Boral v. Caldwell

223 Cal. App. 2d 157, 35 Cal. Rptr. 689, 1963 Cal. App. LEXIS 1510
CourtCalifornia Court of Appeal
DecidedDecember 9, 1963
DocketCiv. 27339
StatusPublished
Cited by4 cases

This text of 223 Cal. App. 2d 157 (Boral v. Caldwell) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boral v. Caldwell, 223 Cal. App. 2d 157, 35 Cal. Rptr. 689, 1963 Cal. App. LEXIS 1510 (Cal. Ct. App. 1963).

Opinion

LILLIE, J.

The instant action is for sums assertedly due under a guaranty of a lease; the faithful performance guaranteed by defendants was not more than $6,000. Plaintiffs were given judgment for $439 and costs; they have appealed. It is contended that the evidence does not support certain key findings of fact and, therefore, the conclusions of law drawn therefrom.

On June 15, 1960, hy an instrument in writing, plaintiffs leased the subject premises to Crystalstone Corporation for a period of two years, commencing that same day. The lessee agreed to pay a total sum of $24,000, payable in installments as follows: $3,000 upon the execution of the lease and the sum of $1,000 per month commencing July 15, 1960, and continuing monthly thereafter on the 15th day of each month *161 for the next consecutive 20 months. The lease further provided that “In the event that Lessee shall not be in default under the terms of said Lease, at the end of the twenty-second (22nd) month of said lease Lessee shall be entitled to remain on the premises for the additional two (2) months without payment of rental.” Two days later (June 17, 1960) defendants executed their limited guaranty agreement.

On January 12, 1961, the lessee was in default on the November and December installments of rent; current property taxes, another obligation of the lessee, remained unpaid. On that date plaintiffs caused to be served on the lessee and the defendants a “Notice of Termination of Lease” effective January 15, 1961, because of “failure to comply with the provisions of Paragraph 2,” namely, payment of rent and taxes. The notice required the lessee to surrender possession of the premises “on or before the above mentioned date” (January 15).

The trial court found that the above notice constituted a termination of the lease, and in that connection further found that on or about January 15, 1961, plaintiffs entered into an oral agreement with Fiberglass Industries, Inc., to lease the same premises. The court also found that on the date of “termination” $2,439 was due and owing as and for rental and taxes; that against such amount defendants were entitled to a credit of $2,000, said sum representing a “security deposit” held by plaintiffs for the benefit of defendants and thus leaving a total unpaid balance of $439 admittedly owed by defendants.

The first finding challenged by plaintiffs relates to the trial court’s determination that the lease was terminated. It is argued that the January 12 notice did not give the lessee, as required by law (Code Civ. Proc., § 1161, subd. 2), the alternative of paying the rental installments due. 1 It is additionally contended that no action was taken by the lessee after receipt of the notice, and hence its rights thereunder were waived by the tenant corporation. Cited as authority for *162 the above claim is Grand Central Public Market, Inc. v. Kojima, 11 Cal.App.2d 712 [54 P.2d 786], which holds that a lease is terminated " ‘only if the notice is acted upon by one of the parties. ’ ” (P. 717.) But the trial court also found, as noted earlier, that plaintiffs on or about January 15 entered into an oral agreement to lease the premises to another tenant. Implicit in such finding is the determination not only that the lessee had acted upon the notice, but also that it had effected a surrender or abandonment of the subject property.

In this latter connection, it has been declared that the issue of a surrender of the premises is properly before the court even if the words “cancellation” or “termination” (as here) are found in the pleadings, including the denials contained therein, rather than the word “surrender.” (Rognier v. Harnett, 45 Cal.App.2d 570, 575 [114 P.2d 654].)

“ ‘A surrender of demised premises occurs only through the consent or agreement of the parties evidenced either by an express agreement or by an unequivocal act inconsistent with the terms of the lease and with the relation of landlord and tenant, or by acts so inconsistent with the terms of the lease as to imply in law an agreement to surrender, and hence, an acceptance by the landlord is requisite.’ ” (Martin v. Cassidy, 149 Cal.App.2d 106, 111 [307 P.2d 981].) The ease just cited also holds that “ ‘Abandonment is a question of intention, to be determined only upon an investigation of all the facts and circumstances, and the trier of fact is ordinarily the exclusive judge of the existence of the elements thereof, including the cardinal element of intention.’ ” (Italics added.) (P. 111.) The record reveals that “since January 15 of 1961” plaintiffs had listed the property with a broker. There was also evidence that at or about the time that notice of termination was served, Mr. Boral (one of the plaintiffs) was in touch with Mr. Barrie, one of the defendant-guarantors and also the president of Crystalstone—it appears that he executed the lease for the corporation in that capacity:

“Q. (By defendants’ counsel): Now, directing your attention to the month of January, 1961, and particularly to the last half, say, after the 12th or after the 15th, did you enter into negotiations with Mr. Lee and Mr. Barrie concerning these premises ?
A. (By Boral): Yes
Q. Isn’t it true that these negotiations centered around a *163 proposed lease arrangement whereby they would lease the property from yon for Fiberglass Industries, Inc. at a rental similar to that under the lease which is the subject of this lawsuit to Crystalstone ?
A. Not quite.
Q. You had negotiations with them concerning a new lease, is that correct?
A. It wasn’t a matter of a new lease. It was either a new lease or an amendment to an old lease whereby they would pay monthly installments for the old rental....”

Additionally, it was stipulated that a Mr. Lee, if called as a witness, would have testified that he was an officer of Crystalstone Corporation and that Crystalstone ceased operations and abandoned the premises about January 1, or prior to January 1, 1961; that prior to February 10 of that year, all of its production equipment had been moved to another address.

We are of the view that the foregoing evidence is inconsistent with plaintiffs’ claim that neither they nor their tenant interpreted the former’s notice as a termination of the lease. Certainly it would be contrary to human nature and experience, as well as the usual propensities of men in the course of business (Code Civ. Proc., § 1960, subd. 2), for the parties to negotiate a reletting in the manner presently disclosed unless all concerned were of the opinion that the tenancy was at an end. An inference, adverse to plaintiffs’ contentions, was properly deducible by the trial court which, as noted earlier, is ordinarily the exclusive judgment of the cardinal element of intention.

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Bluebook (online)
223 Cal. App. 2d 157, 35 Cal. Rptr. 689, 1963 Cal. App. LEXIS 1510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boral-v-caldwell-calctapp-1963.