July 27, 2000
Appeal of
J. LEONARD SPODEK
NATIONWIDE POSTAL MANAGEMENT
LEASE AGREEMENT
(Ashland, ME Main Post Office)
PSBCA No. 4323
APPEARANCE FOR APPELLANT:
J. Leonard Spodek
APPEARANCE FOR RESPONDENT:
Gary Shapiro, Esq.
OPINION OF THE BOARD
Appellant, J. Leonard Spodek, has appealed from a contracting officer’s final decision denying Appellant’s claim for additional rent and taxes after the expiration of a lease between Appellant and Respondent, United States Postal Service. Respondent filed a Motion for Summary Judgment in the appeal. However, Appellant opposed the motion and elected to submit the appeal on the record pursuant to 39 C.F.R. §955.12. Accordingly, the appeal is being decided on the record after both parties were given the opportunity to file additional evidence and briefs.
1. On March 29, 1967, Respondent entered into a ten-year lease (commencing on September 1, 1968), and at an annual rent of $4,720, with Appellant’s predecessor-in-interest for the Ashland, Maine Post Office. The lease provided for renewal at the option of the Postal Service for four five-year periods, at the same annual rental. Respondent exercised the fourth and final renewal option extending the lease from September 1, 1993, to August 31, 1998. (Appeal File Tabs (AF) 12-13).
2. Appellant purchased the leased property in December of 1993 and assumed the lessor’s responsibilities under the lease (AF 11).
3. By letter dated August 27, 1998, Respondent notified Appellant that it would vacate the facility on or before the lease expiration date of August 31, 1998, and would send the keys to Appellant shortly thereafter (AF 10).
4. Respondent vacated the facility on August 31, 1998, and mailed the keys to Appellant on that date. Appellant received the keys on September 2, 1998. (Declaration of Bill W. Hay; AF 8, 9; Admission No. 1).
5. By letters dated September 29 and 30, 1998, Appellant filed a claim with the contracting officer for rent and real estate taxes for the month of September 1998, because Appellant did not receive the keys to the facility until September 2, 1998 (AF 5, 6).
6. By final decision dated December 22, 1998, the contracting officer denied the claim, and Appellant timely appealed the final decision (AF 1, 2).
Appellant does not dispute the relevant facts stated above, but argues that Respondent’s failure to deliver the keys to him by August 31, 1998, entitles him to recover the rent and real estate taxes for the month of September.
There is no merit to Appellant’s claim in this appeal. Simply stated, as long as Respondent timely vacated the facility, there is no basis for Appellant to recover additional rents or taxes even if Respondent did not deliver the keys to him on the date the lease expired. See J. Leonard Spodek, PSBCA No. 4265, 00-1 BCA ¶ 30,670; National Construction Co., PSBCA Nos. 3902, 3929, 99-2 BCA ¶ 30,509; T.W. Cole, PSBCA No. 3076, 92-3 BCA ¶ 25,091.
Appellant has failed to show that he is entitled to recover any additional compensation under his lease with Respondent. Accordingly, this appeal is denied.
William K. Mahn
Administrative Judge
Board Member
I concur:
James A. Cohen
Administrative Judge
Chairman
I concur:
Norman D. Menegat
Administrative Judge
Acting Vice Chairman