Lerner Shops of North Carolina, Inc. v. Rosenthal

225 N.C. 316
CourtSupreme Court of North Carolina
DecidedJune 6, 1945
StatusPublished
Cited by5 cases

This text of 225 N.C. 316 (Lerner Shops of North Carolina, Inc. v. Rosenthal) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lerner Shops of North Carolina, Inc. v. Rosenthal, 225 N.C. 316 (N.C. 1945).

Opinions

Seawell, J.

Tbe plaintiff brought this action to compel the specific performance of a contract for the lease of certain real estate of the defendant, located at the northwest intersection of Fayetteville and Hargett Streets in the city of Raleigh, North Carolina. The plaintiff set up in his pleading an option signed by the defendant, offering to lease the property at the stipulated terms, and acceptance by the plaintiff.

The defendant admitted that he signed and delivered the option, and, in due time, received notice in writing of the acceptance and intention to exercise the option; but in a further defense set up that the documents were signed and delivered only upon the condition that they would not become effective or binding for any purpose until the plaintiff had also, within the time mentioned in the option, secured options for the purchase or lease of certain adjoining properties described in the answer, which might materially add to the value of the leased property; and that, specifically, “the instrument and writings referred to in the complaint should not become effective and binding unless and until and only upon the contingency that said adjoining properties also should be similarly optioned for lease or purchase within the time mentioned in said instrument.” Defendant further alleged that this condition had not been complied with, and that the “period allowed to the plaintiff to make said clauses and delivery effective has now expired.”

[318]*318Upon tbe trial tbe defendant assumed tbe burden of establishing bis further defense.

Substantially, tbe evidence was as follows :

“1 remember tbe time I executed this Exhibit B tbe time that I signed it. Preliminary to its signing I bad been talking with Mr. Robin and Mr. Newsome representing Lerner Stores in that connection. In reply to tbe question, what, if anything, was said between you all with reference to delivery and effectiveness of that instrument, tbe witness stated, ‘They told me positively if they didn’t get tbe other leases on tbe Heller, Dillon and Thompson property they couldn’t use my property, tbe 27 feet would be no good to them and they bad to have somebody to start off and they wanted all four of tbe properties, that is, the Thompson, tbe Dillon and Heller, and they wanted to go all tbe way back and take in Thompson’s property on Hargett Street. On no condition did they want my property unless they got that and if I would sign up that was tbe condition.’ ... I agreed to that.”
“With reference to that I told them I would give them an option on that understanding. That understanding was prior to tbe time I signed to deliver that paper.”
“They were tbe first to put forward tbe idea of it being conditioned on that, after thinking it over they said they would agree and I did agree to it, too. Preliminary to its signing I said under that condition I would sign it. I signed it on that condition. I delivered tbe option on that condition. They did not obtain options or conveyances of either of those other three properties before tbe time of this 'option expired. I don’t think they have yet obtained them. Mr. Robin, tbe representative of Lerner Stores, said there was too little space there for tbe store building. I think that my property bad a special value as to saleability and leaseability in connection with tbe adjoining property.”

On cross-examination, tbe witness further reiterated tbe statement that be signed and delivered tbe instrument upon tbe condition stated, and added that “We discussed every phase of tbe situation and we discussed about tbe other property too. I started to leave and they said under that condition we bad to have somebody first to sign up to get tbe options on tbe other three. ... I didn’t sign it until we bad that understanding.”

“He proposed that and Newsome said that under those conditions that somebody bad to start rolling so they could get tbe other conditions.”

After this evidence bad been offered, tbe court excused tbe jury without submitting it to them, and, upon motion of counsel, signed a judgment giving tbe plaintiff tbe relief demanded, and requiring tbe defendant to execute a lease upon tbe described property according to tbe tenor of tbe options signed by him and their acceptance by tbe plaintiff. Tbe defendant excepted and appealed.

[319]*319Two questions only are posed upon this appeal: Whether delivery of an instrument relating to the lease or sale of real property may be the subject of conditional delivery by the grantor to the grantee, where the condition rests in parol, so as to defeat the effectiveness of the instrument when the condition is not performed; and if so, whether in this case the defendant was entitled to have his evidence of such conditional delivery submitted to the jury.

d In many other jurisdictions it is an accepted rule that a deed, especially a deed for lands, cannot be the subject of conditional delivery from the grantor to the grantee. 16 Am. Jur., secs. 123, 124. In such care it has been held that the delivery is good but the condition is a nullity. This holding is generally upon the ground that the written instrument is not subject to parol contradiction.

This rule has been greatly relaxed with regard to deeds and instruments not purporting to convey real estate; and there are many reasons, not necessary now to state, why promissory notes and papers of like character, which it is contemplated shall have numerous signatures, might be excepted from the rule.- One potential reason is that usually the parol condition cannot be said to contradict the written paper. Therefore, many of the cases of that character cited in the appellant’s brief may not be considered as decisive of the- matter,, although they comprise a principle which in similar relations, our Court has applied to deeds relating to land; that is, that the parol agreement respecting delivery does not, in reality, contradict the written instrument, but only postpones its effectiveness until after the condition has been performed or jhe event has happened. Jones v. Casstevens, 222 N. C., 411, 23 S. E. (2d), 303; Kindler v. Trust Co., 204 N. C., 198, 167 S. E., 811; Metropolitan Life v. Dial, 209 N. C., 339, 183 S. E., 609; Jefferson Standard Co. v. Morehead, 209 N. C., 174, 183 S. E., 606.

While we have frankly stated the contrary rule, there can be no doubt that, as we have suggested, our Court has extended the doctrine of conditional delivery to cover instances where deeds or instruments affecting lands were so delivered directly by the grantor to the grantee, thus perhaps creating or adopting a minority rule. Garrison v. Machine Co., 159 N. C., 285, 74 S. E., 821; Gaylord v. Gaylord, 150 N. C., 222, 63 S. E., 1028; Building Co. v. Sanders, 185 N. C., 328, 117 S. E., 3, and cases cited; Thomas v. Carteret, 182 N. C., 374, 109 S. E., 384. Disregarding immaterial factual differences, relating to the form and substance of the conditions, the cases are too pointed to ignore.

In Gaylord v. Gaylord, supra, the delivery of the deed, the record shows, was made directly from the grantor to the grantee, and of such delivery, Justice Uolee, speaking for the Court, said: “. . . in the case before us, if the instrument having been prepared and signed was then handed [320]

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Bluebook (online)
225 N.C. 316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lerner-shops-of-north-carolina-inc-v-rosenthal-nc-1945.