Chadwick v. Winn

421 P.2d 890, 101 Ariz. 533, 1966 Ariz. LEXIS 390
CourtArizona Supreme Court
DecidedDecember 22, 1966
Docket7963
StatusPublished
Cited by13 cases

This text of 421 P.2d 890 (Chadwick v. Winn) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chadwick v. Winn, 421 P.2d 890, 101 Ariz. 533, 1966 Ariz. LEXIS 390 (Ark. 1966).

Opinion

UDALL, Justice.

In September, 1959 George Winn entered into a lease agreement with Herman and Alice Chadwick, as lessors, whereby Winn became the lessee of a lot located at 1300 E. Camelback in the city of Phoenix. The lease was for a term of nine years, commencing on September 1, 1959 at a rental of $600 per month payable on the first day of each month.

The lease agreement provided that upon the nonpayment of the rent, when due on the first day of the month, the lessors at their election could declare the lease at an end and recover possession as if the premises were held by forcible detainer. By the terms of the agreement the lessee-waived any notice of the lessor’s election and also waived the necessity of a demand for possession of the premises.

From September, 1959 through October,. 1960 George Winn paid the monthly rental of $600, and the lessor, Herman Chadwick,, accepted the full amount of the rent each month. Winn paid the rent in cash orr *535 several occasions, and he paid by check on the following dates: in 1959, on September 2, October 8, and December 1; in 1960, on February 3 and on April 15. The exact dates of the cash payments were not established in the lower court. Winn testified that he was late in paying the rent, whether by check or cash, approximately two-thirds of the time, and although Chadwick acknowledged having accepted late payments in order to accommodate Winn, he was unable to estimate the number of times the rent had been paid and accepted late.

In September of 1960 Winn assigned a two-thirds undivided interest in the term to the plaintiffs George Sorenson and Jack Cavness, receiving $3,300.00 for the interest transferred. In October and November, 1960, Chadwick, who was aware that Sorenson and Cavness had acquired an interest in Winn’s lease, accepted the $600 monthly rentals which were paid in part by checks drawn by George Sorenson. Neither party questioned the validity of the assignment in the trial court or on this appeal.

In December, 1960 the rent was again not paid on the first of the month. According to Winn’s testimony he met Chadwick at Herb Stevens Motor Co. between the 5th and 8th of December, and during the course of a conversation Chadwick consented to a further delay when Winn told him “that I would have the rental payment for him in a couple of days.” Chadwick testified that the subject of rent was not discussed or mentioned during the conversation.

On December 16th Chadwick, by means of a letter from his attorney to Winn, advised the lessee that Chadwick had elected to terminate the lease as of the 12th of December. After receiving the letter Winn tendered the rent due, but it was refused by Chadwick.

. On December 16th Winn, Sorenson and Cavness commenced this action to recover damages for wrongful termination of the lease by Chadwick.

Plaintiffs based their claim for damages on the ground that defendant’s acceptance of late rental payments on various occasions during the period from September, 1959 through November, 1960, constituted a waiver of his rights to declare the lease at an end, and, without giving notice or demand, to retake possession of the premises. Plaintiffs argued that under the circumstances as they existed in December, 1960, defendant was required to make a demand for the rent due in order to reinstate those provisions of the lease which gave him an unqualified right to declare a forfeiture for nonpayment of rent.

In the trial court defendant contended that acceptance of late rent did not have the cumulative effect of waiver of forfeiture rights, that defendant had, in November of 1960, verbally demanded prompt payment of the December rent, and, even assuming that defendant had given Winn an extension of a couple days in December, during his conversation with Winn at Herb Stevens Motor Co., defendant had in fact waited a few days before declaring the forfeiture on December 12th.

The cause was tried in superior court without a jury, and a judgment was rendered in favor of the plaintiffs for $32,000.-00. From the judgment and denial of his motion for a new trial defendant takes this appeal.

In his first assignment of error defendant claims the trial court erred in entering judgment for the plaintiffs and in denying defendant’s motion for a new trial because there was no evidence that defendant acquiesced in the late payment of rent for a sufficient length of time or under circumstances which established a course of dealing upon which the plaintiffs had a right to rely.

We find it unnecessary to determine whether the acceptance of late rental payments had the cumulative effect, as far as the defendant was concerned, of waiver of his right to declare a forfeiture without demand or notice. We think that the trial court could have found from the evi *536 dence that the defendant waived timely payment of the December rental and that this waiver alone was sufficient to preclude defendant from declaring a forfeiture without first making a demand for the rent due.

No findings of fact were made by the trial court, and we must presume that the court found every controverted issue of fact, necessary to sustain the judgment, in favor of the prevailing parties; the evidence will be viewed in the strongest light in favor of appellees, and if there is reasonable evidence to support the judgment it must be sustained. Kellogg v. Bowen, 85 Ariz. 304, 337 P.2d 628.

Applying the above principles to the record before us, we assume that the trial court, which had before it the undisputed evidence of defendant’s past leniency and which had an opportunity to judge .the credibility of the parties, found that the defendant did, in his conversation with .Winn at Herb Stevens Motor Co., sometime between the 5th and the 8th of December, grant an extension of at least two days, at a time when the December rental was several days in arrears.

We have held, in Wahlstrom v. Christy, 20 Ariz. 331, at 333, 180 P. 528, at 529, that “‘[a]ny act of the lessor done with the knowledge of a cause of forfeiture by the lessee affirming the existence of the lease and recognizing the lessee as his tenant is a waiver of such forfeiture. And inasmuch as forfeitures are not favored, slight acts will be construed as a waiver of the forfeiture.’ ”

When defendant granted the extension he waived his right of forfeiture, at least temporarily. The question is, was he then required to demand the rent and give Winn an opportunity to pay, notwithstanding the terms of the lease by which the lessee waived any demand or notice of the lessor’s election to end the lease for nonpayment of rent.

We think that under the circumstances the defendant was required to make a demand and afford Winn a reasonable opportunity to tender the December rental payment. The law does not favor forfeitures and it cannot condone a lessor’s conduct which has put a tenant off guard and has tended to lead him into circumstances in which his interest can be forfeited by the lessor. In such a case, notwithstanding the provisions of the lease, reason and justice require that the lessor demand that the rent be paid before exercising a right of forfeiture. Donovan v. Murphy, 217 Ill.App. 31 (1920).

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Cite This Page — Counsel Stack

Bluebook (online)
421 P.2d 890, 101 Ariz. 533, 1966 Ariz. LEXIS 390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chadwick-v-winn-ariz-1966.