Marastoni v. Lucey

521 P.2d 521, 268 Or. 433, 1974 Ore. LEXIS 475
CourtOregon Supreme Court
DecidedApril 25, 1974
StatusPublished
Cited by4 cases

This text of 521 P.2d 521 (Marastoni v. Lucey) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marastoni v. Lucey, 521 P.2d 521, 268 Or. 433, 1974 Ore. LEXIS 475 (Or. 1974).

Opinions

BRYSON, J.

Consolidated in this opinion are two appeals by Attilio and Julia Marastoni from a separate decree and judgment.

Marastoni v. Lucey and Krumm is a suit for specific performance of an oral agreement to extend the term of lease on an existing written lease to April, 1975. The trial court found for defendants Lucey and Krumm and dismissed the complaint.

Lucey and Krumm v. Marastoni is a forcible entry and detainer action, filed shortly after the decree in the above suit, to gain possession of the premises ieased by the Marastonis. By agreement of counsel, the court took judicial knowledge of the testimony, exhibits, and proceedings in the above suit for specific performance. The trial court entered judgment in favor of Lucey and Krumm for restitution of the described premises. The Marastonis appeal from the decree and judgment entered against them.

The suit for specific performance is the control[435]*435liñg case. At the conclusion of that suit, the trial court found:

“* * * [I]n the Court’s opinion, [this] is nothing more than the fact that they were talking about a possible extension, and there was a very good possibility that there would be an extension. But this is not the type of evidence that the Court, the Oregon Court requires when we’re talking about an enforceable oral contract, because the very nature of an oral contract is that there is nothing there to look at and it may be — there may be lots of differences between the parties. I do not feel that there was any meeting of the minds. I do not feel that the plaintiffs have shown this matter by a preponderance of the evidence. In the Court’s opinion, there was no oral contract * *

Plaintiffs contend that:

“The circuit court’s ruling, and therefore its Decree, was in error in finding plaintiffs’ evidence failed to establish an enforceable oral contract.”

Plaintiffs’ brief states:

“* * * [T]he determinative issue to be decided by this appeal is whether the circuit court was correct in its holding that no enforceable oral agreement existed between the parties.”

We review the ease de novo. However, where the decision “turns upon the credibility of the witnesses, we give great weight to the trial judge’s appraisal of the testimony.” Norman v. Jerich Corporation, 263 Or 259, 265, 501 P2d 305 (1972).

On December 17, 1969, defendants leased to plaintiffs “[t]he first floor of the Log Cabin Inn” situated on real property located at McKenzie Bridge, Lane County, Oregon, for a period ending March 31, 1973, for the operation of a restaurant. The plaintiff-tenants had “the first right of refusal to renew this [436]*436lease for a period of five (5) years after the expiration of the original term * * * in the event Landlord determines that it desires to relet the premises.” If the defendant-landlord decided to relet, the rental to be paid for any additional term was to be negotiated. The lease further provided that after the first year the rental was $150 per month, or seven percent of plaintiff-lessees’ gross receipts, whichever was greater.

The restaurant was successful and attracted overflow crowds. The Marastonis decided that the restaurant building should be extended to accommodate more customers, and they met with Krumm and Lucey on April 1, 1970, at the restaurant to discuss the proposed construction. The testimony concerning the conversation which took place contains several sharp conflicts.

According to the Marastonis, the subject of an addition to the restaurant had been discussed with defendants only in general terms during February and March of 1970 and they requested a meeting on April 1, 1970, to obtain the final agreement of defendant-lessors. Lucey and Krumm had received bids on the proposed construction and they had “tentatively” agreed to pay for the construction if the Marastonis paid for the interior furnishings.

At the meeting on April 1, Lucey expressed his desire to have some assurance that the Marastonis would continue to operate the restaurant beyond the existing lease term. According to the Marastonis, Lucey requested that they agree to a five-year extension of the lease, and the Marastonis accepted the proposal immediately. Mrs. Marastoni testified:

“* * * Art [Lucey] was very insistent that day [437]*437that he wanted another five-year lease before he would go ahead and do anything, which consequently meant that we would have another five years to get our investment out as well. I mean, he was protecting himself, and by the extension on the lease we would have plenty of time to get our money back.”

The Marastonis left the meeting under the impression that the landlords would instruct their attorney, Ealph Cobb, to draft the new lease agreement, which would alter the existing lease only with respect to the termination date.

The following additional facts were brought out on the cross-examination of the Marastonis. Although they assumed that an agreement concerning an extension of the lease had been reached at the April meeting, the Marastonis both expected the agreement to be reduced to writing and either submitted for approval or signed by the parties. The Marastonis testified that the new lease arrangement was to be identical to the original with a modification in the term only. However, Mrs. Marastoni conceded that the date of termination of the new lease was left uncertain, and that there had been no discussion at all of other points of dispute, such as rental, taxes, insurance, and restaurant hours of operation. She stated in her deposition, read into the record, that she and her husband and defendants understood that they would have to meet with attorney Ealph Cobb and agree upon the terms of the lease and that they planned to meet with attorney Cobb to work out their problems.

The principals did meet with attorney Cobb on October 1, 1970, and discussed several variances in the terms of the new lease which the defendants had [438]*438requested. The Marastonis believed that this meeting resolved all points of disagreement, but they again expected attorney Cobb to prepare a written document embodying the lease terms and conditions. Mrs. Marastoni testified that there was discussion regarding payment of additional taxes and insurance and an increased minimum monthly rental at the October 1, 1970, meeting. No written agreement was ever presented to the Marastonis for their approval. On October 31, 1972, two years after the meeting with Cobb, Mr. Marastoni wrote to defendants and stated:

“* * * [W]e would like to negotiate the five year extension as mentioned in * * * our current lease * * *.”

The defendant-lessors related a substantially different version of the lease negotiations which took place in 1970. Paul Krumm testified that during the first years of the lease there had been serious problems, including physical violence, between the defendant-lessors and Mr. Marastoni. Mr. Marastoni struck defendant Krumm and “physically threw him [defendant Lucey] out the door.” Due in part to these problems and confrontations, the lessors were reluctant to accede to the Marastonis’ request that they build a substantial addition to the restaurant. At the April 1, 1970, meeting the lessors agreed to build the addition and the Marastonis agreed to furnish it.

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Marastoni v. Lucey
521 P.2d 521 (Oregon Supreme Court, 1974)

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Bluebook (online)
521 P.2d 521, 268 Or. 433, 1974 Ore. LEXIS 475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marastoni-v-lucey-or-1974.