JGT Corporation v. E. Harwell Andrews, et al.

This appeal arises from a dispute over whether a commercial lease was renewed. After lessors notified lessee that the lease had not been renewed, lessee filed for declaratory judgment on the issue of whether renewal notice was given timely, asserting an alternative ground of equitable relief from performance under the “special circumstances” doctrine. Lessors asserted the equitable maxim of unclean hands, averring that lessee created false evidence to attempt to establish timely compliance with the lease renewal requirement. Both sides moved for summary judgment, and the Chancellor entered judgment for lessee based upon the finding of “special circumstances” to excuse untimely performance by lessee, noting that issues of material fact exist as to timely notice. On this appeal, lessors allege error by the Chancellor’s award of equitable relief without resolving the unclean hands issue, along with error in the finding of “special circumstances,” and error in denying lessors’ counterclaim for breach of the implied duty of good faith and fair dealing. Because resolution of the issue of whether or not renewal notice was given timely is both necessary and dispostive of all other issues raised in this lawsuit, the order of the Chancellor awarding summary judgment to lessee is reversed, and this lawsuit remanded for trial.