Birckhead v. Cummins

33 N.J.L. 44
Supreme Court of New Jersey·Decided June 15, 1868·Published

Opinion

Beasley, Chief Justice.

One of the important questions arising in this case, on the points reserved is, whether a lease by parol, for a term less than three years, can be enforced between the parties, in case the lessee has failed to enter on the premises demised. The subject belongs to the proper exposition of the statute of frauds.

By the ninth section of that act, it is provided in the words following: “All leases, estates, interests of freeholds, or terms of years, or any uncertain interests of, in, to, or out of any messuage, lands, tenements, or hereditaments, made or created, or hereafter to be made or created, by livery and seizin only, or by parol, and not put in writing and signed by the parties so making or creating the same, or their agents, thereunto lawfully authorized by writing, shall have the force and effect of leases, or estates at will only, and shall not, either in law or equity, be deemed or taken to have any other or greater force or effect; any consideration for making any such parol leases or estates, or any former law or usage to the contrary notwithstanding; except, nevertheless, all leases, not exceeding the term of three years from the making thereof, whereupon the rent reserved to the landlord, during such term, shall amount to two third parts, at least, of the full improved value of the thing demised.”

[48] This provision, standing alone, would appear to be unmistakably clear and intelligible; its effect would be to convert terms, exceeding three years, which were created by parol, into estates at will, and leaving unaffected by such regulation, lesser terms, similarly created, whereon the rent reserved was of the relative value designated. But it was insisted, upon this argument, that the clause just quoted was to be taken in connection with that provision of the fourteenth section of the same act, which declares that no action shall be brought “ upon any contract or sale of lands, tenements, or hereditaments, or any interest in or concerning them,” the deduction from the two sections being that a parol lease, unexecuted by an entry of the tenant under it, is a mere agreement for an interest in lands, and, consequently, inefficacious by force of the latter of the statutory regulations just quoted. It is not to be denied, that some of the leading text writers have adopted this view, and it is certainly not without some support from casual expressions contained in judicial opinions. But I do not think any case can be found which has been rested on such a construction of this act, nor have I arrived at the conclusion that such construction is admissible. It seems to me it would violate both the language and intent of the act. Upon examining the statute with reference to this- matter, it will be found, in looking for the intention of the law-makers, that the entire subject of the creation of terms of years in lands, is provided for in the ninth section of the act whose language has already been recited. The purpose was to prevent the setting up of fraudulent terms of years, and the precaution interposed is, that such interests, unless evidenced by writing, shall be mere estates at will. This is the general rule thus established as a safeguard; but leases, not exceeding three years, whereupon the rent reserved during such term shall amount to two thirds, at least, of the full improved value of the thing demised, are expressly made exceptions. Such an arrangement, considered in itself, and as a preventive of fraud, seems to be well adapted to its end. An estate which can [49] be terminated by either party at will, is not likely to be set on foot by corrupt practices, nor is there much more danger of a resort to such arts, with regard to a lease which cannot exist beyond three years, and upon which the rent to be paid must nearly approximate to the real annual value of the thing demised. I find this view expressed by Sir Edward Sugden, 1 Vend. & Pur. 93, who, speaking of the statute in question, says : “ The first and second sections appear to enact that all interests actually created without writing shall be void, unless in the case of a lease not exceeding three years, at nearly rack-rent, which exception must have been introduced for the convenience of mankind, and under an impression that such an interest would not be a sufficient temptation to induce men to commit perjury.”

The section of this act, therefore, which regulates these leasehold interests, I consider adequate to its purpose, and complete in itself; and being thus self-sufficient, it does not appear to he probable that it was the design of the framers of the law, that it should be subject to the subsequent provisions.

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Birckhead v. Cummins, 33 N.J.L. 44 (N.J. 1868).

33 N.J.L. 44 (Birckhead v. Cummins) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.