Lafayette Car Wash, Inc. v. Boes

282 N.E.2d 837, 258 Ind. 498, 1972 Ind. LEXIS 594
CourtIndiana Supreme Court
DecidedMay 25, 1972
Docket1270S318
StatusPublished
Cited by38 cases

This text of 282 N.E.2d 837 (Lafayette Car Wash, Inc. v. Boes) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lafayette Car Wash, Inc. v. Boes, 282 N.E.2d 837, 258 Ind. 498, 1972 Ind. LEXIS 594 (Ind. 1972).

Opinion

DeBruler, J.

Appellant-lessee, Lafayette Car Wash, Inc., and Robert Wesner, President and sole shareholder in the corporation, filed a complaint against appellees seeking equitable relief against forfeiture of a lease and an application for an injunction restraining appellees from interfering with appellant’s possession of the leased land. Evidence was offered at the hearing on October 15, 1970, and appellees moved to *499 dismiss on the grounds appellants’ corporation charter had been revoked. On October 26th, the trial court sustained appellee’s motion to dismiss but permitted appellants to amend the complaint by adding “in Liquidation” to the corporation name and to reinstate the complete action. On October 30, 1970, appellees filed their complaint seeking a preliminary injunction against appellants restraining them from interfering with appellees’ use and possession of the leased land. The cases were consolidated for further hearing, and on November 30, 1970, the trial court made findings of fact, conclusions of law and entered a preliminary injunction against appellants restraining them from interfering v/ith appellees’ possession and use of the leased property. Appellants appeal from that ruling.

Appellants’ first contention is that the trial court erred in finding that appellees had validly terminated the lease for nonpayment of rent and were entitled to possession of the premises. The record shows that in June, 1961, appellees leased a plot of land to appellant, Lafayette Car Wash, Inc., on which appellant built a block building and operated a car wash business. The lease provided that rent was to be paid in advance on the first of each month, the lease could not be assigned without the consent of lessors, no notice of termination was required in case of default, and waiver of any right to terminate by lessors would not constitute a waiver of a subsequent default. In December, 1961, the corporate appellant through appellant Wesner entered into a contract with Charles Leffert and Robert Smith for the conditional sale of the car wash business and for the assignment of the lease. Due to the lease restriction on assignment, Wesner had prepared and appellees signed a consent to the assignment of the lease to the vendees, Smith and Leffert. The vendees thereafter paid the monthly rent under the lease to appellees until July, 1970. Due to- business difficulties, vendees closed the car wash at the end of June and they did not pay the July rent. Wesner discovered this the last week of July and on July 29, 1970, Wesner called *500 appellees and offered to pay the July rent but appellees refused saying the lease was in default. Wesner sent checks for several more months but appellees did not accept them. On August 11, 1970, appellees sent a formal notice of termination to the vendees with a copy of the letter to Wesner’s attorney. On July 29th, Wesner had taken back possession of the car wash facilities and on September 11, 1970, appellees sent a letter to Wesner demanding he remove his property from the leased premises. Appellants filed their suit on September 25, 1970.

The issue is whether appellees had the right to terminate the lease without notice when the only offer of the July rent from anyone came on July 29, 1970. Indiana Code 1971, 32-7-1-7, being Burns § 3-1620, reads in part:

“where, by the express terms of the contract, the rent is to be paid in advance, and the tenant has entered, and refuses or neglects to pay the rent, and in any case where the relation of landlord and tenant does not exist, no notice to quit shall be necessary.”

Indiana cases have held under this statute that where the lease provides for payment of rent in advance, and absent a waiver or estoppel, a failure to pay the rent on the due date constitutes a default of the lease and provides the lessor with the option of terminating the lease without notice to quit to the lessee. St. Germain v. Sears, Roebuck & Co. (1942), 112 Ind. App. 412, 44 N. E. 2d 216; Karas v. Skouras (1922), 79 Ind. App. 99, 137 N. E. 289; Templer v. Muncie Lodge I O O F (1912), 50 Ind. App. 324, 97 N. E. 546; Brown v. Thompson (1910), 45 Ind. App. 188, 90 N. E. 631; Ingalls v. Bissot (1900), 25 Ind. App. 130, 57 N. E. 723. In Templer v. Muncie Lodge, supra, the Court said:

“This court has held repeatedly, in construing this statute [§ 3-1620], that where the rent reserved in a lease is payable in advance, and the rent is not paid when due, the lessor may elect to treat the tenancy as terminated, and may sue for possession, without either demanding the rent or giving notice.” 50 Ind. App. at 329-330.

*501 In addition, section two of this lease provided that rent was due in advance on the first of each month and no notice of termination was required in ease of default. It is undisputed that the July payment was not paid on July 1st. Appellant does not disagree with the above statement of the law but argues that the lessors had often accepted late payments in the past and were precluded from terminating the lease on the ground of the late July payment. Appellant invokes the concepts of waiver and estoppel and it is necessary to keep in mind the difference between the two doctrines.

Waiver is the intentional relinquishment of a known right; an election by one to forego some advantage he might have insisted upon. Doan v. Ft. Wayne (1969), 253 Ind. 131, 252 N. E. 2d 415; Templer v. Muncie Lodge, supra.

In the latter case the Court very clearly set out the distinction :

“There is a distinction between waiver and estoppel. A person who is in a position to assert a right or to insist on an advantage may, by his own words or conduct, and without reference to any act or conduct of the other party affected thereby, waive such right; and once such right is waived it is gone forever, and he will therefore be precluded from asserting it. A person cannot, however, waive a right before he is in a position to assert it. . . .” 50 Ind. App. at 333.

The Court described estoppel as follows:

“If the conduct of a lessor is such as to be reasonably calculated to induce such a belief on the part of the lessee, and if the lessee, by reason thereof, does so believe in good faith and, acting on such belief, is led to neglect the payment of the rent on the day on which it is due when otherwise he would not have suffered a default to occur, then the lessor will be estopped from asserting the right to terminate the leasehold on account of a default which was thus occassioned. An estoppel does not arise from the words or conduct of one party alone, as a waiver does. To create an estoppel, the words or conduct of the party estopped must be calculated to mislead the other *502 party, and such other party must be misled thereby, and induced to act in such a way as to place him at a disadvantage.” 50 Ind. App. at 334-335.

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Bluebook (online)
282 N.E.2d 837, 258 Ind. 498, 1972 Ind. LEXIS 594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lafayette-car-wash-inc-v-boes-ind-1972.