Cantile v. Vanity Fair Properties

505 S.W.2d 654, 1973 Tex. App. LEXIS 2971
CourtCourt of Appeals of Texas
DecidedApril 18, 1973
Docket15110
StatusPublished
Cited by8 cases

This text of 505 S.W.2d 654 (Cantile v. Vanity Fair Properties) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cantile v. Vanity Fair Properties, 505 S.W.2d 654, 1973 Tex. App. LEXIS 2971 (Tex. Ct. App. 1973).

Opinion

CADENA, Justice.

This is an appeal by defendant, Bernice Cantile, d/b/a Menger Smart Shops, who also appears as independent executrix of the estate of her deceased husband, Beryl H. Cantile, from a judgment awarding plaintiff, Vanity Fair Properties (described in the pleadings as a joint venture consisting of Robert C. Hoppe, Stanley Hickman, Anthony Atwell and William Ravkind), judgment in the sum of $16,170 as rental for certain premises occupied by Menger Smart Shops under a written lease and abandoned prior to the expiration of the term, and $16,000 as attorney’s fees. By cross-points, Vanity Fair Properties contends that the trial court should have entered judgment in its favor in the sum of $83,304 as damages for breach of the lease agreement, and in the amount of $30,000, the sum found by the jury to be reasonable, as attorney’s fees.

Plaintiff, Vanity Fair Properties, will be designated in this opinion as “lessor,” while defendant will be referred to as “lessee.”

Lessor filed this suit on October 13, 1969. The trial on the merits began on October 5, 1971, and the judgment before us for review was rendered on December 9, 1971.

The lease in question, executed on October 5, 1964, called for lessee to occupy 3,300 square feet of space in a building to be subsequently constructed by lessor in San Antonio. A sketch or plat attached to the lease identifies the building as “VANITY FAIR SHOPPING CENTER and Professional Building.” The annual fixed minimum rent reserved was $12,600, payable in equal monthly installments of $1,-050, in advance, on the first day of each month. The lease also provided for an additional rental payment equivalent to the amount, if any, by which 4% of the gross' receipts from lessor’s business exceeded the annual fixed minimum rent. The term of the lease was ten years, terminating on July 31, 1976.

By subsequent amendment to the lease, executed prior to the time lessee took possession, the leased area was increased to 4,500 square feet, and the minimum rental was increased to $1,350 per month. This amendment further provided that if, at the termination of the first three years of the basic term, lessee was paying no additional rental under the percentage of gross receipts provision of the original lease, lessee would have the option of returning “ . . . the 1200 additional feet . ” or paying “ . . . the sum of an additional One Hundred Twenty ($120.-00) Dollars per month therefor for the balance of the lease. . . .”

It is undisputed that no additional amounts were paid by lessee under the gross receipts provision, since 4% of the lessee’s gross receipts never exceeded the fixed minimum rental reserved in the lease.

The last payment of rent by lessee was made on February 1, 1969. Lessee abandoned the premises on February 27, 1969.

Lessor’s petition, after reciting the execution of the lease and abandonment of the premises by lessee on February 27, 1969, *656 contained allegations which may be fairly summarized as follows:

(1) Lessor suffered total loss of rentals for March, April and May, 1969, totaling $4,050.

(2) On May 15, 1969, lessor relet 1,500 square feet of the area formerly occupied by lessee. In order to make the premises useable by the new tenant, lessor made alterations at a cost in excess of $5,300.

(3) In addition to the sums “heretofore mentioned,” lessor had suffered damages in the amount of $5,400 as of the date on which the petition was filed (October 13, 1969).

(4) Lessor would continue to be damaged in the sum of $1,350 per month until July 1, 1976, the date of expiration of the lease term.

(5) Lessor was entitled to recover attorney’s fees. A reasonable attorney’s fee would be one third of the amount sued for, or a fee calculated on the basis of no less than $50 per hour for time devoted by lessor’s attorney in the preparation of pleadings, pretrial proceedings, preparation for trial, trial on the merits and appeal to the Supreme Court of Texas or of the United States, if such appeal should be necessary. Since lessor sought recovery of an amount no less than the amount of “ . . . delinquent rentals to the termination of the lease contract or approximately seven years of rentals at $16,200.00 per year, or $113,400.00 . . .,” a reasonable attorney’s fee would be $37,800.

Lessor prayed for recovery of delinquent rentals, cost of improvements and remodeling, attorney’s fees and interest. The prayer concluded with the usual demand for general relief.

Although 67 special issues were submitted to the jury, the last 65 issues, which were answered unfavorably to lessee’s prayer for recission of the lease because of fraud, are not before us. In answer to the first two issues, the jury found that the “reasonable cash market value” of the lease for use as a ladies’ ready-to-wear shop was “none,” and that $30,000 would be a reasonable attorney’s fee.

The judgment, after setting out the answers to the special issues, recited that the court was nevertheless of the opinion that lessor was entitled to recover rentals for the 13-month period beginning March 1, 1969, and ending March 31, 1970, at the rate of $1,470 per month.

Lessee’s motion for new trial was overruled as to all points challenging the award to lessor of recovery of rent. Lessee’s complaints relating to the award of $30,000 as attorney’s fees were sustained, with the provision that if lessor filed a remittitur in the sum of $14,000, these assignments of error would also be overruled. The lessor filed the remittitur, reducing the award of attorney’s fees to $16,000.

By its first point, lessee contends that the lease terminated as a matter of law when lessee vacated the premises on February 27, 1969, because of the change in the nature of the first floor of the building in which the premises were situated from “that of a shopping center” to an office building. This point is without merit.

Although the lease instrument expressly limits lessee’s use of the premises to the operation of a ladies’ ready-to-wear shop, the instrument contains no language imposing on lessor the duty to maintain the first floor of the building as a shopping center or prohibiting the lease of space on the first floor to other than retail establishments. Since it is undisputed that all parties to the lease contemplated that the ground floor of the building would be developed as a “fashionable, boutique-type shopping center,” and since, after the first floor was completed, the entire space was occupied by tenants operating retail establishments, lessee insists that there was an implied agreement by lessor to maintain • the “shopping center” character of the first floor, and that its breach of this *657 agreement terminated lessee’s obligation to pay rent.

Because of historical reasons, the effect of the breach of his obligations by a party to a lease was determined by reference to the rules of real property relating to the eviction of, or the commission of waste by, the tenant. The application of these rules generally led to the conclusion that the obligations of lessor and lessee were “independent” in the sense that failure of one party to perform did not excuse performance by the other. 1 Restatement, Contracts, Section 290 (1932).

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Bluebook (online)
505 S.W.2d 654, 1973 Tex. App. LEXIS 2971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cantile-v-vanity-fair-properties-texapp-1973.