Baker v. LEHRER

312 P.2d 1072, 210 Or. 635, 1957 Ore. LEXIS 281
CourtOregon Supreme Court
DecidedJune 26, 1957
StatusPublished
Cited by6 cases

This text of 312 P.2d 1072 (Baker v. LEHRER) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. LEHRER, 312 P.2d 1072, 210 Or. 635, 1957 Ore. LEXIS 281 (Or. 1957).

Opinion

WARNER, J.

This is a proceeding brought by the plaintiff, Stewart Y. Baker, for a declaratory judgment defining certain rights and duties of the defendant lessors and the plaintiff lessee with respect to each other under the terms of a lease to a certain parcel of resort property bordering on Langdon Lake, in Umatilla County. From a decree declaring that plaintiff no longer has any rights or interests under the lease, except the right to remove buildings constructed on the property described therein, the plaintiff appeals.

Notwithstanding the nature of the pleadings, the real purpose of this proceeding is to obtain relief from the forfeiture of a lease for failure upon the part of the lessee to make a payment of rent within the time stipulated in the lease.

Defendant Jean Kennedy Lehrer and the seventeen other named defendants are the owners of the resort property including the premises described in plaintiff’s lease. They acquired it many years prior from the Langdon Lake Resort Company, a corporation, and are now lessors by assignment under the contested instrument.

The plaintiff, Baker, was a successor lessee under the lease, which is dated February 17, 1932, and made with the then owner of the property, the Resort Company, as lessor.

The plaintiff depends upon familiar rules of equity to stay a forfeiture of his rights as a lessee, whereas, the defendants rely primarily upon ORS 91.090 as definitive of their rights to declare a forfeiture for the *637 nonpayment of the rent on the dne date in the premises. OES 91.090 (formerly § 8-309 OCLA), snpra, reads:

“The failure of a tenant to pay the rent reserved by the terms of his lease for the period of 10 days, unless a different period is stipulated in the lease, after it becomes due and payable, operates to terminate his tenancy. No notice to quit or pay the rent is required to render the holding of such tenant thereafter wrongful; however, if the landlord, after such default in payment of rent, accepts payment thereof, the lease is reinstated for the full period fixed by its terms, subject to termination by subsequent defaults in payment of rent.”

The defendants claim the lease was terminated by failure of the plaintiff to make timely payment of the rental in advance under the provision reading:

“IT IS AGREED that the lessee will pay annually to the lessor as rental for the said tract of land the sum of $15.00 in advance, which payments shall fall due on or before the 1st day of June of each year.” (Emphasis ours.)

Plaintiff concedes that, although able to pay, he did not pay the rental due for the year 1955-56, i.e., on or before the first day of June, 1955, and made no offer of payment until June 26, 1955, when a tender was made by plaintiff’s wife to the defendants’ agent. This was 26 days after the time which the lease stipulated for payment and 16 days after the grace period provided by ORS 91.090, supra. But no payments were then or later accepted by the lessors.

We think that the questions raised by this appeal find perfect and complete answer within the boundaries of Rainey v. Quigley, 180 Or 554, 178 P2d 148, 170 ALR 1149 and Caine v. Powell, 185 Or 322, 202 P2d 931, with special emphasis on what was said in the Rainey *638 case. Both parties make frequent and extended reference to these cases.

The holding in the Bainey case was in accordance with the well-established rule that equity will not relieve from a statutory forfeiture. The court in the Bainey case was careful to point out that in that case “* * * There was no mistake on the part of the plaintiff [Bainey], fraud on the part of the defendant [Quigley], or any act of hers which would create an estoppel. * * (180 Or 566)

The facts revealed in the Caine case a situation requiring the interposition of equity on the ground that the default of the lessees Caine was due to excusable neglect on their part and by enjoining the forfeiture, it could be accomplished without injustice to either party. Because of the equities present in that case the injunction prayed for was, therefore, granted, notwithstanding the provisions of OBS 91.090, supra.

But the court in the Caine case was also careful to point out that in some instances negligence such as Caine’s would not always stay the hand of equity, recalling that the court has approved the doctrine that “* * * each instance of negligence must depend to a great extent upon its own circumstances, * * (185 Or 331)

The two decisions, that is, Rainey v. Quigley, supra, and Caine v. Powell, supra, were both written by Mr. Justice Ltjsk and when read together are a learned dissertation on the subject of lease forfeitures.

In the instant matter, there is a total want of a pleading or any evidence of facts which would warrant the aid which equity can sometimes give notwithstanding statutory provisions akin to OBS 91.090, supra. On the contrary, except for the fact that the *639 lease in the Rainey case had no forfeiture clause, as did the Baker lease, the Rainey case is an authority contradicting most every point the appellant urges as error on this appeal.

Appellant states his first proposition thus:

“In a lease which provides that the lessors, at their option, may terminate it for failure to pay the annual rent upon a specified date, the mere nonpayment of the rent upon that date will not forfeit the lease, where the lessee subsequently tenders the rent before the lessors exercise the option to forfeit or make any demand for the rent.”

This case, as did Rainey v. Quigley, supra, tenders the same question whether, in view of the provisions of ORS 91.090, supra, equity will relieve from the forfeiture of a lease for failure of a tenant to pay the stipulated rent within the time fixed by the statute.

The lease here, unlike the lease in the Rainey case, by its own terms provides for forfeiture in case of the lessee’s failure to pay rent as agreed. In this respect it is like the lease which we construed in the Caine case (185 Or 324). The forfeiture clause of the Baker lease reads:

“IT IS FURTHER UNDERSTOOD AND AGREED that time and strict performance in the matter of paying the rental herein set forth and in the matter of the performance of all of the covenants herein agreed to be performed by the lessee shall be of the essence of this contract, and in case the lessee fails in any way, or at all to make said payments as herein set forth or to perform any and all parts of this contract agreed to be performed, that this lease, may, at the option of the lessor be terminated and all rights of the lessee hereunder shall cease.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Russell v. Sealed Power Corp.
563 P.2d 712 (Oregon Supreme Court, 1977)
Fry v. DH Overmyer Co., Inc.
525 P.2d 140 (Oregon Supreme Court, 1974)
State Highway Commission v. Demarest
503 P.2d 682 (Oregon Supreme Court, 1972)
Western Rebuilders & Tractor Parts, Inc. v. Felmley
391 P.2d 383 (Oregon Supreme Court, 1964)
MOORE ET UX v. Richfield Oil Corp.
377 P.2d 32 (Oregon Supreme Court, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
312 P.2d 1072, 210 Or. 635, 1957 Ore. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-lehrer-or-1957.