Camalier & Buckley-Madison, Inc. v. The Madison Hotel, Inc.

513 F.2d 407, 168 U.S. App. D.C. 149, 20 Fed. R. Serv. 2d 510, 1975 U.S. App. LEXIS 14588
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 22, 1975
Docket73-1523
StatusPublished
Cited by58 cases

This text of 513 F.2d 407 (Camalier & Buckley-Madison, Inc. v. The Madison Hotel, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Camalier & Buckley-Madison, Inc. v. The Madison Hotel, Inc., 513 F.2d 407, 168 U.S. App. D.C. 149, 20 Fed. R. Serv. 2d 510, 1975 U.S. App. LEXIS 14588 (D.C. Cir. 1975).

Opinion

*410 SPOTTSWOOD W. ROBINSON, III, Circuit Judge:

The Madison Hotel, Inc. (Madison) and Marshall B. Coyne, its president, appeal from a judgment awarding damages to Camalier & Buckley-Madison, Inc. (Ca-malier) on account of Madison’s termination of a lease into which it had entered with Camalier. The judgment rests upon a verdict directed by the trial judge on the issue of liability, and the amount of damages set by the jury following submission of that issue to it. Presented for review are questions of construction and operation of key provisions of the lease, and of the propriety of some of the instructions given the jury on damages. We find that the direction of the verdict was erroneous, and that the error fatally infected the verdict on damages also. Accordingly, we vacate the judgment and remand the case for a full retrial.

I. THE FACTUAL BACKGROUND

By an instrument dated July 7, 1967, Madison leased to Camalier a portion of the main lobby of Madison’s hotel building, together with furnishings and equipment, for use by Camalier as a gift shop and newsstand. The lease specified a term of five years from March 1, 1967, renewable at Camalier’s option for an additional five-year period, and incorporated two other features which were to assume great importance in this litigation. Paragraph 21 authorized Madison to relocate the demised premises in similar-sized space on the main lobby floor of either the hotel building or Madison’s adjacent office building on a sixty-day notice of intention by Madison and at its expense. 1 Paragraph 16 provided that in the event of nonperformance by Camalier of any obligation of the lease for a period of five days after written notice thereof by Madison, the latter could terminate the lease and reenter the premises on a five-day notice of its intention to do so. 2

On February 3, 1971, Coyne telephoni-cally informed Camalier’s president that the shop would have to be moved from the hotel lobby and relocated in the lobby of the office building. Coyne then received an acknowledgment of Camalier’s obligation to comply if Madison provided equivalent space. By May, 1971, the new location was ready for occupan *411 cy but Camalier refused to accept it, asserting that the area was smaller than the original site and that the fixtures were inadequate for storage and display of its wares. Negotiations between the parties, over a period of several months ensuing, failed to achieve a mutually satisfactory adjustment of those objections. 3

By letter dated June 1, 1971, Coyne confirmed the February 3 telephone conversation and referred to Paragraph 21 of the lease. 4 That letter was followed by another, dated June 23, in which Coyne, again citing Paragraph 21, indicated a desire to terminate the lease but suggested renegotiation of a new lease clarifying their differences. 5 After a conference between Coyne and Camalier failed to achieve that goal, 6 Coyne, by letter dated August 4, 7 advised that “[sjince Article Twenty-One of your lease gives me the absolute right to require you to relocate your business and since the sixty day notice period will expire August 23, 1971, 8 we shall expect you to complete your moving into the relocated space by the last mentioned date, failing which, we shall consider you in default and will take such further action as we deem appropriate to the circumstances.” 9 Then followed another *412 letter, dated September 3, in which Coyne stated that “on Tuesday, September 7th, I will close the space you occupy currently and I request that you remove all merchandise forthwith.” 10 That missive brought the final episode near.

On the night of September 6 — 7, an employee of Madison broke off a key in the lock securing the shop in the hotel building. Madison’s night manager informed a Camalier employee of the lock; the employee retained a locksmith, regained entry, and business was conducted on September 7 and 8. On the night of September 8-9, Madison had the lock on the shop door changed, and on the next morning Madison's night manager told Camalier’s employee that Coyne had informed him that Camalier had broken the lease and was not to reopen for business. When the employee nonetheless attempted to do so, he was unable to open the door, and it was then that Ca-malier turned to courts.

The complaint which Camalier filed in the District Court alleged wrongful eviction, trespass and breach of contract, and sought damages from Madison and Coyne. At trial before a jury, the judge directed a verdict for Camalier on the question of liability, and the jury assessed compensatory and punitive damages in its favor. 11 Madison’s motion for a new trial, or in the alternative for remittitur, was denied and this appeal followed.

II. THE OPTION TO RELOCATE

Camalier’s motion for direction of the verdict summoned attention to three notice provisions of the lease. The first was -the sixty-day notice of intention specified in Paragraph 23 as a precondition to exercise of Madison’s right to relocate Camalier’s shop. 12 The second was the five-day notice of default, and the third the five-day notice of intention, which Paragraph 16 made prerequisite to termination of the lease and reentry by Madison upon the leased premises. 13 The trial judge ruled that as a matter of law Madison did not comply with the third provision, and that the omission to do so entitled Camalier to a judgment establishing Madison’s liability on all three causes of action stated in the complaint. With that, the judge deemed it unnecessary to determine whether Madison observed the other two notice requirements.

In this court, the parties have debated the effects, upon the issues presented for review, of each of the three notice provisions. Since we disagree with the trial judge’s ruling, it is essential that we con *413 sider them all. 14 In the interest of orderly analysis, we start with the one associated with Madison’s attempts to relocate the premises leased to Camalier. 15 We then consider those related to Madison’s bid to terminate the lease. 16

Paragraph 21 conferred upon Madison “the right to relocate the demised premises to another location on the main lobby floor of the hotel building, or office building immediately adjacent thereto,” upon satisfaction of three conditions. 17

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Bluebook (online)
513 F.2d 407, 168 U.S. App. D.C. 149, 20 Fed. R. Serv. 2d 510, 1975 U.S. App. LEXIS 14588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/camalier-buckley-madison-inc-v-the-madison-hotel-inc-cadc-1975.