Bailey v. Gipstein

149 A. 137, 110 Conn. 680
Supreme Court of Connecticut·Decided March 5, 1930·Published·Cited by 1 cases

Opinion

Maltbie, J.

On December 30th, 1913, the plaintiff executed and delivered a lease of certain premises in Hartford to the defendant Gipstein. To the description of the property leased was added the phrase, “for the purpose of conducting the liquor business therein.” The lease specified the rentals to be paid and fixed its term as fifteen years from January 1st, 1914. The only express covenant as to the use of the premises was that the lessee would not occupy them “for any business deemed extra hazardous” without the consent of the lessor. There was a covenant by the lessee in which he agreed to “comply with and conform to all laws of the State of Connecticut, and the by-laws, rules and regulations of the city . . . relating to health, nuisance, fire, highways and sidewalks, so far as the premises hereby leased are or may be concerned, and to save the lessor harmless from all fines, penalties and costs for violation of or noncompliance with the same.” It also contained a provision that if at any time during the term “Hartford shall vote ‘no license/ then, and in that event, said party of the second part, or his assignee, is to have the option of declaring this lease null and void.” The defendant Shimelman signed a written guarantee annexed to the lease assuring to the plaintiff payment of the rentals due under it.

Gipstein entered into the liquor business on the premises and continued it until November 10th, 1914, when he sold the business to one Kraprizinski and assigned the lease and surrendered the premises to the *682 Aetna Brewing Company, now the defendant The Cereal Products Company, which in turn, with the written consent of the plaintiff, sublet the premises to Kraprizinski. Kraprizinski continued the liquor business on the premises until national prohibition became effective, January 17th, 1920. Shortly after that the Brewing Company changed its name as above noted and thereafter furnished Kraprizinski with nonalcoholic beverages manufactured by it. He continued to occupy the premises and to sell these products until some time in August, 1923, and during all this time the defendant company, intending to continue the lease in force, paid the rentals provided in it. In the latter part of that month, Kraprizinski ceased doing business on the premises, removed from them and at the direction of the company offered to return the keys to the plaintiff, but she refused to receive them. Neither Gipstein nor the company ever did anything in the nature of an exercise of the option to declare the lease null and void under the provision quoted from the lease. This action is brought to recover the rentals specified in the lease falling due subsequent to August, 1923. The trial court gave judgment for the plaintiff, and The Cereal Products Company and Shimelman filed separate appeals.

The defense offered is that the National Prohibition Act, on becoming effective, operated to render the lease void or at least unenforceable and to destroy the right of the plaintiff to enforce its covenants. The basis of this claim is that the purpose of the lease was the occupation of the premises for carrying on a business in alcoholic beverages, rendered illegal by that Act. We have no doubt that by the words “liquor business” in the lease the parties had in mind at the time it was executed the sale of alcoholic beverages. That is made quite evident by the provision of the lease giving the *683 lessee the option to declare it void if Hartford should vote “no license.” Kahn v. Wilhelm, 118 Ark. 239, 177 S. W. 403. The difficulty with the claim of the defendant is that we cannot construe the words “for the purpose of conducting the liquor business therein” as amounting to a covenant not to use the premises for any other business. Whether from a statement in a lease of the use to be made of the premises a covenant not to use them for any other purpose is to be implied depends upon the intention of the parties, considering all the terms of the lease and any relevant surrounding facts. Bovin v. Galitzka, 250 N. Y. 228, 232, 165 N. E. 273; Chamberlain v. Brown, 141 Iowa, 540, 547, 120 N. W. 334; Stonegap Colliery Co. v. Kelly & Vicars, 115 Va. 390, 392, 79 S. E. 341; Reed v. Lewis, 74 Ind. 433, 436; Burgman v. Noyes, 6 Wis. 1, 11.

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Bailey v. Gipstein, 149 A. 137, 110 Conn. 680 (Colo. 1930).

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