Buswell v. Wentworth

186 A. 803, 134 Me. 383, 1936 Me. LEXIS 53
CourtSupreme Judicial Court of Maine
DecidedSeptember 9, 1936
StatusPublished
Cited by5 cases

This text of 186 A. 803 (Buswell v. Wentworth) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buswell v. Wentworth, 186 A. 803, 134 Me. 383, 1936 Me. LEXIS 53 (Me. 1936).

Opinion

Manser, J.

Appeal from decree dismissing bill in equity, brought to remove a cloud on the title to real estate. The sitting Justice made no findings of fact; but from an examination of the record and the allegations in the bill the case for the plaintiff may be stated as follows:

As a result of negotiations for purchase, the plaintiff received a warranty deed dated May 23, 1935, of land and buildings in Cornish, Maine, free of encumbrances except three mortgages upon which there was then due an aggregate sum of $1,875. The purchase price was $3,000, and the plaintiff paid the difference between the two sums for the equity, and took possession of the property. [385]*385There was, however, of record in the Registry of Deeds an instrument dated December 15, 1933, in which the grantors in the deed to the plaintiff, describing themselves as lessors, “in consideration of one dollar and other sufficient consideration do hereby let, remise and release unto Thomas C. Wentworth of said Cornish, the receipt whereof is hereby acknowledged, the following described premises.” The description is substantially that contained in the deed.

The document then continued: “Also said lessors are to have a right of way to pass and repass from Trail No. 25 to Trail No. 205, on the east side of the bam of said lessors, and adjoining thereto, and shall be over a strip twenty feet wide along the westerly boundary line of the leased premises, for the term of ten years, from December 15, 1933, reserving to the Texas Company such rights as it now has under a certain lease, recorded in said Registry, Rook 836, Page 44, or may hereafter have under said recorded lease, and shall come into the full possession and enjoyment of said leased premises upon the termination of said recorded lease, whether it be an operation of law or otherwise.” Then follows the testi-monium clause.

The evidence shows that the prior lease referred to and which was given to the Texas Company on April 3, 1933, for a period of five years, had been terminated by the parties thereto at the time of the purchase by the plaintiff.

The first contention is that the lease is ambiguous and uncertain and when judicially construed it must be determined that no term is prescribed and no rent reserved, that nothing more than a tenancy at will was created, which was determined by alienation of the premises, and in consequence the alleged lease should be declared null and void.

The second contention of the plaintiff is that assuming the document sufficient in terms to convey a leasehold interest, the defendant is estopped by his conduct prior to the purchase of the property by the plaintiff from asserting any rights thereunder.

Upon this phase the plaintiff claims support from the record for the following asserted facts: Thomas C. Wentworth, the defendant, was the mortgagee in two of the mortgages referred to in the deed and the amount due thereon at the time of the sale was $1,020. There was a gasoline filling station upon the premises and the [386]*386purpose of the plaintiff was to operate the station, and this constituted the real inducement for the purchase. The defendant was also the agent for the sale of Texas Company products, principally gasoline and oils. During negotiations, the plaintiff interviewed the defendant for two purposes, one relative to the purchase of gasoline and the other as to encumbrances. She inquired of him concerning the latter, and he replied there were none to his knowledge except the three mortgages above referred to; but that he did have a writing to assure or protect him in the exclusive sale of Texas Company products to the owner of the station. Replying that this was satisfactory, as it accorded with her intention, she then inquired as to the margin or “spread” between the wholesale and retail prices of gasoliné, to ascertain the gross profit to her, and was informed that it was four cents per gallon. The defendant made no other reference, direct or indirect, to the document under which he now claims. He knew she was negotiating with the owners, who were in apparent possession of the property; that the purchase would require the assumption of the mortgages in addition to the payment of whatever sum might be agreed upon for the equitj^; that she was intending to occupy and operate the premises; that she was seeking information from him as to encumbrances, and the amount of the gross profit on purchases of products from him. He informed her also from his own records as to volume of business transacted in former years. He made no claim to her that he was in actual or legal possession of the premises, or that the owners were occupying as his agents or tenants.

After the sale had been consummated and her own agent put in charge and possession, the defendant, with the first delivery of gasoline, insisted upon the payment of one cent per gallon in addition to the wholesale price under the claim that he was the lessee of the premises, and that if she desired to remain as a tenant under him, this amount would be exacted as rental upon all gasoline sold by her. If the plaintiff submitted to this charge, her gross profit was immediately reduced twenty-five per cent, and evidence was offered that the defendant asserted that the lease upon that basis was worth $5,000 to him for the remainder of the term.

Payment was at first made under protest; but upon later refusal of the exaction, suit was brought by the defendant against the [387]*387plaintiff to collect the amount charged under guise of rental. This suit was discontinued when the present proceedings were brought.

The explanation of the defendant as to his failure to inform the plaintiff of the claims he later asserted under the lease was that he did not want to spoil the trade.

The position of the defendant is that his actual representations were not as positive as claimed; that concerning his failure to inform the plaintiff as to the nature of the lease, he was under no legal obligation to speak; that the lease was of record and the plaintiff thus had constructive knowledge of its contents; and further, that the plaintiff procured the services of an attorney before the sale was completed, who searched the title and found the record of the lease, thereby imputing actual knowledge to the plaintiff of its contents.

The reply by the plaintiff to these assertions is that, if chargeable with notice, the lease being silent as to rental and ambiguous in other respects, the defendant is bound by his own explanation as to the purport and intent of the instrument.

The defendant in his testimony refers to similar leases, presumably as constructive or implied notice of the usual terms or obligations thereof.

It does appear that the owners had given a lease to the Texas Company, as before noted, which appeared in the chain of title, perhaps warranting the inference that the one given the defendant was of similar intent. The distinction, however, is that while the Texas Company became party to an indenture which on its face was a lease, still the owners remained in possession, and the evident purpose was to secure the exclusive sale of its products, for which privilege the Texas Company paid or allowed the owner one cent per gallon upon the price of gasoline as rental. In other words, the owner received the benefit of a discount of one cent per gallon so long as the Texas Company products were used exclusively.

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Cite This Page — Counsel Stack

Bluebook (online)
186 A. 803, 134 Me. 383, 1936 Me. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buswell-v-wentworth-me-1936.