Kirby v. Tips

67 S.W.2d 661, 1934 Tex. App. LEXIS 30
CourtCourt of Appeals of Texas
DecidedJanuary 12, 1934
DocketNo. 9866.
StatusPublished
Cited by4 cases

This text of 67 S.W.2d 661 (Kirby v. Tips) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirby v. Tips, 67 S.W.2d 661, 1934 Tex. App. LEXIS 30 (Tex. Ct. App. 1934).

Opinion

PLEASANTS, Chief Justice.

This is a suit by appellees against appellants to recover the rents alleged to be due them under a lease contract executed by Gus W. Tips and R. C. Tips on May 1, 1923, by which certain business property in the city *662 of Houston, situated on McKinney avenue and Austin street, and fully described in the lease contract, was demised and leased to J. R. Bailey for a term of ten years.

The suit is prosecuted by Gus W. Tips, and Mary P. Tips who sues as sole devisee and independent executor of the will of R. O. Tips, deceased. The petition alleges that the plaintiffs, Gus W. Tips and Mary P. Tips, are the owners in fee simple of the leased property, each owning an undivided one-half interest therein, and as such owners are entitled to recover of defendants all of the rents dae under said contract of lease. The suit is for recovery against the defendants jointly and severally of the unpaid balance of rent due under said contract of lease up to the 31st day of December, 1931, which the amended petition, filed on February 20, 1932, alleges to be the sum of $3,174.04, with interest and attorney’s fees as provided in the lease contract.

The defendants in the suit are J. R. Bailey, John T. Scott, John T. Scott, Jr., and John H. Kirby.

The defendants J. R. Bailey, John T. Scott, and John T. Scott, Jr., answered by general demurrer and general denial. They further specially pleaded that if they were ever bound by the lease and (bond pleaded in plaintiffs’ petition, they are no longer bound thereon, because the plaintiffs by their acts and conduct have released each and all of these defendants from any and all liability they were under by virtue of said lease contract and bond.

“That on or about the 13th day of December, 1923, the said J. R. Bailey, with the written consent of the plaintiffs, made, executed and delivered to J. T. Scott a written assignment of the said lease between Gus W. and R. C. Tips, as lessors, and J. R. Bailey, as lessee, without any assumption on the part of the said J. T. Scott of the covenants, express or implied, of said lease contract; that by making, executing and delivering said assignment to said J. T. Scott with the written consent of the lessors, plaintiffs here, said J. R. Bailey was relieved from any further obligation to perform the implied obligations of said lease, and remained liable, if at all, only on the express obligations and covenants thereof, and only as surety.

“That on or about the 31st day of July, 1924, the said J. T. Scott, with the written consent of the lessors, plaintiffs herein, assigned said lease to John H. Kirby, who, under the terms of said assignment, assumed the performance of each and all of the covenants, expressed and implied, of said lease contract; that after such assignment by said J. T. Scott to said John H. Kirby, the said J. T. Scott having performed all the obligations of said lease maturing from the said 13th day of December, 1923, to the said 31st day of July, 1924, was relieved of any and all further liability or obligation under the terms of said lease.

“That on or about the 24th day of May, 1928, the said John H. Kirby, by written assignment, assigned said lease to Snelling-Rice Motor Company, which company agreed, by the terms of said assignment, to perform all the obligations imposed by the terms of said original lease to J. R. Bailey from Gus W. and R. C. Tips. That said assignment of said Kirby to said Snelling-Rice Motor Company was made with the written consent of the lessors and plaintiffs herein, but without the knowledge or consent of these defendants. That prior to the 2nd day of June, 1930, the name of Snelling-Rice Motor Company was changed to Rice Motors, Inc., and on said 2nd day of June, with the written consent of the lessors and plaintiff's herein, said Rice Motors, Inc., made, executed and delivered to Downtown Chevrolet Company a written lease on the property covered by the lease sued on. That said written lease of Rice Motors, Inc., to Downtown Chevrolet Company was for the balance of the term of the original lease. That said lease from Rice Motors, Inc., provided for an annual rental of $12,-000.00 per year and no more; and was made with the knowledge and consent of the lessors and plaintiffs herein, but without the knowledge or consent of these defendants; that at the time of the making of said lease by Rice Motors, Inc.-, to Downtown Chevrolet Company said Rice Motors, Inc., had and held in and on said premises, goods, wares and merchandise, and other property subject to the statutory landlord’s lien of lessors, of the reasonable value of $10,000.09; that after the making of said lease to Downtown Chevrolet Company, said Rice Motors, Inc., removed all of its stock in trade, merchandise, fixtures and properties from the leased premises, and the said Downtown Chevrolet Company entered upon and occupied said leased premises with the right under its lease from Rice Motors, Inc., with the consent of the lessors and plaintiffs herein, to use and occupy said premises until the first day of May, 1933, at a rental of $12,000.00 per year and no more. That under the laws of this State the lessors and plaintiffs herein had and held a preference, lien upon all property of the tenants in said building, including the original lessee and his assignees and all the various sulb-assignees and sub-tenants occupying the same and especially Rice Motors, Inc., to secure the rents due and to become due, reserved and agreed to be paid in the original'lease between said Gus W. Tips and R. O. Tips, lessors, and J. R. Bailey, lessee, and said lien inured to the benefit of these defendants, and said J. R. Bailey and J. T. Scott and J. T. Scott, Jr., and any and all of them, were entitled to the protection of said security, and in the event they were ever required to pay the rent provided for in said lease, they would be entitled to be subrogated to all the rights of *663 plaintiffs in such security. That on the 2nd day of June, 1930, the lien of the plaintiffs .and lessors on the property of the Rice Motors, Inc., in said building for rents to become due was in full force and effect and continued in full force and effect for one month after said property was removed from said premises and building, and said lien secured all rent to become due during the current contract year; that is, until the first day of May, 1931.”

This answer further avers in substance that by the terms of the original lease it was agreed that the lessee would pay to the lessors as rent for the leased property during the first five years of the term of the lease the sum of $38,839.60, payable in monthly installments of $647.33; the first installment being paid on the date of the execution of the lease, and the remaining installments being due and payable on the first of each month thereafter during said period of five years. This amount of rent was fixed by allowing the lessors 6 per cent, interest per annum upon the agreed value of the land at that time, which was placed at $60,000, and 8 per cent, interest per' annum upon the actual cost of the improvements thereon.

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Bluebook (online)
67 S.W.2d 661, 1934 Tex. App. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirby-v-tips-texapp-1934.