Utah Coal and Lumber Restaurant v. Outdoor Endeavors Unlimited

40 P.3d 581 (2001)

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Utah Coal and Lumber Restaurant v. Outdoor Endeavors Unlimited

Utah Supreme Court
40 P.3d 581 (2001)

Facts

Outdoor Endeavors Unlimited, doing business as White Pine Touring (White Pine) (defendant), leased historic commercial premises from Utah Coal and Lumber Restaurant, Inc. (Utah Coal) (plaintiff). Utah Coal knew that White Pine could recoup the substantial costs of rehabilitating the dilapidated old building only by exercising the lease’s renewal option. However, when it came time to renew the lease, a series of business and personal crises distracted the attention of White Pine’s owners. As a result, White Pine missed the renewal time frame by 11 days. White Pine asked Utah Coal to excuse the delay. Utah Coal offered to renew White Pine’s lease, but only on terms much more favorable to Utah Coal’s own interests. When White Pine declined the offer, Utah Coal sued for unlawful detainer. White Pine counterclaimed, seeking a declaratory judgment that it was entitled to equitable relief from the renewal option’s time frame. The trial court entered judgment for White Pine. Utah Coal appealed to the Utah Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Howe, C.J.)

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