Darling Shops Delaware Corp. v. Baltimore Center Corp.

60 A.2d 669, 191 Md. 289, 6 A.L.R. 2d 677, 1948 Md. LEXIS 368
CourtCourt of Appeals of Maryland
DecidedJuly 20, 1948
Docket[No. 35, October Term, 1948 (Adv.)]
StatusPublished
Cited by21 cases

This text of 60 A.2d 669 (Darling Shops Delaware Corp. v. Baltimore Center Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Darling Shops Delaware Corp. v. Baltimore Center Corp., 60 A.2d 669, 191 Md. 289, 6 A.L.R. 2d 677, 1948 Md. LEXIS 368 (Md. 1948).

Opinions

Marbury, C. J.,

delivered the opinion of the Court.

On November 16, 1937, the Cumberland Realty Company, then the owner of Nos. 101-105 Baltimore Street, Cumberland, Maryland, executed what was purported to be a lease of a stock-room in these premises, to Darling Shops, Inc., of Delaware. This purported lease was in writing, and attempted to create a term of ten years, commencing February 1, 1938 and ending January 31, 1948, at an annual rental of $8500, payable in equal monthly instalments. The lease, however, was not executed, acknowledged or recorded as required by Article 21 of the Annotated Code, Section 1.

On May 9, 1940, by supplemental lease, also in writing, but not executed, acknowledged or recorded as required by the statute, the Cumberland Realty Company leased additional space in the premises to Darling Shops for a *292 term of seven years and nine months, commencing on May 1, 1940 and ending on January 31, 1948, at an annual rental of $1500, payable in equal monthly instalments. The terms in the two leases were timed to expire at the same date, January 31, 1948. The Darling Shops entered into the premises and paid the rent. In May, 1944, the Cumberland Realty Company conveyed the property to the appellee. The corporate name of the Darling Shops was changed to its present form, but the appellant here is the same corporation which entered into possession of the premises and has been in possession since.

On November 14, 1947, the appellee notified the appellant, in writing, that it would expect possession of the property on January 31, 1948. The appellant did not vacate and attempted to pay rent after January 31, 1948, which was refused. On February 2, 1948, the appellee brought summary proceedings before the trial magistrate in Cumberland, Maryland, to recover possession of the premises under the provisions of Article 53 of the Annotated Code. After trial, a judgment was entered for the appellant. The appellee appealed to the Circuit Court for Allegany County, and thé appeal was heard upon stipulated facts. The Circuit Court' reversed the action of the trial magistrate, and entered a judgment of restitution for the appellee on May 3, 1948. On petition by Darling Shops, assented to by Baltimore Center Corporation, we granted certiorari (Article 5, Section 104), it having been made to appear to us that it was in the public interest that the question should be decided by this Court, and that decisions by some of the nisi-prius courts were conflicting'. (State v. Depew, 175 Md. 274, 1 A. 2d 626.)

The question at issue is whether the appellee is entitled to possession of the premises. This question involves the nature and kind of tenancy held by the appellant, and the requisite notice necessary to authorize a judgment of restitution under the provisions of Article 53 of the Annotated Code.

*293 When a tenant is put in possession of property under a lease which is unenforceable under the statute of frauds, or which passes no estate for any statutory or other reason, he is, nevertheless, lawfully in possession and holds as some sort of tenant. The same thing is true of a tenant who goes into possession under a valid lease for a term of years, and remains over, with the consent of the landlord. At first, under the common law, it was held that in these situations the tenant was a tenant at will, who could be put out at any time by the landlord. This created great hardship on tenants, particularly those in agricultural districts, and, eventually, it was determined that such a tenant held from year to year, or from quarter to quarter, or from month to month, depending on the manner in which the rent was calculated in the void or unenforceable lease, or in the original lease for a term of years. Major Venable, in his Law of Real Property and Leasehold Estates in Maryland, page 60, states “Estates from year to year are a class of estates at will, from which they originated. The tenancy at will was early found to leave each party too much at the mercy of the other; and the courts seized on any circumstance which could be construed to indicate an intention to require a reasonable notice to terminate the tenancy (Hall v. Hall, 6 Gill & J. 386). In time it was held that six months’ notice expiring at the period of the year at which the tenancy began was such reasonable notice; and this is still the law in Md.”

It was necessary for the courts to go further, and to determine, not only the kind of tenancy thus established, but the terms on which such tenancy was held. The natural and reasonable conclusion was adopted that a tenant who went into possession under a void or unenforceable lease and paid the rent named in such lease, or who held over, after the expiration of a lease for a term of years, and thereafter paid the same rent as that named in the lease, intended to occupy the leased premises under the same terms and conditions, except for the fact that he was a tenant from year to year (or from *294 quarter to quarter, or from month to month), and that all the terms and conditions of the original lease, whether void, unenforceable or expired, carried over into the new renting, except that the tenancy was different, and that, during the term of the original unenforceable or void lease or after the original valid lease had expired, the tenant was entitled to the common law notice required to determine his new kind of tenancy. That seems to have been generally held everywhere, in England and in this country, with the possible exception of Minnesota where, in the case of Johnson v. Albertson, 51 Minn. 333, 53 N. W. 642, the Supreme Court of that state held that the original lease was void absolutely and had no effect, except that it regulated the amount of rent, and that the tenant was a tenant at will. That is entirely contrary to the many decisions of this Court.' Such decisions are Anderson v. Critcher, 11 Gill & J. 450, 37 Am. Dec. 72; Howard v. Carpenter, 11 Md. 259; Kinsey v. Minnick, 43 Md. 112; Emrich v. Union Stock Yard Co., 86 Md. 482, 38 A. 943; Falck v. Barlow, 110 Md. 159, 72 A. 678, 17 Ann. Cas. 538; Hall v. Trustees of Sharp St. Station, 155 Md. 654, 142 A. 508; Cook v. Boehl, 188 Md. 581, 53 A. 2d 555; Smith v. Pritchett, 168 Md. 347, 178 A. 113, 98 A. L. R. 212; Saul v. McIntyre, 190 Md. 31, 57 A. 2d 272; Gostin v. Needle, 185 Md. 634, 45 A. 2d 772, 163 A. L. R. 1013; Hyatt v. Romero, 190 Md. 500, 504, 58 A. 2d 899, 901. In the last mentioned case the Maryland law is stated as follows: “We hold that where a lease for a term of more than seven years has been executed but not recorded, and the lessee enters into possession of the premises and pays yearly rent, which .is accepted by the lessor, the lessee is considered as tenant from year to year upon all the terms of the lease except as to duration.”

Many of these cases arose by actions of ejectment, or by bills of complaint to restrain ejectment. Where one of the parties attempts, within the term of a void or unenforceable lease, to have such lease specifically enforced, this Court has held that it will be treated as an agreement to lease, and will be enforced. Thompson v. Thomas

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60 A.2d 669, 191 Md. 289, 6 A.L.R. 2d 677, 1948 Md. LEXIS 368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darling-shops-delaware-corp-v-baltimore-center-corp-md-1948.