Baker v. Herrlinger

16 Ohio App. 253, 1922 Ohio App. LEXIS 138
CourtOhio Court of Appeals
DecidedFebruary 27, 1922
StatusPublished
Cited by6 cases

This text of 16 Ohio App. 253 (Baker v. Herrlinger) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. Herrlinger, 16 Ohio App. 253, 1922 Ohio App. LEXIS 138 (Ohio Ct. App. 1922).

Opinion

Buchwalter, J.

The plaintiffs, who are the owners of two buildings, leased them by separate instruments to August Gr. and Frank H. Kreimer, jointly. The leases contained similar provisions, but differed as to date, duration and description of the property. Both leases were to terminate on the same day, to-wit: March 31,1921. On February 19,1914, August G. Kreimer assigned his interest in both leases to Frank H. Kreimer, who thereby became the sole lessee. Frank H. Kreimer later made an assignment for the benefit of creditors to Andrew L. Herr-linger, who is the defendant herein. The plaintiffs after the assignment to Herrlinger presented a claim for rent from the time the assignee vacated the premises to the end of the term; for estimated taxes and insurance, which would thereafter become due; and for repairs required and waste committed. The rent had been paid up to the time of the assignment, and at the time of assignment the assignee notified the lessors that he would not assume any of the obligations of the leases. He took possession of the premises to dispose of certain personal [255]*255property, paid the rent during the time of occupancy, and when he vacated the premises turned over the keys to the clerk of the court of insolvency. The lessors received the keys from the clerk, and notified the lessees that they were taking “possession of said premises for the purpose of preventing waste and deterioration, and for the purpose of securing a tenant for said premises, with the view, if possible, of minimizing the damages which will arise by reason of your breach of contracts of leases,” and that they “were not accepting the surrender of said premises” and “not waiving any rights which they may have against you or either of you under the provisions of said leases.”

It is admitted that the claim was presented within the time authorized by Section 11134, General Code, and that upon rejection of the claim this action was brought within the time specified therein.

The provisions of the two leases, which are identical, and are of importance in this controversy, are:

“And said lessees for themselves and for their executors, administrators and assigns, covenant and agree with said lessors, their heirs and assigns, and this lease is upon condition that said lessees will pay said rents in manner aforesaid, unless said premises shall be destroyed or rendered untenantable by fire or unavoidable accident; that they will not do or suffer any waste therein nor use said premises for any unlawful purpose; that they will not assign this lease or any interest therein, or hereunder, nor underlet said premises, nor any part thereof nor permit their interest under this lease or any part thereof to be sold or assigned by operation of law or under execution or other legal process or order of court or otherwise, without the written [256]*256consent of said lessors; that they will keep said building and appurtenances in repair, both outside and inside, during said term at their own expense; and that at the end of said term they will deliver up said premises in as good order and condition as they now are, or may be put by said lessors, reasonable use and ordinary wear and tear thereof, and damage by fire and other unavoidable casualty excepted.”

It is claimed that at the time of assignment the provisions prohibiting the lessees from doing or suffering waste, and providing for the repair of the buildings both inside and outside, and the covenant against assigning the leases, had been broken.

The evidence discloses that certain waste had been committed and certain repairs were necessary. The taxes, insurance and repairs, as shown by the evidence, amounted to $10,327.28. The difference between the rent provided for in the leases and the rent collected from other tenants was $4,550, making a total of $14,877.28.

Plaintiffs contend that the breach of the leases occurred when the repairs were not made and the waste was committed, and also when the assignment was made.

Defendant claims that the action of the lessors in taking possession of and leasing the property was an acceptance of the surrender of the leases, and was a discharge of all the obligations of the lessees, and also that no right of action existed in favor of the plaintiffs at the time of the assignment.

The action of the lessors in taking the keys and endeavoring to secure a new tenant, and in finally again leasing the premises, did.not constitute a surrender. The notice given by the lessors to the les[257]*257sees precludes the idea of an acceptance by them of the lessees’ proffer of surrender. This has been definitely decided by the supreme court in the case of Bumiller v. Walker, 95 Ohio St., 344. The fifth paragraph of the syllabus reads:

“An acceptance by the landlord of the* key to the premises, his advertising for a new tenant and renting the premises to another upon its vacation by the old tenant, under the facts stated, are not sufficient to constitute a surrender.”

Various authorities from other states, contrary to this view, have been cited, but as a definite pronouncement on this question has been made by the supreme court of this state we hold that under the facts herein there was no surrender and acceptance.

It is urged that no right of action existed in favor of the plaintiffs at the time of the assignment. In other words, they were not such creditors as are referred to in the General Code; that there was no debt provable at the time of the assignment. The deed to the assignee is made “In trust for the benefit of all the creditors of the said Frank H. Kreimer.”

The language of Section 11092, General Code, is:

“When a person * * * makes an assignment to a trustee of property, * * * in trust for the benefit of creditors.”

The real question is: What is meant by the provisions of the General Code in the use of the word “creditor?” Is the term confined to those whose debts are then payable, or where the amount is definite, but time of payment is deferred; or does it include those having claims for unliquidated damages?

Various sections of the Code, Sections 11135,11136, [258]*25811137, 11140 and 11142, refer to those having a "claim.” The word "creditor” may be used in a restricted sense to mean those who have claims that are definite and fixed in amount, or which can, by computation, be definitely ascertained, but in the broader sense it may refer to ‘ ‘ one who has a right to recover money from another on any account whatever. ” In the sections of the Code referred to, the term "creditor” is used without any words of limitation, and it would seem to include claims for unliquidated damages then existing.

Defendant contends that as Section 11104, which refers to property transferred in fraud of creditors, provides for creditors whose claims are matured, Section 11092, which does not contain that language, could not be construed to include unmatured claims. The distinction between the two sections is apparent. In Section 11092 provision is voluntarily made to distribute the debtor’s entire estate among all of his creditors. In Section 11104 the creditors seek to subject and secure distribution of the debtor’s estate among all of the creditors, where the debtor has fraudulently conveyed it to others. Under both sections, when the property comes into the hands of the trustees it is distributed among all creditors.

These sections are discussed at considerable length in Lally v.

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Bluebook (online)
16 Ohio App. 253, 1922 Ohio App. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-herrlinger-ohioctapp-1922.