Sharpless v. Zelley
Sharpless v. Zelley
Opinion of the Court
Opinion by
The plaintiffs leased to the defendant a mortar mixing plant, in the borough of Darby, for a term of three years from July 1, 1905, at the rent of $2,250 for the term, $100 to be paid on the execution and delivery of the agreement and $325 on January 1,' 1906, etc.' The defendant paid the $100 required upon the execution and delivery of the lease, but did not pay the $325 called for by the lease on January 1, 1906, and the plaintiffs brought this action of assumpsit to recover that installment. The lease contained this covenant: “The lessor herein named hereby covenants and agrees to make repairs to the said mortar plant upon the said demised premises satisfactory to the lessee herein named, so that the same may be successfully operated by the said lessee; said repairs to be fully made and completed by the 1st day of July, a. d. 1905, and no liability for rent shall be incurred by the said lessee under this lease until such repairs have been made.” The defendant asserts that the plaintiffs failed to make the repairs called for by this covenant uf the léase and that because of such failure he is by said covenant relieved from liability to pay this installment of rent.
There was a conflict of evidence as to whether the plaintiffs had made the repairs required, and the defendant had accepted the work as done as a performance of the covenant of the lease. The defendant testified at the trial that the repairs were not satisfactory to him, but whether his objection to the manner in which the repairs were executed was made in good faith or was merely capricious was still a question for the jury: Singerly v. Thayer, 108 Pa. 291; Meacham v. Gardner, 27 Pa. Superior Ct. 296. The evidence did not entitle
The fifth and fourteenth specifications of error may be considered together. The fifth specification is based upon the following paragraph from the charge: “Because he (the defendant) occupying the premises .... he could have rescinded and walked away, but having taken possession he must pay what it was worth under this contract.” The fourteenth specification refers to the following paragraph of the charge:-“So that it is quite apparent that when July 1st came both parties understood that this contract had not been carried out to put this plant in operation by July 1st. The defendant went into possession and has been in possession since. What does he owe the plaintiff? He owes the plaintiff just the difference between what it would cost him to operate the machine as it has been and what it would have cost him if the plaintiff had put it in the repair that his lease provided for.” In view of the covenants of the lease and the testimony produced at the trial, we are of opinion that these instructions were erroneous. The covenant of the lease hereinbefore quoted required the plaintiff to make repairs to the said mortar plant “satisfactory to the lessee,” and expressly stipulated that no liability for rent should be incurred by the lessee until such repairs had been made. The intention of the parties to the lease manifestly was that the mortar plant should be fully repaired and ready for successful operation by July 1, 1905, but the covenant in question clearly indicates that they recognized that there was a possibility that the repairs could not be completed prior to that date, and to meet that contingency they expressly covenanted that the accruing of rent should be suspended until the repairs were completed. It was a fact admitted by both sides at the trial that the repairs were not completed and no part of the plant was ready to be put in operation until a
When, about October 1, 1905, the defendant had notice that the plaintiff considered the repairs completed and was about to withdraw from the concurrent possession which had existed during the progress of the repairs, he had not yet entered upon the term or become liable for rent. He was then called upon to act. If he in good faith believed that the plant had not been satisfactorily repaired, so that it could be successfully operated, he was not bound to accept it. He could have surrendered the possession, or offered to surrender it, and relieved himself from the payment of rent and become entitled to recover what he had paid, or he could have entered into the exclusive possession and made the repairs, in accordance with the terms of the agreement, and defalked the cost of making
The offer of testimony, the rejection of which is the foundation of the sixth specification of error, was properly excluded. The covenant of the lease only required the plaintiff to repair the then existing mortar plant, it did not require her to install a more powerful engine or new and improved devices. The plaintiff was bound to repair, to the satisfaction of the lessee, all the machinery which then comprised the plant; it
The judgment is reversed and a venire facias de novo awarded.
Reference
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- Syllabus
- Lease — Lease of machinery — Covenant as to repairs — Rental. In an action to recover rental under a lease of machinery, the plaintiff makes out a prima facie case when he proves the execution of the lease, and that the defendant went into possession under it. Where a lease of machinery provides that no liability for rent shall be incurred by the lessee until certain repairs have been made satisfactory to the lessee, the question whether the lessee’s objection to the repairs was made in good faith, or was merely capricious, is a question for the jury. In such a case the defendant enters into possession and the plaintiff enters into concurrent possession for the purpose of making the repairs, no rent accrues until after the repairs are completed, and the defendant’s concurrent possession has ended. When the repairs are completed and the lessee believes in good faith that the machinery had not been satisfactorily repaired, so that it could be successfully operated, he is not bound to accept it. He may surrender the possession or offer to surrender it, or he may enter into the exclusive possession and make the repairs in accordance with the lease, and defalk the cost of making them from the rent, or he may retain the exclusive possession and deduct from the rent the difference between the rental value of the machinery as it then was, and its rental value as it would have been if the repairs had been properly made. The lessee is not entitled to the exclusive possession without making some compensation. In such a case the measure of damages is not the difference in the cost of operating the plant, since the cost of operating it is not the only element affecting the rental value. Where a lease of machinery contained a covenant on the part of the lessor to repair the then existing plant so that the same may be successfully operated, the lessor is bound to repair all the machinery. which then comprises the plant, but he is not required to furnish additional machinery or larger pumps. Where the lessee has offered testimony as to the character of the defects to which he objected, the lessor is entitled to show the condition of the machinery at the time he completed the repairs and permitted the lessee to take possession; but it is not permissible to show the general condition of the plant after the lessee had been operating it for a year. Evidence as to the work which the lessor had caused to be done in making the repairs to the plant, is admissible, but the amount of money paid out for such work is not so.