John C. Cutler Association v. De Jay Stores

279 P.2d 700, 3 Utah 2d 107, 1955 Utah LEXIS 114
CourtUtah Supreme Court
DecidedJanuary 26, 1955
Docket8163
StatusPublished
Cited by14 cases

This text of 279 P.2d 700 (John C. Cutler Association v. De Jay Stores) 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
John C. Cutler Association v. De Jay Stores, 279 P.2d 700, 3 Utah 2d 107, 1955 Utah LEXIS 114 (Utah 1955).

Opinions

CROCKETT, Justice.

Plaintiff appeals from a judgment allowing recovery for rent and damages for abandoning a lease before its term expired, and for attorney’s fees. Plaintiff appeals claiming that additional amounts should have been allowed; defendant responds and cross-appeals, challenging the propriety of awarding any damages whatever.

Plaintiff Cutler is an incorporated family association, and Dejay Stores is a Delaware corporation doing business in Utah. On June 30, 1951, Cutler leased a store at 36 South Main Street, Salt Lake City, to defendant for a rental of 5% of gross sales or a minimum of $400 per month. There is uncertainty as to the term, but it is immaterial here. The parties have assumed it to be for a period of five years.

The Dejay Clothing Store operated for several months but was never sufficiently profitable to require more than the minimum of $400 per month. Dejay was dissatisfied with the location and began looking for a new one. About February 15, 1952, a conference was held between Robert Cantor, Dejay’s local manager, its real estate broker a Mr. Solomon, and plaintiff’s Harold Cutler, concerning the desirability of moving. During this conference the parties were in accord . in assuming, that Dejay would continue to remain bound by [110]*110the lease and that Cutler would cooperate in obtaining a new tenant. Within the next few months, five different business firms made various proposals to lease the property. With respect to each proposal there was some feature objectionable to the plaintiff and they were all rejected. With this the trial court found no fault.

About March 1, 1952, Dejay moved out of the property, but continued to- pay rent in full to and including the month of June. July 25, it had the constable deliver to Cutler a notice stating that it considered the rejection of offers to lease or sublease the premises a breach; that it returned possession of the property to Cutler and therewith presented the keys.

Despite continued efforts to find a new tenant no permanent one was obtained until May 1953. Cutler’s suit was for rent during the entire period of vacancy. The trial court allowed recovery for only a part of that time. Dejay had already paid for four months of the period of vacancy —March, April, May and June, and the trial court allowed for an additional three months — July, August and September, based upon its determination that there was a surrender and acceptance of the property in September, which terminated the obligation to pay further rent under the lease.

The main issue presented on this appeal is whether the facts and circumstances shown by the evidence are such as to warrant the finding of surrender and acceptance.

Inasmuch as there was no express agreement to abandon the lease, the defendant had the burden of establishing as an affirmative defense such an agreement implied from the conduct of the parties. That this can be done we have recognized. In Willis v. Kronendonk,1 it was stated:

“ * * * where a tenant abandons the premises, and the landlord unconditionally goes into possession thereof and treats them as though the tenancy had expired, it amounts to a surrender, and the landlord cannot thereafter recover any rent, nor use for damages. If he desires to reserve that right he must recognize the tenants rights in the premises for the unexpired term.”

This does not mean, however, that the landlord cannot enter the premises and exercise the rights of an owner in keeping them safé from damage; nor that he may not do things reasonably necessary in attempting to rent the premises for the purpose of mitigating damages. It is only when he exercises dominion over the premises beyond those purposes and inconsistent with the rights of a tenant whom he seeks to hold for the rental of the premises, that a finding of surrender is justified. That acceptance of the keys and attempting to re-let the premises are not alone sufficient to [111]*111constitute a surrender and acceptance was recited by this court in the recent case of Belanger v. Rice: 2

“ * * * [Acceptance of the keys might well be merely in order to protect the property and the reletting of the premises might equally logically be for the purpose of mitigating damages in a suit upon the lease.”

Such acts may of course be considered with other circumstances on the question of surrender.

There is some conflict as to the rule of law to be applied in determining whether a reletting will terminate the obligations of a lease.3 In McGrath v. Shalett, 114 Conn. 622, 159 A. 633, 634, it is said:

“ * * * In some states, a relet-ting terminates the lease as a matter of law. A second line of authorities holds that this result follows' unless there is notice to the tenant of the landlord’s refusal to accept the surrender and of his intention to relet. The third school does not set up any arbitrary standard, but holds the question of acceptance to be one of intention and a question of fact.
“Connecticut adheres to the third school, * * *. As indicated above * * * support can be found for any one of the rules referred to. The great weight of authority, however, is in accord with the Connecticut rule. (Citing authorities.)
“Our rule is the rule of common sense. The lessee has, without cause, abandoned the property. * * * He (the lessor) should not be penalized for attempting to minimize the damages nor for attempting to keep his property from deteriorating.”

We believe that the third rule referred to by the Connecticut court, suggesting that there is no arbitrary standard to be invariably applied, best lends itself in doing justice in such controversies, and therefore align ourselves with it.

The question of surrender, being generally one of fact as to what was the intention of the parties, is to be determined from all of attendant circumstances including the conduct and expressions of the parties. The defendant Dejay having prevailed, is entitled to have us view the evidence and every fair inference and intendment arising therefrom in the light most favorable to it. And if when so regarded, there is any substantial evidence, or, as sometimes stated, any reasonable basis in the evidence, to support the finding made by the trial court, it will not be disturbed.

Cutler points to the testimony of the real estate agent as an indication that [112]*112the parties did not intend to terminate the obligations of the lease. Mr. Solomon testified that, “Mr. Cantor advised Mr. Cutler that they [Dejay] in no way intended to discontinue recognizing their responsibility on the lease and the payments would be made in accordance with the lease.” It is significant to note however, that the conference he referred to took place in February of 1952, before the several prospective tenants were rejected, and before the notice above referred to disclaiming further responsibility, relinquishing possession and delivering the keys to Cutler in July 1952.

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John C. Cutler Association v. De Jay Stores
279 P.2d 700 (Utah Supreme Court, 1955)

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Bluebook (online)
279 P.2d 700, 3 Utah 2d 107, 1955 Utah LEXIS 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-c-cutler-association-v-de-jay-stores-utah-1955.