Maddry agreed to lease the property pursuant to the terms of the original agreement between Northside and the Hryniuks, for a term ending on June 30, 1989. The agreement was signed by Stanley and Maddry, but not by Margaret. When the lease term expired, Maddry remained in possession of the premises but did not execute a new lease and refused to make rent payments to Northside. Northside sued Maddry for the unpaid rent, contending that Maddry became a tenant from month-to-month under the terms of the original agreement and so was liable for one-and-a-half times the rent indicated in the lease. Maddry moved to dismiss. The trial court granted the motion, concluding that no privity of contract existed between Northside and Maddry, which would allow Northside to bring a direct action against Maddry, because the agreement between Stanley and Maddry was a sublease, and not an assignment. Northside appealed.

Rule of Law

Issue

Holding and Reasoning (Greene, J.)

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