Laupahoehoe Sugar Co. v. Lalakea
Laupahoehoe Sugar Co. v. Lalakea
Opinion of the Court
OPINION OF THE COURT BY
This is a suit in equity for the specific performance of a contract to renew a lease. On November 10, 1911, one T. K. Lalakea executed a lease to the Laupahoehoe Sugar Company, an Hawaiian corporation, the petitioner herein, of certain lands for the period of five years ending November 5, 1919, for a consideration of $8000 as rent for the full period of the lease. By that lease the lessor covenanted, inter alia, that “the said lessee in consideration aforesaid shall have the right, at its option at any time before the expiration of the said term hereby created, to have a renewal of this lease upon the same terms as
On November 3, 1919, before the expiration of the term created by the original lease, the lessee notified Solomon K. Lalakea, Hannah Makainai, Mohiehie Hewahewa and several other persons that it “does hereby give notice of its intention to exercise, and does exercise the right to have a renewal of the said lease” (meaning the original lease above referred to) “upon the same terms as therein contained, saving and excepting' the rent and consideration therein expressed, which for the new lease shall be at the rate of five dollars per acre per annum for each and every acre in the said leased premises, said rent being payable semiannually in advance; and the said Laupahoehoe Sugar Company is ready and willing to pay the said rent to the person or persons entitled thereto upon demand.” In answer to this notification Solomon K. Lalakea wrote to the Laupahoehoe Sugar Company enclosing a form of lease which he was willing to execute and which was evidently drawn upon the theory that he would be the sole lessor. The sugar company thereupon under date of November 28, 1919, wrote to Solomon K. Lalakea in care of his attorney a letter of which the following is a copy:
“We acknowledge receipt of your letter of the 18th inst. enclosing a form of lease from Mr. Solomon K. Lalakea to Laupahoehoe Sugar Company, with reference to Royal Patent No. 1033, 2729, 2220, and 2393, for the term of five years.
“In reply to your request that we notify you whether the form and contents of the lease conform to our understanding of the lease to which we claim Laupahoehoe*820 Sugar Company is entitled, Ave beg to say that Ave have prepared another form and folloAved more closely the form of the original lease, and enclose a copy for your information.
“You as attorney for Solomon K. Lalakea are no. doubt aAvare of the controversy as to the title of some of the land above mentioned, and in vieAV of the dispute which exists you Avould not expect a third party to acknowledge at present that your client, Mr. Solomon K. Lalakea, is the owner of the land. Under these circumstances, as the form of lease contains only a limited covenant for quiet possession, inasmuch as the lessor only covenants for the acts of himself and persons claiming by, through or under him, we think that before Laupahoehoe Sugar Company accepts the lease from Mr. Solomon K. Lalakea alone, he must indemnify us against having to pay the rent to other parties.
“This letter, of course, is Avritten without prejudice to the rights and claims of Laupahoehoe Sugar Company.”
The “important condition” referred to in the first point of the appellant’s brief and which is claimed to operate as a forfeiture of the lessee’s right to a renewal of the lease is to be found in the statement • of' the letter just quoted that “we think that before Laupahoehoe Sugar Company accepts the lease from Mr. Solomon K. Lalakea alone, he must indemnify us against having to pay the rent to other parties.” The requirement of the original lease was that the right to a renewal should be exercised by the lessee at any time before the expiration of the term of the original lease. This the lessee did prior to the expiration of the original lease, to wit, on November 3, 1919. Its letter of that date to Solomon K. Lalakea and the other claimants, notifying-them of its exercise of the right of renewal, was explicit and unqualified and was a
It is true that at the time this suit was instituted and for some time thereafter there was a dispute as to the title to "the lands involved in the original lease and in the proposed renewal. An action of ejectment was pending which had been brought by Hannah Makainai against Solomon K. Lalakea and so also an action to quiet title had been brought by Lilly Hewahewa against Solomon.K. Lalakea and was pending. Prior, however, to the rendition of a decision and the entry of a decree in this suit both actions at law were determined not only in the trial courts but upon appeal in this court. The results of those actions were that in the first case Hannah Makainai was held to be entitled to an undivided one-eighth interest in certain lands and in the second case the determination was wholly in favor of Solomon K. Lalakea. It is not claimed that these determinations were not fully
The objections presented before us to the decree
Reference
- Full Case Name
- LAUPAHOEHOE SUGAR COMPANY v. SOLOMON K. LALAKEA
- Cited By
- 1 case
- Status
- Published