Brager v. Bigham

3 Balt. C. Rep. 348
CourtBaltimore City Circuit Court
DecidedJuly 1, 1915
StatusPublished

This text of 3 Balt. C. Rep. 348 (Brager v. Bigham) is published on Counsel Stack Legal Research, covering Baltimore City Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brager v. Bigham, 3 Balt. C. Rep. 348 (Md. Super. Ct. 1915).

Opinion

BOND, J.—

It appears that the defendants are leasehold owners of property known as No. 233 North Eutaw street in Baltimore Citj^ under an irredeemable lease for 99 years renewable forever, subject to a ground rent of $12 yearly; and the plaintiff is the tenant of the building and premises under a series of leases extended or renewed, the current one to expire on December 4, 1915. On January 24, 1888, the defendants’ predecessor in title, John Plummer Bighorn, trustee, did (to quote the words of the written instrument), “lease unto Joseph Sigmund the three-story building No. 233 North Eutaw street, iiea,r Sara-toga street,” for the term of one year [349]*349at a rental of 81,200, and thereafter for ten years at a rental of $1,600. The lease contained covenants for the improvement of the property by the lessee at his own expense to the extent and amount of $5,000, for the payment of water rent by the lessee, for the care of the property, ordinary wear and tear and damage by Are and the elements and from unavoidable causes excepted. And there were other covenants, for the cessation of rent while the property should continue unfit for occupancy as a result of fire,, for keeping the property insured, and against assignment.

On September 1, 1888, this lease was assigned to Brager, with the written consent of the lessor.

On March 7, 1896, there was executed a new ‘‘lease and agreement,” which recited that of 1888, and its api>roaching expiration, and did “demise and lease unto the said Albert A. Brager the 'building and premises in Baltimore City covered by the aforegoing lease, and known as 233 North Eutaw street,” for a term of thirteen years at an annual rental of $2,000. This lease also contained covenants concerning the lessee’s improvement or alteration of the premises, destruction by fire, care and insurance.

On March 16, 1901, however, ¡mother “lease and agreement” was executed, this time to extend the last lease until December 4, 1915. It contained a covenant that “if the said Brager should tear down the present building- on said premises and erect another in its place, at said Brager’s expense, said Brager hereby agrees to pay the yearly increase of taxes over and above the present assessment on the valuation of said property, if such increase of assessment is caused by reason of the erection of said new building-,” etc.

On March 16, 1906, pursuant: to an agreement dated February 23, 1906, for an option to Brager, still another “lease and agreement” was executed. This recited the preceding instruments, and an agreement “to execute a new lease to the said Albert A. Brager on said premises known as No. 233 North North Eutaw street, in Baltimore City, subject to the terms and stipulations” (hereinafter set forth. Then followed the statement that the lessors did “demise and lease unto the said Albert A. Brager, his personal representatives and assigns, the building and premises in Baltimore City known as No. 233 North Eutaw street for a term of years commencing on the 4th day of December, in the year 1915, and ending' on the 3rd day of December, in the year 1935, at the rental of twenty-one hundred dollars ($2,100) per annum. The covenants concerning alterations, destruction by fire, insurance, and prohibiting assignment of the lease without consent of the lessors, were added as in the preceding instrument; and then followed a new covenant by Brager to tear down the existing building- and erect: another to cost not less than twenty thousand dollars, all before the 4th of December, 1915, or, in the alternative, to pay to the lessors the sum of ten thousand dollars.

On February 16th, 1915, the plaintiff, Brager, served upon the defendants, in accordance with Section 98 of Article 21 and Section 24 of Article 53 of the Code, a notice that he desired to redeem on ¡i 6 per cent, basis the rent reserved in tlie lease of March 16th, 1906, covering the property No. 233 North Eutaw street, and that after 30 days he would be prepared with a deed and the money to cover the redemption price. The defendants refused to accede to this demand for redemption; and now the plaintiff prays a decree for its enforcement.

The answer admits the facts just set, out, adds that the plaintiff has not erected the new $20,000 building- or paid the alternative sum of $10,000, and raises questions of law. And the parties have argued and submitted the case on bill, answer and exhibits as if the answer were a demurrer.

There are two main questions raised:

(1) Do the statutes cited, in addition to providing- for redemption of the familiar ground rent, also give a right to redeem the rent in a lease of a building, such as that with which we are dealing?
(2) If so, then under a lease which by its terms provides for possession and the payment of rent to begin only nine years hence, does the right of redemption come into existence in the meantime, so that it may be exercised before possession and the payment of the rent could begin?

On the first and larger question I believe there has been some difference of opinion at the bar during the thirty [350]*350years of the existence of the redemption statutes, but so far as I have learned there has been no adjudication of the point. The wording of the statutes does not, perhaps, plainly coincide with their known object, and this leaves the construction open to doubts. But there are other clues to the legislative intention. And in construing the statutes ithiemselves we must be more than ordinarily cautious against deceiving ourselves with terminology.

When- in Maryland, and especially in Baltimore City, we speak of leases and leasehold interests, we have to keep in mind a clear distinction between those leases under which ground- rents have been created, and leases of houses or buildings. The two are different in kind. The lease for 99 years renewable forever, as it was drawn previous to 1884, while in form a lease of land, was in fact an instrument for the creation of a perpetual charge upon land owned and enjoyed by another. There could hardly be a fact in our legal and economic history more familiar to us than that.

“It is a peculiar description of tenure which has been sustained by our courts, and approved- and fostered -by our people.” Banks vs. Haskie, 45 Md. 207.

The lease was merely the means of creating a specially favored security for the investment of money, and was not intended to give and did not give the owner of the rent any right or burden respecting the building upon the lot made subject to the rent. We call the rent secured a “ground rent,” the common definition of which is a “rent paid for the privileges of building on another man’s land-,’.’ or “the compensation paid each year, or for a term of years, for ground leased for building or other improvement” (Webster, Standard and Century Dictionaries) ; and we speak of “redeeming” it; the language of a mortgage or pledge. The covenants appropriate to a building-lease, such as -those concerning repairs and upkeep of the property, and destruction by fire, could have no place in a lease creating a ground rent, and so are not included. There is no occation for any covenants other than those necessary to secure the payment of the rent.

And that such is the real nature of this lease and of the interests created by it has been recognized by the law. In Pennsylvania, where the same form of investment was in vogue for some time, the interest of the lessee was treated as a fee-simple interest.

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Bluebook (online)
3 Balt. C. Rep. 348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brager-v-bigham-mdcirctctbalt-1915.