Eden v. Southern Colorado Midget Racing, Inc.

384 P.2d 732, 153 Colo. 58, 1963 Colo. LEXIS 284
CourtSupreme Court of Colorado
DecidedAugust 26, 1963
DocketNo. 20,137
StatusPublished

This text of 384 P.2d 732 (Eden v. Southern Colorado Midget Racing, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eden v. Southern Colorado Midget Racing, Inc., 384 P.2d 732, 153 Colo. 58, 1963 Colo. LEXIS 284 (Colo. 1963).

Opinion

Opinion by

Mr. Justice Hall.

[59]*59The parties appear here in the same order as in the trial court. We refer to them as the plaintiffs and the defendant.

On May 20, 1947, plaintiff Edward L. Eden, as lessor, and defendant, as lessee, entered into a written lease covering a tract of unimproved lands located near Pueblo, containing 18.36 acres, which lease among other things provided:

“ * * * lessor * * * has leased the following described premises * * * to be used and occupied as a racing course for the racing of miniture [sic] or midget automobiles, together with racing track, fences, grandstands, lavatories, refreshment rooms, eating places, parking lot and other conveniences and facilities in connection therewith * * * [Here follows a metes and bounds description of the premises].

“TO HAVE AND TO HOLD the same * * * for so long a period as the lessee, or its successors and assigns, shall conduct and operate a racing course for the racing of miniture [sic] or midget automobiles thereon, at and for a rental, for the full term aforesaid of Three Thousand Five Hundred and No/100 Dollars ($3,500.00), for which rental lessor agrees to and does hereby accept thirty-five (35) shares of the capital stock of said lessee corporation to be fully participating in the earnings of said lessee corporation, receipt whereof is hereby acknowledged, together with one-seventh (1/7) of the net proceeds realized from the sale thereof in the event of the sale of its said business and assets by said lessee.

“Lessee agrees not to engage in or permit any unlawful business on said premises, and to pay and discharge all taxes, assessments, and other charges levied or imposed on said premises during said term as soon as the [sic] become due and payable.”

At all times since May 20, 1947, the defendant has [60]*60been and at the time of trial, November 1960, was in possession of the leased premises.

On June 27, 1958, plaintiffs notified defendant that they “ * * * consider the lease * * * as void,” and that they desired to retake possession of the property. Numerous reasons were set forth as to why they considered the lease as void. All reasons set forth, except one, have now been abandoned. The one reason now urged as to why the lease is void is:

“The property is not being used for the racing of miniature or midget automobiles in accordance with the terms of the Lease.”

The defendant refused to vacate the property.

On October 11, 1958, plaintiffs caused to be served on defendant: “ * * * notice upon you to vacate * * * within three (3) days from the service of this notice upon you in accordance with the terms of the lease * * * .”

Defendant did not vacate, whereupon plaintiffs commenced this action and filed their amended complaint on November 24, 1958, wherein plaintiffs charge the defendant with the unlawful detention of the leased premises.

The defendant answered, setting forth that it had fully complied with all of the terms of the lease and alleged that its possession is lawful and that the lease is in full force and effect.

Trial was to the court. The trial court made extensive findings of fact and conclusions of law and entered judgment dismissing plaintiffs’ complaint.

Plaintiffs are here by writ of error seeking reversal.

Pertinent portions of the FINDINGS OF FACTS AND CONCLUSIONS OF LAW are:

“4. That at the time of the execution of the Lease and shortly thereafter Defendant Corporation errected [sic] it’s physical plant upon the leased premises and did expend on it’s construction the approximate sum of Fifty Thousand Dollars and no/100 ($50,000.00) and did, during the year 1947 and subsequent years, conduct [61]*61and operate a racing course upon the leased premises * * * .

“6. That the Defendant Corporation paid to the Plaintiffs under the terms of the Lease the following: $3,500.00 in Stock, 35 shares of capital stock in Defendant Corporation at the par value of $100.00 per share; money in the form of dividends in the approximate sum of $2,500.00; payment of property taxes upon the leased premises together with special improvements assessed against the leased premises for the taxable years 1947 to 1959; both inclusive.

“8. That the leased premises were originally purchased by Plaintiffs for the approximate sum of $720.00 and that the Plaintiffs have received from Defendant Corporation the amounts and sums above stated.

“10. That the Plaintiffs have continuously demanded and always received performance from the Defendant Corporation of it’s duties under the Lease and have requested and received the payment of the general taxes levied against the leased premises from 1947 to 1958 both inclusive and since the commencement of this action for the years 1958 and 1959.

“11. That the Defendant Corporation has conducted and operated a racing course upon the leased premises during the entire racing season of each year from the year 1947, and did race thereon only stock cars during the year 1951 and 1952, all of which Plaintiffs knew and had notice of.

“12. That the Lease Agreement was entered into for the purpose of operating and conducting a racing course upon the leased premises for the mutual profit of both parties and that the Plaintiff, Edward L. Eden, contributed to this venture the land and in return received from Defendant Corporation 35 shares of stock, which shares were to be fully participating in the. earnings of [62]*62the Defendant Corporation together with a right to one-seventh (1/7) of the net proceeds realized from any sale of the corporate business and assets.

“The failure of Defendant Corporation to race midget or miniature automobiles upon the leased premises does not end the term of the Lease nor does it give the Plaintiffs the right to terminate the Lease for the following reasons:

“A. That the basic purpose of the Lease Agreement was to conduct and operate upon the leased premises for the mutual profit of the parties thereto a racing course and that Defendant Corporation has since the date of the Lease operated upon the leased premises a racing course each and every racing season.

“B. That the provisions in the Lease authorizing the use of the premises for ‘so long as the Lessee . . . shal] conduct and operate a racing course for the racing of miniature or midget automobiles thereon,’ is a permissive rather than a restrictive use of the premises and does not restrict or limit the use of the premises to the racing of miniature or midget automobiles nor impliedly forbid the racing of stock-cars thereon.

“C. That the racing of stock-cars upon the demised premises is not a substantial non-compliance with the use anticipated and intended so as to end the term of the Lease or give the Plaintiffs the right to terminate the Lease.

“D. That the Plaintiffs, having accepted the benefits paid by the Defendant Corporation and having demanded and received payment of the taxes prior to and after the commencement of this action with knowledge and notice of the use to which the leased premises had been put, have waived their right, if any, to assert a breach or to terminate the lease. * * * .”

The above FINDINGS are amply supported by the evidence.

In addition to the foregoing FINDINGS, the record [63]

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Cite This Page — Counsel Stack

Bluebook (online)
384 P.2d 732, 153 Colo. 58, 1963 Colo. LEXIS 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eden-v-southern-colorado-midget-racing-inc-colo-1963.