Smith v. Rasin
Smith v. Rasin
Opinion of the Court
delivered the opinion of the Court.
The determination of this appeal' from the pro forma decree of the Court below, depends upon the proper construction of a provision in a lease of a farm in Queen Anne’s County from the appellees to John A. Groves. The term was for a period of fifteen years from the first day of January, 1886, “ unless sooner terminated by the parties of the first part, as hereinafter provided for.” The precise terms of the provision on which the contention arises are" as follows : “ And it is mutually understood and agreed between the parties hereto, that at the expiration of the tenth year of this lease, between the first day of December and the thirty-first day of December, 1895, it shall be, and is the right and privilege of the parties of the first part, the survivor of them, or their or either of their heirs, executors or administrators.
It is agreed between the parties, that notice was served on the lessee by the lessors in October of the tenth year of the lease, of their desire to terminate the lease on the 31st of December, 1895, and that such notice was accepted as if given between the first and the thirty-first of December in conformity with the lease; and also, that no arbitration took place although each party selected an arbitrator, the persons so selected having failed to agree on a third.
The question presented for our decision is whether under these circumstances the lease was terminated, or whether the provision requires as a condition precedent to its termination there should be an arbitration and award of damages. “ In order to clear this point,” said Ashurst, J., in Hotham v. The East India Co., 1 T. Rep. 645, “I would first premise that there are no precise technical words required in a deed to make a stipulation a condition precedent or subsequent ; neither does it depend on the circumstance whether the clause is placed prior or posterior in the deed, so that it
Now it seems to be clear that the parties to the lease intended that the lessors should have the power to terminate the lease. The clause fixing the term expressly so declares; and the only limitation upon the exercise of this power, is that it must be done by them as therein afterwards provided. It may, therefore, be premised, that if the mode and manner.in which the lessors are to terminate the lease be made to depend not only on the action of persons whom the .lessors had or could have no control over, but also upon the voluntary conduct of the lessee, then the phrase “ unless sooner terminated by the parties of the first part as hereinafter provided,” becomes wholly meaningless. By mutual agreement the parties could at any time end the term; and if the power given to the lessor can only be exercised when the lessee chooses, to do an act, such as the appointment of an arbitrator, the situation is precisely the same as if no power to terminate had been conferred on
Decree affirmed with costs.
Reference
- Full Case Name
- MARION DeKALB SMITH, Receiver v. JOSEPH RASIN and Others
- Status
- Published
- Syllabus
- Landlord and Tenant—Leases—Provision for Termination Before End of Term by Notice—Appointment of Arbitrators to Determine Damages— Conditions. • A lease of a term provided that it should continue for fifteen years, unless sooner determined by the lessors as therein provided, and that at the expiration of ten years of the lease, between December 1st and December 31st, 1895, the lessors should have a right to give notice- to the lessees of their desire to terminate the lease and repossess the farm, and that thereupon the lease should be terminated in the following manner : Each party shall select one good and impartial citizen, and these two shall call in a1 third, and these three shall meet on the premises, and inquire what damages, if any, shall be paid by one of the parties' to the other in consideration of the termination of the lease, and said award shall be final and paid by the parties so directed to pay the same within ninety days thereafter and the lessees shall remove from the farm on or before December 31st, 1895, without further notice. In October of the tenth year, the lessors notified the lessees of their desire to terminate the lease on December 31st, 1895, and such notice was accepted as if given in conformity with the lease, between December 1st and December 31st. Each party selected an arbitrator, but no arbitration took place because the parties selected failed to agree on the third. Held, 1st. That it was not a condition precedent to the termination of the lease that there should be an arbitration and award of damages, but the lease was terminated by the notice. 2nd. That the lease clearly reserved to the lessors a power to terminate the same, and this power was not made dependent upon the. action of the lessees in appointing an arbitrator, or upon the agreement of the arbitrators. 3rd. That the intention of the parties was that the lease should terminate upon the giving of the notice, and the object of the arbitration was to afford a speedy method of determining what should be paid by one party to the other in consideration of the termination, and such adjustment could be made as well after as before the end of the term.