S.H.V.C., Inc. v. Roy
S.H.V.C., Inc. v. Roy
Opinion of the Court
The defendant, on the granting of certification, has appealed to this court from the sustaining, by the Appellate Session of the Superior Court, of the judgment of possession rendered in this summary process action by the Housing Session of the Superior Court at Hartford.
He claims (1) that the trial court and the Appellate Session erred in holding that a party to a contract who has continually waived the other party’s habitual breach in performance may declare a for-, feiture upon a subsequent breach of the same condition, relying upon a clause of the contract allowing the forfeiture “notwithstanding any prior waiver,” and (2) that a nonwaiver of forfeiture clause is not an effective bar to the defenses of waiver and estoppel upon a claimed forfeiture where the conduct which gives rise to the forfeiture is the same conduct which engendered the waiver or estoppel.
The trial court filed a memorandum of decision which made the following findings: The plaintiff rented to the defendant certain premises in a building on Main Street in Manchester for use as a billiard parlor for a ten year term commencing
Both issues set forth by the defendant in this appeal arise from the following portion of the lease agreement: “These presents are upon the express condition that if the Tenants . . . shall be in default in the payment of . . . rent . . . more than ten (10) days . . . Landlord at its option, shall have the right (notwithstanding any former waiver) to give written notice to Tenant . . . that Tenant shall vacate the leased premises.” (Emphasis added.)
The defendant first claims that the italicized phrase, the nonwaiver clause, should be rendered wholly ineffective as a matter of. law. In support of this position he relies on 3A Corbin, Contracts § 763 which provides in pertinent part: “Parties to a contract can not, even by an express provision
There is no indication that the parties to the above-cited contract have attempted to deprive themselves of the “power to alter or vary or discharge it by subsequent agreement.” Thus the referenced portion of Corbin’s treatise is not applicable to this case. There is nothing to prevent the parties from modifying the contract by the same means or method as it was written. Notably, it is a ten year lease and comes within the statute of frauds. Presumably a material alteration of the terms would be in writing. The defendant’s assertion that the clause is “wholly ineffective” because it prevents the parties from exercising their rights to alter or rewrite a contract wrongly applies the law to the facts of this case as the Appellate Session explained.
The defendant urges the court to adopt what he deems to be the “better law of foreign jurisdictions.” He relies on two cases, Fritts v. Cloud Oak Flooring, 478 S.W.2d 8, 14 (Mo. Ct. App. 1972), and Fisher v. Tiffin, 551 P.2d 1061, 1063 (Or. 1976), to support his theory that the nonwaiver clause is wholly ineffective. Even if this court were inclined to follow the cited law, it need not do so since the cases the defendant relies upon are readily distinguishable. One, a mortgage foreclosure; Fisher v. Tiffin, supra, 1061; where giving effect to the nonwaiver clause would result in a much harsher result than in the present case, is a situation where courts are traditionally more lenient; the other, a common law forfeiture under Missouri law, is a situation where one party requested a remedy that the court indicated was far more extreme than the ordinary statutory forfeiture. Fritts v. Cloud Oak Flooring, supra, 12. In circumstances characterized by extreme remedies, harsh dealing or unequal bargaining positions it has been noted that “[t]he anxiety of the court to find a waiver or an estoppel increases in proportion to the extent and inequity of the forefeiture.” 3A Corbin, Contracts § 754. In this case there are no facts which indicate unequal bargaining positions or sharp dealing by either party.
The second issue raised in his appeal is the defendant’s claim that a nonwaiver of forfeiture clause is not an effective bar to the defense of either waiver or estoppel when the conduct giving rise to the forfeiture is that which engendered the estoppel. The defendant does not brief his assertion that the waiver defense is valid in this context. Therefore, the court may consider the issue abandoned. O’Connor v. Dory Corporation, 174 Conn. 65, 70, 381 A.2d 559 (1977); State v. Grasso, 172 Conn. 298, 300, 374 A.2d 239 (1977). In his discussion of the second issue the defendant assumes
In conclusion the Novella court stated, "[w]e do not, however,, place much weight on the particular label placed on the doctrine. 'The label counts for little.’ ” Id., 564-65. In view of this court’s determination that the distinction between implied waiver and estoppel by conduct may be one of labels
Additionally, as the defendant relies solely on the estoppel defense in this second issue, the defendant’s own conduct must be considered. It is fundamental that a person who claims an estoppel must show that he exercised due diligence to know the truth, and that he not only did not know of the true state of things but also lacked any reasonably available means of acquiring knowledge. Novella v. Hartford Accident & Indemnity Co., supra, 565; State v. American News Co., 152 Conn. 101, 114, 203 A.2d 296 (1964); Linahan v. Linahan, 131 Conn. 307, 327, 39 A.2d 895 (1944). There is no evidence that the defendant attempted to determine whether he might give legal significance to the plaintiff’s forebearance. Also, the defendant sets forth no circumstances which impose a duty on the plaintiff
There is no error.
In this opinion Healey and Armentano, Js., concurred.
The Appellate Session found that “[t]he defendant presented no evidence of waiver other than acceptance of late rental payments in the past. We conclude that this evidence, to which the nonwaiver provision clearly applies, was insufficient as a matter of law to establish a waiver.”
In Hoffman Wall Paper Co. v. Hartford, 114 Conn. 531, 159 A. 346 (1932), the nonwaiver clause provided that breach arising from default is never cured. In the contract now before the court, the plaintiff’s option to terminate is nullified by accepting rent and is not reinstated until a subsequent untimely tender. Thus the effect of default is far more circumscribed. As the clauses are not identical there is no certainty that law arising from Hoffman is relevant to this ease.
In ruling against the defendant on the issue of estoppel, the Appellate Session stated the following: “An equitable estoppel arises only where one party has done something intended or calculated to induce another to believe in the existence of certain facts and to act in that belief. Bozzi v. Bozzi, 177 Conn. 232, 242, 413 A.2d 834 (1979). A reasonable reliance upon the misleading conduct, resulting in some detriment to the party claiming the estoppel is also required. Id. The evidence submitted by the defendant is insufficient to establish either of these two essential elements of an estoppel.”
Dissenting Opinion
(dissenting). I disagree. The majority opinion accepts the principle of law established by our cases and by the treatise writers that parties to a written contract retain the power to alter or vary or discharge any of its provisions by a subsequent agreement. See, e.g., Brian Construction & Development Co. v. Brighenti, 176 Conn. 162, 169-70, 405 A.2d 72 (1978); Blakeslee v. Water Commissioners of Hartford, 121 Conn. 163, 182-83, 183 A. 887 (1936); O’Loughlin v. Poli, 82 Conn. 427, 432, 74 A. 763 (1909); 3A Corbin, Contracts (1960) § 763; 6 Corbin, Contracts (1962) § 1295; 15 Williston, Contracts (3d Ed. 1972) § 1828. The majority opinion accepts the factual premise that twenty-four months’ uncomplaining receipt of belated rental payments creates an ambiguity about the continued enforceability of the forefeiture clause in the lease. This combination of law and fact leads me to the conclusion that the plaintiff cannot now peremptorily rely on the nonwaiver clause in the lease to establish its right to retake the premises.
I would remand to the trial court for an eviden-tiary hearing on whether there has been a waiver in fact, in which hearing the contract’s nonwaiver clause would be relevant but not dispositive. If the trier determines that there has been a waiver, then I would follow the provisions of 1 Restatement
Neither the hearing that has been held nor the statute of frauds is an obstacle to this resolution. The trial court’s memorandum of decision demonstrates that the court determined the question of waiver by erroneously assigning conclusive weight to the nonwaiver clause. The statute of frauds does not require written modification of nonessential clauses, such as nonwaiver clauses. See Lynch v. Davis, 181 Conn. 434, 441n, 435 A.2d 977 (1980); 1 Restatement (Second), Contracts (1981) § 150.
It is precisely because the record is in every way so barren that I believe that a case for forfeiture and for rejecting waiver has not yet been made out. Cf. Hamm v. Taylor, 180 Conn. 491, 497, 429 A.2d 946 (1980). We simply do not know enough about the circumstances surrounding the negotiation of the lease or about the subsequent conduct of the parties to warrant affirmance of the judgment of the trial court. It seems to me that twenty-four months’ acquiescence in delayed rental payments presents a sufficient basis for ambiguity to require a full evidentiary hearing.
In this opinion Speziale, C. J., concurred.
1 Restatement (Second), Contracts (1981) §84 provides as follows:
“promise to perform a duty in spite of nonoccurrence OF A condition
“(l)Except as stated in Subsection (2), a premise to perform all or part of a conditional duty under an antecedent contract in spite of the non-occurrence of the condition is binding, whether the promise is made before or after the time for the condition to occur, unless
“(a) occurrence of the condition was a material part of the agreed exchange for the performance of the duty and the promisee was under no duty that it occur; or
“(b) uncertainty of the occurrence of the condition was an element of the risk assumed by the promisor.
“(2) If such a promise is made before the time for the occurrence of the condition has expired and the condition is within the control of the promisee or a beneficiary, the promisor can make his duty again subject to the condition by notifying the promisee or beneficiary of his intention to do so if
“(a) the notification is received while there is still a reasonable time to cause the condition to occur under the antecedent terms or an extension given by the promisor; and
“(b) reinstatement of the requirement of the condition is not unjust because of a material change of position by the promisee or beneficiary; and
“(e) the promise is not binding apart from the rule stated in Subsection (1).”
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