Game Place, L. L.C. v. Fredericksburg 35, LLC
Game Place, L. L.C. v. Fredericksburg 35, LLC
Opinion
**399 A commercial lessor, Fredericksburg 35, LLC, sued a lessee, The Game Place, L.L.C., 1 for unpaid rent under a 15-year lease after The Game Place vacated the leasehold prior to the expiration **400 of the 15-year term. The Game Place demurred, claiming that the lease was unenforceable under the Statute of Conveyances, Code § 55-2, because it did not have either the common-law formality of a seal or the relaxed seal substitutes available under Code § 11-3.
Reasoning that "[t]he law looks at substance not form," J.A. at 9, the trial court rejected The Game Place's arguments and overruled the demurrer. After a bench trial, the court entered final judgment against The Game Place and its guarantor, Robert C. Lightburn. Finding the 15-year lease unenforceable as a matter of law, we reverse and enter final judgment in favor of The Game Place and Lightburn. 2
I.
In September 2000, a real-estate partnership, Amusement-Central Park Limited Partnership, leased space in a commercial shopping center to Nicol, Inc. The parties executed a 15-year lease requiring monthly payments. A year later, Amusement-Central Park Limited Partnership conveyed property which included the leasehold space to Carl D. Silver. See id. at 194. That same year Silver re-conveyed the property to the Carl D. Silver Company. See id. at 235-37. After selling the property, Amusement-Central Park Limited Partnership dissolved itself in 2001 and filed a certificate of cancellation with the State Corporation Commission in January 2002. See id. at 239.
In November 2002, the lessee, Nichol, Inc., assigned its rights and obligations under the lease to The Game Place. 3 See id. at 224-25. The lease required the written consent of the landlord to any such assignment. Though Amusement-Central Park Limited Partnership had ceased to legally exist, it executed the assignment as "LANDLORD" with the signature line stating "By: Silver GP, Inc., General Partner." Id. at 225 (altering capitalization). 4 The **401 narrative becomes more tangled *314 when, in December 2002, the Silver Company conveyed the property to Fredericksburg 35. See id. at 193-96.
The lessor-lessee relationship nonetheless continued without contest until years later when The Game Place found itself unable to keep up with the rent payments. In May 2014, The Game Place vacated the premises and terminated what it characterized as "its month-month periodic tenancy." R. at 688. The Game Place was current on its rent at that time. Rejecting The Game Place's characterization of the lease as month-to-month, Fredericksburg 35 responded with a suit seeking unpaid rent that had accrued since The Game Place had vacated the leasehold space. The Game Place demurred, arguing that the lease was unenforceable under the Statute of Conveyances because it did not contain a seal as required by the common law for a deed or one of the substitutes for a seal available under Code § 11-3. The trial court overruled the demurrer. Following a bench trial, the court entered final judgment against The Game Place and Lightburn, jointly and severally, ordering them to pay $68,610.44 in unpaid rent and $17,152.61 in attorney fees pursuant to a lease provision allowing the landlord to recover 25% of the claim as attorney fees. See J.A. at 211, 253.
II.
On appeal, The Game Place contends that the trial court erred as a matter of law when it enforced the 15-year lease and that, instead, the trial court should have recognized that the lessor-lessee relationship could only be enforced as a month-to-month tenancy. 5 We agree.
A. THE STATUTE OF CONVEYANCES
The Statute of Conveyances states in pertinent part that "[n]o estate of inheritance or freehold or for a term of more than five years in lands shall be conveyed unless by deed or will." Code § 55-2 ;
see
**402
Humble Oil & Ref. Co. v. Cox
,
When applicable to an inter vivos conveyance, the Statute of Conveyances specifically requires a "deed" to effect the transfer. Code § 55-2. When a statute employs a common-law term of art, the General Assembly "is presumed to have known and to have had the common law in mind in the enactment of a statute" and we must "giv[e] effect to both 'unless it clearly appears from express language or by necessary implication that the purpose of the statute was to change the common law.' "
Jenkins v. Mehra
,
B. THE ENGLISH COMMON LAW OF SEALED DEEDS
It is "almost impossible to trace the history of seals back to the time when they were first employed." 1 Robert T. Devlin, The Law of Real Property and Deeds § 242, at 345 (3d ed. 1911). Chancellor Kent found the common-law
*315
custom of sealing documents to be "corroborated by the usages and records of all antiquity, sacred and profane." 4 James Kent, Commentaries on American Law 444-45 (1830);
see also
1 Devlin,
supra
, § 242, at 345-46 (describing the ancient origins of sealing); 2 John B. Minor, Institutes of Common and Statute Law 727-28 (4th rev. ed. 1892) (same).
**403
For our purposes, the historical analysis focuses on English common law at the time of the Founding.
6
At that time, a deed had certain defined characteristics. One of them was that it had to be a "sealed" writing.
See
2 William Blackstone, Commentaries *295.
7
The seal was "deemed essential" and was "requisite" to the conveyance of land by deed. 4 Kent,
supra
, at 443-44. We have never taken issue with this view. "One of the essential requisites of a deed," we have emphasized, "is that it shall have a seal affixed thereto."
Smith v. Plaster
,
First, "affixing a seal to a signature to a deed gives solemnity" to this uniquely important transaction.
Bank of Chatham v. Arendall
,
Second, "[a]t common law a sealed instrument imposed peculiar liabilities."
Preston v. Hull
,
Thus, "the seal furnished a convenient means by which an intentional promise, voluntarily made (i.e., without consideration) could be binding." 1 Samuel Williston & Richard A. Lord, A Treatise on the Law of Contracts § 2:16, at 175 (4th ed. 2007). Though the seal requirement, when unsatisfied, "occasionally defeated the intent of the parties, the seal served its purpose of permitting obligors to bind themselves without consideration." Id. at 176-77. Professor Williston recognized the need for and the ongoing development of legislative reforms to the seal requirement, but he argued "that the seal has served and continues to serve a valid function, that being to make binding promises without consideration, and to suggest that some device for performing that function is not only appropriate, but in some cases necessary." Id. at 177. 14
**406 C. THE STATUTORY REFORMS TO THE SEAL REQUIREMENT
Almost immediately upon the reception of English common law in the United States, state legislatures began to make a host of *317 statutory changes to the common-law seal requirement. 15 In 1788, the General Assembly of Virginia enacted a statute to permit the use of a "scroll 16 by way of seal" as an alternative to the traditional wax-imprinted seal. See 1788 Acts ch. 67, at 35 (codified as amended at Code § 11-3 ) (altering archaic spelling). An instrument bearing such a scroll would be treated in law "as if it were actually sealed." Id. (altering archaic spelling). The current version of the statute provides in pertinent part:
Any writing to which a natural person ... making it affixes a scroll by way of a seal, shall be of the same force as if it were actually sealed. The impression or stamping of a corporate or an official seal on paper or parchment alone shall be as valid as if made on wax or other adhesive substance. And any writing to which a natural person ... making it affixes his signature ... and which writing in its body says "this deed," or "this indenture," or other words importing a sealed instrument, or recognizes a seal, shall be of the same force as if it were actually sealed by such person ... ; and any writing signed by a natural person ... and regularly acknowledged before an officer authorized to take acknowledgments of deeds to be recorded in this Commonwealth, in the body of which writing it clearly appears that the person so signing and acknowledging the same intends to and does grant or convey ... certain real estate therein described, ... shall pass the title to such real estate as effectually as if it were **407 written and executed in strict accordance with the provisions of [Code] § 55-48 [providing a permissible form for a deed] ....
Code § 11-3.
This statute does not abolish the seal requirement. Instead, it relaxes the seal requirement by offering a limited list of specific substitutes for a seal. These substitutes include (1) "a scroll by way of a seal"; (2) an imprint or stamp "of a corporate or an official seal on paper or parchment"; (3) the use in the "body of [such] writing" of the words " 'this deed,' or 'this indenture,' or other words importing a sealed instrument" or recognizing a seal; or, finally, (4) a proper acknowledgement of a document clearly demonstrating an intent to convey real estate "before an officer authorized to take acknowledgments of deeds." Id. The statute does not identify when a seal is necessary but instead only addresses ways to make a written instrument compliant with the seal requirement if either the common law or a statute requires a seal.
D. THE UNSEALED 15- YEAR LEASE
The 15-year lease in this case did not include a seal of any kind, thus failing to satisfy the common-law seal requirement embedded in the definition of "deed" under the Statute of Conveyances, see Code § 55-2. Nor did the lease include any specific seal substitutes recognized in Code § 11-3. The trial court, however, held that the lease "me[t] the requirements of a deed" because "[t]he seventeen page Agreement of Lease exemplifies a sealed instrument as alluded to in [ Code §] 11-3 even though it is not referred to as 'this deed' or 'this indenture.' " J.A. at 9 (emphases added). The trial court reasoned that "[t]he law looks at substance not form. The subject lease could just as easily have been entitled 'Deed of Lease' or 'Lease Indenture.' " Id. For several reasons, we disagree with the trial court's interpretation of Code § 11-3.
First, the court's logic appears to be that a lengthy contract-simply because of its *318 length-"exemplifies a sealed instrument as alluded to in [ Code §] 11-3." J.A. at 9. We are aware of no authority supporting this proposition. Under the common law, a sealed contract means just that, a contract with a seal. The contract can be short or even cryptic, but its brevity or verbosity reveals nothing about whether it is sealed or unsealed. **408 We similarly disagree with the inference the court drew from the observation that the "lease could just as easily have been entitled 'Deed of Lease' or 'Lease Indenture.' " Id. By statute, the words "this deed" or "this indenture" must appear in the body of the instrument, see Code § 11-3, not merely the title. But, more importantly, even if we interpret the trial court as holding that the lease could have simply used the statutorily approved words "this deed" or "this indenture" in the body of the document, the parties did not do so. The relative ease with which a party can comply with a statute is hardly a basis for excusing him when he does not even comply with the minimal requirements imposed on him. If anything, the opposite is true.
Second, we must also pause briefly over the trial court's reflection that "[t]he law looks at substance not form." J.A. at 9. Though it is more properly understood as a maxim of equity, we nonetheless acknowledge and respect this principle and its underlying sentiment. 17 Even so, taken at face value, this aphorism itself lacks substance. Both the common law and statutory law create a virtual architecture of rules that necessarily draw lines. At the margins the lines may seem arbitrary. But those lines create a structure, and when viewed as a systemic whole they provide predictability and stability.
Courts cannot jettison "form" in favor of "substance" as an overarching philosophy of law. It would be naïve, after all, to think that doing so would improve the judicial line-drawing exercise. Courts would simply replace categorical, predictable, bright lines with ad hoc, unpredictable, blurry lines. This case provides a useful illustration. The trial court's reliance on the substance-over-form maxim enabled it to effectively abolish the seal requirement for a "seventeen page" lease because its length "exemplifies a sealed **409 instrument as alluded to in [ Code §] 11-3." J.A. at 9. 18 What about a 10-page lease or, for that matter, a very concise 5-page lease? Are lengthy boilerplate leases to be favored over succinct leases tailored to a specific transaction? Truth be told, courts can never fully escape the line-drawing exercise that the "form" of the law requires-which is why elevating "substance" over "form" as the ultimate jurisprudential ideal is illusory.
When taken too far, the substance-over-form maxim can also sideline "the larger premise that, before any legal question can be answered, an
a priori
question must first be asked-who has the authority to decide. It is the one question that precedes all others."
Boone v. Harrison
,
*319 We have no authority to summarily dismiss either.
We made this point in
Gordon v. Funkhouser
,
In answer to the argument that the solemnity attaching to a sealed instrument no longer exists; that under the business conditions of this day no difference in facts exists between a sealed and an unsealed instrument, and that the former decisions of this court to the contrary should be overruled, we cannot do better than to add ... "[t]hat [even though] a spirit of self-reliance and directness of purpose ... will prompt the people of this age and country to disregard the formalities of conveyancing, and the rules of law by which they are **410 described, [that fact] can constitute no sufficient reason, nor furnish any adequate authority to the court to change the law or overthrow plain, intelligible, and well-settled legal principles. That is the province of the Legislature, not of the judiciary."
[T]here are certain technical rules growing out of the state of things, when many of our legal principles originated, which are firmly [e]ngrafted on the law, and still remain a part of it, though the circumstances in which they had their birth are totally changed. Perhaps every distinction between a sealed and an unsealed instrument is of this description. But the distinction, and the rules which are founded on it, have taken such fast hold of the law, that they can be separated only by the power of the legislature. Till that authority shall interpose, the courts must respect the rules as they are found in adjudged cases.
United States v. Nelson
,
**411 Our deference to the legislature is especially warranted on the subject of sealed instruments because the General Assembly has specifically modified the common law in various ways without abolishing the seal requirement. The legislature has rendered seals inoperative in contracts for the sale of goods and in lease contracts governed by the Uniform Commercial Code, see 1964 Acts ch. 219, at 302 (codified as amended at Code § 8.2-203 ); 1991 Acts ch. 536, at 902 (codified as amended at Code § 8.2A-203 ); made seals unnecessary to establish the validity of surety bonds taken before courts and their officers, see 1979 Acts ch. 211, at 272 (codified as amended at Code § 49-18.1 ); and made seals similarly unnecessary to establish the validity of a bond made on behalf of a fidelity and surety insurer under a power of attorney, see 1912 Acts ch. 328, at 654-55 (codified as amended at Code § 38.2-2420 ).
The General Assembly has also changed the common-law rule that a defendant could not claim a set-off in response to a plaintiff's claim based on an instrument under seal,
see
1830 Acts ch. 11, at 62 (codified as amended
*320
at Code § 8.01-422 );
Kinzie v. Riely's Ex'rs
,
In these and other ways, the General Assembly has engaged the common-law seal requirement but has never abolished it altogether for deeds governed by the Statute of Conveyances. Whether the legislature should do so is not for us to say. We ask only if the legislature already has; we answer that it has not.
E. THE SAVING STATUTE
The trial court resolved this case based entirely on its substance-over-form analysis as applied to the seal-substitute **412 statute, Code § 11-3. The lessor, Fredericksburg 35, argues on appeal that another statute, Code § 55-51, cures any error in the trial court's reasoning because that statute directly overrules the common-law seal requirement for deeds covered by the Statute of Conveyances. 21 We disagree.
Code § 55-51 provides in full: "Any deed, or a part of a deed, which shall fail to take effect by virtue of this chapter shall, nevertheless, be as valid and effectual and as binding upon the parties thereto, so far as the rules of law and equity will permit, as if this chapter had not been enacted." By its plain terms, this saving statute only saves deeds that "fail to take effect by virtue of this chapter." Code § 55-51. This saving statute appears in Chapter 4 of Title 55. Nowhere in that chapter is there a statutory requirement that deeds be under seal. That requirement, as earlier observed, comes from the common law and is incorporated into the definition of "deed" in the Statute of Conveyances, see Code § 55-2, neither of which can be found in Chapter 4 of Title 55.
The final phrase of the saving statute, declaring a statutorily noncompliant deed to "be as valid and effectual and as binding ...
as if this chapter had not been enacted
," Code § 55-51 (emphasis added), adds support for this limitation. If Chapter 4 of Title 55 had never been enacted, our analysis would not be different. The common-law seal requirement antedated the General Assembly's existence, and the legislative antecedent to the Statute of Conveyances made its first appearance in the Code of Virginia in 1705,
see
3 Hening,
supra
, at 318-19;
Burns
,
Unpersuaded by this reasoning, Fredericksburg 35 points out that two provisions in Chapter 4 of Title 55 provide suggested deed forms to which Code § 55-51 allegedly provides an exception. Code § 55-57 states that "[a] deed of lease may be made in the following form" and then includes the attestation clause: "Witness the following signature and seal (or signatures and seals)." (Emphasis **413 added.) Code § 55-48, the other statute on which Fredericksburg 35 relies, does not mention a seal. In fact, in 2014, this recommended form for general deeds contained the same attestation clause as Code § 55-57, but the General Assembly removed the language referring to seals, replacing it with the attestation clause: "Witness the following signature (or signatures)." See 2014 Acts ch. 338, at 554 (codified as amended at Code § 55-48 ). Tellingly, the General Assembly did not remove the seal language in its recommended form for deeds of lease. *321 Nonetheless, neither Code § 55-57 nor Code § 55-48 contain seal requirements that Code § 55-51 operates to suspend. Neither of these statutes imposes a seal requirement on deeds, which the common law and the Statute of Conveyances have already accomplished. These provisions only offer recommended language-purely permissive, not mandatory-for deeds already required to be under seal. The presence or absence of either statute has no effect on the seal requirement. 22
F. THE PROPER REMEDY
When a lease violates the common-law seal requirement, the lease
as such
cannot be enforced in an action for damages by either party against the other. The written lease "may be repudiated as soon as made by either party because it is not binding on them."
Granva Corp. v. Heyder
,
**414
In
Granva Corp.
, we recognized that "when a tenant takes possession under a defectively executed instrument a tenancy is created,"
it has long been settled that when the tenant enters, and occupies, the agreement regulates the terms on which the tenancy subsists, in all respects, except as to the duration of the term . It is a reasonable inference in such case from the circumstances that the parties intended a tenancy on the terms of the original agreement, and the law implies a new contract between the parties corresponding therewith, so far as it is not in conflict with the statute .
Laughran
,
The agreement, though by parol, and void as to the term and the interest in lands sought to be created, regulates the relations of the parties to it in other respects upon which the tenancy exists, and may be resorted to [in order] to determine their rights and duties, in all things consistent with, and not inapplicable to a yearly tenancy, such as the amount of rent to be paid, the time of year when the tenant could be compelled by the landlord to quit, and any covenants adapted to a letting for a year.
Reeder
,
We found this reasoning persuasive in
Granva Corp.
and still do. Once the invalid 15-year term is excised from the lease, the tenancy created is implied from "the manner in which the rent is received."
Granva Corp.
,
III.
In sum, the trial court erred as a matter of law by enforcing the lease and ordering The Game Place and Lightburn to pay unpaid rent and attorney fees. We reverse and enter final judgment in favor of The Game Place and Lightburn. 24
Reversed and final judgment.
Throughout this opinion, we refer to "The Game Place, L.L.C." as "The Game Place" and "Fredericksburg 35, LLC" as "Fredericksburg 35."
Judge Herbert M. Hewitt entered the order denying the demurrer and rejecting The Game Place's arguments regarding the Statute of Conveyances, see J.A. at 16-17, and Judge Gordon F. Willis entered the final judgment following a bench trial on unrelated issues, see id. at 253-54.
Lightburn executed the assignment as "GUARANTOR," with the signature line stating, "The unconditional guaranty of: [signature] Robert C. Lightburn." Id. at 225.
In contrast, Amusement-Central Park Limited Partnership's certificate of cancellation identifies ACP Management I, LLC as the "Sole General Partner." Id. at 239.
The Game Place also contends that the trial court erred when it entered judgment against Lightburn as guarantor of the assignment, see supra note 3, because Amusement-Central Park Limited Partnership could not consent to the assignment of the lease to The Game Place as it was no longer the landlord, rendering Lightburn's guaranty "of no effect" and also void for lack of consideration. See Appellants' Br. at 14-18. Given our holding, we need not address this contention.
See
In re: Brown
,
At common law, a seal was "an impression upon wax or wafer, or some other tenacious substance capable of being impressed." 4 Kent, supra , at 444; see also 3 Sir Edward Coke, Institutes of the Laws of England 169 (1797) (translation of original text); 2 Sir Frederick Pollock & Frederic William Maitland, The History of English Law Before the Time of Edward I 224 (2d ed. 1898). Prior to the Norman Invasion, the Saxons used "the sign of the cross," accompanied by their signatures if they were literate, as a solemn, identifying mark. See 2 Blackstone, supra , at *305-06.
See also
Burnette v. Young
,
Because "much of the population was illiterate and unable to sign their names," a person's seal could "serve much the same purpose as a signature. When attached to a document, it became an identification of the person executing it." 14 Richard R. Powell, Powell on Real Property § 81A.04[1][f], at 81A-57 (Michael Allan Wolf ed., 2017).
See Penn , 68 Va. (27 Gratt.) at 341 ("Deeds are of a higher nature than parol contracts, and there are great and important distinctions between the operations and effect of these different species of contracts.").
Experience tells us, of course, that we cannot expect "that the particular reason of every rule in the law can at this distance of time be always precisely assigned." 1 Blackstone, supra , at *70. We search the history of our laws not laboring under the illusion of achieving absolute certitude but to discover the most probable view of our jurisprudential ancestors. See generally Antonin Scalia & Bryan A. Garner, Reading Law: The Interpretation of Legal Texts 399-402 (2012).
See also
Watkins v. Robertson
,
See also
Georgeton v. Reynolds
,
At common law, seals implicated various doctrines such as the "equal dignity" rule requiring amendments to sealed instruments to likewise be sealed,
see
Sachs v. Owings
,
See generally 3 Holmes, Corbin on Contracts, supra note 14, § 10.18[A]-[B], at 418-22 (listing 26 jurisdictions that have abolished private seals altogether and 12 jurisdictions that have abolished the seal requirement for conveyances of real property).
A "scroll" is "[a] written mark; esp[ecially], a character affixed to a signature in place of a seal." Black's Law Dictionary 1549 (10th ed. 2014); see also James A. Ballentine, A Law Dictionary 458 (1916) (defining a scroll as "a scrawl or flourish intended as a seal"); 2 John Bouvier, A Law Dictionary 500 (10th rev. ed. 1860) (defining a scroll as "[a] mark which is to supply the place of a seal, made with a pen or other instrument on a writing"); Samuel Johnson, A Dictionary of the English Language (3d rev. ed. 1768) (defining a "scrawl" as an "[u]nskillful and inelegant writing" (capitalization omitted) (altering archaic spelling) ).
See, e.g.
,
Virginia Mach. & Well Co. v. Hungerford Coal Co.
,
This reliance on length played no role in
Granva Corp. v. Heyder
, which involved a "very comprehensive" lease that "contain[ed] practically every conceivable provision found in leases of property,"
As one commentator well said, "the law has been somewhat relaxed in favor of custom and convenience in doing business, yet the relaxation is confined to the manner of making a seal. ... If it should be thought that, in the present state of society, it would be best to put all writings on the same footing, the legislature alone has power to accomplish it." 1 Devlin, supra , § 245, at 352 (emphasis in original) (citation omitted).
We acknowledge that we have sometimes expressed, in dicta, criticism of the seal requirement as irrelevant in cases in which parties attempted to use the seal requirement to defeat claims based "upon [an] independent promise to pay, which would be valid though not under seal," as opposed to a claim that seeks to enforce a "deed, as an instrument under seal."
See, e.g.
,
Harris v. McKay
,
As an appellee, Fredericksburg 35 may raise this argument on appeal even though the trial court never addressed it because it involves an assertion of law offered in support of, not in contest with, the lower court's judgment.
See
Robert & Bertha Robinson Family, LLC v. Allen
,
Fredericksburg 35 also suggests that the saving statute applies because the only "defect, if it is a defect," Appellee's Br. at 8, is that the lease does not employ one of the seal substitutes such as the words "this deed" or "this indenture," Code § 11-3. See Appellee's Br. at 7-9. Code § 11-3, however, does not require the use of substitutes for a seal. It only provides alternatives to satisfy the common-law requirement of a seal. Moreover, Code § 11-3 is not located in Chapter 4 of Title 55.
Nor does the ability to repudiate mean that equitable remedies are unavailable.
See generally
Granva Corp.
,
The trial court's award in favor Fredericksburg 35 against Lightburn was solely against Lightburn in his capacity as an alleged guarantor of the lease.
See supra
note 3. Because we reverse the award against The Game Place, it follows that Lightburn has no independent guarantor liability.
See
Bourne v. Board of Supervisors
,
Case-law data current through December 31, 2025. Source: CourtListener bulk data.