Hecht v. Acme Coal Co.

113 P. 788, 19 Wyo. 18, 1911 Wyo. LEXIS 3
Wyoming Supreme Court·Decided February 28, 1911·No. No. 640·Published·Cited by 15 cases

Opinions

Scott, Justice.

This action was commenced in the district court of Sheridan County by Acme Coal Company against Dan McCoy and John Plecht upon a covenant of a lease to recover the rent of a certain building and premises described in the lease for saloon purposes for the months of November, December, 1909, and January 1910. The lease was executed on September 12, 1908, by Darnall and Craig, a co-partnership, as lessors, to Dan McCoy, lessee. The term of the lease was five years and the lessee covenanted to pay one hundred dollars a month as rent therefor in advance on the first day of each and every month during the term of the lease commencing October 1, 1908. The lessee entered into possession and occupied the premises and conducted a retail liquor business therein until July 24, 1909, when he vacated the premises and declined to pay rent thereafter. Hecht guaranteed in writing the performance of the covenants and conditions of-the lease by McCo'y. The case was tried to the court without the intervention of a jury. McCoy was not served and the court found in favor of the Acme Coal Company and gave judgment in its favor against Hecht for the sum of $300 and costs of suit. Hecht brings the case here on error.

The lease, demised premises and written guaranty are the same as those involved in case number 639 between the same parties, this day decided. The questions here presented are almost identical-with those raised in that case, and in so far as "they are the same they need not here be reconsidered.

It is contended that the judgment is contrary to law. By the terms of the lease the premises were leased for saloon purposes. The premises were outside of any incorporated city or town. On October 9, 1908, the lessee applied to and obtained from the board of county commissioners of. Sheridan County a license to sell and retail intoxicating [27]*27liquors therein for the period of one year. The defense interposed was that by section 1 of chapter 7, L. 1909, sec. 2833, Comp. Stat. 1910, which was enacted after the execution of the lease and while the lessee was in the occu-pancjr and. using the premises for saloon purposes as contemplated by the provisions of the lease he was prevented from renewing his license at the expiration of the time covered by the one under which he was doing business and that the consideration for the lease after that time had failed thereby relieving him from payment of the rent for the months specified. The act referred to provides that the board of county commissioners “shall refuse to grant any license or extend any existing license for the sale of liquors at any place outside of incorporated cities and towns.” Sec. 2832 idem provides a penalty for the selling of intoxicating liquors without a license.

It is contended that the lessee assumed his obligations under the lease with knowledge that it was within the police power of the state at any time by legislative enactment to prohibit the sale of liquor either in or outside of incorporated cities and towns or both and that having failed to provide for such contingency he is liable for the rent notwithstanding the provision of Sec. 2833, supra.

The question qs here presented is one of first impression in this court and there is some conflict in the decisions. In O’Byrne v. Hendley, 161 Ala. 620, 50 So. Rep. 83, a lease of premises for saloon purposes was made when it was lawful to sell intoxicants and was used by the lessee as a saloon for the sale of intoxicants, soft drinks, cigars, &c., until a prohibition law went into effect.. It was held that the prohibition law in the absence of a provision to that effect contained in the lease did not terminate the lease and relieve the lessee from liability for future rent, for the reason that the business was not totally destroyed. The word “saloon” as used in the lease was held to mean a place where the business. included the sale of intoxicants but did not exclude the sale of other things. ’ The terms of the lease, are not set otit in the opinion and we may presume [28]*28that it contained no provisions beneficial to the lessor other than the usual covenants of such an instrument. Houston Ice & Brewing Co. v. Keenan, 99 Tex. 79, 88 S. W. 197, was an action for rent upon a lease which provided that the premises should be used for the “saloon business.” The lease was executed and delivered, but before the term began, prohibition was voted under a local option law. It 'was held that the action was maintainable .notwithstanding that the sale of intoxicants would be unlawful. The court say: “Appellee had no interest in the business to be conducted in the leased building, and the appellant knew that, by a vote of the people under the existing statute referred to, the “saloon business” which included the sale of intoxicating liquors, might be prohibited before the beginning of the lease term. This was a probable contingency which an ordinarily prudent man should have foreseen and provided for in his contract, and having failed to do so, he took the risk upon himself and must abide the consequences.” In San Antonio Co. v. Brents, 39 Tex. Civ. App. 443, 88 S. W. 368, the action was for rent upon a lease of a building to the lessee for the purpose of conducting a first class saloon therein. It was held that the subsequent passage of a local option law during the term whereby it became unlawful to longer maintain the saloon did not authorize the lessee to abandon the lease. In Lawrence v. White, 131 Ga. 840, 63 S. E. 631, 19 L. R. A. (N. S.) 966, it is said: “The question in this case is whether the lessee of a hotel, including a bar room, was entitled to a reduction or proportional abatement of the agreed rental, because during the term of the lease the legislature of the state enacted a law prohibiting the sale of alcholic, spirituous, malt or intoxicating liquors, and thus the bar could no longer be used for that purpose. The adjudicated cases with unusual uniformity answer this question in the negative, though they do not all give the same reasons for the ruling.” In Abadie v. Berges, 41 La. Ann. 281, 6 So. 529, it was held that “a landlord cannot be held to warranty and indemnify against the 'acts of the law’ in the absence of express stipulation to that end.. Should [29]*29a tenant sustain damage in consequence of a constitutional police legislation adopted subsequently to his contract of lease such as the 'Sunday law’ which forbids the use of the property rented to a particular use to.which the lessee applies it, in a special way and on a special day, such damage.is injuria sine damno, which is not compensable. Such legislation could have been foreseen, and does not impair rights under the contract.” In Miller v. McGuire, 18 R. I. 770, 30 Atl. 966, it was said: “To constitute an eviction which will operate either to annul the lease or as a suspension of rent, the act complained of must have been done by the landlord or by his procurement, with the intention and effect of depriving the lessee of the use and enjoyment of the demised premises in whole or in part.” In Kerby v. Meyer, 10 Misc. Rep. 718, 31 N. Y. Supp. 818, a lease was made of premises “to be used and occupied only.as a first class liquor saloon.” The lease was executed and delivered, afterward, and before the commencement of the term, the legislature enacted a law forbidding the sale of liquor within 200 feet of a church or school house, by reason of which it became impossible for the lessee to obtain a license for the sale of intoxicating liquors. It was held that this did not relieve the lessee from payment of the rent.

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Hecht v. Acme Coal Co., 113 P. 788, 19 Wyo. 18, 1911 Wyo. LEXIS 3 (Wyo. 1911).

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