Franklin v. Fischer

208 P.2d 902, 34 Wash. 2d 342, 1949 Wash. LEXIS 535
CourtWashington Supreme Court
DecidedJuly 29, 1949
DocketNo. 30992.
StatusPublished
Cited by22 cases

This text of 208 P.2d 902 (Franklin v. Fischer) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin v. Fischer, 208 P.2d 902, 34 Wash. 2d 342, 1949 Wash. LEXIS 535 (Wash. 1949).

Opinion

Hill, J.

This is an action to cancel a lease and recover possession of leased premises, and for rentals due under the lease, with a cross-complaint asking for damages against the lessors for their failure to keep the premises in repair.

The leased premises consist of a service station, restaurant, and tourist cabins. By article 3, the lessee was to pay, as “full rental for the premises during the effective term of this Lease”: a gallonage charge for the use of the “automotive equipment, pumps and like items of personal property”; thirty-five per cent of , the gross receipts from the tourist cabins, for the use thereof; fifty per cent of the gross receipts of the Wurlitzer phonograph and phono *344 graph records, for the use thereof; fifty per cent of the net receipts of “all other coin operated machines,” for the use thereof; five per cent of the gross sales from October 1st to March 31st each year, and seven per cent of the gross sales from April 1st to September 30th of each year, for the use of the restaurant and its equipment.

Article 14 of the lease is as follows:

“It is agreed by the Lessor that after the first 12 months of this lease the minimum amount of Rental from all sources shall not be less than $400.00 per month during the six (6) months period beginning October 1, and ended March 31, and not less than $600.00 per month during the months beginning April 1, and ended September 30, each year during the term of this lease.”

It is the failure by the assignees of the lessees to pay the minimum rentals referred to in article 14 on which the lessors base their right to cancel the lease and recover the rentals due thereunder.

The trial court concluded that: (1) Article 14 did not obligate the lessees to pay the minimum rentals therein provided because, by the language of the article, they did not covenant or agree to pay such minimum rentals; and, (2) if article 14 was by its terms binding upon the lessees, there had been an oral modification whereby the lessors had agreed with the assignees of the lessees that article 14 would not be enforced if they took an assignment of the lease, which oral modification agreement was made prior to the time that the assignees paid the lessees three thousand dollars for the assignment of the lease. The trial court therefore refused to cancel the lease or to restore the lessors to possession, and awarded the assignees of the lessees damages for the unreasonable delay of the lessors in making certain repairs. The lessors appeal.

If there was a valid modification of the lease making article 14 inoperative, it becomes unnecessary to determine whether the lessees were obligated to pay the minimum rentals provided for therein.

Was there a valid modification? We have a hotly contested issue of fact as to what took place at a meeting in *345 Mr. Franklin’s office on the evening of March 27,1947. Seven people were present practically all of the time: Mr. and Mrs. George J. Fischer (the respondents), Mr. and Mrs. Henry Fischer, Mr. and Mrs. J. J. Adams, and Mr. Charles W. Franklin (one of the appellants); and an eighth, Mr. W. H. Kirby, was present part of the time.

Mr. and Mrs. Adams were the original lessees, and it was contemplated that they would assign their interest in the lease to the four Fischers. To do so, it was necessary to have the consent of Mr. Franklin, as one of the lessors. Mr. Kirby was the notary, and was called after all the others were in Mr. Franklin’s office. He took the acknowledgments of Mr. and Mrs. Adams to the assignment, and the acknowledgment of Mr. Franklin to the consent to the assignment (he having secured Mrs. Franklin’s signature and taken her acknowledgment earlier in the day). Also, he prepared a third document (going into an outer office for that purpose) denominated “Acceptance of Assignment,” which all four of the Fischers then signed and acknowledged.

Mrs. Adams did not testify. Mr. Kirby and Mr. Adams heard no mention of article 14 of the lease. Mr. Franklin testified positively that he was not asked to and did not agree to waive the provisions of article 14; that the subject was mentioned only once, and that was just as the Fischers were going out the door, when Mrs. George Fischer turned and asked, “ ‘What if we can’t make the minimum rental payments? What are you going to do?’ ” and he replied, “ T do not know.’ ”

Each of the four Fischers said that article 14 was discussed with Mr. Franklin that evening, and that he said in effect that it would not be operative. They were not all in accord as to whether that discussion was before or after they accepted the assignment and became obligated under the lease; however, the testimony of George H. Fischer was definite and specific that, before they accepted the assignment, Mr. Franklin had promised that they would not be held to the minimum rentals provided for in article 14.

*346 , While George H. Fischer was a “fast” witness on direct examination and most reluctant on cross-examination, the trial court accepted his version of what had occurred (substantially corroborated as it was by the other three Fischers) in preference to the testimony of Mr. Franklin and Mr. Adams. This is a situation in which the trial judge was in an infinitely better position than is the appellate court to determine what credence should be given the various witnesses, and we cannot say that the evidence preponderates against the trial court’s finding that the lease was modified by an agreement that article 14 would be inoperative. The judgment must therefore be affirmed unless there is merit in the appellants’ contentions that there was no consideration for the oral modification, and that the modification agreement was void by reason of the fact that it was not in writing and was not acknowledged, as required by statute, Rem. Rev. Stat., § 10618 [P.P.C. § 719-1].

Whether or not the substitution of the assignees, hereinafter referred to as the respondents, for the original lessees, was a benefit to the lessors, hereinafter referred to as the appellants, is immaterial under the circumstances here existing. It must be regarded as established that the respondents paid three thousand dollars to the original lessees, and that they would not have done so if the appellants had not agreed that article 14 would not be enforced. The consideration for the oral modification was the detriment to the respondents in paying three thousand dollars and taking over the property. They have changed their situation to such an extent that they cannot be adequately compensated in damages or placed in their original position. It is well established that a consideration may consist as well in a detriment to the person to whom a promise is made as in a benefit to the other party. 32 Am. Jur. 150, Landlord and Tenant, § 150.

The same payment and circumstances constituted a complete performance of the respondents’ part of the modification agreement and removed the agreement from *347 the statute of frauds. Without repeating it, we approve again the statement from Garbrick v. Franz, 13 Wn. (2d) 427, 431, 125 P. (2d) 295, found on pages 418-419 of Vance Lbr. Co. v. Tall’s Travel Shops, 19 Wn. (2d) 414, 142 P. (2d) 904.

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Bluebook (online)
208 P.2d 902, 34 Wash. 2d 342, 1949 Wash. LEXIS 535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-v-fischer-wash-1949.