Eiffel Realty & Investment Co. v. Ohio Citizens Trust Co.

8 N.E.2d 470, 55 Ohio App. 1, 23 Ohio Law. Abs. 562, 8 Ohio Op. 325, 1937 Ohio App. LEXIS 390
CourtOhio Court of Appeals
DecidedFebruary 8, 1937
StatusPublished
Cited by6 cases

This text of 8 N.E.2d 470 (Eiffel Realty & Investment Co. v. Ohio Citizens Trust Co.) 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
Eiffel Realty & Investment Co. v. Ohio Citizens Trust Co., 8 N.E.2d 470, 55 Ohio App. 1, 23 Ohio Law. Abs. 562, 8 Ohio Op. 325, 1937 Ohio App. LEXIS 390 (Ohio Ct. App. 1937).

Opinions

OPINION

By CARPENTER, J.

In 1922 plaintiff, The Eiffel Realty & Investment Company, as lessor, and defendant, The Pantheon Theatre Company, as lessee, entered into a ninety-nine year lease. Among other things the theatre company agreed to pay a monthly rental and the taxes on the leased premises. Later the theatre company mortgaged its leasehold estate, as it had a right to do, to The Ohio Savings Bank & Trust Company as trustees for bondholders. It has been succeeded by the defendant, The Ohio Citizens Trust Company as such trustee.

Some time prior to 1932, the lessee failed to make punctual payments of the rent and taxes as provided in the lease, and a supplemental written agreement was made with reference thereto. By its terms that agreement ended September 1, 1933, and the relationship of the parties continued under the lease.

Several times thereafter the lessee failed to pay rent and taxes at the time required by the lease, and, claiming to act under and in accordance with the forfeiture provisions in the lease, lessor served notices upon the lessee of such defaults and followed them with notices of its intention to terminate the lease and to re-enter the premises as stipulated in the lease, and demanded that the lessor surrender possession to it.

This demand was not complied with, and the lessor brought this action in the Common Pleas Court under authority of the Uniform Declaratory Judgments Act, *563 §§12102-1 to 12102-16, GC, asking that court to declare, (a) the lease terminated, (b) that lessor had the right to re-enter the premises, and (c) that the lessee be ordered to surrender possession thereof.

The answer admitted the lease, the supplemental agreement and the receipt of the notices from the lessor, but in effect pleaded that lessor had waived any right it may have had to forfeit the lessee’s term under the lease by acceptance of current rents and taxes after such claimed defaults.

The matter was heard in the trial court without a jury, neither party demanding one. That court made the following etntry:

“This 17th day of September, 1936, this eause coming on for hearing upon the pleadings and the evidence and the court being fully advised in the premises, finds that it should refuse to make any findings or to render or euter declaratory judgment or decree herein, and no such findings, declaratory judgment or decree are made.”

Plaintiff filed a motion for a new trial which was overruled and it then filed a notice of appeal on questions of law and fact, which was duly perfected as such, and a bill of exceptions was also filed in due time.

On the submission of this appeal, this court was of the opinion the cause was not a proper case for appeal on questions of law and fact, and, with the consent of all counsel, it was received as an appeal on questions of law.

From an examination of the pleadings and the bill of exceptions it does not appear that any issue is raised as to the validity or construction of the lease. Its validity is admitted and insisted upon by the defendants. Its terms are clear and there is no dispute about them. That the lessor, the plaintiff, may elect to terminate the lease on certain defaults in payment of rent or taxes by the lessee and thereby work a forfeiture of the lease is not challenged. The sole question is whether the situation presented by the acts of the parties entitles the lessor to claim a forfeiture at this time and to re-enter and repossess the leased premises.

In its opinion the trial court stated its reason for refusing a declaration to be that the plaintiff had full and complete remedies in either an action in forcible entry and detainer, or an action in ejectment, and therefore a declaratory judgment should not be entered.

The first question which claims attention is whether the older and established remedies are full, complete and adequate to accomplish what plaintiff desires, if entitled to it.

Plaintiff’s claim is that acting under the terms of the lease, it has terminated and ended it, and that it now wants possession of the property and the aid of the court to secure it.

This is exactly the purpose of an action in ejectment, in which the Common Pleas Court has full power to consider and determine all the matters that are pleaded in this cause, and if adjudged in plaintiff’s favor, the coercive remedy is at hand to make the judgment effective. The enforcement feature of the ejectment process is more efficacious than the declaratory judgment could be. Should the court declare everything plaintiff prays for, and the lessee fail to vacate the premises, additional proceedings would be required to give effect to the declaration. §12102-8, GC.

This raises the question whether a person having an adequate and complete remedy to accomplish the desired end can disregard it and ask for declaratory relic-f. In other words, is it an alternative to existing remedies which a plaintiff may elect, or is it supplementary to them?

This question has not been considered in any reported cases in Ohio. Professor Borchard in his work, Declaratory Judgments, at page 147 et seq., and in a later article in 31 Michigan Law Review, 180, urges that the remedy is alternative to existing ones, and that the only limits to it are those to be found in the first section of file act. The Supreme Court of Alabama supports this view in two recent cases: Tuscaloosa County v Shamblin (1936, — Ala.,—, 169 So. 234, 236, and Teal v Mixon (1936), — Ala., —, 169 So. 477, 479.

In Wollenberg v Tonningsen (1935), 8 Cal. App. (2d) 732, 48 P. (2d) 738, 741, the Court of Appeals of tha.t state categorically denied the claim that “declaratory relief will not lie when there is an available remedy in an ordinary action at law or in equity.” It does recognize “the court’s discretion to refuse that relief where it is not necessary or proper under the circumstances.”

The cases on this subject are digested in a series of annotations in A.L.R. as follows: 12 A.L.R. 52, 75; 50 A.L.R. 42, 48; 68 A.L.R. 110, 119; 87 A.L.R. 1205, 1219; 101 A.L.R. 689.

While the declaratory judgment has been sanctioned in England since 1852, it is spar *564 ingly used there, and a wide discretion is recognized in its application. Barraclough v Brown, L. R. (1897), A. C., 615, 623; 66 L.J., Q.B., N.S., 672.

In nearly every state where the question has been decided, a declaration has been refused. In New York this has been the uniform rule, the leading case being James v Alderton Dock Yards, Ltd. (1931), 256 N. Y. 298, 305, 176 NE 401, 403. The court says:

“The use of a declaratory judgment, while discretionary with the court, is nevertheless dependent upon facts and circumstances rendering it useful and necessary. The discretion must be exercised judiciously and with care. * * * It is usually unnecessary where a full and adequate remedy is already provided by another well-known form of action. The general purpose of the declaratory judgment is to serve some practical end in quieting or stabilizing an uncertain or disputed jural relation either as to present or prospective obligations.”

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Bluebook (online)
8 N.E.2d 470, 55 Ohio App. 1, 23 Ohio Law. Abs. 562, 8 Ohio Op. 325, 1937 Ohio App. LEXIS 390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eiffel-realty-investment-co-v-ohio-citizens-trust-co-ohioctapp-1937.