Haack v. Great Atlantic & Pacific Tea Co.

603 S.W.2d 645, 1980 Mo. App. LEXIS 2686
CourtMissouri Court of Appeals
DecidedJune 3, 1980
Docket41297
StatusPublished
Cited by21 cases

This text of 603 S.W.2d 645 (Haack v. Great Atlantic & Pacific Tea Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haack v. Great Atlantic & Pacific Tea Co., 603 S.W.2d 645, 1980 Mo. App. LEXIS 2686 (Mo. Ct. App. 1980).

Opinion

STOCKARD, Special Judge.

This is an action brought by Arthur C. Haack, lessor, against The Great Atlantic & Pacific Tea Company (hereafter “A & P”), lessee, and H & K Distributors, Inc. (hereafter “H & K”), sublessee, for termination of the lease, for possession of the leased premises, and for monetary damages based on an alleged breach of the lease when A & P subleased the premises without the consent of the owner-lessor. A & P filed various counterclaims and a motion for summary judgment. The trial court severed plaintiff’s action from the counterclaims, denied A & P’s motion for summary judgment, and after trial without a jury entered judgment, certified to be a final judgment for purposes of appeal, in which it declared the lease terminated as of December 31, 1976, awarded plaintiff a judgment for “reasonable rental value of the premises” of $2,392.80 per month from December 31, 1976 until possession is surrendered less $1,500.00 per month which has been paid by A & P from December 31,1976, and ordered A & P and H & K to surrender possession of the premises by April 1, 1979. After the filing of a supersedeas bond the order relative to vacating the premises was stayed, and this appeal has been perfected.

The plaintiff Arthur C. Haack is the owner of a building located at 600 Manchester, Ballwin, Missouri, which he leased in 1967 to A & P by use of what is generally referred to as a “percentage lease.” The lease was for an initial term of twelve years with a base rental of $1,500.00 per month. Also, the lessee had the option to continue the lease for three periods of five years each, with an increased base rental for each period of $50.00 per month. The “percent *648 age” provision of the lease provided for a percentage rental of 1¼% of all sales made on the premises over $1,440,000 annually.

From 1967 to June 1975 A & P operated a supermarket on the leased premises. Throughout that period of time A & P’s annual sales never exceeded $1,440,000 and percentage rentals were never payable under the terms of the lease. In April of 1975 a representative of A & P informed plaintiff of its intention to close its store after the July 4th holiday. At this time a discussion was had to the effect that A & P would attempt to find a grocery operation for a new tenant to which it could sell the equipment in the building, and it would be released from the lease without penalty. On May 9, 1975 the leased premises were damaged by a storm. Certain emergency repairs were made but final repairs were not completed until approximately ten months later. A & P’s representative did not find a tenant, and in July he notified plaintiff that A & P was considering opening a larger supermarket further east on the same street, and in that event A & P would want to “get off the lease entirely,” but would insist that the premises be re-leased to other than a grocery store if the new store was opened. This new and larger supermarket was not opened by A & P. The area real estate manager for A & P testified that because of the inability to find a grocery tenant, A & P was forced to approach the problem by a sublease to a non-food operator, but plaintiff testified that he was never so advised.

A meeting was held on December 15, 1975 pertaining to the needed repairs to the building resulting from the storm damage. At this meeting the representative of A & P advised plaintiff that he “had a party that was interested and [he] wanted the [repairs] completed for occupancy,” and plaintiff replied he would have the repairs completed as soon as possible. On the following day A & P executed a sublease to H & K to conduct a retail furniture business in the building under the name of Manor House Furniture. The sublease was dated November 14, 1975, and had been executed by H & K a few days thereafter. It is to be assumed that A & P’s representative at the December 15 meeting knew about the sublease and the name and nature of the business of the sublessee, but apparently he did not advise plaintiff, and he did not request permission from plaintiff to sublease the premises.

Plaintiff testified that near the end of December 1975 he had reports from sources other than A & P of a possible new occupant of his building. About this time plaintiff was at the premises when a truck arrived with furniture. Plaintiff told the driver there was no furniture store there and that he had the wrong address, but the driver produced a delivery slip or ticket containing that address.

On January 22, 1976 plaintiff wrote A & P in which he stated that he understood that it contemplated subleasing the premises to a furniture store, and then stated: “Since under the lease dated July 15, 1967 pertaining to said premises, I am entitled to percentage rent on sales in excess of certain mínimums and less than certain máximums, I have a substantial interest in who the subtenant is. For that reason, I am hereby requesting that you forward to me information concerning the sales and financial standing of the subtenant. I am especially interested in the amount of sales anticipated from this location. Please let me have the information as soon as possible so that there will be no delay in my determining whether or not to consent to the sublease.”

On February 10, A & P replied as follows:

“As requested in your letter of January 22, 1976, we are writing to advise you formally of our intention to sublease the premises and to request your approval of the sublesse.
“A lease has been consummated with H & K Distributors, a St. Louis, Missouri based furniture distributing company with an address of 10317 Corbeil Drive, St. Louis, Missouri, 63141.
“Mr. Donald L. Holtzman, President of the Company, has been in the furniture business for over twenty-five years. In 1970 Mr. Holtzman sold his group of re *649 tail stores in St. Louis and confined his operations as a furniture distributor in the area. He now plans to expand once again in to the retail field. Mr. Holtz-man has an approved loan from the Plaza Bank, 12011 Marine Avenue, St. Louis. Estimated sales for the retail store and distributorship operations are in excess of $750,000. * * 1

On March 2 plaintiff wrote A & P that the “proposed tenant will not generate sales from the * * * premises in excess of $1,440,000 which would produce the percentage rental called for in the lease. It would seem that there is no reasonable likelihood that this proposed tenant would approach this figure. For that reason I must withhold my approval of the subtenant.

The lease provided that the lessee could use the premises for any lawful purpose including the operation of a general merchandising business, or it could vacate or sublet all or any part of the premises or assign the lease, but the lessee would not thereby be relieved of the minimum rental liability, and it further provided that “such sub-letting shall be subject to the approval of Lessor, such approval shall not be unreasonably withheld.”

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Cite This Page — Counsel Stack

Bluebook (online)
603 S.W.2d 645, 1980 Mo. App. LEXIS 2686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haack-v-great-atlantic-pacific-tea-co-moctapp-1980.