Fuchs v. Peterson

146 N.E. 556, 315 Ill. 370
CourtIllinois Supreme Court
DecidedFebruary 17, 1925
DocketNo. 16078
StatusPublished
Cited by29 cases

This text of 146 N.E. 556 (Fuchs v. Peterson) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuchs v. Peterson, 146 N.E. 556, 315 Ill. 370 (Ill. 1925).

Opinion

Mr. Justice Dunn

delivered the opinion of the court:

This writ of error brings before us the case of Albert Fuchs against George Peterson, in which the Appellate Court for the First District affirmed a judgment of the municipal court of Chicago in favor of the defendant in an action of forcible entry and detainer.

On May I, 1918, Fuchs leased the premises at 3808 Broadway, in Chicago, to Peterson from that date to April 30, 1923. The lease contained the following clause: “Lessee to have the first option for a new lease for another term of five years at not over $250 a month and if a registered letter notice is given by March 1, 1923, to this effect.” The notice was not given, but Peterson on April 30, 1923, tendered Fuchs a check for $250, which was returned in a letter from Fuchs’ attorney declining to receive it solely for the reason that Peterson was not a tenant, expressly waiving any question of the legality of the tender. The lease gave an option to the lessee for a new lease, at an increased rate not exceeding $250 a month, for a new term of five years upon the condition precedent that the lessee should give notice to that effect by registered letter by March 1, 1923. The time of giving the notice was of the essence of the contract, and upon failure of a compliance with its requirement the right of the lessee to demand a new lease was lost unless the condition was waived by the lessor. (Dikeman v. Sunday Creek Coal Co. 184 Ill. 546.) To show such waiver, a lawyer who was advising Peterson testified that he went with Peterson to see Fuchs about the' middle of March, 1922, which was more than a year before the expiration of the lease, and said to Fuchs: “That there may be no misunderstanding as to what Mr. Peterson is going to do so far as his option or rights under this lease is concerned, I want to give you notice now that he has exercised the right to renew or extend this lease for another period of five years under the terms of the lease, and that makes him have a six-year lease. Now, Mr. Fuchs, is it necessary for me to give you any further notice ? George is here to tell you he is going to go along with this lease and he is going to renew it and exercise that option;” that Fuchs then said: “No, I guess not; no use; no further notice is necessary.” Peterson also testified as to what occurred but his testimony is not so clear. It added nothing to the lawyer’s testimony and took nothing from it. Fuchs denied that anything was said in the conversation about the renewal of the lease or the necessity of-giving a written notice. . The verdict of the jury and the judgment must be regarded as conclusive on this question in favor of the defendant in error.

If the lessee’s election was properly exercised he became entitled to have a new lease for a term of five years, be-' ginning May 1, 1923, at $250 a month, on the same terms as the original lease. The effect of the option was not to create a present demise of the additional term beginning May 1, 1923. It amounted to no more than a covenant to grant the term, and for a failure to do so the lessee’s only remedy, it was formerly held, would be by bill in equity for a specific performance or an action at law on the agreement. (Hunter v. Silvers, 15 Ill. 174; Sutherland v. Goodnow, 108 id. 528.) In the former case it was decided in 1853 that such an option for a new lease could not be used as a defense to an action to recover the possession of the premises brought after the expiration of the original term. The statute in regard to forcible entry and detainer at the time of that decision provided that if any person should willfully and without force hold over any lands, tenements or other possessions after the determination of the time for which such lands, tenements or possessions were let to him or to the person under whom he claimed, after demand made in writing for possession thereof by the person entitled to such possession, such person should be adjudged guilty of forcible entry and detainer, or forcible detainer, as the case might be. (Rev. Stat. 1845, sec. 1? P. 256.) So long as there was not an actual renewal there was no lease requiring the lessee to pay rent for the term and conferring on him the legal right to possession. The law in regard to forcible' entry and detainer was revised in 1874 to provide that “the person entitled to the possession of lands or tenements may be restored thereto in the manner hereinafter provided: * * * Fourth, when any lessee of the lands or tenements, or any person holding under him, holds possession without right after the determination of the lease or tenancy by its own limitation, condition or terms, or by notice to quit, or otherwise.” The revision changed the statute by providing that the holding over of the tenant which would justify the proceeding in forcible entry and detainer must not only be after the determination of the lease but without right, and it is contended that the holding over by the defendant in error was not without right but was under his contract for a lease, with which he had complied. This is in accordance with the recognized rule that an action of ejectment, which is a possessory action, cannot be maintained against purchasers in possession under a contract of purchase until they have made default in the performance of the contract. (Hutchinson v. Coonley, 209 Ill. 437; Sands v. Kagey, 150 id. 109; Stow v. Russell, 36 id. 18.) A lessee’s rights are not different from what they would be under a contract of purchase. While the lessee has not purchased the fee in the premises he has purchased an estate for years, which carries with it the right of possession for the length of the term as fully as a purchase of the fee. A mere contract for the purchase of land does not authorize the purchaser to enter into possession without the license of the vendor, but where a lessee has an option for the renewal of his lease and is in possession at the expiration of his term he is in possession under a title rightfully obtained, and having been guilty of no default but having complied with his contract in every particular, he is entitled to a lease authorizing him to continue the possession for the new term. An action of ejectment could not be maintained against him by the lessor; neither can one of forcible entry and detainer.

It is contended that the covenant to renew, not being a present demise, requires a new lease, without which the tenant cannot retain possession, and if the supposed waiver of written notice and parol election of the lessee entitles him to a new lease, they not only destroy the lessor’s right to a written notice but their effect is to create a lease for a period of five-^ears, in violation of section 2 of the Statute of Frauds, which prohibits the bringing of an action to charge any person upon any contract for the sale of any interest in lands for a longer term than one year unless such contract be in writing. It is argued that the waiver of written notice could not result in the creation of a tenancy for an additional five years or of any right to claim such tenancy. The right to claim a new lease for five years is contained in the original lease. If the defendant in error had given the written notice which it required, he would, without question, have been entitled to a renewal of his lease, and, in accordance with what we have already said, to the judgment which was rendered in his favor.

What was the effect of the waiver ? The rule has been established in this State by many decisions that a sealed executory contract cannot be modified or changed by parol agreement so as to authorize either party to sue on it. (Hume Bros. v.

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146 N.E. 556, 315 Ill. 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuchs-v-peterson-ill-1925.