Atwood v. Hayes

1929 OK 426, 281 P. 259, 139 Okla. 95, 1929 Okla. LEXIS 232
CourtSupreme Court of Oklahoma
DecidedOctober 15, 1929
Docket18464
StatusPublished
Cited by2 cases

This text of 1929 OK 426 (Atwood v. Hayes) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atwood v. Hayes, 1929 OK 426, 281 P. 259, 139 Okla. 95, 1929 Okla. LEXIS 232 (Okla. 1929).

Opinion

FOSTER, C.

This action was begun in the district court of Muskogee county on September 30, 1925, by Seth B. Atwood, as trustee for himself and several other persons, to recover an amount alleged to be due as rentals under a 99-year lease contract, against J. E. Hayes and Earl H. Sheets, as assignees of said contract, and liable for the rent thereunder. A judgment before a jury in the district court was rendered in favor of the plaintiff, Seth B. Atwood, as trustee, against J. E. Hayes only *96 for the amount which the said J. E. Hayes admitted he owed and tendered into court. The plaintiff was denied any relief against the defendant Earl H. Sheets. From this judgment Seth B. Atwood, trustee, prosecutes this appeal. The parties appear as they did in the trial court.

The relief sought against the two defendants involves different questions, and we will consider them separately.

Concerning the judgment against J. E. Hayes, the record and testimony is to the effect that in the year 1911, the plaintiff entered into a 99-year lease contract with one L. M. Bramlette covering certain real estate in the city of Muskogee. The contract provided for a rental of $1,200 a year, payable quarterly in advance. In 1917, the lease was purchased by the defendant Earl H. Sheets, and at the same time an amended contract was entered into, by the terms of which the rental, as prescribed in the original lease, was reduced, the lessee to pay $25 a month for two years, $35 a month for two years thereafter, $50 a month for another two years, and after July 1, 1923, the rent was to be an amount equal to 6 per cent of the valuation of the property to be determined by appraisers selected by the parties. This amended contract provided that, in case the rent, taxes, and other upkeep on the property were not paid on the date when due, the rent should be as provided in the original lease.

Earl H. Sheets assigned his lease in the fall of 1917, to one Poe, who later assigned it to a Mrs. Froebe, who in turn assigned it to J. E. Hayes in June, 1923. At the time Hayes acquired the property, the lessee was apparently paying $50 a month, which continued until in June, 1924. By an agreement between J. E. Hayes and the plaintiff, it was agreed that the rental, as provided for in the amended contract of 1917 should be reduced, and that the lessee, Hayes, should pay as rental $25 a month from June, 1924, until March, 1925, and thereafter to pay the sum of $50 a month. Numerous letters were introduced by both parties concerning this agreement, but it seems undisputed that such an agreement was made. Hayes, however, did not pay nil of the rent as provided by the agreement last above mentioned, and did not pay all the taxes. At times plaintiff would pay the taxes and Hayes would repay him. A large amount of correspondence was introduced in which the plaintiff was continuously trying to get Hayes to keep up the payments made as agreed, but the letters indicated that the agreement between them was made as last above set out.

On September 30, 1925, this action was begun, it being alleged that Hayes had defaulted in the payment of the rent as provided for in the amended agreement, and therefore the rent as provided in the original agreement was due, and that Hayes had defaulted in his quarterly payments as provided in the original lease, and there was then due on the quarterly payment of August 15, 1924, the sum of $150, and the quarterly payment due November 15, 1924, $300, and $300 for each quarter thereafter.

From the testimony it appears that even, under the amended agreement, and the agreement as contained in the letters between plaintiff and Hayes, no rent had been paid on the property after October 1, 1924, and the paving tax due September 1, 1925, had not been paid.

After the suit was filed,, the defendant J. E. Hayes tendered into court the amount of rent which was due pursuant to the letters exchanged between the parties, to wit, on a basis of $25 a month from June, 1924, to March, 1925, and $50 a month thereafter; and it was for the amount so tendered that the jury returned its verdict in favor of the plaintiff, and the court approved the verdict, granted judgment therefor, and made a further order that all rents upon the premises should thereafter be $50 per month.

‘ Eor a reversal of this judgment, the plaintiff contends that there is a total want of any consideration for the alleged agreement on the part of the plaintiff to accept a lesser rental than that provided for in the original lease and in the contract to amend the same.

To support this proposition, the plaintiff relies upon the testimony of the defendant J. E. Hayes, himself, in which he testified, in substance, that there was no money consideration ; that the only reason for the agreement between him and plaintiff that the rent should be reduced to a lesser amount than that contained in the original contract, or in the amended contract of 1917, was that he continue to pay the rent, and that he and plaintiff agreed that the original rent was too high, owing to the fact that there had been a very decided business depression in the city of Muskogee, and that the rent as. prescribed in the original contract or in the amendment thereto was exorbitant.

Plaintiff contends that a gratuitous promise by a lessor to accept from a lessee, in possession of leased premises under a lease for a term of years, an amount less than the sum provided by the lease, is without *97 consideration and will not be enforced. To support this general proposition, the plaintiff relies, first, upon Tiffany on Landlord and Tenant, and upon many cases cited in his brief where the general proposition that a mere promise of a lessee not to give up a lease, provided the rent is reduced, is not a sufficient consideration, since the tenant has no right to give up the lease.

Plaintiff contends that the acceptance by the landlord of a lower rent than that specified in the lease is not sufficient to establish a change in the lease so as to affect the amount of rents due in the future, although it would work a settlement for the rents accruing during the period for which the lower rent was accepted.

Prom an examination of all the cases cited by the plaintiff, we find they are based upon a parol promise by the lessor to ae-, cept a lesser rent than that provided in the ■ original contract. But we recognize that any contract, whether it be parol or in writing, must be supported by some consideration.

Section 5081, C. O. S. 1921, provides that a written contract may be modified by another contract in writing, but such written modification must have a consideration to support it.

Many of the cases seem to make a distinction between an agreement on behalf of the lessee not to give up the premises if the rent is reduced by the lessor, and an agreement that in consideration of a reduction of the rent, the tenant or lessee agrees to remain in actual occupancy of the property, the distinction being based upon the grounds that the lessee has no authority or right to give up the lease, but does have a right to abandon the premises, and would in that ease only be subject to a suit in damages. An agreement to remain in actual occupancy of the property has been 'held to support a consideration for the reduction of the rent. Doherty v. Doe (Colo.) 33 Pac. 165: Raymond v. Krauskopf (Iowa) 54 N. W. 432; Ten Eyck v. Sleeper (Minn.) 67 N. W.

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Cite This Page — Counsel Stack

Bluebook (online)
1929 OK 426, 281 P. 259, 139 Okla. 95, 1929 Okla. LEXIS 232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atwood-v-hayes-okla-1929.