Background
Green Acres MCH, LLC and Jateal Pendergrass entered into a month-to-month lease agreement for placement of a mobile home on the landlord’s real property, with monthly rent set at $350 for two years before increasing to $425. The lease commenced October 1, 2022, and provided for automatic renewal on a month-to-month basis unless either party provided written termination notice at least 30 days before the lease term or renewal period ended.
On January 31, 2024, Green Acres provided Pendergrass with proper 30-day written notice of lease termination, instructing her to vacate by February 29, 2024. Pendergrass refused to vacate and later argued that she had attempted to pay rent but Green Acres wrongfully refused her payment in order to proceed with eviction. When Pendergrass failed to leave, Green Acres filed an unlawful detainer action in Anderson County General Sessions Court on May 28, 2024, seeking possession, unpaid rent, and removal of the mobile home.
The General Sessions Court ruled for Green Acres and entered judgment of possession and $691 in unpaid rent plus attorney fees. Pendergrass appealed to the Anderson County Circuit Court, which affirmed, entering judgment of possession and $4,351.93 in unpaid rent plus $1,000 in attorney fees. Pendergrass then appealed to the Court of Appeals.
The Court’s Holding
The Court of Appeals affirmed the trial court’s judgment in its entirety. The court rejected Pendergrass’s argument that she should not be liable for back rent because Green Acres refused to accept her payment during the proceedings. Applying Tennessee contract interpretation principles, the court held that the lease agreement’s language was clear and unambiguous: Green Acres was entitled to terminate the lease with 30 days’ written notice without providing any reason, and the tenant’s obligation to pay rent was not waived, released, or terminated by service of the termination notice.
The court emphasized that acceptance of rent during the termination period would not have extended the lease term or prevented eviction. Pendergrass’s refusal to vacate necessitated the unlawful detainer proceedings, during which the trial court properly determined the amount of rent arrearage. The tenant remained bound by her payment obligations through the termination date regardless of whether the landlord accepted or refused her offered payments.
Additionally, the Court of Appeals granted Green Acres an award of reasonable attorney fees incurred on appeal, consistent with the lease agreement’s provision that the prevailing party in any enforcement action shall recover all reasonable attorney fees. The amount of appellate attorney fees was to be determined by the trial court upon remand.
Key Takeaways
- A landlord may terminate a month-to-month lease with proper written notice regardless of whether the tenant attempts to tender rent payment.
- Tenant payment obligations continue through the termination date and are not waived or suspended by service of a termination notice.
- The acceptance of rent during a termination period does not extend the lease term or defeat an eviction action if the tenant refuses to vacate.
- Prevailing parties in lease enforcement actions are entitled to recover attorney fees on appeal when the lease agreement contains such a provision.
Why It Matters
This decision reinforces Tennessee landlords’ ability to terminate month-to-month leases without cause and collect all accrued rent through the termination date, even when tenants attempt to frustrate the eviction process by proffering late payments. The ruling eliminates any argument that a tenant can prevent eviction or reduce rent liability by tendering payment after receiving proper termination notice, clarifying that such notice is effective and final regardless of tenant conduct during the notice period.
The decision also confirms that contractual attorney fee provisions are enforceable in unlawful detainer and lease enforcement actions, including at the appellate level, allowing landlords to recover the full cost of litigation when they prevail. This makes clear the financial consequences for tenants who contest proper lease terminations without substantial legal grounds.