Hoy v. Kapiolani Estate, Ltd.
Hoy v. Kapiolani Estate, Ltd.
Opinion of the Court
By an instrument dated July 1, 1882, tbe commissioners of crown lands of tbe Kingdom of Hawaii leased to one Kapooloku (Her Royal Highness Princess Poomaikalani) three separate tracts of land, one being called- Kauamoa and situate at Waikiki; another being called Piliamoo, also situate at Waikiki and the third being called Puahia, situate at Manoa, all on this island. By mesne assignments this lease passed to the Kapiolani Estate, the present defendant.
Kapooloku, by an instrument dated July 1, 1889, did “convey by lease” the land of Puahia above mentioned “and to hold the said lease unto” one Keawe and eleven other persons; and by mesne assignments the interest created by this latter instrument passed to the present plaintiffs. On January 16, 1911, the Kapiolani Estate, Limited, being in arrears as to the rent reserved under the lease from the commissioners of crown lands, that corporation and the present plaintiffs were ejected from the land of Puahia at the instance of the Territory of Hawaii, the successor in interest to the commissioners of crown lands. A few days prior to this dispossession the plaintiffs had paid to the Kapiolani Estate, Limited, all of the rent reserved under the lease to Keawe for a period of time extending several months beyond the 16th day of January, 1911, all prior rents having been faithfully paid by the lessees under the lease to Keajve. The present
The foregoing and all other material facts in this opinion stated were presented to the jury at the trial under stipulation of the parties to the action; and the plaintiffs thereupon rested. The defendant moved for a nonsuit and the motion was granted and judgment was entered accordingly. The case comes to this court on exceptions from that ruling and judgment.
The theory underlying the nonsuit was that the lease to Keawe operated in law as an assignment pro tanto of all of the interest of Kapooloku in Puahia under the lease from the commissioners of crown lands; that the relation of landlord and tenant did not exist between the Kapiolani Estate, Limited, and the present plaintiffs and that therefore this action would not lie in favor of the plaintiffs and against the defendant.
Of importance in determining whether the lease to Keawe constituted an assignment pro tanto of the original lease from the commissioners or merely a sublease is the ascertainment of whether or not in the lease to Keawe Kapooloku reserved to herself a part, however short, of the term of the original lease. The lease from the commissioners was “for and during the term of thirty years, to commence from the 1st day of July, 1882,” while the lease to Keawe was “for the term of twenty-three years commencing from the day of the date of this instrument” (July 1, 1889) “and ending on the 30th day of June, 1912.” There can be no doubt that under the latter instrument the lessees were entitled to hold the demised property throughout the 30th day of June, 1912. Under the lease from the commissioners, what was the last day
We think that it sufficiently appears from the text of this instrument that the word from was used in its inclusive sense and that therefore the last day of the term should be June 30, 1912. In other words, the original lessee in and by the lease to Keawe demised the whole of the term to which she was entitled under the original lease. It is held by what appears to be a preponderance of the authorities that when this course is pursued the transaction constitutes, as between the original lessor and the last lessee or the assignee of the lease, an assignment of the lease and not a sublease; and also that when the question arises as between the original lessor and the last lessee it is immaterial that the rent reserved by the lease to the last lessee is greater than that reserved by the original lease and that a right is reserved for reentry for condition broken. “Any conveyance by a lessee of his whole interest in demised premises, leaving no reversion-ary interest-in himself, operates as an assignment regardless of the form of the instrument of transfer.” McLennan v. Grant, 8 Wash. 603, 608. Quoting from 1 Woodf. Landlord & Tenant, 258, the court in Craig v. Summers, 47 Minn. 189, 191, 192, says: “An assignment, as contra-distinguished from a sublease, signifies a parting with the whole term; and whenever the whole term is made over by the lessee, although in the deed by which that is done the rent and a power of reentry for non-payment are reserved to himself, yet the instrument amounts to an assignment, and not a sublease; and in such case the person to whom it is made over may sue the original lessor or his assignees of the reversion, or be sued by them, as assignee of the term, on the respective covenants of the original lease which run with the land, even though new covenants are introduced into the assignment.” The rule
There is, however, a respectable minority of courts which hold that the reservation of a right of re-entry upon condition broken is a reservation of a contingent interest or estate in the land and that therefore the transaction does not pass the entire interest of the original lessee and is a sublease only. Which is the better rule, upon reason, we need not consider, for in the case at bar the question does not arise as between the original lessor and the last lessee. So also, for the same reason, what would be the effect of the unusual provision in the lease to Keawe which appears to authorize a termination of-the tenancy in so far as any one or more defaulting lessees are concerned and which further authorizes the substitution by the original lessee of one or more other persons in place of such defaulting lessees, need not be determined.
Many of the authorities which declare the law as above recited, reaching the conclusion that the transaction is to be regarded as an assignment of a lease and not as a sublease, make no distinction with reference to the parties between whom the question arises. The distinction, however, to which attention is called by some of the authorities on the subject appeals to us as being sound and that is, that as between the original lessee and the person to whom he leases the transaction is to be regarded as a sublease if the parties so intended. Resort to this distinction is had by courts in order, doubtless, to enable
“It is also well settled that the same instrument may in law constitute an assignment of the term, as between the original lessor and the assignee, and also the relation of landlord and tenant between the parties to the second demise. ⅜ # This distinction seems to be lost sight of in some of the cases.” Craig v. Summers, 47 Minn. 189, 192.
“The effect, therefore, of a demise by a lessee for a period equal to or exceeding his whole term is to divest him of any reversionary right and render his lessee liable, as assignee, to the original lessor; but at the same time the relation of landlord and tenant is created between the parties to the second demise if they so intended.” Stewart v. Railroad, 102 N. Y. 601, 608.
“However, as between the lessee and one who takes a conveyance of the whole term the transfer will operate as a sublease, when such is clearly the intention of the parties as evidenced by their contract, but this is not con-
“Questions similar to this have frequently arisen in the courts and there is án apparent conflict in the decisions which can be in the main resolved by separating those cases wherein the controversy arose between the original tenant and his lessee or assignee from those wherein the controversy was between the original landlord and the lessee or assignee of his tenant.” Jordan v. Scott, 177 Pac. (Cal.) 504, 506.
“In a suit between” the owner and “the sublessee a construction of the sublease as an assignment would be correct; but, where the controversy arises between the lessee and subtenant the transfer will be held to operate as a sublease rather than an assignment when such is clearly the intention of the parties to the contract.” Frith v. Wright, 173 S. W. (Tex.) 453, 454. To the same effect are 1 Taylor, Landlord & Tenant (8th ed.), p. 17, n; 24 Cyc. 976; and 16 R. C. L. Sec. 320.
In Weander v. Claussen Brewing Ass’n., 42 Wash. 226, relied upon by the defendant, the court did not recognize this distinction. Upon the reasoning above stated, we prefer not to follow that decision.
In the case at bar the facts above related amply demonstrate that it was the intention and understanding of both parties to the last demise that the transaction between them was a sublease and that the relation of landlord and tenant was thereby brought into existence between them. In this controversy between them, to which the commissioners of crown lands and their successor, the Territory of Hawaii, are not parties, the transaction must be regarded as a sublease. Viewing, then, the instrument in question as a sublease a covenant of quiet enjoyment is to be implied from the fact of leasing.
“With respect to estates less than freehold, covenants for title were from the earliest times implied not only from the words of leasing, such as ‘demisi,’ ‘concessi,’ or the like, but even from the relation of landlord and ten
“The covenants for title thus implied from the words of leasing were and are two—first a covenant that the lessor has the power to demise, and secondly a covenant for quiet enjoyment.” Ib. Sec. 273.
“In every lease there is an implied covenant of quiet enjoyment.” Duff v. Wilson, 69 Pa. 316, 318. To the same effect see Knapp v. Marlboro, 29 Vt. 280, 286; Wade v. Halligan, 16 Ill. 507, 511; and Maeder v. Carondelet, 26 Mo. 112, 115.
Upon the admitted facts stated to the jury the plaintiffs were entitled to recover the damages resulting to them from the defendant’s failure to preserve its title as lessee and from the consequent ousting of the plaintiffs by the Territory of Hawaii. It was therefore error to grant the nonsuit.
The exceptions are sustained and the cause is remanded to the circuit court for a new trial.
Reference
- Full Case Name
- LEE HOY, COPARTNERS DOING BUSINESS UNDER THE FIRM NAME AND STYLE OF HOP SING IN COMPANY v. KAPIOLANI ESTATE, LIMITED
- Status
- Published