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VND12/19/2003
should be canceled for breach depends upon the facts of each case." Sandberg v. Smith, 234 N.W.2d 917, 919 (N.D. 1975); see also Hutton v. Janz, 387 N.W.2d 494, 498 (N.D. 1986). "A finding of fact is clearly erroneous only if it is induced by an erroneous view of the law, if there is no evidence to support it, or if, upon review of the entire evidence, we are left with a definite and firm conviction a mistake has been made." Schmidt v. Schmidt, 2003 ND 55, * 14, 660 N.W.2d 196.
[ ] Leevers argues it engaged in a reasonable interpretation of the lease regarding the payment of liability insurance. It maintains the lease agreement does not require payment of a pro-rata share of VND's premises liability insurance. Leevers claims it has complied with the lease by paying its pro-rata share of "All Risk" insurance on the building in addition to maintaining its own liability insurance.
[ ] Leases are subject to the rules of contract construction. Prairieview Nursing Home v. North Dakota Dept. of Human Services, 1999 ND 142, * 10, 598 N.W.2d 116. If the intent of the parties can be determined from the language of the contract alone, the interpretation of the contract is a question of law. Spagnolia v. Monasky, 2003 ND 65, * 10, 660 N.W.2d 223. "If a written contract is unambiguous, extrinsic evidence is not admissible to contradict the written language." Prairieview Nursing Home, at * 10. " his court has consistently held a lease will ordinarily be construed most strongly against the lessor." Ehrman v. Feist, 1997 ND 180, * 10, 568 N.W.2d 747 (citations omitted).
[ ] The written lease in this case states:
Lessor is to provide and secure, at Lessor's expense, building insurance on an "All Risk" form in an amount equal to the replacement value of the building on the demised premises; such insurance shall protect against any loss, damage and/or destruction to the building or any other insurable portion of the demised premises. Certificates evidencing such insurance shall be delivered to Lessee.
Lessee shall reimburse Lessor by payment of its pro-rata share of the premium upon receipt by Lessee of invoice accompanied by insurance bills. Such pro-rata share to be determined as in paragraph Eight.
Lessee agrees to provide at its expense public liability insurance in an amount equal to at least $1,000,000 (combined single limit).
[ ] When a lessee was required to insure equipment under an "All Risk" form, this Court concluded that the language of the lease, by its own terms, required insurance for damage to the equipment. This Court concluded the provision of the lease was not applicable to damages for personal injury . The lease provided:
INSURANCE: Lessee agrees at its expense to keep said equipment insured under a contractor's ALL RISK form with not more than $250 deductible clause, containing a loss payable clause in favor of Lessor. Satisfactory evidence of this as well as public and property damage liability coverage with minimum limits of 250/500/250 will be furnished Lessor.
Barsness v. General Diesel & Equipment Co., Inc., 422 N.W.2d 819, 825 (N.D. 1988) (indemnity case).
[ ] The lease requires Leevers to reimburse VND for insurance of an "All Risk" form for damages or destruction to the building. The lease, by its own terms, requires reimbursement only for damages to the building and other insurable portions of the premises and is not applicable to damages for personal injury ("such insurance shall protect against any loss, damage and/or destruction to the building or any other insurable portion of the demised premises"). Furthermore, Leevers was already providing $1,000,000 in public l
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