Corbray v. Stevenson

656 P.2d 473, 98 Wash. 2d 410, 1982 Wash. LEXIS 1722
CourtWashington Supreme Court
DecidedDecember 22, 1982
Docket48409-1
StatusPublished
Cited by31 cases

This text of 656 P.2d 473 (Corbray v. Stevenson) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corbray v. Stevenson, 656 P.2d 473, 98 Wash. 2d 410, 1982 Wash. LEXIS 1722 (Wash. 1982).

Opinions

[412]*412Dolliver, J.

In the spring of 1974 Rose Parker (now Corbray) entered an agreement to lease a house from A. W. Stevenson. The term of the lease was for 1 year, continuing thereafter from year to year. The lease also contained the following provision:

6. It is understood and agreed by and between the parties that the above-described premises are mortgaged to the Yakima Home Federal Savings & Loan Association. It is further understood and agreed by and between the parties that at the end of a period of five (5) years from the commencement of this lease and upon the condition that the Lessee has kept and faithfully performed all of the terms and conditions of this lease, the parties will renegotiate the same and that the Lessee may purchase the said real property by the assumption of the then existing balance of the mortgage loan to said savings and loan association.

The final paragraph of the instrument is:

Time is the essence of this lease and in the event that the Lessee shall violate any term, condition or covenant of this agreement and such violation or breach thereof shall continue in effect for a period of fifteen (15) days after service of written notice upon the Lessee to remedy said breach or defect, then and in that event Lessee's rights hereunder shall cease and determine and the Lessors shall be entitled to immediate possession of said described premises.

Due to the seasonal nature of her employment and fluctuations in her income, Corbray maintained an irregular payment schedule. Stevenson and his business manager, who were aware of the situation, accepted all her payments for about 4 years.

On June 28, 1978, Corbray was served with a notice of termination of the lease for alleged deficiencies in the payment of rent, taxes, and irrigation and water assessments. Her offer to pay the claimed arrearages was refused. Stevenson then brought an ac: :on for unlawful detainer. Shortly thereafter, Corbray in tituted this separate action for declaratory relief, specific , srformance of the purchase option, and damages.

[413]*413In the unlawful detainer action the trial court declared the lease void under the statute of frauds for lack of an acknowledgment. The resulting month-to-month tenancy was held to have been properly terminated by the written notice. On appeal, the Court of Appeals reversed and remanded the case for a determination of the amount of rent, taxes, and assessments due. Stevenson v. Parker, 25 Wn. App. 639, 608 P.2d 1263 (1980). The court held the lease to be enforceable under the doctrine of part performance and the lessee entitled under the lease to notice of the right to remedy the arrearages. The court specifically declined to consider the validity of the option to purchase. Stevenson v. Parker, supra at 640 n.1.

In Corbray's declaratory judgment action, at issue here, Stevenson moved for summary judgment. In an affidavit he acknowledged execution of the lease agreement and stated it was his desire and intention that Corbray have an opportunity to purchase the property "only upon the condition she fully, timely, and faithfully perform all of the terms and conditions of the agreement throughout its term." He further stated that whenever his business manager informed him Corbray was not making timely and full payments, he instructed the business manager to demand Cor-bray pay all arrearages and make future payments promptly and in full. While he acknowledged Corbray was allowed to make partial payment of arrearages, Stevenson stated he did not intend this to constitute a waiver of his rights under the lease.

In her affidavit, Stevenson's business manager stated Corbray had never paid the real estate taxes on the leased premises, had been delinquent in making several rental payments, and that she had on several occasions spoken to or corresponded with Corbray about the delinquencies.

Corbray in her responding affidavit stated she had never considered herself to be behind in her rent payments and had either made up or offered to make up all arrearages when she was requested to do so by Stevenson or his business manager. She could remember only two occasions, [414]*414once in 1975 and once in 1976, when she was notified she was behind in her payments and claimed on both occasions she and the business manager agreed on the means by which the payments would be made up, which was subsequently done. Corbray stated that in June of 1978 Stevenson claimed she was behind by approximately $1,200, but she disagreed with that figure. She concluded by stating whenever she was notified back payments were due she promptly paid or offered to pay them even though she disagreed with the amounts paid.

Corbray's trial court attorney, A. Craig McDonald, also filed an affidavit. He stated that by letters of April 27,1979, and May 3, 1979, written to one of Stevenson's attorneys, he had notified Stevenson Corbray intended to exercise the purchase option. The April 27 letter tendered performance of the purchase option by offering to pay all past due rent and taxes oüt of an $8,000 cash supersedeas bond on deposit with the clerk of the superior court in connection with the appeal of the unlawful detainer action. McDonald stated Corbray was willing to assume the existing mortgage against the property. The same offer was further detailed in the May 3 letter. A letter from Stevenson's attorney rejecting these offers was also attached to McDonald's affidavit.

The trial court granted Stevenson's motion for summary judgment.

Division Three of the Court of Appeals affirmed in an unpublished decision. The court reasoned Corbray's option to purchase was subject to the condition precedent that she keep and faithfully perform all the terms and conditions of the lease. Because it found this condition was not met the court declared "the option never became viable." The court also held Corbray's waiver argument "has no application" since it pertained to forfeiture of the lease but not to the purchase option, and the notice provisions of the lease applied only to continuation of the lease and not to the purchase option. Finally, the court held the notice of termination of the lease and the unlawful detainer action were sufficient notice to Corbray that she was not in compliance [415]*415with the terms of the lease, even though it had previously been held insufficient to terminate the lease.

In their briefs the parties make and respond to a variety of arguments as to whether plaintiff should or should not be entitled to exercise the option to purchase in paragraph 6. There are only three issues we need consider. First is the allegation by plaintiff of ambiguity in the lease terms "kept and faithfully performed" in paragraph 6 and "time is the essence" in the final paragraph.

Words should be given their ordinary meaning, Fancher Cattle Co. v. Cascade Packing, Inc., 26 Wn. App. 407, 613 P.2d 178 (1980); contracts should be construed to reflect the intent of the parties, Ames v. Baker, 68 Wn.2d 713, 415 P.2d 74 (1966); and courts, under the guise of construction or interpretation, should not make another or different contract for the parties, Poggi v. Tool Research & Eng'g Corp.,

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Cite This Page — Counsel Stack

Bluebook (online)
656 P.2d 473, 98 Wash. 2d 410, 1982 Wash. LEXIS 1722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corbray-v-stevenson-wash-1982.