Mahon v. Director of Public Works

204 A.2d 197, 98 R.I. 426, 1964 R.I. LEXIS 185
CourtSupreme Court of Rhode Island
DecidedOctober 29, 1964
DocketEx. No. 105351
StatusPublished
Cited by3 cases

This text of 204 A.2d 197 (Mahon v. Director of Public Works) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mahon v. Director of Public Works, 204 A.2d 197, 98 R.I. 426, 1964 R.I. LEXIS 185 (R.I. 1964).

Opinion

Powers, J.

This is a petition for the assessment of damages brought pursuant to the provisions of G. L. 1956, §37-6-18, by a lessee of property taken by the state of Rhode Island in eminent domain proceedings. It was tried to a superior court justice, sitting without a jury, who entered a decision denying the petitioner’s claim. The case is before us on the petitioner’s bill of exceptions, the sole exception being to said decision.

*427 The facts are not in dispute. On May 11, 1966, petitioner and Vasa Music Hall Association, Inc., entered into a lease for a term of five years, commencing May 1 and terminating April 30, 1961. The premises in question were located at the northwesterly corner of Park and Wellington avenues, more specifically designated as 637 Park avenue in the city of Cranston.

The lease provided for an annual rental of $840, payable in equal monthly sums of $70 at the end of each month, the lessee being credited w-ith $1 monthly for services.

It also contained the following option to renew for an additional five years:

“Said Lessor furthers [sic] covenants with the said Lessee that if the said Lessee shall desire to lease the said premises for the term of five years from the expiration of the term hereby granted, and shall give notice of such desire in writing sixty days prior to the expiration of the term of this lease, and shall observe and perform all the provisions of this lease by the said Lessee to be observed and performed; the said Lessor agrees to execute a further lease of the said premises for the term of five years, upon the terms and conditions herein set forth, except that the rent payable during such renewal shall be such amount as the Lessor shall demand, and in the event that the Lessee is unwilling to- pay the rent demanded ;by the Lessor, this option for renewal shall be void.”

On January 9, 1961, well in excess of the sixty days required by the lease, petitioner gave written notice to the lessor of his intention to renew the lease for an additional five years. On April 6, 1961, however, the lessor, apparently anticipating condemnation by the state, determined to advise its attorney that the lease would not be renewed, but that petitioner would be permitted to remain as a m'onth-tomonth tenant. No notice of this decision was ever given to petitioner.

On May 19, 1961, attorney for lessor wrote to' lessee’s attorney acknowledging receipt of the January 9, 1961 *428 written intention to renew and asking that lessee’s attorney communicate with him for the purpose of discussing such renewal.

It further appears that on May 26, 1961, attorney for lessee wrote to lessor’s attorney, acknowledged receipt of the May 19, 1961 letter and, explaining that he was presently engaged in trial, requested written explanation of that which was to be discussed. On June 1, 1961, petitioner forwarded his check in payment of the rent due for the month of May.

The following day counsel for lessor wrote to counsel for lessee informing him that the subject ¡matter of the proposed discussion was the amount of rent to be fixed in the new lease. It does not appear that any further discussion was had between the parties, but lessee continued to make monthly payments totaling $70, which were accepted by lessor. The last such payment appears to have been made on December 12, 1961.

The record further discloses that on December 13, 1961 the state of Rhode Island authorized the then director of public works to acquire the premises in question by eminent domain and on December 21, 1961, he filed in the office of the city clerk of the city of Cranston a description of said real estate, a plat thereof, together with a statement that the real estate therein described was taken pursuant to the provisions of G. L. 1956, chap. 6 of title 37 and chap. 10 of title 24.

At the hearing in the superior court, uncontradicted expert testimony was given on behalf of petitioner that the market value of the rented premises was $85 per month. The petitioner’s claim for damages is founded on the $15 monthly differential and his contention that, in the circumstances here present, his tenancy had 'been renewed for the five years specified in the option.

The trial justice held that the option to renew was void for uncertainty and indefiniteness, relying on Vartabedian *429 v. Peerless Wrench Co., 46 R. I. 472. There this court held that where the option to renew contained neither an agreed rental for the new term, nor a method to determine such rent if the parties could not agree, an option to renew was unenforceable.

Neither an agreed rental nor a means for fixing the same is contained within the instant option and the trial justice applied the applicable rule.

He further held that at the expiration of a term for years, the landlord could properly treat the holdover tenant as either a trespasser or a tenant from month to month or from year to year, but was obligated to notify the tenant of his status within a reasonable time, citing Rose v. Congdon, 72 R. I. 21, and that if nothing is said and the landlord continued to accept rent, the tenancy is from year to year, citing Providence County Savings Bank v. Hall, 16 R. I. 154. Again referring to Rose v. Congdon, supra, the trial justice also noted that whether the landlord has elected to treat the tenant as holding less than a year-to-year tenancy is, in each case, a question of fact to be determined from all the circumstances.

It was his conclusion, therefore, that the option to renew had not been effectuated but that petitioner held over as a tenant from month to month in the instant circumstances and made out no claim for damages.

The petitioner contends that the trial justice misconceived the significance of the circumstances and erred in deciding that there had not been a valid renewal for a five-year term.

The particular circumstances on which he relies are that he seasonably advised the lessor of his desire to renew; that the lessor gave no indication, prior to the termination of the lease, that there was to be an increase in the rent; and that before any communication was received from the lessor, petitioner had commenced a new term, for the first month of which the lessor accepted the rent payable under *430 the original lease. In such circumstances, petitioner argues, the lessor would be estopped from denying the existence of a new term for five years, citing Cowell v. Snyder, 15 Cal. App. 634.

There the lessors had seasonably notified the tenants under a year’s lease that if they continued to hold over at the expiration of the term, they would do so at an increased rental. The lessees refused to consider any increase, but remained in possession, paying rent in accordance with the original agreement, which payments the lessors accepted.

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Bluebook (online)
204 A.2d 197, 98 R.I. 426, 1964 R.I. LEXIS 185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mahon-v-director-of-public-works-ri-1964.