I. X. L. Stores Co. v. Success Markets

97 P.2d 577, 98 Utah 160, 1939 Utah LEXIS 13
CourtUtah Supreme Court
DecidedDecember 28, 1939
DocketNo. 6146.
StatusPublished
Cited by1 cases

This text of 97 P.2d 577 (I. X. L. Stores Co. v. Success Markets) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
I. X. L. Stores Co. v. Success Markets, 97 P.2d 577, 98 Utah 160, 1939 Utah LEXIS 13 (Utah 1939).

Opinions

MOFFAT, Chief Justice.

On the third day of October, 1934, the I. X. L. Stores Company, plaintiff and respondent, hereinafter referred to as the Lessor, entered into a lease in writing whereby the first or street floor of the Community Market Building, located at 49 East Broadway, Salt Lake City, Utah, was leased and let unto the defendant and appellant, hereinafter referred to as the Lessee for a term of five years, at stated rentals.

One of the provisions of the lease read that the Lessee shall pay

“all water rentals, all light, all electric light and electrical charges and all power charges incurred in the operation of the electric compressor. Said rates, charges and expenses to be paid promptly before the same become delinquent, and that in the event the lessor is compelled to pay the same, or any part thereof, that the lessee will promptly repay the same unto the lessor, together with interest thereon at the rate of 1% per month until paid.”

From November, 1934, to February, 1937, Lessor presented its monthly statements for electric current, light and power to the Lessee. The Lessee promptly paid the charges made, as per the statements presented.

*162 The electrical current for the entire building goes through one large meter which is read by the Utah Power and Light Company and from this reading the charges for the entire building are made by the Utah Power & Light Company to the Lessor. The Lessor distributes the power to its various tenants, charging in various manners, i. e., some tenants have the electrical power used on the premises leased by them included in the monthly rentals, some were charged five cents per kilowatt hour, while the power used by the Lessee was sold to the Lessee at the regular commercial rate, two and one-half cents per kilowatt hour.

There are four power lines into the premises leased by the Lessee. On each of these lines is a separate meter. To obtain the number of kilowatt hours of electrical current used by the Lessee it is necessary to make the readings and add the totals of the four meters. On the face of one of these four meters, is a notice in clear and discernible writing, which may be easily read by one reading the meters, which states: “Kilowatt hours multiplied by 10.” The number of kilowatt hours registered by the figures on the face of the meter must be multiplied by ten, as on this meter only one tenth of the electrical current passing through the meter registers. The readings from the other three meters did not need to be multiplied by ten.

The building engineer, an employee of the Lessor, together with a representative of the Lessee, would accompany another representative of the Lessor to make the readings on the first of each month. The building engineer would read the meters and call the readings to the other two, who would write the readings in their respective books. The engineer knew that to obtain the correct amount of electrical current used through this line it was necessary to multiply the reading by ten. The meter was properly read, the kilowatt hours were not calculated according to the instructions on the face of this particular meter. The reading not having been multiplied by ten resulted in the Lessee only being charged *163 for one-tenth of the electrical current actually used through this particular power line. The other two representatives did not know, nor did they notice the instruction, that the reading from this meter had to be multiplied by ten. Each party acknowledges good faith on the part of the other.

The Lessor presented the Lessee, in January, 1937, with a supplemental bill in the principal amount of $2,943.68, for the balance of the power used by the Lessee. The Lessee refused payment.

This action was filed by the Lessor against the Lessee for the difference between the power paid for and the power consumed, plus interest at the rate of one per cent per month for failure to pay the charges made, a sum total of $3,930.73, plus six per cent per annum from the date of the filing of the complaint.

The Lessee in his answer sets forth that the Lessee has subleased portions of the premises and has considered the cost of power in the fixing of the monthly rentals; that the agent of the Lessor knew the manner of obtaining the correct amount of power used and did not apply such knowledge and the agent of the Lessee did not have such knowledge; that because of the statements presented the Lessee paid $485.22 in federal and state taxes and that had the charges been properly made such sum would not have been due and owing because the net profit would have been reduced; the sum of $6,216.44 was paid as bonuses to employees in addition to the regular wages and salaries; and that one section of the premises was subleased for $150 monthly rentals, but had the actual cost of the power been known it would have rented for the sum of $200 per month, and by virtue of such facts and reliance upon the representations of the Lessor the Lessee has been damaged in the sum of $5,400.

The first counterclaim alleged the Lessee had paid $5,-529.55 for power and had not been credited with the five per cent discount for prompt payment allowed by the Utah *164 Power & Light Company, which the Lessor had received and which the Lessee now claims plus interest at the rate of eight per cent per annum.

The second counterclaim alleged the Lesseee had subleased a portion of the premises for $50 a month less than the said portion would have been leased for had the true facts been known and the Lessee has been damaged thereby in the amount of $5,400. Eighteen months passed between the time when the demand for payment was made and suit was filed.

Lessee defends upon the grounds the Lessor is estopped and foreclosed from enforcing the claim.

A jury had been empaneled and sworn, but at the conclusion of the evidence the jury was discharged upon stipulation that the matter should be submitted to the court upon the record. The court thereupon found, among other things, that the Lessor and the Lessee entered into a written lease whereby it was agreed that the Lessee would pay all water rentals and electrical charges and that if it failed to do so, such charges were to be paid by the Lessor and that the Lessee would repay the same with interest.

Lessee has assigned several errors, all of which are details aimed to present, the one question of law argued by the parties, which question is: Is the Lessor estopped to assert its claim against the Lessee upon the facts disclosed by the record in the cause? In another form, are the findings and judgment of the trial court supported by the evidence?

Representatives of both the Lessor and the Lessee were present at the time of the reading of the meter. A representative of the Lessor made the reading, another representative of the Lessor and the representative of the Lessee accepted such readings as being correct and wrote the called readings in their respective books. The readings were correct. The mistake was made in that the one reading the meter, a representative of the Lessor with *165

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Bluebook (online)
97 P.2d 577, 98 Utah 160, 1939 Utah LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/i-x-l-stores-co-v-success-markets-utah-1939.