H. S. Chase & Co. v. Evans
H. S. Chase & Co. v. Evans
Opinion of the Court
Defendant E.- M. McCray is the only one appearing and contesting the action, and he is the only one against whom judgment was entered. Plaintiff’s petition was filed December 16, 1914, and alleges that defendants are indebted to it in the sum of about $2,700, on a lease of the premises for the period between the time the defendant and the Evans Company vacated the property, and when it is claimed the plaintiff rerented the same. The written lease was executed February 5, 1912, between H S. Chase & Com-. pany, party of the first part, and the Evans Company and Louis J. Evans, John Evans and E. M. McCray, parties of the second part. The lease is signed as follows:
“H. S. Chase & Co., First Party, by H. S. Chase, Pres.*887 The Evans Co,, by Lou. Evans. Lou. Evans, John Evans, É. M. McCray.”
The defendant E. M. McCray denies liability, alleging that, after the premises were abandoned, the landlord took possession of the same and leased them to other persons, and thereby released said defendant and accepted another tenant in his place; that this defendant surrendered the premises to the plaintiff, and the plaintiff accepted the surrender of the same and permitted the same to be remodeled by a ne.w tenant without the consent of this defendant, and therefore released him from any further obligation under the lease.
The Evans Company is a corporation, and E. M. McCray and the others were, at the time of the execution of the lease, members thereof. The lease was to run for a period of 10 years and 8 months from February 1, 1912, at a monthly rental of $275. The company began to conduct a restaurant therein. Sometime thereafter, defendant McCray sold out his interest in the company to John Evans, and ceased to be connected' with the concern; some 7 or 8 months after that, the company and John and Louis Evans ceased to operate the cafe and closed the doors of the establishment, and, as defendant contends, abandoned the premises.
Appellant claims that the alleged abandonment was about the first of. January, 1914; but some of defendant’s evidence at least tends to show that this was about the last of March or first of April, 1914. . At any rate, a short time thereafter, certain creditors of the Evans Company held a meeting, at which the plaintiff, one of the creditors of the Evans Company, was represented. The Evans Company and some of the others were also represented at this meeting by an attorney; but this defendant was not represented at any of the meetings of the creditors, and did not consent to anything that was done by the creditors with respect to the leased premises. The creditors decided to appoint from their number a committee of three, for the purposé of reopening the restaurant and operating the same. The plaintiff, through its president,
Defendant claims that, during the time the creditors had possession of the premises, they remodeled them, making a cigar store out of the front part and a cafeteria out of the rear part of the room, one C. C. Taft paying rent for the front part of the store. But the court refused to allow defendant to prove some of these circumstances.
When the creditors surrendered the premises to plaintiff, October 15, 1914, plaintiff took possession of the same and made an effort to rent it, took possession of the personal property in the front end of the store, and either sold or credited the same on the rent account. The property was rented again by plaintiff, May 1, 1915, and no claim is made for any rent subsequent to that date.
The foregoing is the substance of appellant’s statement of the facts, and is not disputed by appellee, except it claims that the creditors ’ agreement contained a provision that nothing therein should affect the rights of the landlord under the original lease.' There is evidence to this effect. But the question is, or one question, whether defendant McCray is bound thereby, he not having been represented at the time the agreement was made.
"We shall not attempt to go into the evidence in detail, but state our conclusion that there was sufficient evidence to take the case to the jury on the questions above indicated. It is largely a question of fact whether there was a surrender and acceptance by plaintiff, or whether plaintiff took possession for the benefit of this defendant. We ought, perhaps, to refer to the testimony of the defendant as to the conversation this defendant testifies to with the president of the plaintiff company. He says:
‘ ‘ I had a talk witli II. S. Chase in the fall or winter of 1913 about my liability on this lease. It was before the company went out of business, about 7 or 8 months. The conversation was in Mr. Chase’s store on Walnut Street, and I told him that I wanted to be released from the lease and asked him if I could get off of it. .1 told him I intended to sell out. He told me I didn’t need to worry about it, or didn’t need to be off, or something like that. He said he would be glad to have it himself in case it was possible to get, and that he would be glad to have the premises back. He said it was very cheap rent we were paying, and that he could probably rent for more than we were paying.”
This evidence is not denied, although Chase was .a witness. Whether this evidence alone was sufficient, we do not determine. There are other circumstances in the case bearing upon the question as to whether there was a surrender of the premises to plaintiff and an acceptance. As to the law, some of the cases relied upon are cited by both sides.
They also contend that, where a landlord takes possession of leased premises abandoned by the lessee and rents them to another, the landlord must notify the first tenant that the premises are rerented for the tenant’s benefit, or it will constitute an acceptance of the abandonment and put an end to the lease, citing again the two cases first before cited, and Armour Packing Co. v. Des Moines Pork Co., 116 Iowa 723; Gray v. Kaufman Dairy & Ice Cream Co., 162 N. Y. 388. And further, that, upon abandonment by the tenant of leased premises, the landlord has three remedies: First, he may at once enter and terminate the contract and recover the rent up to the abandonment; or, second, he may suffer the .premises to remain vacant and sue on the contract for the entire rent; or he may give notice to the tenant of his refusal to accept a surrender, and sublet the premises for the unexpired term for the benefit of the lessee to reduce his damages, citing Higgins v. Street, supra.
In Kean v. Rogers, supra, at page 563, we said:
“So, also, reletting the premises is not -always conclu*892 give’. If the landlord relets on account of the tenant, it is a circumstance of no value; but if the landlord relets on his own account- without notifying the original lessee, and he does not consent thereto, such reletting is generally held to show an acceptance of the surrender, unless the lease ¡itself provides for such reletting. There was no provision relating thereto in the lease in question, and the use of the premises by Mr. Emery and the plaintiff’s demand for the rent therefor furnished evidence tending to support the claim of the defendant that there was a mutual surrender of the lease. . . . It is also the general rule that an absolute and unqualified taking of possession by the landlord shows an acceptance, unless the landlord indicates to the tenant, at that time, his purpose to hold him liable for the rent. In this ease the plaintiff, through his agent, took such possession without a word to the defendant Iiofmaster. It is true that several months thereafter he notified Iiofmaster that he intended to hold him for the rent; but, when a complete surrender has taken place, a lease cannot be revived by the action of only one party thereto. ’ ’
See, also, Armour Packing Co. v. Des Moines Pork Co., 116 Iowa 723.
For the reasons given, the judgment of the district court
Reference
- Full Case Name
- H. S. Chase & Company v. Louis J. Evans
- Status
- Published