Louis K. Liggett Co. v. Wilson

113 N.E. 184, 224 Mass. 456, 1916 Mass. LEXIS 1127
CourtMassachusetts Supreme Judicial Court
DecidedJune 21, 1916
StatusPublished
Cited by6 cases

This text of 113 N.E. 184 (Louis K. Liggett Co. v. Wilson) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louis K. Liggett Co. v. Wilson, 113 N.E. 184, 224 Mass. 456, 1916 Mass. LEXIS 1127 (Mass. 1916).

Opinion

Loring, J.

The lease here in question manifestly is drawn by one who did not appreciate the meaning of the legal terms which he used, or, speaking with more accuracy, which he attempted to use. For the difficulty which we have in construing the lease-arises from the fact that the person who drew it did no more than make an attempt at using legal terms. The lease is badly drawn and no construction can be given to it which is not open to question.

Before undertaking to determine the true construction of the lease in question, it is well to have a clear understanding of the clauses found in leases which evidently are the foundation of [458]*458the clause here in question and of the purposes for which those clauses are adopted.

Where a lessee becomes bankrupt (or otherwise unable to meet his obligations) unless some clause providing for the contingency is inserted in the lease the lessee continues to be the owner of the term created by the lease and all that the lessor can get is such dividend on the amount of the rent as the bankrupt lessee can pay. To protect the landlord against that contingency it is not uncommon to insert in leases a clause providing (1) that the leasehold estate shall be conditioned upon the lessee not becoming bankrupt (or otherwise unable to pay his debts) and (2) that if the lessee does become bankrupt (or otherwise unable to pay his debts) the lessor may enter and end the leasehold estate for condition broken. If the contingency arises and the lessor does enter and end the leasehold estate, the loss to the lessor mentioned above is avoided.

The terms of the condition authorizing the lessor to re-enter and end the leasehold estate (in case the lessee becomes bankrupt or otherwise unable to pay his debts) usually inserted in leases in this Commonwealth, are in substance these: The lease is made on condition that if the lessee fails to perform any of the covenants or be declared bankrupt or insolvent, or if an assignment be made of the lessee’s property, or if this leasehold interest shall be taken on execution, then the lessor or lessors may "terminate this lease, enter upon the said premises and, expelling the Lessee and removing its effects (forcibly if necessary),- without being deemed guilty of any manner of trespass, and without prejudice to any rights or remedies hereunder, repossess the same as of his or their former estate.” This, for example, was the form of the right of re-entry in the lease in question in Woodbury v. Sparrell Print, 187 Mass. 426, and in the lease in question in Cotting v. Hooper, Lewis & Co. Inc. 220 Mass. 273.

But it was found in practice that when a lessor to protect himself against this loss was forced to enter and end the leasehold estate, he might not be able to let the estate for as large a rent as that reserved in the lease and so lost the benefit of the bargain' which the lease gave him. In recent years it has been not uncommon for parties to insert in leases a clause to protect the landlord against the loss of his bargain under such circumstances. For [459]*459example: In the lease in question in Woodbury v. Sparrell Print, ubi supra, it was provided that on such termination of the lease: “The Lessee shall be liable to the Lessor for all loss and damage sustained by the Lessors on account of the premises remaining unleased, or being let for the remainder of the term for a less rent than that herein reserved.” Another covenant to protect the landlord in such a contingency is that found in the lease in question in Cotting v. Hooper, Lewis & Co. Inc., ubi supra. The covenant in that case was that the lessee would indemnify the lessor (as in Woodbury v. Sparrell Print, ubi supra) "or, at the election of the Lessors the Lessee will, upon such termination, pay to the Lessors as damages, such sum as at the time of such termination represents the difference between the rental value of the premises for the remainder of the said term and the rent and other payments herein named.” A third covenant of this kind is that found in the lease in question in Weeks v. International Trust Co. 125 Fed. Rep. 370. The clause in the lease in question in that case required the lessee to pay to the lessor, during the term for which the lease originally was to have run, the difference between the rent reserved in the lease and the amount received by the lessor on reletting the premises at the lessee’s risk.

In the case at bar the trial judge found that on the keys being delivered to the lessor on or about November 18, 1914, he “took possession of said premises under the terms of said lease.”

The plaintiff’s contention is that by taking possession on November 18 under the terms of the lease he did not terminate the leasehold estate created by the lease.

In support of this contention he argues that the provision found in the clause of the lease here in question

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Related

Cooper v. Casco Mercantile Trust Co.
186 A. 885 (Supreme Judicial Court of Maine, 1936)
Moskow v. Fine
198 N.E. 150 (Massachusetts Supreme Judicial Court, 1935)
Zevitas v. Adams
177 N.E. 114 (Massachusetts Supreme Judicial Court, 1931)
Meltzer v. Cohen
157 N.E. 353 (Massachusetts Supreme Judicial Court, 1927)
Empress Theatre Co. v. Horton
266 F. 657 (Eighth Circuit, 1920)
Podren v. Macquarrie
233 Mass. 127 (Massachusetts Supreme Judicial Court, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
113 N.E. 184, 224 Mass. 456, 1916 Mass. LEXIS 1127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louis-k-liggett-co-v-wilson-mass-1916.