Drake v. Eggleston
Drake v. Eggleston
Opinion of the Court
— The appellant Alice Drake is the widow of one Harry L. Drake, late of Chicago, Illinois, who died April 11, 1946. The other Drake appellants are his • minor children and the appellant, James G. Potter, is their legal guardian. Upon the death of Harry L. Drake his said widow and two children inherited, through his will, 527 acres of farm land in Jasper County, Indiana, then under written lease to the appellee, Jake L. Eggleston. On July 1, 1947, the appellants, by written notice, declared said lease to be forfeited by reason of alleged violations of its terms by the appellee and therein demanded immediate possession of the land involved and, upon the refusal of the appellee to comply therewith, they brought this suit in the Jasper Circuit Court whereby they seek judgment decláring the forfeiture of said lease, the restoration of said lands to their possession, and damages for its wrongful detention.
Their complaint is in four paragraphs and each charges a forfeiture of the lease involved by reason of the appellee’s conduct. The first alleges that he failed to. pay rent according to.the terms of said lease; the second alleges a sub-letting of the premises contrary to
The trial of these issues was to the court which found against the appellants on all paragraphs of their complaint and against the appellee on the paragraph of his cross-complaint seeking reformation of the lease and for him in the sum of $731 on the second paragraph of said cross-complaint. Judgment went accordingly. The appellants’ sole assignment of errors is the overruling of their motion for a new trial which contains but two specifications: (a) that the decision of the court is not sustained by sufficient evidence; and (b) that the decision of the court is contrary to law. The appellants’ brief contains no discussion of the waste arid conversion issues nor does it challenge the judgment for the appellee in the sum of $731 on the second paragraph
The lease involved in this controversy creates a 10 year leasehold estate in the appellee beginning March 1, 1945, and ending March 1, 1955. Concerning rent, subleasing and forfeiture it provides as follows:
“In consideration of the Premises, said party of the second part hereby convenants and agrees to occupy said premises in a careful tenant-like manner, to pay to the party of the first part for the rent thereof, the sum of Thirty thousand ($30,-000.00) dollars, without any relief whatever from Valuation or Appraisement laws, as follows, to wit: said rental to be on an annual rental of $3,000.00 the first years rent to be payable on or before the 1st day of January, 1946, and a like sum to be paid on or before the 1st day of January of each year thereafter during the term of this lease. The lessee shall have the privilege during each year of this , lease to make improvements on the leased premises such as clear-trees and brush, removing stone, ditching, tiling, constructing abutments, drains, dams, pump houses and installing pumps and engines to an amount not to exceed $1,000.00 in each year, which sum the lessor agrees to credit against the annual rental conditioned that the lessee shall furnish to the lessor satisfactory evidence of ex- ■ penditures made in the form of cancelled checks or receipted bills, which evidence shall be submitted • to the lessor at the time of paying the annual rent thereunder, it being expressly understood and. agreed that the cash rental to be paid the lessor in any one year shall not be less than $2,000.00 and that all improvements so made as above set forth shall become a part of the real estate and remain on the leased premises as improvements at the termination of this lease.
“And also to surrender at the end of said term, or at the expiration of said Lease, to said party of the first part, without notice, in as good condition as they now are, natural wear and decay and unavoidable accidents excepted. And the said party of the second part further agrees not to sub-lease*311 said premises without the written consent of the party of the first part.
“It is expressly understood and agreed that if said party of the second part shall violate any of the agreements herein contained, or if any part of said rent shall be in arrear for. ten days, that this lease shall be forfeited, and said party of the first part shall be entitled to the immediate and peaceable possession of the premises without notice.”
The questions we find it necessary to discuss are: (1) Did- the appellee violate the terms of this lease by (a) failing to pay rent as therein provided, and (b) by sub-letting the premises contrary to its terms; and (2), if so, are the appellants,, through the conduct of their predecessor in title, estopped from asserting forfeiture?
The undisputed evidence shows conclusively that the 1946 rent was not paid by the appellee in the manner required by the lease. To apply on rent for that year he paid $2,000 in cash but to this day has not furnished the appellants with “cancelled checks or receipted bills” showing expenditures for work done on the land that year in the amount of $1,000. This, standing alone, would warrant a forfeiture of the lease because the parties thereto so expressly stipulated. However immediately after the lease was executed, and notwithstanding its terms, the appellee indicated to Drake that he intended to do all the drainage and clearing work contemplated by the lease immediately and in one operation rather than in yearly installments to which Drake affirmatively agreed. Acting on this understanding the appellee did such work in July and August of 1945 at a total cost of $10,393.13 and informed Drake of its completion that fall. Later he furnished the appellants with an itemized statement of such expenditure which was received by: them without comment or protest.
We find the evidence ample to sustain the court’s decision which in all respects appears to be in accordance with the law.
Judgment affirmed.
070rehearing
ON PETITION FOR REHEARING
— The appellants’ petition for a rehearing calls our attention to two inaccuracies in the resume of the record in this case as stated in our initial opinion. Although wholly immaterial to a decision of the controversy we take this opportunity to correct the same. The appellants’ title to the land in controversy
We are charged primarily with justifying the trial court’s decision through the indulgence of inferences arising or flowing from the direct and positive evidence in the record. The appellants do not challenge such inferences as unreasonable, remote or speculative, but rest their contention on the bald and uncompromising statement that equitable estoppel cannot be found by inference or presumption however reasonable or compelling. In support of this principle we are referred to authorities from Lord Coke to the pronouncement of this court in Wilkerson v. Wood (1924), 81 Ind. App. 248, 143 N. E. 166. If there is any thread of universally applicable doctrine running through these decisions it seems to be that no man should be concluded from setting up the truth unless it clearly appears, without resort to argument or dubious inference, that his own conduct has led another to act to his detriment.
If a case for equitable estoppel is rounded out by an inescapable or compelling inference arising from established facts, it seems to us that such inference has all the dignity and probative value of direct and positive testimony, and there is no basis, in reason or logic, for its exclusion from consideration. See Johnson v. Western etc., Mining Co. (1923), 81 Ind. App. 79, 140 N. E. 559; 19 Am. Jur., Estoppel, §43.
The appellants next objected to our statement that “Acting on this understanding the appellee did such work in July and August, 1945.” They say we could have arrived at such a conclusion only through inference as it is unsupported by direct testimony to that effect. It is true that the appellee did not testify in so many words that he relied upon the understanding he had with Drake, and therefore did all of the work contemplated by the lease in one operation, rather than in installments as the lease provided. Nevertheless, he did exactly what he and Drake had agreed upon, and it seems inconceivable that he did so without reference to such agreement. Actions speak as well as words, and when a mental process is in issue
-...■Still insisting on their contention that equitable estoppel cannot. >be found on inference the appellants say that -at no time after the lease in suit was executed was there anything said between the parties concerning the credit the appellee was to have for the $10,000 in work he proposed to do in 1945, and that we recognized such to be the state of the record when we said: “. . . it is reasonable to assume that he (Drake) knew the appellee would expect credit.” The written lease in suit was affected in only one particular by the conversation between the parties immediately after its execution. Drake-surrendered his right to have the contemplated construction work done in ten installments but otherwise the rights of the parties remained as provided by the lease.
■ Therefore, we do not need to indulge in inference to say that Drake knew that the appellee expected credit at the rate of $1,000 per year because the lease so provided.
■ Finally, the appellants contend that the doctrine of estoppel in pais has no application where no fraud, con-i' cealment, or attempt to mislead is proven, and that, the evidence in this case shows none. We accept the principal of law as stated but are of the opinion that the meaning of the word “fraud” cannot be limited to a situation where one entertains a preconceived design to circumvent or cheat another. It includes a breach of duty, independent of moral guilt, which the law declares fraudulent because of its ten
While the facts in this case may not be sufficient to show actual fraud involving an intent to deceive they do show fraud in law, which includes conduct the end result of which is unconscionable, and that is sufficient to invoke the doctrine of equitable estoppel.
Rehearing denied.
NOTE. — Reported in 108 N. E. 2d 67 and 901.
Reference
- Full Case Name
- Drake Et Al. v. Eggleston
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