Centre Associates, Inc. v. Marla Jean, Inc. (In Re Marla Jean, Inc.)

25 B.R. 282, 1982 Bankr. LEXIS 5282
CourtUnited States Bankruptcy Court, W.D. Missouri
DecidedDecember 15, 1982
Docket18-42845
StatusPublished
Cited by6 cases

This text of 25 B.R. 282 (Centre Associates, Inc. v. Marla Jean, Inc. (In Re Marla Jean, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Centre Associates, Inc. v. Marla Jean, Inc. (In Re Marla Jean, Inc.), 25 B.R. 282, 1982 Bankr. LEXIS 5282 (Mo. 1982).

Opinion

MEMORANDUM OPINION AND ORDER

JOEL PELOFSKY, Bankruptcy Judge.

Debtor, Marla Jean, Inc., operated a clothing store, The Image, in the North Town Mall pursuant to a lease agreement entered into on May 11, 1979. Debtor vacated the premises on April 15, 1982 taking with her twelve mirrors, three chandeliers, three display window spotlights, a front counter, a lavatory cabinet, three doors, wall fixtures, brackets and rods, and carpeting.

Centre Associates, Inc., hereinafter Cen-tre, the owner of North Town Mall, filed a Complaint for Reclamation on May 7, 1982 alleging that the items taken were fixtures and should be returned. Centre also alleged that Debtor breached the lease agreement in that she did not repair the premises upon her abandonment. Debtor answered denying Centre’s claims. The hearing on the matter was held June 29, 1982 with Plaintiff’s Suggestions filed the same day and Defendant’s Suggestions filed July 7, 1982.

Centre Associates bases its claim on Art. VIII, § 8.1L of the lease which provides that Tenant will:

“At, or prior to the termination of the Lease: ... remove such of Tenant’s goods and effects as are not permanently affixed to the Leased Premises; ... to repair any damage caused by such removal; and peaceably to yield up the Leased Premises and all ... fixtures, furnishings, floor coverings and equipment which are permanently affixed to the Leased Premises, which shall thereupon become the property of Landlord without credit or compensation to Tenant whatsoever ...”

They claim that Debtor’s right to remove any of the items was limited by the fact that the freehold could not be injured and that since “substantial injury” to the freehold did occur, the items were, in fact, fixtures.-

Debtor refers this Court to the continuing trend in the Courts toward favoring tenants’ rights in the area of trade fixtures in that the intent to annex the fixtures to the property will not be found where the chattel can be removed without material injury to the realty. The evidence shows the following:

(1) The mirrors: Debtor bought these full-length mirrors and installed them in the store prior to its opening. They were not built in but were hung on the walls with adhesive and double-backed tape. Removal was effected by sawing through the tape which left some adhesive behind. However, Debtor claims that the adhesive can be removed with a putty knife leaving the walls undamaged. The mirrors are presently in use at the store’s new location.

(2) The chandeliers: One of the three chandeliers was plugged into the wall, hung from a hook and did not require any internal wiring. The other two were screwed into the ceiling tile and wired as one would wire any normal ceiling light. The ceiling itself was not damaged upon their removal and only screw holes were left in the tile.

(3) The display spotlights: Debtor bought these herself. Although she doesn’t know the exact method of their installation, she believes they were attached with screws and claims that their removal did not cause any damage. The spotlights are not being used at present but Debtor has plans to use them in the future.

(4) The sales counter: This counter was also purchased by Debtor. It is a freestanding unit which was not attached in any way to the floor or walls. Debtor is using it at her new location.

*284 (5) The lavatory cabinet: This is a freestanding vanity sink which was purchased by the debtor and connected to the drain pipe and the cold water faucet. Debtor claims that no custom work was involved but that she did incur some plumbing expenses in order to hook up the unit. The cabinet has been installed in the new location.

(6) The doors: Debtor installed these in the North Town Mall location at her own expense. They were connected to the walls with hinge pins and were removed from the hinges which were left behind. The doors are standard-size, not custom-made, and are presently in storage.-

(7) The wall fixtures: These are racks with brackets. The standard, into which the metal bracket is fitted, is screwed into the wall and the rods or shelves are supported by the bracket. Removal of the standard left holes the size of picture nail holes which are invisible from twelve feet away. These were originally bought by the store.

(8) The carpeting: This was wall-to-wall carpeting, paid for by the business. It was not glued to the floor itself but was stretched over wooden strips from which nails extruded. The wooden strips were left behind when the carpeting was removed.

At the hearing Plaintiff testified to the effect that the vacated store requires drywall work and repainting. Plaintiff admitted that paint would probably cover the marks left by the removal of the tape and adhesive, that a paint job normally lasts for three to five years and the shop was 2V2 years old when Debtor moved out, and that a new tenant would most likely repaint the premises anyway. Debtor testified that a four inch hole in one of the walls was the result of the removal, by Sentry Systems, of a security system and that she spent in excess of $35,000 improving the store when she moved into it in 1979. She also testified that the walls were undamaged in that spackling would cover any holes in them.

“A fixture is an article of personal property which has been so annexed to the real estate that it is regarded as a part of the land...” Marsh v. Spradling, 537 S.W.2d 402, 404 (Mo.1976). Those articles which are annexed in furtherance of a trade or business are called trade fixtures and are usually removable by the tenant. Stockton v. Tester, 273 S.W.2d 783, 787 (Mo.App.1954); Matz v. Miami Club Restaurant, 127 S.W.2d 738, 741 (Mo.App.1939).

A distinction is drawn between those articles “placed in the building for the sole purpose of enabling the tenant to carry on his business” and those “so placed as to make the building itself peculiarly adapted and more usable for the type of business.” The former may remain personalty which the tenant may remove. The latter becomes annexed to the realty and must be left behind. Stockton, supra at 787; Matz, supra at 741.

In cases where the dispute is between a landlord and a tenant desiring to remove trade fixtures installed on the land, the trend is to “favor the rights of the tenant.” Endler v. St. Bank and Trust Co. of Wellston, 352 Mo. 961, 180 S.W.2d 596, 598 (1944). The Endler court noted that principles of public policy and the encouragement of trade and manufacturing lead to this favored status. Id. 180 S.W.2d at 598. See In re Estate of Horton, 606 S.W.2d 792, 795 (Mo.App.1980); 35 Am. Jur.2d, Fixtures, § 35, p. 727.

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Bluebook (online)
25 B.R. 282, 1982 Bankr. LEXIS 5282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centre-associates-inc-v-marla-jean-inc-in-re-marla-jean-inc-mowb-1982.