Kaiser v. Zeigler

115 Misc. 281
CourtAppellate Terms of the Supreme Court of New York
DecidedApril 15, 1921
StatusPublished
Cited by12 cases

This text of 115 Misc. 281 (Kaiser v. Zeigler) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kaiser v. Zeigler, 115 Misc. 281 (N.Y. Ct. App. 1921).

Opinion

Cropsey, J.

No proof was taken on the trial. The case was submitted for decision upon the statements of counsel. For the purposes of this appeal, the facts as stated below by appellant’s attorney must be accepted as true. Adler v. Miles, 69 Misc. Rep. 601, 603.

The action is for rent under a sealed written lease. The lease is admitted; also the non-payment of the rent sued for. The defense is that before the Eighteenth Amendment to the Federal Constitution became effective the tenant, claiming that his lease-would be terminated when that amendment became operative, negotiated with his landlord for a new arrangement thereafter, and that the parties agreed that after the amendment became effective the rent should be $250 a month instead of $300 as provided in the lease. From the statement of counsel made upon the trial, it seems that rental reserved in the lease was paid up to January, 1920, and that .the reduced rental was-accepted by the landlord for the months of January and February. The same reduced amount was tendered for the month of March, but was refused. This action is to recover $300, the rent reserved in the lease [283]*283for the month of March. Thus, the question is presented as to the effect of the adoption of the Eighteenth Amendment upon a lease of property for a saloon where intoxicating liquors were to be sold.

This lease was made in May, 1916. Its term was five years from its execution. It provided that the premises were to be “ used and occupied as a saloon and hotel upon the conditions and covenants following.” These are the conditions and covenants that may be material:

“First. The rent was to be paid in equal monthly payments of $300. in advance.

“ Third. That the tenant shall promptly execute and comply with all statutes, ordinances, rules, orders, regulations and requirements of the Federal, State and City governments and all other departments and bureaus applicable to said premises for the correction, prevention and abatement of nuisances or other grievances in, upon or connected in said premises during said term, and shall also promptly comply with and execute all sales, orders and regulations for the prevention of fires, at his own cost and expense.

Fourth. That the tenant shall not assign this agreement or under-let or under-lease the premises or any part thereof, or make any alterations in the premises without landlord’s consent in writing, or occupy or permit or suffer the same to be occupied for •any business or purpose deemed disreputable or extra-hazardous on account of fire, under the penalty of damages and forfeiture.”

“ Ninth. And the tenant further covenants that he will, during the term of this lease, keep and sell on the said premises certain beer known as ‘ George Ehret’s Beer ’.”

It is urged that as the lease is under seal, it cannot be modified by a parol agreement. And this is so if [284]*284the parol agreement is unexecuted. Coe v. Hobby, 72 N. Y. 141; Zindler v. Levitt, 132 App. Div. 397; Stevenson Brewing Co. v. Junction Realty Co., 156 id. 271. But if the parol modification has been executed then it is effective. So this, in any event, would prevent the plaintiff, if he sought to do so, from recovering the difference between the original rental and the reduced rental for the months during which he accepted the reduced amount. McKenzie v. Harrison, 120 N. Y. 260; Hayne v. Sealy, 71 App. Div. 418. And if the landlord has himself breached the agreement, then a parol modification of a lease under seal, if made for a good consideration and if it has been partly executed, can be enforced. San Reno Hotel Co. v. Brennan, 64 Hun, 607. The decision of this appeal, however, does not necessarily turn upon the foregoing considerations. The contention of the appellant is that the passage of the Eighteenth Amendment terminated the lease and that the parties thereafter were free to make any new agreement they saw fit. If the adoption of that amendment had the effect of terminating this lease, then the plaintiff was not entitled to the judgment he has obtained.

The lease in its terms provides that the property is to be used and occupied as a 11 saloon and hotel.” While the language does not say only for such purposes, or not for any other purpose, that is immaterial. Express words of restriction are not necessary where the language used shows that no other use was to be permitted than that specified. In such a case there is an implied covenant not to use the premises for any other purpose. Weil v. Abrahams, 53 App. Div. 313.

There is a conflict of authority in the various states upon the question of whether the adoption of a constitutional amendment or a statute enforcing prohibition, after the making of a lease, terminates it, where

[285]*285the premises were to be used as a saloon for the sale of intoxicating liquor. Some of the cases say that the lease is not affected by such an enactment, even though the tenant thereafter is wholly deprived of the use of the property. These eases seem to hold that if the tenant would be relieved from such a situation he should have provided against it by having a suitable clause inserted in the lease. Goodrum Tobacco Co. v. Potts-Thompson Liquor Co., 133 Ga. 776; Potts-Thompson Liquor Co. v. Capital City Tobacco Co., 137 id. 648, 654; Hecht v. Acme Coal Co., 19 Wyo. 18. The great weight of authority, however, and that which seems to be founded upon the better reasoning, is to the effect that such an enactment destroys the subject matter of the contract and makes performance impossible and hence terminates the lease. Heart v. East Tennessee Brewing Co., 121 Tenn. 69; Kahn v. Wilhelm, 118 Ark. 239; Hooper v. Mueller, 158 Mich. 595; Brunswick-Balke-Collender Co. v. Seattle Brewing & Malting Co., 98 Wash. 12; McCullough Realty Co. v. Laemmle Film Service, 165 N. W. Repr. 33; Christopher v. Charles Blum Co., 82 So. Repr. 765; Burgett v. Loeb, 43 Ind. App. 657, 659; Houston Ice & Brewing Co. v. Keenan, 99 Tex. 79; American Mercantile Exchange v. Blunt, 102 Maine, 128; Greil Bros. Co. v. Mabson, 179 Ala. 444. See, also, cases in Note, L. R. A. 1917 C, p. 935.

The same principle is involved in eases holding that an act of Congress, or of the president of the United States done pursuant to the authorization of congress, fixing the price of certain articles at a less sum than had previously been agreed upon between parties, relieved them from the obligations of their contract. Boret v. Vogelstein & Co., Inc., 188 App. Div. 605; Standard Chemicals & Metals Corp. v. Waugh Chemical Corp., 194 id. 254. See, also, Mawhinney v. Millbrook Woolen Mills, 172 N. Y. Supp. 461, 467. [286]*286"Upon the same principle it has been held that a lease for a moving picture show was terminated by the subsequent passage of a city ordinance prohibiting such shows in the leased premises. Adler v. Miles, 69 Misc. Rep. 601; and cases cited. In the case at bar, the court below apparently based its decision upon Kerley v. Mayer, 10 Misc. Rep. 718; affd., 155 N. Y. 636.

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Bluebook (online)
115 Misc. 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaiser-v-zeigler-nyappterm-1921.