Abramo v. Ploener

394 A.2d 758, 1978 Del. Super. LEXIS 105
CourtSuperior Court of Delaware
DecidedSeptember 29, 1978
StatusPublished
Cited by1 cases

This text of 394 A.2d 758 (Abramo v. Ploener) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abramo v. Ploener, 394 A.2d 758, 1978 Del. Super. LEXIS 105 (Del. Ct. App. 1978).

Opinion

TAYLOR, Judge.

Plaintiffs seek to recover damages resulting from the condition in which land was vacated which was occupied for many years by one or more of the defendants, located on Garasches Lane near the southerly border of the City of Wilmington. Prior to the death of David Ploener in 1960, this land was owned as tenants in common by David Ploener and plaintiff Lillian Ploener. The will of David Ploener devised his interest in the land to a trust in which Lillian Ploener was life beneficiary and the four Ploener children were remainder beneficiaries. Since that time the trust has been administered by a succession of trustees who have administered this land with Mrs. Ploener’s consent. Arthur Ploener [defendant] is one of the sons of David Ploener. The corporate defendants are owned in whole or in part by Arthur Ploener and he is their principal officer.

I.

A review of the occupancy of this land is appropriate.1 In August, 1962, the middle portion of parcel number one of this land was rented to Tony Domino for junking automobiles. Later in 1962 the remainder of parcel number one was leased either to defendant and to his brother Burton Ploener or to their corporation, Ploener Auto Parts Company, Inc. Shortly thereafter, that corporation became insolvent and Burton Ploener withdrew from the venture. Thereafter, defendant occupied the land for a number of years using various non-corporate names, sometimes in partnership and sometimes as a sole venture. In 1965 defendant formed South Wilmington Leasing Company, Inc. and conducted a business operation on parcel number one, and this relationship appears to have existed throughout the remainder of the occupancy of parcel number one. In 1969 defendant leased parcel number two of the land and conducted a business operation there through Auto Disposers, Inc. and this relationship appears to have continued at all subsequent times at issue here. All leases [760]*760involving Arthur Ploener or the corporate defendants have been oral.

Defendant contends that he has no personal liability because during the period from 1965 through June 30, 1975 the land was leased by two corporations, namely, South Wilmington Leasing Company, Inc. and Auto Disposers, Inc., and not by him personally. In support of this position defendant relies on the fact that the operations on the land were conducted in the corporate names and that the checks by which the rent payments were made were drawn on corporate bank accounts. Separate rent checks were paid covering parcel numbers one and two. It does not appear that either party signified to the other its intention or understanding with respect to a change of the lessee from defendant. It appears that throughout the lease period, the successive trustees in their accounts listed the lessee as A. Ploener or Arthur Ploener.

In November, 1974 defendant filed a pleading in the Court of Chancery which opposed appointment of plaintiff as trustee in which defendant stated:

“Currently Arthur Ploener is leasing the [land involved here] on an oral lease as he has for some thirteen (13) years and is conducting a junk yard and automobile storage business known as South Wilmington Leasing Co., Inc.”

Beginning in the summer of 1973 and continuing until shortly before their relationship ended on June 30,1975, the parties engaged in protracted negotiations for a long-term lease of this property to defendant at substantially increased and escalating rental. It appears that these negotiations contemplated that defendant would be the lessee, with the exception of a draft submitted by defendant’s attorney which changed the tenant from individual to corporation. Negotiations reached an impasse and on February 20, 1975 plaintiff wrote to defendant formally terminating the lease as of May 1, 1975. On May 1, 1975, defendant’s attorney wrote to plaintiffs notifying that defendant terminated the lease effective July 1, 1975.

From this review, it is clear that at least at an early stage, defendant was the lessee. At the later stage of the relationship, during negotiations and at termination, the parties treated defendant as the lessee. If defendant undertook to substitute his two corporations for himself as tenant, it was at most done by indirection merely by drawing the rent on corporate accounts and it was done without express notification to the landlord that the corporations were being substituted in place of defendant as the lessee.

No authority has been cited to support the proposition that a substitution of tenants can be done in such a surreptitious manner thereby relieving the original tenant of further liability as lessee. In my judgment, this unilateral action neither created a meeting of the minds nor an estoppel which would protect defendant from further liability under the tenancy. Taylor v. Conforti, Del.Super., 361 C.A. 1975 (Letter Opinion, September 15, 1975, Taylor, J.), aff’d, Del.Supr., 372 A.2d 538 (1977). There is nothing indicating that the owner ever accepted the substitution of the corporations for defendant as tenant. In order to effect that result, there must be an announced withdrawal by the original tenant and a proffered substitution by the proposed successors and an acceptance by word or action by the landlord. Ibid. See as to sublessee Amco Trust, Inc. v. Naylor, 159 Tex. 146, 317 S.W.2d 47, 73 A.L.R.2d 1109; 81 A.L.R.2d 793, Abbott v. Bob’s U-Drive, 222 Or. 147, 352 P.2d 598, 74 A.L.R.2d 1, Peiser v. Mettler, 50 Cal.2d 594, 328 P.2d 953. The evidence does not meet this test. Consequently, if the tenant's obligations were breached by leaving the property in improper condition, defendant must be held liable therefor.

II. A.

The next issue is what responsibility defendants had with respect to the condi[761]*761tion in which the land was left. Plaintiffs rely upon two theories of recovery, namely, implied contract and tort.2 Defendants’ response is that this tenancy was covered by the Landlord-Tenant Code, 25 Del.C. Chapters 51 through 67 and a basis for liability must be found in that Code.

25 Del.C. § 5103 provides:

“This code shall regulate and determine all legal rights, remedies, and obligations of the parties and beneficiaries of any rental agreement of a rental unit within this State, wherever executed.”

Rental unit is defined in § 5102(9) as “a term which encompasses dwelling, commercial and farm units.” It is clear that this property is not a dwelling unit or a farm unit.3 If the land is to be covered by the Code it must qualify as a “commercial unit,” which is defined as “a structure or that part of a structure which is used for purposes other than a dwelling unit or farm unit.” 25 Del.C. § 5102(1). While this definition is extremely broad with respect to structures, it does not appear to encompass land which is not being used in connection with a structure. Here, the land as leased was bare and there is no indication that any structure existed on it during the tenancy. Hence, I conclude that this land was not covered by the Landlord-Tenant Code. Accordingly, plaintiffs are not barred by that Code from asserting whatever claims they have based upon implied contract or trespass.

B.

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Cite This Page — Counsel Stack

Bluebook (online)
394 A.2d 758, 1978 Del. Super. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abramo-v-ploener-delsuperct-1978.