Krikorian v. Dailey

197 S.E. 442, 171 Va. 16, 1938 Va. LEXIS 253
CourtSupreme Court of Virginia
DecidedJune 8, 1938
StatusPublished
Cited by40 cases

This text of 197 S.E. 442 (Krikorian v. Dailey) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krikorian v. Dailey, 197 S.E. 442, 171 Va. 16, 1938 Va. LEXIS 253 (Va. 1938).

Opinion

Holt, J.,

delivered the opinion of the court.

The plaintiff, Thomas Dailey, is a Syrian, born abroad (his name has probably been changed). The defendant’s decedent, K. Der Krikorian, was also a foreigner and an Armenian. He owned property in Richmond known as No. 509 North Ryland street which he leased to the plaintiff in October, 1927. Dailey conducted there a confectionery business and sold candies, soft drinks, tobacco, etc. His lease was renewed by a deed of lease of date July 2, 1935. Under it he held until February 24, 1936, when he was dispossessed for non-payment of rent. The rent was regularly paid up to November 20, 1935.

In April, 1933, Krikorian acquired property known as No. 1039 West Grace street. This adjoins the Ryland street property. On it, and apparently at the intersection of these streets, was a brick residence. From this corner to Dailey’s [21]*21store was sixty-five or seventy yards. Krikorian desired to utilize his newly acquired property and went to see the Laburnum Realty Corporation. That company, without naming any specific property, advertised that it had properties suitable for drug store locations and referred applicants, who desired a “neighborhood location” as distinguished from a downtown location, to it. About a year later they did lease it to J. W. Chamblee and D. P. Chamblee. This deed of lease is dated July 19, 1935, and was for a term of six years. The lessor agreed to make and did make alterations in this brick residence to fit it for a storeroom at a cost of from $5,000 to $8,000, although their character and cost was not incorporated into the lease. The lessee took possession under this lease on November 1, 1935, and was to pay rent at the rate of $110 per month for the first two years, $120 a month for the next two years and $125 a month for the last two years.

It is Dailey’s contention that before the lease of July 2, 1935, was executed, he wished to make sure that any business to be conducted at the Grace street store should not be of a character which actively competed with him and that Krikorian did agree that no confectionery store or drug store should be established there. The parties came to no agreement as to a drug store, but in the lease to Dailey is this covenant: “Lessor will not lease the property known as No. 1039 West Grace street for a confectionery during this lease.” This reason for that covenant appears in Dailey’s direct examination:

“When we make the new lease ask for protection for my business,—I take a five-year lease I ask for him to give me a protection for five years, you will not put any confectionery at 1039 West Grace. And he agreed to do it. He said, ‘Well, suppose I want to put a grocery store in the corner?’ I told him, ‘No, sir; no objection to a grocery store.’ I told him he could put the grocery store. Then he said, ‘Suppose a drug store?’ I told him, ‘No such thing as a drug store any more,—used to be drug store 20 or 35 years ago, but now you can call them drug store, hard[22]*22ware store, or anything. The name don’t mean anything.’ I told him I couldn’t accept that.”

Afterwards, when he learned of the proposed lease to the Chamblees for drug store purposes, he protested.

“Q. What did you do when you learned that he was going to lease this premises to some drug store?

“A. Yes, sir; I talked to him on the ’phone,—called him up and talked to him myself. I called him up and talked to him. Talked to Mr. Krikorian and asked him what he was going to build in the corner. He said, he told me, ‘Well, maybe grocery store.’ I told him, ‘Well, if it is a grocery store it is perfectly all right to me.’ Then he turned around and said, ‘Well, maybe a drug store.’ I told him, "Tain’t no such a thing any more.’ I told him why he was going to tell me a grocery store and then say a drug store. I told him, ‘Well, you know the agreement between me and you for the lease,—the agreement for protection.’ The protect tion he gave me and me and him signed. He said, ‘Well, it is all right.’ Asked me,—said, T have a right to rent my property.’ ”

In the Chamblee store were sold not only drugs but practically all of those things carried in stock by Dailey, and it is his contention that by reason of this competition his business, which had been continuously prosperous, fell away, so that profits vanished and he was put out for non-payment of rent in February, 1936. His contention was sustained, and he has recovered a verdict of $4,750, which was confirmed by the trial court.

Plaintiff himself wished to rent this Grace street property and made an offer of $90 a month, which was refused, and it was then that he determined to lease again the Ry-land street store which he then held. Mr. Richie, who represented the Laburnum Corporation, said that Dailey was anxious to be protected against competition. He was asked: “If you knew that drug stores ordinarily sold such goods as were being sold by Mr. Dailey, then when you came to negotiate as agent for Mr. Krikorian a lease of the 1039 West Grace as a drug store, you knew that that would in[23]*23volve competition with Mr. Dailey, didn’t you?” and answered, “We had told Mr. Dailey that we could give him no such protection against competition.”

At Dailey’s instance, and after prolonged negotiations, the Laburnum Realty Corporation drew up a lease which would have prevented the leasing of the Grace street property to any type of business which would install a soda fountain. This lease Krikorian refused to sign and tore up.

Mrs. Aghavni Ghazarian, a daughter of Krikorian, said: “I heard my father say repeatedly on several occasions that he had made his intentions, that of building a drug store on the corner, perfectly plain to Mr. Dailey before he had started negotiating with him, that he had told Mr. Dailey that he would give him the choice of either staying there or even moving out, that he was going to put a drug store on the corner, and that he was even negotiating such a lease as that of putting a drug store on the corner, and Mr. Dailey, fully aware of this, had chosen to stay there.”

This much is fairly clear: Dailey was anxious that no competitive business be established on Grace street and that these restrictions be embodied in the lease to him of the Ryland street property. Krikorian, on his part, was anxious that no restrictions be placed upon him which would fetter its use, but he did agree that no confectionery business should be established there, and that, as we have seen, was written into the Dailey lease.

Has that covenant been violated?

The court in substance was asked to tell the jury as a matter of law that a drug store is not a confectionery. Instruction F, tendered on behalf of the defendant and refused by the court, reads:

“The court instructs the jury that the plaintiff and the defendant’s decedent, K. Der Krikorian, entered into an agreement in writing dated July 2, 1935, whereby the said plaintiff agreed to rent the premises, No. 509 North Ryland street, Richmond, Virginia, for the period of five years from the first day of October, 1935, to be used as and for a confectionery, and the said defendant’s decedent agreed not [24]*24to lease his property known as No. 1039 West Grace street, Richmond, Virginia, for a confectionery during the lease dated July 2, 1935, between the said plaintiff and the defendant’s decedent.

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Bluebook (online)
197 S.E. 442, 171 Va. 16, 1938 Va. LEXIS 253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krikorian-v-dailey-va-1938.