Chee Yit Tung ex rel. Chee Sun v. Achi

26 Haw. 642, 1922 Haw. LEXIS 7
CourtHawaii Supreme Court
DecidedNovember 1, 1922
DocketNo. 1398
StatusPublished
Cited by2 cases

This text of 26 Haw. 642 (Chee Yit Tung ex rel. Chee Sun v. Achi) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chee Yit Tung ex rel. Chee Sun v. Achi, 26 Haw. 642, 1922 Haw. LEXIS 7 (haw 1922).

Opinion

OPINION OP THE COURT BY

LINDSAY, J.

This matter comes here upon an interlocutory appeal from an order overruling the demurrer of respondent to the amended bill of petitioner seeking relief against forfeiture of a lease. The facts set up in the amended bill, which, on demurrer must be assumed as true, are that on July 25, 1916, Frank Pahia, then owner of certain premises in Honolulu, leased the same to Chee Wai Hoon for a term beginning January 1, 1918, the lease .containing a [643]*643covenant that the lessee should keep the buildings on the premises insured for not less than 75% of their cost, in companies of assured standing; on January 1, 1918, the lessee went into possession and insured the buildings in a sum or sums which he “honestly believed” represented 75% of the cost; the lessor, on being advised of the amount of the insurance placed upon the buildings, agreed that said sum equaled 75% of the cost thereof, subsequently made no complaint as to the insufficiency of the insurance and thereafter collected the rents reserved in the lease; Cliee Wai Hooh, the original lessee, died in May, 1920, leaving as his heir at law petitioner, who immediately went into possession and has ever since retained possession and “complied with the covenants of said lease and maintained in full force and effect the insurance on said premises;” on December 22, 1921, respondent purchased the fee of said leased premises from Pahia, and on December 28, 1921, with full knowledge of all the facts above alleged, and without making any prior demand that the amount of insurance on the buildings be increased, or that the same be effected in companies other than those in which the same Avas effected, and to the utter surprise of petitioner, fraudulently served upon petitioner a notice in writing notifying her that respondent had entered upon the demised premises, canceled the lease thereon for condition broken, and notifying petitioner to quit and surrender the premises; thereafter, on January 5, 1922, respondent brought an action before the district magistrate of Honolulu against petitioner and her tenants, praying that the court adjudge the termination and forfeiture of the lease, and that petitioner and her tenants be summarily dispossessed, on the ground that petitioner and her predecessor in interest had failed, neglected and refused to insure the buildings in insurance companies of assured standing in sums not less than 75% of the cost of the [644]*644same; said action is now pending and respondent threatens., unless restrained by order of the court, to prosecute said action to final judgment; the lease is a valuable asset to petitioner and said action for summary possession constitutes a cloud upon petitioner’s title thereto and reduces the value thereof.

The amended hill prays that the respondent he permanently restrained and enjoined from prosecuting said action before the district magistrate and that the purported declaration of forfeiture of the lease be set aside and held for naught.

Respondent demurred to the amended bill on sundry grounds, which demurrer the circuit judge overruled and allowed an interlocutory appeal.

One of the grounds of the demurrer is that it appears by the amended bill that petitioner has a plain, speedy and adequate remedy at law.

It is far from clear from the amended bill whether it is the contention of -petitioner that neither she nor her predecessor in title has broken the covenant to insure, or whether petitioner concedes that there has not been a compliance with that covenant. Neither the cost of the buildings on the premises nor the amount of the insurance placed thereon is stated, the only allegations in that respect being that Chee Wai Hoon insured the buildings “in a sum or sums representing, as said Chee Wai Hoon honestly believed, seventy five per cent, of the cost of the buildings on said premises,” and that petitioner, since she has been in possession, has “complied with the covenants of said lease and maintained in full force and effect the insurance on said premises.” These allegations might fairly be construed as amounting to a positive denial of the breach of covenant complained of. and if proved would be a complete defense to the action for summary possession.

[645]*645Petitioner, however, both in her brief and in oral argument, takes the position that the allegations of the amended bill do not amount to a positive denial of a breach of the covenant to insure but that the case presented by the amended bill is that the petitioner’s predecessor in title “through mistake, induced by the conduct of his landlord, appellant’s predecessor in title, failed to comply strictly with the covenants in his lease relating to insurance.” (Petitioner’s brief, p. 2.)

It does not appear from the amended bill how or in what manner petitioner’s predecessor made a mistake when he effectuated insurance upon the buildings, nor what conduct upon the part of the then lessor induced bim to make such mistake. According to the amended bill, although the lease was made on July 25, 1916, the term did not commence and the lessee did not go into possession until January 1, 1918. What buildings were then on the premises does not appear, neither does it appear whether the circumstances were such that the knowledge of what the buildings had cost was more likely to be in the possession of the lessor or the lessee. It is alleged that the original lessee insured the buildings on the premises at about the time he went into possession and it may be inferred that he had not erected these buildings and was not in a position to know their cost. It might perhaps be inferred that Pahia, the lessor, was more in a position than the lessee to have known what the buildings had cost, but the amended bill is unfortunately silent as to these matters.

If, as stated in the amended bill, the lessor insured the buildings in a sum that he believed equaled 75% of the cost of the same, and the lessor, on being informed of the amount insured for, agreed that said amount did in fact equal 75% of the cost of the buildings, made no complaint, as to the amount of insurance, and, until he [646]*646parted with oAvnership in the premises, collected the rentals under the lease, both the original lessor and respondent, as present otvner of the reversion, would be clearly estopped to now claim a forfeiture of the lease for the breach complained of, and such estoppel would be available to petitioner as a defense in the action for summary possession.

The doctrine that equitable estoppels may be set up in this Territory by way of defense to actions at law has been so frequently announced by this court as to leave no room for doubt on the subject. Magoon v. Kapiolani Est., 22 Haw. 510, 517; Kamohai v. Kahele, 3 Haw. 530, 534; Hayselden v. Wahineaea, 10 Haw. 10, 16; Goo Kim v. Holt, 10 Haw. 653; Haw. Com. & S. Co. v. Kahului R. R. Co., 12 Haw. 85.

The case of Ching Tam Shee v. Hall, 19 Haw. 190, is exactly in point. In a bill for relief against the forfeiture of a lease the defendant demurred for want of equity.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Island Holidays, Inc. v. Fitzgerald
574 P.2d 884 (Hawaii Supreme Court, 1978)
C. Q. Yee Hop & Co. v. Young Sak Cho
27 Haw. 308 (Hawaii Supreme Court, 1923)

Cite This Page — Counsel Stack

Bluebook (online)
26 Haw. 642, 1922 Haw. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chee-yit-tung-ex-rel-chee-sun-v-achi-haw-1922.