Monell v. Sabella
Monell v. Sabella
Opinion of the Court
Defendant Ehrlich appeals from the portion of a declaratory judgment determining that his claim to $7,500, evidenced by his check, is unfounded.
Question Presented
Was a certain $7,500 check deposited under the terms of the lease?
Plaintiff Monell, an attorney, brought this action to determine who is entitled to a $7,500 check drawn by Ehrlich, also an attorney. The facts most strongly in favor of the court’s finding that it was so déposited, follow. Monell, together with Meyer, a realtor, represented Antone and Angelina Sabella
November 5, Sharif, “As attorney for Nate Stein” wrote Monell enclosing two copies of the lease as changed by Monell, dated October 30> and executed by Stein. Sharif’s letter stated “Heretofore we have delivered to you a trustee account check in the amount of $7,500, payable to your order as the deposit under this lease . . . This amount of money and the lease herewith delivered to you are upon the condition ...” This condition was that the landlord perform certain acts, in putting the property into proper condition to meet governmental regulations. This same condition was in the Ehrlich letter. Then followed: “The $7,500 cheek is a cash deposit under paragraph 29th of the enclosed lease and said deposit is to be in the name of J. W. Ehrlich. There has heretofore been delivered to you a form of receipt, which we wish signed and returned to this office. Said receipt, however, is to be altered in the respect that the rate of interest is to be two and one-half per cent. ’ ’ The letter finally stated that the lease was delivered on the condition that if the landlord did not place the premises in proper condition by November 30 Stein would have the right to cancel the lease or postpone commencement of rent payment until this was done. This condition was met and on January 29, 1948, Monell wrote Sharif stating that under the lease rent was to commence December 1, 1947; however, rent for December would be waived but the January rent must be paid within five days. He also asked that Stein come in and sign an inventory “so that this matter can be completed at an early date.” Sometime in March Stein assigned his interest in the lease to
July 23 Sharff sent Monell an assignment of the lease to The Terrley Corporation signed by Stein, stating that if the form were satisfactory to Monell, Sharff would have it signed by the corporation. July 29 Monell answered stating that a paragraph should be added to the effect that the corporation disclaimed any interest in the $7,500 deposited as security and “agrees that lessor may refund said sum or any balance thereof upon any termination of said lease to J. W. Ehrlich, who deposited said sum for the protection of lessor under the terms of said lease.” He also asked that Ehrlich execute a deposit agreement which he enclosed. This was an elaborate instrument referring to Ehrlich as “surety,” adding certain provisions, broadening the matters which the deposit was to cover but omitting the provision as to attorney’s fees which was in the Ehrlich receipt. He also enclosed the original executed lease with inventory attached. In September The Terrley Corporation, then in possession, abandoned the premises. Rent was paid only up to April 30.
Shortly after July 29 Sharff asked Monell if he had paid over the deposit to the lessor, stating there might be some question whether it belonged to Ehrlich, Stein or the lessor. Monell said he had not and would not until the matter was settled. Sharff and Monell and Ehrlich were very friendly and handled the matter very loosely, relying on each other. Subsequent to July 29 many conversations were had between Sharff and Monell in which Sharff asked for the money’s return. October 11 Ehrlich wrote asking its return since “The arrangements under which this money was to be held by you were never completed ...”
Ehrlich’s Letter and Receipt
It is dated October 30, 1947. “As attorney for Nate Stein I enclose herewith two copies of lease . . . and my trustee account check in the amount of $7500 payable to your order. . . . This money and the signing of the lease is on condition ...” Here follows the same condition concerning putting the premises in order that appears in Sharff’s later letter. " The $7500 check is a cash deposit in substitution for the U.S. Treasury Bond mentioned in paragraph 28 of the lease and said deposit is to be in the name of the undersigned. It is our understanding that Mr. Sabella will pay, semiannually, interest at one and one-half per cent to the undersigned upon said sum of $7,500. The undersigned shall have the right to substitute a U.S. Treasury Bearer Bond in place of said amount of $7500 at any time. . . . There is enclosed receipt for said $7500, which please sign and return.” A P.S. states that the lease and deposit are delivered upon condition that unless lessor complies with the condition concerning the premises by November 30, Stein may cancel or postpone payment of rent.
The form of receipt enclosed states: “Received from J. W. Ehrlich the sum of $7500.00 as a deposit in accordance with the provisions of the 28th paragraph ...” It is understood that lessor will “hold said money in accordance with the provisions of said lease” and will pay Ehrlich 1% per cent per annum interest upon said sum. Upon termination of the lease the money shall be repaid forthwith to Ehrlich and if it is necessary for Ehrlich to institute legal proceedings against the lessors to recover the money then they will pay him an attorney’s fee to be fixed by the court.
Contention oe Appellant
Appellant contends that there is no substantial conflict in the evidence and that the documents when considered together conclusively establish that in sending the deposit, he was merely offering to deposit the money on the conditions expressed in the form of receipt forwarded with his cheek and on the further condition that the receipt be
Whether the question is one of law to be taken from the writings alone or is one of mixed fact and law is not too material. If one of law, the most reasonable interpretation of the writings is that found, in effect, by the trial court, namely, that appellant as attorney for Stein sent the money as a deposit pursuant to paragraph 29; that the return of a signed receipt was not a condition of the deposit. If there is a conflict in the evidence, then, of course, the trial court’s determination of the facts is binding on us. But even here the facts amply show that at no time was the return of the receipt a condition precedent to the acceptance of the deposit. Appellant’s own actions as well as those of his associate Sharif demonstrate that neither considered the return of the receipt as a prerequisite to the deposit of the money. Both appellant and Sharif are lawyers and in their respective letters they definitely set forth what were conditions, which did not include the return of the receipt. Sharif had his client execute the last draft of the lease which stated “Lessee deposits with Lessor the sum of $7500” and “said sum of $7500 so deposited ...” Monell agreed to and did hold the $7,500 until the inventory was signed and the executed lease with inventory attached delivered to the parties. It must be remembered that the lessor under the terms of the lease was entitled to a deposit, not a suretyship. The tenant went into possession under that lease. In his letter of March 16 Monell stated the lease was then effective, that he was merely holding the same until the loose ends as to the personalty could be cleared up. He did say that he was holding the money as trustee and would obtain “proper receipt” upon delivery of the lease to the lessor. This, however, did not mean that until such receipt was obtained the money was not a deposit under the lease. The situation was really a very simple one. Appellant sent the money as a deposit under paragraph 29. He attached certain conditions. He also enclosed a receipt which he asked to be returned to him (not as a condition, however, to the deposit of the money). In that receipt he added two conditions which do not appear in the lease: (1) that the interest was to be paid to him, and if and when returnable the money was to go to him; (2) a provision for attorney’s fees. The acceptance of the money by the lessors, of course, constituted an acceptance of these conditions. The return of the receipt, however, was not
The judgment is affirmed.
Peters, P. J., and Wood (Fred B.), J., concurred.
A petition for a rehearing was denied February 11, 1953, and appellant’s petition for a hearing by the Supreme Court was denied March 12, 1953. Schauer, J., was of the opinion that the petition should be granted.
During the litigation the estate of Antone Sabella, of which the Bank of America was the executor, has been closed, and Antone’s interest in the $7,500 distributed to Angelina Sabella as trustee.
All italics added.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.