Norris Avenue Professional Building Partnership, Appellant-Plaintiff,
Coordinated Health, LLC, Appellee-Defendant
Appeal from the Jennings Circuit Court. The Honorable Jon W. Webster, Judge. Cause No. 40C01-1106-PL-127.
ATTORNEYS FOR APPELLANT: Sean M. Clapp, Ian T. Keeler, Clapp Ferrucci, Fishers, Indiana.
ATTORNEYS FOR APPELLEE: David B. Honig, Andrew B. Howk, Hall Render Killian Heath & Lyman, PC, Indianapolis, Indiana.
Najam, Judge. Mathias, J., and Bradford, J. concur.
Statement of the Case
[¶ 1] Norris Avenue Professional Building Partnership (" Norris" ) appeals the trial court's judgment for Coordinated Health, LLC (" Coordinated Health" ) on Norris' complaint for breach of a lease agreement. Norris raises a single issue for our review, namely, whether the trial court erred when it concluded that Coordinated Health did not breach the lease agreement. We reverse and remand with instructions.
Facts and Procedural History
[¶ 2] On April 29, 2002, Norris and Coordinated Health entered into a lease agreement whereby Coordinated Health agreed to lease certain real property from Norris. The parties' lease provided for an " initial term" of two years to be followed by two " option terms" of five years each. Appellant's App. at 13. In particular, the lease stated in relevant part as follows:
Section 2.1 Initial Term. The initial term of this Lease shall be for a period of two (2) years . . . commencing on May 1, 2002, and terminating on April 30, 2004. In the event that [Coordinated Health] wishes to exercise either of the option terms set forth in Section 4.1, at least sixty (60) days prior to the end of the initial term or the first option term, as the case may be, [Coordinated Health] shall give written notice to [Norris] of intent to exercise the option. In the event [Coordinated Health] does not provide such notice, then this Lease will terminate at the end of the then[-]current term unless [Norris] and [Coordinated Health] agree otherwise.
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Section 4.1 Minimum Annual Rent. [Coordinated Health] covenants and agrees to pay . . . as rent for said Premises . . . the sums as set for[th] below: $2250.00 per month beginning May 1, 2002[,] in advance on the first day of each calendar month of the term . . . .
Rent for the 1st five (5) year option term will be $2,300/month for the 1st year, $2,350/month for the 2nd year, $2,400/month for the 3rd year, $2450/month for the 4th year, and $2,500/month for the 5th year. In the event [Coordinated Health] exercises its option for the 2nd five (5) year option term, rent per month for the 1st year of the second option term shall be calculated by taking the monthly rent for the 6th year of the 1st option term and increasing said monthly rental by the change in the CPI-Urban [the Consumer Price Index for Urban Consumers] for the twelve month period ending three (3) months prior to the beginning of the 1st year of the 2nd option term. For each year of the 2nd option term thereafter, the monthly rental amount shall be increased by the change in the CPI-Urban for the twelve (12) month period ending three (3) months prior to the beginning of said year.
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Section 14.1 Surrender of Premises. At the end of the term or any renewal thereof or other sooner termination of this Lease, [Coordinated Health] will peaceably deliver to ...