Joseph v. Hustad Corporation

454 P.2d 916, 153 Mont. 121, 1969 Mont. LEXIS 407
CourtMontana Supreme Court
DecidedMay 19, 1969
Docket11426
StatusPublished
Cited by12 cases

This text of 454 P.2d 916 (Joseph v. Hustad Corporation) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph v. Hustad Corporation, 454 P.2d 916, 153 Mont. 121, 1969 Mont. LEXIS 407 (Mo. 1969).

Opinions

MR. JUSTICE BONNER

delivered the Opinion of the Court.

The respondent herein, Eddy Joseph, brought this action in the district court to recover damages for a breach of covenant of quiet enjoyment contained in a lease between himself and appellant herein, Hustad Corporation. The jury returned a verdict for the respondent Joseph and assessed damages in his favor in the sum of $18,500. From that award the appellant Hustad appeals.

September 25, 1964, Joseph and Hustad entered into a written lease whereby Joseph leased from Hustad for the period December 1, 1964, to November 30, 1974, a restaurant building 66 feet by 66 feet commonly known in Helena as Scheffi’s Pancake House. Among other covenants Joseph agreed to use the building exclusively as a restaurant and the Hustad Corporation, as lessor agreed that “Lessor shall at its own expense construct and maintain at all times during the terms of this lease a parking area on that portion of the premises on which the shopping center shall be erected, designated as ‘Parking Area’ on the plot plan hereto attached, marked ‘Exhibit A’. Said parking area shall be for the joint use of all lessees of the Lessor of the premises situate within the area described in Exhibit ‘B’, and for the use of the customers, employees, visitors and invitees of said lessees for driveway, walking or parking purposes.” While an exhibit B was missing. Defendant’s exhibit 2 at the trial was introduced as missing exhibit B. Defendant’s exhibit 2 is a plot of the Hustad Shopping Center as it exists on both sides of National Avenue.

The area in question is that land situate in the Hustad Shopping Center east of National Avenue, bounded on the north by Lyndale Avenue and on the south by Helena Avenue; more [123]*123specifically the large parking area which lies adjacent to the pancake house. At the time the lease was signed in September 1964, the parking area had on it a small building which housed a dry cleaning establishment.

Just after the lease in question here was signed, Hustad Corporation caused construction of the building now used as the pancake house, occupancy being had by Joseph on or about December 1, 1964. However, just prior to occupation by Joseph and on or about November 18, 1964, Hustad commenced construction of a building, which building is now used as a doctors’ office, immediately north of the braiding housing the dry cleaners. Construction of the doctors’ building was completed April 1965, and thereafter in May 1965, Hustad commenced construction of an office building immediately south of the dry cleaners which office building now houses a photography studio, an insurance underwriters association and a propane gas company.

No objection was made by Joseph to the Hustad Corporation to the construction of either building at the time construction commenced or during the course thereof even though Joseph had personal knowledge of what was being done. Mr. Joseph did testify he asked Wally Hustad, the brother of H. F. Hustad who is president of the Hustad Corporation, what was going on when construction commenced on the doctors’ building. From the transcript it appears Wally Hustad was an independent contractor hired by the Hustad Corporation to construct the buildings, and was not an agent, officer or employee of the corporation.

Mr. Joseph further testified that other than the question put to Wally Hustad, who told him to speak to H. F. Hustad, he made no other objections to the construction of any building until March 1966, more than 16 months after he occupied the pancake house. Written notification of his objections as required by the lease was not made until April 22, 1966, through a letter from his attorney, James R. Paul.

[124]*124In Ms complaint Joseph alleged that the parking lot situate on that portion of the Hustad Shopping Center east of' National Avenue was designated to the exclusive use of himself and the dry cleaning establishment, that Hustad Corporation by building the two additional buildings deprived Joseph of the use and quiet possession of the parking facilities. He also charges that the pro rata parking facilities available to him during most business hours has been reduced from 42-spaces to 6, about which more will be said later.

The complaint prayed for damages for loss of future profits, in the amount of $96,000 and for depreciation in the value of' the leasehold interest in the amount of $20„000. Testimony concerning Joseph’s estimation of the present worth of the leasehold interest was stricken from the record by the trial court as too speculative. No other evidence was introduced as to present value of the leasehold and, thereafter, the jury awarded damages for loss of future profits.

As specifications of error numbers 5 and 6 the appellant Hustad contends the court below erred in refusing to grant its motions for non-suit and for directed verdict. We agree with that contention.

With regard to tort law it has been said:

“In general, the tort must be in the breach of a legal duty comprising three distinct elements, to-wit: (a) Existence of legal duty from defendant to plaintiff; (b) breach of that duty; and (c) the damage as a proximate result.” Laclede Steel Co. v. Silas Mason Co., D.C., 67 F.Supp. 751, 759 (1946). See also Riggs v. Standard Oil Co., C.C., 130 F. 199; Standard Oil Co. v. Parrish, 7 Cir., 145 F. 829; Louisiana Oil Refining Corporation v. Reed, 5 Cir., 38 F.2d 159; Morris v. E. I. DuPont de Nemours & Co., 8 Cir., 68 F.2d 788.

The duty in question here was Hustad’s promise under the lease to furnish parking facilities for all its lessees in its shopping center and, specifically, Mr. Joseph’s pancake house. Mr. Joseph asserts Hustad breached that duty when it constructed [125]*125two additional buildings on the premises which allegedly decreased parking available to him; he also asserts loss of future profits as a proximate result of that breach.

It is admitted by both parties that one of the main considerations when constructing a shopping center is the availability of adequate parking and ease of access thereto. Shopping centers exist because of an abundance of parking area and ease of access from and to the same. Deny either parking or .access thereto and they cease to exist as a viable entity. It is Joseph’s contention that availability has been denied him and that Hustad Corporation should respond in damages.

Mr. Joseph testified that before he signed the lease he roughly estimated that there was a total of 46 or 47 parking spaces available on the lot. He also testified that even with the dry cleaning establishment there he assumed he would have 41 or 42 available for his own use. In his complaint he asserts that additional construction has diminished his share of the total number of spaces available and contends that he is now limited to a pro rata share of 6 of his original 42.

His conclusion and assertion in the complaint that he is entitled to a pro rata share of the total parking available is not in accord with studies concerning shopping centers. The usual business understanding with regard to parking in shopping centers is that every lessee is equally entitled to the use of all the parking, or at least entitled to as much parking as his customers in his peak hours of business wish to occupy.

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Joseph v. Hustad Corporation
454 P.2d 916 (Montana Supreme Court, 1969)

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Bluebook (online)
454 P.2d 916, 153 Mont. 121, 1969 Mont. LEXIS 407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-v-hustad-corporation-mont-1969.