Langer v. Stegerwald Lumber Co.

55 N.W.2d 389, 262 Wis. 383, 36 A.L.R. 2d 679, 1952 Wisc. LEXIS 231
CourtWisconsin Supreme Court
DecidedNovember 5, 1952
StatusPublished
Cited by25 cases

This text of 55 N.W.2d 389 (Langer v. Stegerwald Lumber Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Langer v. Stegerwald Lumber Co., 55 N.W.2d 389, 262 Wis. 383, 36 A.L.R. 2d 679, 1952 Wisc. LEXIS 231 (Wis. 1952).

Opinions

Currie, J.

The defendant raises the following contentions on this appeal:

(1) That the defendant is entitled to show by parol testimony that the option to purchase was conditional upon the seller desiring to sell the property.
[385]*385(2) That the evidence does not sustain the trial court’s finding that a mutual mistake was made as to the description.
(3) That plaintiff did not properly .exercise the option to purchase because in his notice to exercise the option plaintiff used the original description contained in the lease.
(4) That the cause of action for reformation is barred by the six-year statute of limitations. •

The option clause in the lease provided:

. . that the lessee shall have the first option to purchase said property at a price of $9,000, and that if lessor desires to sell said premises to another he shall first give the lessee sixty days’ notice in writing of intent to sell.”

The defendant interposed a demurrer to the complaint, and an order was entered on the 21st day of December, 1950, overruling the demurrer. An appeal was taken from such order to this court and the order appealed from was here affirmed. Langer v. Stegerwald Lumber Co. (1951), 259 Wis. 189, 47 N. W. (2d) 734. On this second appeal the defendant maintains that the testimony of the parties clearly establishes that the option was not intended by the parties to be an absolute option, but only an option to protect the plaintiff in the event of sale of the property by the defendant.

However, the defendant is precluded by the rule of the “law of the case” from now again raising the issue that the option was not absolute, but conditional. Foster v. Rowe (1907), 132 Wis. 268, 270, 111 N. W. 688; Cape v. Plymouth Congregational Church (1906), 130 Wis. 174, 179, 109 N. W. 928) McCord v. Hill (1903), 117 Wis. 306, 308, 94 N. W. 65.

In the former opinion of this court we construed the option as follows (259 Wis. p. 193) :

“We conclude that the language, given its ordinary meaning, clearly indicates the intention to give'an option to the lessee which might be exercised at any time by him, but reserving in the lessor the right to accelerate the sale by [386]*386giving notice that it might sell to another if lessee did not exercise his option within sixty days.”

By the foregoing construction of the lease, we in effect held that there was no ambiguity in the language of the option clause which required resort to parol evidence as to the intention of the parties in order to construe the same, and that the language employed was so clear that it was only capable of the construction there placed upon it by the court.

This brings us to the second point raised by the defendant, that the evidence does not sustain the trial court’s finding that a mutual mistake was made as to the original description set forth in the lease. In order to pass upon this point it is necessary to examine the pertinent facts in the record bearing-on the issue.

The defendant in 1940 was the owner of a filling-station property located at the northwest corner of Main and Vine streets in the village of Sun Prairie. The north line of Main street constituted the southern boundary line of the premises, and the west line of Vine street formed the east boundary. The angle formed by Main and Vine streets at the southeast corner of the premises was slightly less than 90 degrees, and the premises were in the shape of a trapezium with no side being parallel to any of the other three sides.

In the summer of 1940, the plaintiff and defendant began negotiations for a lease of this filling-station property. They agreed that the defendant would remodel the small building already located on the premises by adding thereto an office and two service bays to the west side of the building; that it would move the gasoline pumps in a southerly direction toward Main street; and that it would surface with concrete all that part of the property in the front of the building. Construction costs of the building were computed by the defendant and a rental of $70 a month was agreed upon.

Early in the negotiations, before the ultimate size of the building as enlarged by the proposed addition had been deter[387]*387mined upon, the defendant’s officers measured the premises and the description so obtained from such measurements was inserted in the written lease which was drafted in February, 1941, by such officers of the defendant. The date in February on which the lease was signed was not inserted, but the lease was for a ten-year term commencing January 1, 1941. The remodeling of the building had been completed about the middle of January, 1941, and the plaintiff had moved in about that time.

The plaintiff testified that shortly after the lease was signed and before he put it away in his strongbox in the bank, he looked it over and he then paced off the seventy-foot length specified for the south boundary line from the corner of Main and Vine streets west along Main street; then he paced north on Vine street from the corner the sixty-two feet eight inches specified for the east boundary line; and that he then sighted along both sides of the building, that is, the north side and the west side, and assumed that the lines met in the back and figured that there was ample land for his purpose in the building he occupied. There is nothing in the evidence to indicate that there was anything to put the plaintiff on notice that the description in the lease was erroneous.

In the summer, or early fall, of 1950, the parties were negotiating for the renewal of the lease and were unable to agree upon a rental. The defendant then attempted to lease the premises to the Cities Service Company, the lease to start at the termination of plaintiff’s lease. The plaintiff thereupon exercised his option to purchase on October 3, 1950, by serving a notice to such effect upon the defendant, and by tendering the $9,000 purchase price specified in the option, which tender the defendant refused.

About the time the option was exercised, and prior to the commencement of this action, the plaintiff was advised by a possible purchaser of the property that the description in the lease did not fit the property being used by the plaintiff. Following this information, the plaintiff, through his attor[388]*388ney, had the property surveyed and it was discovered for the first time that the description in the lease did not cover all of the property the parties intended to cover by the lease and did not include all of the property being used, and which had been used, by the plaintiff during all of the period of the lease. The lease description omitted a wedge-shaped parcel constituting the westerly portion of the service-station building.

Plaintiff testified that it was his intention to rent from the defendant all of the building and the land it occupied and all of the land south of the building to Main street. One of defendant’s officers testified that he told plaintiff when the officers of defendant measured the land the first time that the measured parcel would be the land that defendant could spare, but admitted that the defendant extended the building farther to the west so that it occupied more land.

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Bluebook (online)
55 N.W.2d 389, 262 Wis. 383, 36 A.L.R. 2d 679, 1952 Wisc. LEXIS 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/langer-v-stegerwald-lumber-co-wis-1952.