N.C. Ct. of App.: Adventure Trail of Cherokee v. Owens-Parole Evidence for Lease

Summary:

The dispute arose over a lease agreement between the plaintiff and the mother of the defendant, William Fredrick Owens. The key issue involved whether the lease continued after the mother’s death in 2019 and if Mr.  Owens had any rights under the lease. Owens argued that the lease’s phrase "survivor of the Lessee" granted him rights to continue occupying the property. However, the trial court found that the phrase was ambiguous and a scrivener’s error, meaning it was mistakenly included. The court used parole evidence, which while normally prohibited to " to vary, add to, or contradict” language within a contract" can be used to understand “an ambiguous term may be explained or construed with the aid of parol evidence.” Drake v. Hance, 195 N.C. App. 588, 591, 673 S.E.2d 411, 413 (2009),  concluding that the lease terminated upon the mother's death and Owens had no continuing rights under it.

Commentary:

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 amended the Protecting Tenants at Foreclosure Act (PTFA)  notice to "successor in interest" tenants 90 days before requiring them to vacate the property and also allows those successor tenants with leases to remain in the property until the end of the lease term.   

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