Batey v. DH Overmyer Warehouse Company

446 S.W.2d 686, 60 Tenn. App. 310, 1969 Tenn. App. LEXIS 318
CourtCourt of Appeals of Tennessee
DecidedMarch 28, 1969
StatusPublished
Cited by12 cases

This text of 446 S.W.2d 686 (Batey v. DH Overmyer Warehouse Company) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Batey v. DH Overmyer Warehouse Company, 446 S.W.2d 686, 60 Tenn. App. 310, 1969 Tenn. App. LEXIS 318 (Tenn. Ct. App. 1969).

Opinion

TODD, J.

Complainant, W. N. Batey, d/b/a Batey Moving & Storage Company, filed the original hill in this cause to enforce certain lease agreements allegedly made with defendant, D. H. Overmyer Warehouse Company. From a decree partly favorable to complainant and partly favorable to defendant, both parties have appealed.

The original bill alleged that complainant was engaged in the trucking and warehouse business; that defendant was the owner of warehouse property; that complainant and defendant agreed upon terms of a lease of 10,000 square feet of warehouse space; that complainant occupied said space on March 27,1966 and continuously thereafter; that complainant and defendant thereafter agreed upon the lease to complainant of, additional 55,000 square feet in said warehouse, of which 50,000' was sublet by complainant to Avco Corporation with the knowledge and consent of defendant; that thereafter defendant granted to complainant an option or “first refusal” of additional 40,000 square feet in said warehouse; that a written lease prepared by defendant had been executed by complainant and delivered to defendant; that defendant had failed to sign and return to complainant a copy of said lease, but had accepted rental payments thereunder; that defendant denied that a binding lease had been entered into; and that defendant was threatening to dispossess complainant. Complainant tendered into court the amount of monthly rents and prayed for an injunction against eviction, adjudication of his rights, specific performance and damages.

*314 Defendant demurred to the bill on grounds of statute of frauds, inadequate description of property, want of or failure of consideration, and lack of equity shown by the bill.

The chancellor declined to issue the injunction prayed for and overruled the demurrer with leave to rely thereon in the answer.

The answer of the defendant relied upon the demurrer, admitted the residénce and occupation of complainant, denied that it was a foreign corporation, alleged that it was a domestic corporation, and generally denied each and every other allegation of the bill.

On February 3, 1967, complainant then filed a supplemental bill alleging that defendant had filed an unlawful detainer suit against him in circuit court and praying that defendant be enjoined from proceeding with said circuit court suit.

On February 28, 1967, a consent order was entered in circuit court over the signature of counsel for both parties. Said order recited that the defendant therein (complainant in this cause) had no defense to that action; that he confessed judgment for $14,895.00 to be increased at the rate of $2,979.16 on the first of each month thereafter until possession of premises should be restored to plaintiff (defendant herein); and that defendant therein confessed judgment for possession of the premises involved. Said consent order awarded judgment for the amounts aforesaid and for possession of the premises.

On March 2, 1967 a consent decree was entered in this cause authorizing the clerk and master to pay to defendant the sum. of $14,895.00 accumulated rental previously tendered into court by complainant.

*315 On March 2, 1967 a decree was entered in this canse reciting that complainant’s solicitor had stated to the court that complainant had no defense to said action commenced by defendant to circuit court because his defenses could not be asserted in said action at law; that complainant had confessed judgment in said circuit court suit; that the amount of said circuit court judgment $14,895.00 had been paid by complainant to defendant; and that:

“defendant will not resist a temporary injunction, pending disposition of this cause, restraining it from executing upon said judgment of the circuit court conditioned upon: * * *”

The condition referred to above was a $5,000.00 bond by complainant to assure payment of $2,979.16 monthly installments of rent. Said decree ordered the issuance of said injunction on said condition, the bond was executed, and the injunction was issued.

On April 25, 1967, defendant filed an amended answer alleging that complainant entered its warehouse as a tenant at will pending the agreement between the parties upon a lease; that the parties never agreed to a lease; that no option was ever granted, or if it was granted that there was a lack of or failure of consideration thereto; and that the circuit court judgment was conclusive of the dispute between the parties.

The chancellor heard the cause upon depositions; after which he filed a written opinion and entered a decree overruling defendants plea of res judicata, sustaining complainant’s rights under a lease marked exhibit 13, making the temporary injunction permanent, and denying the complainant’s claim to an option for additional space and damages.

*316 Defendant’s first assignment of error asserts two defenses, (1) res judicata and (2) statute of frauds, which must be discussed separately.

In support of the defense of res judicata, defendant correctly insists that the circuit court proceeding in unlawful detainer related to the identical property, parties and relations involved in the present case and that said proceeding was concluded by a consent order in favor of defendant in this ease. Defendant correctly states the general rules that the existence of a valid lease agreement is a complete defense to an action in unlawful detainer and that a determination of a controversy by a epurt of competent jurisdiction is conclusive of all elements of the controversy which could and should have been presented by either party.

Defendant fails to discuss or explain the remarkable procedure whereby the militant aggressor in chancery was converted into a supine recreant in circuit, confessing a judgment for possession and rents without a trial. Defendant fails to mention or discuss the coincidence that the amount of judgment rendered in circuit court was the exact amount of rent previously tendered by complainant to the clerk and master and ordered paid to defendant by consent decree dated two days after the circuit judgment. Defendant also fails to discuss or explain the decree in chancery dated two days after the circuit judgment reciting that defendant “did not oppose” an injunction against enforcement of the circuit judgment.

The anomaly of procedures, orders, decrees and pleadings is, in the words of Cicero, “mirabile dictu” (marvelous to say).

*317 In Gibson’s Suits in Chancery, Fifth Edition, Yol. II, Sec. 860, pp. 60, 62, is found the following:

‘ ‘ The fiat to a bill to enjoin a suit at Law on a money demand should require the defendant to confess judgment at Law as the condition of the injunction; otherwise, the complainant after litigating in Chancery may dismiss his bill and renew the litigation at Law.” (p. 60)
“2.

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Cite This Page — Counsel Stack

Bluebook (online)
446 S.W.2d 686, 60 Tenn. App. 310, 1969 Tenn. App. LEXIS 318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/batey-v-dh-overmyer-warehouse-company-tennctapp-1969.