Snow v. Nash
Snow v. Nash
Opinion of the Court
William A. Snow and J. B. Bryan petitioned Bibb Superior Court for a declaratory judgment, naming as defendant therein Charles E. Nash. The plaintiffs sought a declaration of their rights under certain lease agreements existing between them and the defendant. The court, sitting without the intervention of a jury, found for the defendant, and the plaintiffs except in the main bill of exceptions.
On August 1, 1945, Charles E. Nash, as lessor, and The Candlelight, a corporation, entered into a lease agreement on certain real property in Bibb County. The only provision of the lease that we are now concerned .with is as follows: “The lessee covenants and agrees, for itself and its successors, that, for and during the entire term of said lease and any and all renewals thereof, at its own expense, it shall: . . . (2). Not transfer or assign said lease or any interest therein to anyone without first obtaining the written consent thereto of the lessor.”
On September 10, 1945, Charles E. Nash, as lessor, and J. A. Snipes and William A. Snow, as lessees, entered into an agreement which in part reads as follows: “For and in consideration
Subsequently to the agreement of September 10, 1945, the partnership between J. A. Snipes and William A. Snow was dissolved, and thereafter William A. Snow introduced J. B. Bryan as a new partner in the business conducted on the leased premises. William A. Snow now desires to retire from the partnership of Snow and Bryan and to dispose of his interest in the partnership by selling same to J. B. Bryan; and Bryan desires to introduce a new partner to operate the business with him .as a partnership. The defendant Nash contends that section (5) of the agreement of September 10, 1945, relating to the introduction of a new partner in the business upon the dissolution of the old partnership, was personal to and could be exercised only by the named lessees in the agreement, that is, Snow and Snipes, and that, since the dissolution and introduction provision had been invoked once, it was now inoperative, and that the dissolution of the partnership of Snow and Bryan and the introduction of a new partner by Bryan would constitute an assignment of the lease which, under the terms of the lease of August 1, 1945, would require the written consent of the lessor, Nash.
Under a proper construction of the lease and agreement, without the consent of the lessor, Snow and Bryan could dissolve partnership and Bryan could introduce a new partner, who would assume Snow’s rights and interests in the lease and agreement, and Snow would be discharged from any future performance of the covenants in the lease and agreement.
The court erred in finding against the contentions of the plaintiffs and in entering a judgment accordingly.
The defendants in error in the cross-bill of exceptions move to dismiss the cross-bill on the ground that the questions presented therein have become moot. The plaintiff in error in the cross-bill concurs in this motion; therefore, the cross-bill of exceptions is dismissed.
Dissenting Opinion
dissenting. On August 1, 1945, Charles E. Nash, as lessor, and a corporation by the name of Candlelight, Inc., as lessee, entered into a lease contract whereby Nash leased to the corporation certain property for 5 years, with the privilege of renewing said lease for a number of years. This contract contained express covenants by which the lessee obligated itself to preserve and protect the property and to pay rent at designated intervals. The corporation later surrendered its charter and that contract was at an end. However, J. A. Snipes and William A. Snow, partners, entered into a lease contract with the lessor,_ Nash, by the terms of which they adopted all of the stipulations and provisions of the original contract between Nash and Candlelight, Inc. The lease contract with Candlelight, Inc., the terms of which where incorporated in the contract with Snipes and Snow, contained a clause prohibiting the assignment of the lease or any interest therein. It reads, that the lessee covenants that it would “Not transfer or assign said lease or any interest therein to anyone without first obtaining the written consent thereto of the lessor.”
In the contract between Nash, lessor, and Snipes and Snow, lessees, the following provision was embraced in paragraph 5: “In the event of the dissolution of the partnership between the lessees for any cause whatsoever, it is agreed by the lessor that the conditions of this agreement may be performed by either lessee and the partner withdrawing from the business shall be discharged from any obligation for future performance of the covenants herein. The surviving or partner continuing the business shall have the right to introduce a new partner, who shall have the same rights hereunder as the original lessees.”
Ordinarily, a leasehold is property that may be conveyed, and the lease creating it assigned as freely as any other property owned by the lessee. However, such a restriction upon this right as is contained in the portion of the contract first above quoted has the effect of divesting the lessee of that right.
The import of the latter clause above set forth is, first, in the event of a dissolution of the partnership, to preserve the lease
Generally, where there is a provision in the lease contract prohibiting the lessee from assigning it, if the lessor later consents, even verbally, to one assignment, he thereby destroys the provision of the contract denying the right of assignment of the lease. The lessee may then assign it, and his assignee may in turn assign to his successors in title, and they may continue with this process ad infinitum. In short, the lessor, by permitting the first assignment of the lease, not only pierces a hole in the wall, but tears down the dyke, and thereafter permits a veritable flood of assignments of the lease. But we do not think that the permission given in the lease contract to the partner continuing the business to form a partnership with a third person, not a party to the contract, and the right of enjoyment of the lease by such person, had that effect, because of the fact that the right to assign the lease in this case was,' by its plain terms, limited to the partners who remained in the business, and without giving the provision contained in paragraph 5 a broader construction than it deserves, there is no succession in this case to the right of that lessee to make the one assignment to a partner whom he associates with him. Indeed, the instrument in express terms does not even provide that he may make an assignment to that partner, but simply provides that that partner may enjoy all the rights of the lease.
But, be that as it may, Snow is still by the express terms and plain, unambiguous wording of the very provision contained in paragraph five of the lease between Nash as lessor and Snipes and Snow, as lessees, required to continue to carry out the covenants of the lease which were at first incumbent upon him and Snipes. The words of the contract, “it is agreed by the lessor . that the conditions of this agreement may be performed by either lessee,” can mean nothing else.
Certainly, no direct permission to assign the lease is given by the clause referred to, and I do not think such right is given by implication. If the right to assign the lease is to be implied, and added to the unambiguous wording of the lease by construction, then the cardinal rule of construction should be followed and that construction which will place upon the clause the meaning that the lessor Nash and the lessees, Snipes and Snow, intended it to have when it was entered into. To say that Nash intended to extend to the lessees the right of assigning the lease to utter strangers of their own choosing, regardless of such assignees’ solvency or insolvency, responsibility or irresponsibility, would be
Again, whatever, rights might be said to be given the incoming Bryan, he was not vested 'with any authority to relieve Snow of his obligation to carry out the contract.
For the reasons assigned in the foregoing dissent, I cannot agree with the majority of this court in reversing the judgment in this case.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.