Rodríguez Font Realty Corp. v. J. Gus Lallande, Inc.
Rodríguez Font Realty Corp. v. J. Gus Lallande, Inc.
Opinion of the Court
delivered the opinion of the Court.
“The term of the present contract of lease is three (3) years, to begin retroactively on the first day of April of the current year [1956], and therefore, to expire on the thirty-first day of March, nineteen hundred and fifty-nine, said term to be extendible for three (3) additional years, at the sole option of the lessee, but the latter being bound, in order
The first story and part of the second of a building situated in 1 General Gamba Street in the waterfront section of San Juan, were the premises object of the lease, which were devoted by the lessee to its business of storing, packing and distributing “Sello Rojo” rice of the Rice Growers Association of California, having installed the necessary machinery and equipment therefor. The stipulated monthly rental was $1175, payable in past-due monthly instalments during the term of the contract; but in the event that the lessee should exercise the right of extension agreed upon for three more years, said rental would be increased to $1,300 monthly.
The lessee used the leased premises until March 31, 1959, the expiration date of the term established for the contract, but remained in possession thereof after said date without notifying the lessor in any manner whatsoever and within
The position of the lessor corporation is that the lease was extended without need of the notice that the lessee was
The conduct of the lessee-appellant shows, in our opinion, that although it did not send the notice in writing-required by the contract by registered mail and four months prior to the expiration of the original contract, it accepted that its withholding possession of the property was based on the exercise of the option to extend. Its conduct in sending the balance of the increased rent, upon being demanded to do so by the lessor, can not be construed in any other way. It constitutes an acceptance of the contractual provisions. See Amezaga v. Agudo, 67 P.R.R. 6 (1947), and Abarca v. Cordero, 60 P.R.R. 507 (1942). If it had not assumed that position, it would have been easy for the lessee to insist that since its possession was based on the implied renewal it was only bound to pay the rental stipulated for the original term of the contract. As we previously noted, by virtue of the provisions of public policy restricting the action of unlawful detainer contained in § 12 of the Reasonable Rents Act, supra,, on the expiration day agreed upon in the lease, the tenancy relationship is “compulsorily extended by the lessor at the option of the tenant or lessee, without altering any of the clauses thereof, all of which shall be deemed in force,” except in the case where the lessor, after being duly notified, is authorized to “refuse the extension of the lease contract and, consequently, commence unlawful detainer proceedings,” pursuant to the provisions of § 12-A of the aforesaid Act.
Tay-Holbrook, v. Tutt, 24 P.2d 463 (Cal. 1933), cited in the opinion of the trial court, presented a situation very
In Cicinelli v. Iwasaki, 338 P.2d 1005, 1011 (Cal. 1959), the assignee of a lease contract and the lessor agreed to extend a lease for five years with an increase in the monthly rental from $740 to $1,040, and it was held that the sending of a check for the latter sum gave rise to the inference that the lessee intended to exercise the option to extend and accepted to pay the larger sum, thus distinguishing it from Colyear v. Tobriner, 62 P.2d 741 (Cal. 1936), where although the lessee notified his intention to continue in possession of the property after the expiration of the term agreed upon, he did not indicate his willingness to the increased rent, but continued to pay the original rental.
Cf. Moiger v. Johnson, 180 F.2d 777 (C.A. D.C. 1950) ; United States v. T. W. Corder, Inc., 208 F.2d 411 (C.A. 9, 1953) ; Donnelly Advertising Corp. of Md. v. Flaccomio, 140 A.2d 165 (Md. 1958) ; Worthington v. Serkes, 111 A.2d 877 (D.C. 1955).
Le Blanc v. Barielle, 25 So.2d 638 (La. 1946), on which appellant relies is neither favorable nor applicable to it. This is a case where a lease was executed for the term of one year with an option in favor of the lessee to extend it for three additional years under the same terms and conditions contained in the original contract—including the amount of rent—provided the lessee constructed additional facilities to
The trial court did not commit error in rendering-judgment declaring that the tenancy relationship between the parties existed until March 31, 1962 and that the lessee was bound to the payment of the lease rental up to the latter date. However, at first blush, the leased premises devoted to a commercial and industrial enterprise are subject to the regulation governing housing, § 4 (a) of Act No. 464 of April 25, 1946 (17 L.P.R.A. § 184(a)). This being so, we can
The judgment rendered by the Superior Court, San Juan Part, on April 21, 1961, will be affirmed.
Pursuant to Rule 59 of the Rules of Civil Procedure of 1958, 32 L.P.R.A., Supp. 1961, p. 173, the procedure to obtain a declaratory judgment is governed by said rules. See Asoc. de Distribuidores v. Econ. Stab. Adm., 81 P.R.R. 206 (1959) ; Colón v. San Patricio Corporation, 81 P.R.R. 236 (1959) ; Llopiz v. Arburúa, 72 P.R.R. 496 (1951) ; Cristy v. Malavé, 70 P.R.R. 497 (1949), decided under the former Rule 57 of the Rules of Civil Procedure of 1943, similar in its language to the present Rule 59.
On page 4 of its brief the appellant explains that it consented to said insistence “because it did not wish the lessor to notify the termination of the lease from month to month.” Although plausible, this explanation finds no support in any of the testimonies or counter-testimonies attached to the motions for summary judgment, and, therefore, we can not consider it as an established fact for the purpose of deciding the present petition. Sec, however, the subsequent discussion on pages 338 and 339 as to the effect of § 12 of the Reasonable Rents Act.
The text of the letter reads thus:
“I am referring to the conversation that I had with you in connection with the premises that we occupy at present at General Gamba Street, and we wish to inform you that we shall vacate the same on the last day of February 1960, on which date we shall move to our own mills.
“If in the meantime there should arise any difficulty that will compel us to remain one month more in said warehouse, we shall proceed to notify you immediately.”
By virtue of clause 8 (n) of the lease contract the lessee was forbidden to assign in whole or in part its right to lease or to sublease said premises, except to any branch organization of said lessee, or if the as-signee or sublessee were Mr. J. Gus Lallande, his children or heirs.
If, on the expiration of the contract, the lessee continues enjoying the thing leased for fifteen days with the acquiescence of the lessor, it shall be understood that there is an implied new lease for the time mentioned in sections 1467 and 1471 unless a notice has previously been given.”
It has been indicated that since the renewal is never an extension of the existing contract, but rather a new lease, although based on the original one, implied renewal may be defined as “a contract of lease of a property which the law supposes to have been agreed on the basis of a pre-existing lease which is considered as renewed, by the inactivity of the lessor who failed to require the lessee prior to the expiration of the contract term, without, on the other hand, notifying the latter of its objection to said continuity during certain time, expressly substantiated by the lawmaker” (Moreno Mocholi, La “Tácita Reconducción” en la Nueva Orde-nación de los Arrendamientos de Fincas Rústicas, 178 Rev. Gral. de Lcgis. y Jurisp. 581 (1945)). It is justified by the benefit which represents the continuity of the exploitation of farming lands and as an additional guarantee of the lessee’s stability. De Casso and Cervera, in their Diccionario de Derecho Privado 3757 (1954), point out the concurrence of the following requirements for the existence of implied renewal: 1) that the parties be contractually related; 2) that the original lease be terminated, see Torres v. Biaggi, 72 P.R.R. 813 (1951) ; 3) that the lessee continue in the enjoyment of the leased premises for 15 days; 4) that this enjoyment be with the consent of the lessor, cf. Besosa v. District Court, 68 P.R.R. 29 (1948) ; Rodríguez v. Bosch Brothers, 32 P.R.R. 554 (1923) ; Toro v. Pizá Brothers, Ltd., 30 P.R.R. 70 (1922) ; Puig v. Soto, 18 P.R.R. 130 (1912) ; and 5) that there should not exist any covenant which expressly or impliedly opposes the implied renewal or that the latter should not be stipulated in the contract. In general, see León Parra v. Gerardino, 58 P.R.R. 494 (1941).
As to the term for implied renewal see Judgments of the Supreme Court of Spain of September 29, 1896 (80 Jurisprudencia Civil 228) ; October 12, 1900 (90 Jurisprudencia Civil 441) ; and November 20, 1909 (116 Jurisprudencia Civil 418).
“Should a term not have been fixed for the lease, it is understood for years, when an annual rent has been fixed, for months, when the rent is monthly, and for days, when it is daily.
“In every case the lease ceases without the necessity of a special notice, upon the expiration of the term.”
“Regardless of the date of construction or occupancy of both dwellings and business premises, and irrespective of any change of landlord or nominal lessor, the lease contract shall, on the day of expiration agreed upon therein, be compulsorily extended by the lessor at the option of the tenant or lessee, without altering- any of the clauses thereof, all of which shall be deemed in force. The foregoing is applicable both to written and oral contracts and the extension shall be understood for the terms fixed by section 1471 of the Civil Code, but never for a period longer than the duration of the emergency declared in this Act. Said extension is also applicable to leased lots whereon buildings belonging to an owner other than the owner of the lot are erected.”
For other theories related to the sufficiency of notice of the exercise of an option for extension of lease, see, Annotations, Sufficiency of notice of exercise of option to renew lease, 51 A.L.R.2d 1404 (1957), 148 A.L.R. 172 (1944), 99 A.L.R. 1010 (1935), and 1 A.L.R. 343 (1919).
Contrary to the situation at present in Spain, there is a perfect harmony between the provisions of the Reasonable Rents Act which provide for the compulsory renewal of the lease and the sections of the Civil Code referring to the implied renewal, for § 12 in fine, supra, provides that
But for a few exceptions, the provisions in Spain on implied renewal have been rendered invalid because they are substituted by special legislative provisions for rural and urban leases. As to rural leases see § ⅞ 2 and 3 of the Act of June 28, 1940 (2 Medina y Marañón, Leyes Civiles de España 1105, Instituto Editorial Reus (1958), and $ 6 of Act of July 23, 1942 (Medina y Marañón, op. eit. at 1135); and as to urban leases, see ⅞ 57 of the Act of April 13, 1956 (Medina y Marañón, op. cit. at 1362), and the former § 70 of the Urban Lease Act of 1946, from which our first sentence of § 12 of our Reasonable Rents Act was literally copied (II García Royo, Tratado de Arrendamientos Urbanos 9-29, Gráficas Voluntas (Madrid, 1948)). It was also expressly declared by the Sala de lo Social of the Supreme Court of Spain in its Judgments of March 26, 1953 (42 ■Jurisprudencia Civil 397) ; October 31, 1952 (XIX Aranzadi, Repertorio de Jurisprudencia 1598; February 7, 1946 (XIII Aranzadi, op. cit. at 233); November 19, 1945 (XII Aranzadi, op. cit. at 901); and June 23, 1942 (IX Aranzadi, op. cit. at 493) ; BellóN Gómez, Régimen Legal de los Arren-damientos Urbanos 210, Editora Nacional (Madrid, 1949).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.