D. A. Schulte, Inc. v. Brockton Young Men's Christian Ass'n

173 N.E. 414, 273 Mass. 335, 1930 Mass. LEXIS 1295
CourtMassachusetts Supreme Judicial Court
DecidedNovember 26, 1930
StatusPublished
Cited by10 cases

This text of 173 N.E. 414 (D. A. Schulte, Inc. v. Brockton Young Men's Christian Ass'n) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D. A. Schulte, Inc. v. Brockton Young Men's Christian Ass'n, 173 N.E. 414, 273 Mass. 335, 1930 Mass. LEXIS 1295 (Mass. 1930).

Opinion

Crosby, J.

This is a bill in equity to secure the cancellation of a certain lease in which the defendant is lessor and the plaintiff lessee, and the enforcement of the terms of a prior sublease given by former lessees of the defendant to the plaintiff as sublessee. The sublease provided for' a term extending beyond the term of the original lease which has since been surrendered. The case was heard by a judge of the Superior Court who ordered a final decree to be entered dismissing the bill. The plaintiff appealed.

On August 22, 1914, the defendant leased a parcel of land with the buildings thereon to Benjamín E. Waters and others for a term of ten years from September 1, 1914, with the right of renewal for a further term of ten years provided the lessees gave the lessor thirty days’ notice of their desire to renew and the rental was to be determined by agreement of the parties or by arbitration in accordance with the terms set forth in the lease. In the year 1920 the lessees assigned the lease (with the consent of the lessor) to the Mutual Realty Trust of which the original lessees were the trustees. On December 18, 1919, the Mutual Realty Trust and the plaintiff had entered into an agreement for a sublease of a portion of the building, and later a sublease thereof was executed by Waters and others, as trustees of the Mutual Realty Trust. Under this lease the plaintiff’s term was for four years from September 1, 1920,-at a rental of $14,000 per year, and for a further term of ten years from September 1, 1924, at a rental to be increased by the pro rata division of the increase in rent, if any, charged by the defendant to the trustees of the Mutual Realty Trust, but said increase was not to be in excess of $2,000 a year additional. On May 31, 1924, the trustees of the Mutual Realty Trust by.a letter (exhibit 10) notified the defendant that they desired to renew for a further term of ten years their lease of the building; the defendant authorized one Field to act for it in the matter and negotiations were had on several occasions. The parties failed to agree upon the rental for the renewal term, and finally on October 14, 1924, [338]*338the trustees of the Mutual Realty Trust accepted an offer made by the defendant to pay $30,000 for a release of their rights to an additional term. On November 21, 1924, a written instrument was executed by which the trustees released and surrendered all their rights to a renewal of the lease.

The record shows that the plaintiff first learned of the . surrender by the trustees of the original lease from a letter dated October 28, 1924, and signed by one Swan for Whitcomb and Company, real estate brokers, to one Nichols, vice-president of the plaintiff; that one Barnaby, vice-president of the plaintiff, at once telephoned the defendant’s representative, and a conference was had on November 6, 1924, at which Barnaby, one Santee (attorney for the plaintiff), Swan and Field were present. At that meeting Field showed the agreement dated October 14, 1924, of the Mutual Realty Trust to surrender and release its rights under the original lease from the defendant to the representatives of the plaintiff there present, covering up only the portion which showed the amount of the consideration to be paid by the defendant therefor. This agreement was examined by Barnaby and Santee and the latter advised Barnaby that the rights of the plaintiff under its sublease were thereby extinguished. Thereafter Barnaby entered into negotiations with the defendant’s agent for a lease from the defendant to the plaintiff of the part of the building then occupied by the plaintiff, and it was agreed that a lease should be executed at a rental of $18,000 a year for a term of ten years from December 1, 1924. On November 24, 1924, a lease to that effect was executed by the parties.

The original bill alleged, in substance, that, after the trustees of the Mutual Realty Trust had notified the defendant of their desire to renew the lease for the additional term, on many occasions' when the parties were negotiating for the additional term the defendant’s agent made false and "fraudulent representations to the trustees with the intent and purpose of compelling them to surrender their rights in the lease, and falsely represented to [339]*339them that the plaintiff had agreed to take over the entire building at a rental that the trustees could not afford to pay; that to induce the trustees to surrender their rights in the lease, Field stated to them that he had negotiated with the plaintiff for a release of all its rights under its lease with the trustees and had secured the same; that such representations were false; that on November 6, 1924, at the conference between the parties above referred to, Field informed Barnaby and Santee that they would have to negotiate with him for a new lease, but concealed from them statements which he is alleged to have fraudulently made to the trustees to induce them to surrender their rights under the original lease. It is alleged that the execution of the new lease by the plaintiff was thus induced by the fraud of the defendant’s agent.

A demurrer to the bill was sustained and thereafter an amendment was allowed by the addition of paragraphs 7A and 7B. The amendment alleges, in substance, that Field falsely and fraudulently represented to the plaintiff or to its authorized agents that the trustees “ had never exercised their option of renewal and had not done anything to preserve their rights ” to a renewal of the original lease; that the plaintiff, relying wholly upon the false statements of Field, entered into a new lease with the defendant for a term of ten years from the first day of December, 1924, at an increased and excessive annual rental of $18,000. To the amended bill the defendant demurred. This demurrer was overruled on the ground that the amended bill alleges that the defendant falsely represented “ direct to the plaintiff (not to Waters, et al.) ” that no notice had been given of a desire to renew the lease by the trustees to the defendant and that the plaintiff was thus fraudulently induced to enter into the new lease with the defendant.

The case was thereafter heard on the merits. The presiding judge made findings and rulings and ordered a final decree to be entered dismissing the bill with costs. In his findings and rulings he stated that “ The only question remaining open for trial in the case is the question [340]*340whether or not the final lease between the plaintiff and the defendant dated November 24, 1924, . . . was procured to be executed through false and fraudulent representations by one Field, who acted as the defendant’s agent in the transaction, to the effect that the original lessees . . . Waters et al., 1 had not done anything to preserve their rights in their original lease with the defendant and that, therefore, the lease from Waters et al. to the plaintiff was not in effect because of the failure on the part of the said Waters et al. to exercise any rights they had toward the renewal of their lease.’ ”

The judge found the following facts: The only representations alleged to have been made by Field were in the course of a conversation by telephone with the plaintiff’s agent Barnaby, shortly before November 6, 1924, and at the conference held on the last' named date, namely, that over the telephone Field said to Barnaby that the ‘ Mutual Realty ’ (another name for Waters et al.)

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Cite This Page — Counsel Stack

Bluebook (online)
173 N.E. 414, 273 Mass. 335, 1930 Mass. LEXIS 1295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-a-schulte-inc-v-brockton-young-mens-christian-assn-mass-1930.