1. Cunnigham v. Fonzarelli

2. Instructions Read through the scenario. Then read through the questions posed at the end of the scenario. Try to answer the questions to figure out what is relevant. Read back through the scenario and then go through the answers to the question. Read through the Statement of Facts drafted as an example.

3. The Scenario Howard Cunningham owns and runs a hardware store. He has a split level house with an over- sized one car garage. The garage had a large storage space above the main floor. Cunningham created a studio apartment over his garage. It contained a separate bathroom with a shower and a small kitchenette in a large room. He built a staircase on the side of the garage to have outside access to the apartment. This prevented direct access to the garage where Cunningham stored his tools and his car. Cunningham put an advertisement in the local newspaper for the apartment rental at $1000 a month.

4. The Scenario Cunningham received three calls about the apartment from Warren Weber, Laverne DeFazio and Arthur Fonzarelli. Mr. Cunningham interviewed all three prospective renters. Warren Weber was a student and wanted the rent reduced to $500 a month since he was on scholarships. Laverne DeFazio worked in a factory and her father owned the local pizzeria. Mr. DeFazio agreed to pay the rent, but wanted a clause in the lease to allow Laverne to park her car in the garage.

5. The Scenario Arthur Fonzarelli worked in the local garage and had known Cunningham for a number of years. Fonzarelli drove a motorcycle. Fonzarelli had performed maintenance on Cunningham ’ s car as well as any necessary repairs. Fonzarelli was known for being an excellent mechanic and a playboy.

6. The Scenario Cunningham rented the apartment to Fonzarelli. The lease was for one year, with $1000 rent payable on a month by month basis by the 5 th day of the month. The lease stated that Fonzarelli would be responsible for electricity, but Cunningham would provide water, sewage, and heat from a gas furnace. Further, the lease stated that Cunningham, the lessor, would make all necessary repairs within a reasonable time upon notification. The lease began April 1 st.

7. The Scenario Cunningham gave a key to the garage and permission to Fonzarelli to park his motorcycle inside the garage during inclement weather. The rental relationship started out very well. Fonzarelli would roll his motorcycle to the end of the driveway before starting it up so as not to disturb Cunningham and his family. Cunningham ’ s wife, Marion, would invite Fonzarelli for dinner once or twice a week. Fonzarelli always had Sunday dinner with his family. In June, the pipes burst to the shower. Fonzarelli notified Cunningham, who shut off all the water to the apartment that morning.

8. The Scenario Since there was no water for drinking or using the commode, Fonzarelli stayed at a friend ’ s house. After three days with no water, Fonzarelli hired a plumber to figure out what was wrong and fix the pipes. The plumber looked through the apartment, but found nothing wrong.

9. The Scenario Fonzarelli let the plumber into the garage to check the pipes there. The pipes were exposed in the garage and plumber traced the pipes to the shut- off valve. The plumber turned the valve back on and found the leak. The plumber replaced an old pipe coupling whose solder had deteriorated. The coupling cost $5 and the single stick of solder the plumber used cost about $2. The total cost of the repairs the plumber charged to Fonzarelli was $100. Fonzarelli presented Cunningham with the bill for repairs.

10. The Scenario On July1, Fonzarelli wrote a check for $900 for rent. Fonzarelli presented the check to Cunningham and told him he deducted $100 for the plumbing repairs. Cunningham accepted the check and reminded Fonzarelli that Marion was making pierogi for dinner. Mr. Cunningham filed suit for the $100.

11. Questions to Think About Take a look at this case. What facts are relevant? What facts are irrelevant? Does it matter that Fonzarelli drove a motorcycle? Does it matter that Fonzarelli had a key to the garage? Why does it matter what Cunningham ’ s job was? Does it matter that Fonzarelli explained the $100 deduction? Does it matter that Cunningham accepted the $900 and didn ’ t say anything?

12. The Question Presented The question here is whether Fonzarelli owes Cunningham the $100.

13. Short Answer No. Cunningham accepted the $900 for the July rent. Since Cunningham accepted the check without comment, Fonzarelli is off the hook for the $100.

14. What Facts Are Irrelevant? How large the garage was. There was a staircase on the outside of the garage. The newspaper advertisement. Who responded to the advertisement: Warren Webber and Laverne DeFasio. The information about Webber and DeFasio. Where Arthur Fonzarelli worked and how Cunningham knew Fonzarelli.

15. What Facts Are Irrelevant? That Fonzarelli would roll his motorcycle down the driveway. That Fonzarelli ate with the Cunninghams during the week and with his family on Sundays. That the faucets and commode didn’t work. All of the places the plumber looked. How much the coupling and solder cost.

16. Does it Matter that Fonzarelli drove a motorcycle? Partly yes. Why? Because Cunningham could only fit ONE car in the garage, but there was enough room to fit a motorcycle. Garage access was not part of the lease agreement. But Cunningham gave Fonzarelli access to the garage to house the motorcycle in inclement weather. If Fonzarelli had a car, then he would not have been allowed access to the garage.

17. Does it matter that Fonzi had a key to the garage? Yes. Why? Because the leak wasn’t in the apartment, but the garage. If Fonzarelli did not have access to the garage, the plumber would not have been able to find the leak, fix the leak, and test the patch.

18. Why does it matter what Cunningham’s job was? Cunningham ran a hardware store and had immediate access to all tools and parts necessary to fix the leak. If Fonzarelli had told Cunningham of the leak in the morning, it is reasonable that Cunningham would have seen the leak when he turned off the water to the apartment. He could have brought home the necessary parts and tools to rapidly fix the leak considering his business, that the leak was visible in the garage (exposed pipes), and he had the ability to fix the leak.

19. Does it matter that Fonzarelli explained the $100 deduction? Yes. Fonzarelli didn’t just put the check in the mail, he handed it to Cunningham face to face. He explained the deduction and had already given Cunningham the repair bill.

20. Does it matter that Cunningham accepted the $900 and didn’t say anything? Yes because in contract law, if there is a lease, it is commonly interpreted as individual monthly contracts when paid in monthly installments. If a purchaser pays less than the contract amount to the seller and the seller accepts it, then the contract is fulfilled for the lesser amount.

21. Statement of Facts Howard Cunningham owns and runs a hardware store. Cunningham created a studio apartment over his garage. It contained a separate bathroom with a shower and a small kitchenette in a large room. Cunningham rented the apartment to Fonzarelli. The lease was for one year, with $1000 rent payable on a month by month basis by the fifth day of the month. The lease stated that Fonzarelli would be responsible for electricity, but Cunningham would provide water, sewage, and heat from a gas furnace. Fonzarelli drives a motorcycle and was given a key to the garage and permission to park his motorcycle inside the garage during inclement weather. Further, the lease stated that Cunningham, the lessor, would make all necessary repairs within a reasonable time upon notification. The lease began April first.

22. Statement of Facts In June, the pipes burst to the shower. Fonzarelli complained to Cunningham, who shut off the water to the apartment. Fonzarelli stayed at a friend ’ s house. After three days with no water, Fonzarelli hired a plumber to fix the pipes. The plumber replaced an old pipe coupling whose solder had deteriorated. The coupling was exposed in the garage and connected the apartment pipes to the cut- off valve. The repairs cost $100. For July, Fonzarelli paid $900 for rent, deducting the cost of the repairs from the rent. Fonzarelli told Cunningham directly about the deduction and the reasons. Cunningham accepted the $900 for the July rent.