Eden Realty Co. v. Weather-Seal, Inc.

142 N.E.2d 541, 102 Ohio App. 219, 2 Ohio Op. 2d 238, 1957 Ohio App. LEXIS 956
CourtOhio Court of Appeals
DecidedFebruary 6, 1957
Docket4678
StatusPublished
Cited by13 cases

This text of 142 N.E.2d 541 (Eden Realty Co. v. Weather-Seal, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eden Realty Co. v. Weather-Seal, Inc., 142 N.E.2d 541, 102 Ohio App. 219, 2 Ohio Op. 2d 238, 1957 Ohio App. LEXIS 956 (Ohio Ct. App. 1957).

Opinion

Doyle, J.

The questions which are decisive of this case arise out of a lease of real estate and a written guaranty of performance through the contract of a third party.

A judgment was recovered against the guarantor for the rent due and owing after default of the lessee up to and including the date of July 31, 1955. This judgment for $2,054.25 was paid. Subsequently, on December 31, 1955, a second suit *220 was filed for five months of unpaid rent from August 1, 1955, through December 31, 1955. Becovery was had in this suit against the guarantor, and the judgment thereon entered forms the basis for this appeal on questions of law.

It is asserted by the appellant “that it was sued upon the guaranty contract to which it was a party, and that there can be but one breach of a guaranty contract where the lessee * * * can no longer perform, * * * and where the damages are absolute and definite at the time of filing suit. To allow successive suits for damages would be to allow a multiplicity of suits.”

To these questions we now direct our attention.

The controlling facts may be briefly summarized as follows :

The Eden Bealty Company, on December 22, 1948, leased certain premises on Vine Street, in Cincinnati, Ohio, to Weather-Seal of Cincinnati, Inc., for a period of ten years, at a rental of four hundred dollars a month.

A short time prior to the final execution of the lease, according to the dates appearing on the instruments, Weather-Seal, Inc. (located in Summit County), guaranteed that Weather-Seal of Cincinnati, Inc. (located in Hamilton County), would fully perform the promises in the lease, including the payment of rent.

On or about December 10, 1954, Weather-Seal of Cincinnati, Inc., was dissolved, and, in February of 1955, abandoned the leased premises and paid no rent under its lease from March 1, 1955, forward to the present time.

After the premises were abandoned by the lessee, the lessor, Eden Bealty Company, made no effort to relet the premises; however, through the efforts of a real estate agency secured by the guarantor, the said guarantor, Weather-Seal, Inc., leased the premises with the knowledge of the original lessor, Eden Bealty Company, to one Joseph Linder, d. b. a. FiberglasEvercoat Company, at a rental of two hundred and fifty dollars a month, “for a term of three (3) years and four (4) months (the unexpired term of the Eden Bealty Company-Weather-Seal of Cincinnati, Inc., lease), with the terms and conditions being identical with the terms and conditions of the lease entered into *221 by and between Weather-Seal of Cincinnati, Inc., and the appellee, Eden Realty Company. ’ ’

As heretofore noted, the second suit (here under attack) was filed on December 31, 1955, for five months’ rent claimed to be due under the original lease, “less certain payments of rent received by * * * [the guarantor, Weather-Seal, Inc.], which were turned over to appellee [Eden Realty Company, original lessor] as received.”

The written guarantee appears as follows:

“Barberton, Ohio,
“November 26, 1948.
“In consideration of the execution and delivery of the within lease by the within-named lessor, Eden Realty Company, we hereby guarantee the prompt payment of the rent therein reserved and the full performance and observance of the covenants and agreements therein contained on the part of the lessee, Weather-Seal of Cincinnati, Inc., our wholly owned subsidiary, to be performed. This guaranty is absolute and unconditional.
“Demand and notice of nonpayment or nonperformance, diligence in collection and notice of acceptance of this guaranty, are hereby expressly waived.
“In Witness Whereof, the Weather-Seal, Inc., an Ohio corporation, by its corporate officers thereunto duly authorized by their board of directors, have hereunto set their hands and seal the day and year first above written. ’ ’

The instrument concludes with the signatures of the president and secretary of the corporation, two attesting witnesses, and a jurat.

While the dates appearing on the instruments are not the same, it would appear that the agreements were contemporaneous, although the respective dates of the written executions differ. It is obvious from the wording of the guaranty that this obligation must be classified as an absolute guaranty, as distinguished from a conditional guaranty. Not only does the guarantor specifically say so in the last sentence of the first paragraph, but other unambiguous language compels this conclusion beyond peradventure.

*222 The guarantor, by its conduct in taking possession of the premises and renting them, placed its .own construction on this guaranty.

We need here lay no stress on the consequences of the distinction, except to say that this absolute guarantee creates an unconditional undertaking on the part of the guarantor that it will perform the obligation immediately upon the debtor’s default, and it is unnecessary to first pursue and exhaust the principal before proceeding against the guarantor.

See: 20 Ohio Jurisprudence, Guaranty, Section 11, and cases cited; Stearns Law of Suretyship (Fifth Ed.), Section 4.5.

When the original lessee, Weather-Seal of Cincinnati, Inc., failed to pay its rent, its lessor had the legal right to declare a forfeiture and to take possession, or it had the right to waive a forfeiture and look to its tenant, or to its tenant’s absolute guarantor, for the rent. If a forfeiture had been declared by the lessor, the lease would of course have terminated, and at that time but one action for damages would have been allowed. In the instant case, however, the lessor at all times, by its conduct, recognized the tenancy as subsisting. It accepted no surrender of the lease, nor did it re-enter the premises. It declared no forfeiture. It looked only to its lessee or the guarantor for the payment of rent during the entire term.

Under such circumstances, can successive suits for rent, as it becomes due, be instituted against the absolute guarantor?

This court is of the opinion that they can be so instituted.

In 24 Ohio Jurisprudence, Landlord and Tenant, Section 372, appears the following text applicable to the right of a landlord to bring successive suits against his lessee:

“A recovery for an instalment of rent, that being all that was due at the time action was commenced, is not a bar to recovery for instalments subsequently becoming due upon the lease.”

Supporting authorities: Strangward v. American Brass Bedstead Co., 82 Ohio St., 121, 91 N. E., 988, et al.

The rule here stated applies even though there is a condition in the lease that, upon the neglect of the tenant to pay rent, the lease shall cease and determine, or shall become null and *223

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Bluebook (online)
142 N.E.2d 541, 102 Ohio App. 219, 2 Ohio Op. 2d 238, 1957 Ohio App. LEXIS 956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eden-realty-co-v-weather-seal-inc-ohioctapp-1957.