Lindenberg v. MacDonald

214 P.2d 5, 34 Cal. 2d 678, 14 A.L.R. 2d 1436, 1950 Cal. LEXIS 279
CourtCalifornia Supreme Court
DecidedFebruary 3, 1950
DocketS. F. 17809
StatusPublished
Cited by13 cases

This text of 214 P.2d 5 (Lindenberg v. MacDonald) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lindenberg v. MacDonald, 214 P.2d 5, 34 Cal. 2d 678, 14 A.L.R. 2d 1436, 1950 Cal. LEXIS 279 (Cal. 1950).

Opinions

SCHAUER, J.

Plaintiff appeals from an adverse judgment entered upon a directed verdict in his action for damages (presumably for claimed constructive eviction) allegedly caused by defendants’ attempt, asserted by plaintiff to have been made in bad faith and unlawfully, to terminate a sublease (sometimes referred to as a lease) of real property. We have concluded that the trial court correctly determined [679]*679that there was no evidence legally sufficient to show bad faith, constructive eviction, or any unlawful act by defendants, and that the judgment must be affirmed.

Defendants are husband and wife and are sued individually and as partners doing business under the name of MacDonald Products Company. In 1942, they subleased to plaintiff for a three-year term ending December 31, 1945, certain store space “having a frontage of approximately 17 feet by a depth of approximately 29 feet” in a building located in Vallejo. Plaintiff opened a retail flower shop and “novelty jewelry” store in the leased premises. The sublease contained the following provision: “Lessor may terminate this lease in the event that the existing improvements are to be torn down to make way for the erection of a new building on sixty (60) days written notice addressed to the lessee ... It is understood that this is a sublease and subject to all of the terms and conditions in that certain . . . lease made the 26th day of September, 1941 by and between George Edward McGill and Mabel McGill, as lessors and Graeme MacDonald, as lessee, as well as that certain addenda dated the 14th day of October, 1941 ...”

In October, 1944, defendants, in contemplation of performance by them of an obligation imposed, and under rights conferred, by the McGill lease, negotiated with the J. C. Penney Company for a long term sublease of a new building to be erected by defendants after the building containing the space leased by plaintiff had been torn down, and on November 30, they served upon plaintiff the following notice: “Arrangements have been made to tear down the building which you now occupy and a new building will be erected thereon as soon as you and the other tenants have moved. All tenants have been notified.

“Therefore, I am now giving notice as required by the lease, for you to vacate the premises at 407 Georgia Street not later than January 31, 1945. I regret that you have to move at the present time, as I know the difficulties of finding a suitable location under the present conditions, but in order for me to make certain arrangements which I must do in Vallejo, I must erect this new building now.” Other tenants in the same building, all but one of whom also held under subleases, were given the same notice.

Defendant husband knew, at the time the above notice was given, that the new building could not then be con[680]*680structed without a permit from the War Production Board; he fully intended to build but not without the permit. Although the permit had not yet been issued, the defendants’ property manager, Mrs. Apgar, who had been negotiating with the board, “felt sure” from those negotiations and from previous experience in securing similar permits that it would be issued, as did defendant husband; they knew, however, that the board had made no binding commitment. As previously indicated, defendants did not own the lot on which the store occupied by plaintiff was situated, but in 1941 had leased it from George Edward McGill and Mabel McGill “over a long period of years” with an agreement to pay a monthly rent to the owners, “to pay the taxes for a period of 45 years,” and “tear those shacks down off that lot” and construct a new building which was to serve as security for the long-term lease. The new building had not been erected prior to the fall of 1944 because of priorities difficulties and lack of a definite tenant, and defendants had secured from the McGills two extensions of time to comply with their agreement to build. Plaintiff was aware of the obligation of defendants to demolish the old building and to construct a new one, as it was expressly provided in plaintiff’s sublease, as above noted, that “this is a sublease and subject to all of the terms and conditions in that certain indenture of lease made [in] . . . 1941 by and between [the McGills] . . . , as lessors and [defendant husband] . . . , as lessee.’ ’

Mrs. Apgar and defendant husband testified that within a few days of the giving of the notice to plaintiff (whether before or after is uncertain from the record), defendants employed an architect to prepare plans for the new building, which was to cost approximately $45,000 and was to follow suggestions made to Mrs Apgar by the War Production Board as to the “type of plan” and of building materials which should be used, and obligated themselves for the architect’s fees of some $2,250; the plans were necessary before formal application for the permit could be made. They also ordered an iron truss, to cost $450; incurred an obligation of $500 to a wrecking contractor for services performed and material purchased by him preliminary to actually wrecking the existing building; and “made arrangement” with a contractor and subcontractor for construction of the new building. Defendants also procured from Army and Navy officials and [681]*681the Mayor of Vallejo, and filed with the War Production Board, written statements concerning the necessity for the new building.

During December, 1944, because of serious setbacks to United States and allied forces in the Battle of the Bulge in Europe, governmental building restrictions were made more stringent and defendants were informed by the board that issuance of the permit was uncertain. During the latter part of December, 1944, or the first week in January, 1945, Mrs. Apgar informed plaintiff and other tenants of this situation and offered to allow them to stay on a “short termination” basis—in plaintiff’s case, on a basis of one or two weeks’ notice—at the same rent they had been paying; plaintiff declined, and vacated the premises on January 13, 1945. Mrs. Apgar testified'that plaintiff and his wife stated they wished to take a vacation unless they could remain in the store for “the whole year.” After plaintiff vacated, the space he had occupied was rented to one of his former employes, to whom plaintiff then sold fixtures and a portion of his stock; the new tenant also operated a jewelry store in the space and paid the same rent formerly paid by plaintiff. All except one of the other tenants in the building remained until the building was actually wrecked some seven months later; the tenant (other than plaintiff) who vacated had already acquired another location and defendants turned over to the Bed Cross, rent free, the space he had occupied. Thus, the immediate net result of the giving of the termination notices was a loss of rental income to defendants.

Meanwhile, on January 4, 1945, defendants filed with the War Production Board a formal application for the permit to build; it was refused on January 23. Defendants, however, did not abandon their project nor is there any suggestion that they were released by their lessors from the obligation to build. They continued their efforts to complete the project and, after two more permit applications had first been presented and denied, war developments became more favorable and they were able in August of 1945, to complete the razing of the old building and actually commence construction of the new one.

Concerning the reason for giving the termination notice to.

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Cite This Page — Counsel Stack

Bluebook (online)
214 P.2d 5, 34 Cal. 2d 678, 14 A.L.R. 2d 1436, 1950 Cal. LEXIS 279, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindenberg-v-macdonald-cal-1950.