Larsen v. Knight

233 P.2d 365, 120 Utah 261, 1951 Utah LEXIS 205
CourtUtah Supreme Court
DecidedJune 19, 1951
Docket7465, 7514
StatusPublished
Cited by5 cases

This text of 233 P.2d 365 (Larsen v. Knight) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larsen v. Knight, 233 P.2d 365, 120 Utah 261, 1951 Utah LEXIS 205 (Utah 1951).

Opinions

HOYT, District Judge.

This appeal involves two separate cases which were combined for trial and on this appeal. The appellants were plaintiffs in each case and the respondent was defendant. The points relied upon by plaintiffs in their brief in each [264]*264case are addressed solely to alleged errors in the court’s conclusions of law. It is therefore deemed unnecessary to discuss the evidence or the facts except as shown by the trial court’s findings. The one case was filed in Salt Lake County and will be referred to as the Salt Lake case. The other was filed in Summit County, which is in the same judicial district, and will be referred to as the Summit case.

The relevant facts as found by the trial court are as follows:

On or about April 15, 1948, plaintiffs as second parties and defendant as first party entered into a written contract by which defendant agreed to sell and plaintiffs to buy the fixtures and equipment theretofore used in operating a roadside refreshment place known as the Ski Inn, located in Parley’s Canyon in Summit County, on U. S. Highway 30-40, about eighteen miles from Salt Lake City. The purchase price of fixtures and equipment was $12,500 of which $3,000 was paid at the time of execution of the agreement, $3,000 was to be paid June 15, 1948, and the balance in installments of $100 each month with interest at five per cent. Defendant also, by the same contract, leased to plaintiffs the building referred to as the Ski Inn for a term of ten years with an option to renew for an additional ten years. Rent was $125 per month, payable in advance, beginning May 1, 1948. Plaintiffs agreed to carry fire insurance on the buildings, fixtures and equipment in the total amount of $15,000, in favor of the defendant. Plaintiffs agreed to pay all expenses of operating the business and to maintain the building in a good state of repair. The agreement also contained the following clauses:

“2. Second parties shall have immediate and continuous possession of the said business and the aforementioned fixtures and equipment and also the right to operate said business and use said fixtures and equipment so long as Second Parties shall not be in default of any of the terms or provisions by them to be carried out or to be performed as hereinafter set forth.
[265]*265“3. The title to the business and all property hereby sold and transferred shall be and remain in the First Party until all payments have been made by Second Parties as hereinabove provided * * *.
“8. First Party agrees that he will install near the said Ski Inn, not later than the beginning of the 1948-49 ski season, a fully operable ski tow. It is expressly agreed, however, that none of the proceeds from such ski tow will go to the Second Parties.
“10. If the Second Parties shall fail or neglect to make any of the payments hereinbefore specified or breaches any of the covenants or conditions herein provided, First Party may, at his option, terminate the Agreement and may re-enter the premises and repossess all of the fixtures and equipment, retaining all sums theretofore paid by the Second Parties as liquidated damages for the use, rent, wear, tear, and depreciation of said items and the Second Parties hereby expressly authorize and empower the First Party, his agents, representatives, attorneys, and assigns so to do.”

Pursuant to the contract plaintiffs took possession of the premises and equipment mentioned, and operated the business as a partnership. They paid the rent for May and June and insured the equipment for the sum of $6,500 but provided no insurance on the building. On or about June 15, 1948, defendant orally extended time for payment of the $3,000 then due on fixtures and equipment until July 15, 1948, and on or about August 9, 1948, defendant agreed with plaintiffs that he would accept $1,000 in part payment and would require no further payment on the fixtures and equipment until January 1, 1949. (The court’s findings in the Salt Lake case are somewhat different upon this item, reciting that defendant agreed that if plaintiffs paid $1,000 cash and would make prompt payment of the arrears in rent and provide insurance coverage he would grant them until January 1, 1949, to pay the balance of $2,000 due on fixtures and equipment.)

Pursuant to said agreement plaintiffs paid to defendant $1,000 on or about August 9, 1948. They made no further payment on either the rent or purchase price of fixtures and equipment. Prior to the time of executing the contract with the plaintiffs, the defendant had entered into an agree[266]*266ment with one A. L. Rudy to install a ski tow near the Ski Inn; but thereafter and shortly prior to August 28, 1948, defendant instructed Rudy not to install the ski tow. Defendant did not at any time prior to August 27, 1948, inform the plaintiffs that the ski tow would not be installed but on said date defendant notified the plaintiffs that no ski tow would be installed unless the rent and insurance premiums were paid. At the time of making the payment of $1,000 on August 9, plaintiffs expected defendant to perform his part of the contract respecting installation of the ski tow. Rudy was at all times ready and willing to install the ski tow before the ski season of 1948-49 when instructed to do so by the defendant. There is no finding as to whether any demand was made by plaintiffs for installation of the ski tow. On October 15, 1948, the insurance procured by plaintiffs on the fixtures and equipment was cancelled for non-payment of premium and thereafter no insurance was carried by plaintiffs on either fixtures, equipment or the building. The court further found that plaintiffs failed and were unable to pay expenses of operation of the Ski Inn after October 1, 1948, and were insolvent and notified defendant of this. The court also found that about September 15, 1948, it was mutually agreed between the parties to try to dispose of the property by sale to third parties and efforts to this end were made by plaintiffs and defendant. In December 1948 the water system at the Ski Inn froze and became useless, due, according to the court’s findings, to plaintiff’s failure to maintain the biulding. Plaintiffs remained in physical possession of the building, fixtures and equipment until about December 27, 1948, at which time they closed the Ski Inn for the winter. They boarded up the windows and securely locked and boarded the doors, and, according to the court’s findings, at the time they left they intended to return and reopen the place and do business when weather permitted in the early spring. At no time did they intend to abandon either the real property or the personal property referred to [267]*267in their contract with defendant. While they were operating the inn the plaintiffs purchased from persons other than defendant silverware, china and equipment of the value on January 27, 1949, of $400. This property was in the building on that date. On January 12, 1949, defendant served upon the plaintiff Stoker the following written notice:

January 11, 1949.
“Messrs. Jack E. Larsen and Ed Stoker:
“Under date of April 15, 1948, you, and each of you, entered into a written agreement with the undersigned providing for the rental and occupancy of the premises known as the Ski Inn located in Parleys Canyon in Summit County, Utah, for a monthly rental of $125.00.

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Related

Shelter Mortgage Corp. v. Castle Mortgage Co.
117 F. App'x 6 (Tenth Circuit, 2004)
King v. Firm
285 P.2d 1114 (Utah Supreme Court, 1955)
Larsen v. Knight
233 P.2d 365 (Utah Supreme Court, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
233 P.2d 365, 120 Utah 261, 1951 Utah LEXIS 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larsen-v-knight-utah-1951.