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Alabama Supreme Court Reverses Commercial Lease Damages Ruling

The Alabama Supreme Court reversed an Etowah Circuit Court judgment that limited landlord Mark Weaver's damages in a commercial lease breach case against Frios Gourmet Pops and related entities. The high court found Weaver should be entitled to more than just accrued rent at the time he terminated the tenancy.

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4 min readcourtlistener
Seal of the Supreme Court of Alabama

Case Information

Case No.:
SC-2024-0713

Key Takeaways

  • Alabama Supreme Court reversed trial court's limitation of landlord damages in commercial lease breach case
  • Case involved 10-year commercial lease for $4,800 monthly rent between Mark Weaver and Frios Gourmet Pops entities
  • High court found landlords entitled to more than just accrued rent at time of termination and reentry
  • Decision expands damage recovery options for commercial landlords in Alabama lease disputes

The Alabama Supreme Court issued an opinion reversing a lower court's judgment that restricted a commercial landlord's damage recovery in a lease breach case involving Frios Gourmet Pops, LLC and related defendants.

The case, *Mark Weaver v. Frios Gourmet Pops, LLC, Frios Manufacturing, LLC, Andy Harp, and Kevin Harper*, originated from a dispute over a commercial lease agreement entered into in April 2016. Under the lease, Andy Harp, acting as managing member of Frios Gourmet Pops, LLC, agreed to rent commercial property owned by Mark Weaver in Gadsden for $4,800 per month over a 10-year term.

Harp intended to use the property to expand his gourmet popsicle business, which he operated in downtown Gadsden. As part of the lease arrangement, Harp also signed as a personal guarantor, making him individually liable for the lease obligations alongside the corporate entities.

The lease agreement included specific default provisions that would later become central to the legal dispute. When the Frios defendants breached the lease terms, Weaver terminated their tenancy and reentered the premises, then sought damages in the Etowah Circuit Court.

The trial court awarded Weaver damages but limited his recovery to only the rent that had accrued at the time he terminated the Frios defendants' tenancy and reentered the property. This restrictive interpretation of allowable damages became the focal point of Weaver's appeal to the Alabama Supreme Court.

Weaver argued that the trial court erred in this limitation, contending he should be entitled to broader damage recovery under the terms of the commercial lease and applicable Alabama law. The case involved multiple defendants, including both corporate entities - Frios Gourmet Pops, LLC and Frios Manufacturing, LLC - as well as individual defendants Andy Harp and Kevin Harper.

In its opinion authored by Chief Justice Stewart, the Alabama Supreme Court agreed with Weaver's position and reversed the trial court's judgment. The high court determined that limiting damages to only accrued rent at the time of termination and reentry was incorrect as a matter of law.

The Supreme Court's reversal suggests that commercial landlords in Alabama may be entitled to recover additional categories of damages beyond just unpaid rent when tenants breach lease agreements. This could include future rent losses, costs associated with finding new tenants, property damage, or other consequential damages depending on the specific lease terms and circumstances.

The opinion represents a significant development in Alabama commercial landlord-tenant law, potentially expanding the scope of recoverable damages available to property owners when commercial tenants default on their lease obligations. The decision could affect how commercial lease disputes are resolved throughout the state.

For commercial landlords, the ruling provides greater protection and broader recovery options when tenants breach lease agreements. The decision may encourage more detailed damage provisions in future commercial lease agreements and could influence how landlords approach lease enforcement and damage mitigation strategies.

For commercial tenants, the expanded damage liability creates additional financial risks when entering into lease agreements. Tenants and their guarantors may face more substantial monetary exposure if they default on lease obligations, beyond just unpaid rent amounts.

The case also highlights the importance of personal guarantees in commercial lease arrangements. With Andy Harp serving as both the managing member of the corporate tenant and a personal guarantor, individual liability extends beyond the corporate entities' obligations.

The Alabama Supreme Court remanded the case to the trial court for further proceedings consistent with its opinion. This means the trial court will need to reconsider the damage calculation and potentially award Weaver additional compensation beyond the previously limited amount.

The opinion, released February 20, 2026, remains subject to formal revision before publication in the Southern Reporter advance sheets. The Alabama Appellate Courts have requested notification of any typographical or other errors before final publication.

The case demonstrates the complex legal issues that can arise in commercial lease disputes and the importance of careful contract drafting and legal representation in such matters. The reversal also underscores how appellate review can significantly impact the financial outcomes of commercial litigation.

As the case returns to the trial court for further proceedings, the parties will need to address the expanded scope of damages now available to Weaver under the Supreme Court's ruling. This could result in substantially higher monetary awards against the Frios defendants compared to the original trial court judgment.

Original Source: courtlistener

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