GYM-N-I Playgrounds, Inc. v. Snider
Supreme Court of Texas
220 S.W.3d 905 (2007)
GYM-N-I (defendant) leased a warehouse from Snider (plaintiff) under a lease with an as-is clause disclaiming all warranties and a holdover provision stating that any holdover would become a month-to-month tenancy "under the terms and provisions of this Lease"; after the lease expired, GYM-N-I continued paying rent (accepted by Snider) without a new written lease for four years until a fire destroyed the building, allegedly caused by defective wiring and lack of a sprinkler system. Snider's insurer sued GYM-N-I, and GYM-N-I cross-claimed against Snider, who argued the original as-is clause and warranty disclaimer barred those claims; GYM-N-I argued the as-is clause didn't survive the original lease's expiration. The trial court and appellate court ruled for Snider, and GYM-N-I appealed.
Whether an original lease's terms apply to a new holdover lease if the original lease's holdover clause provides that the new lease is subject to the original lease terms.