McCormick v. Stephany

41 A. 840, 57 N.J. Eq. 257, 12 Dickinson 257, 1898 N.J. Ch. LEXIS 57
CourtNew Jersey Court of Chancery
DecidedNovember 30, 1898
StatusPublished
Cited by15 cases

This text of 41 A. 840 (McCormick v. Stephany) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCormick v. Stephany, 41 A. 840, 57 N.J. Eq. 257, 12 Dickinson 257, 1898 N.J. Ch. LEXIS 57 (N.J. Ct. App. 1898).

Opinion

Grey, V. C.

This case is before me upon the coming in of the order to show cause whether an injunction should not issue restraining the defendants from enforcing their distraint for rent, and from interfering with the complainant’s possession of the demised premises and of the goods seized under the distraint. The complainant’s defence to the distraint is based solely upon her claim that by the terms of the lease she is entitled to exercise an option to purchase; that she has done this, and that the defendants, who hold the legal title, are bound to convey to her, and therefore may not equitably enforce the distraint for rent which came to be due since the demand made for a conveyance, for which she proffered herself ready to pay, or take any steps to interfere with her possession of the premises. The defendants deny that the complainant has any right to a conveyance either under the lease or otherwise. The complainant must therefore, in order to maintain her claim to the restraint she seeks, sustain her right to the conveyance demanded by her bill.

That there was a mistaken omission in the option clause of [262]*262the lease is, I think, fully proven by the uncontradicted affidavits filed by the defendants, and among them of the typewriter who made the omission. This mistake was in the written expression of the contract, the proofs showing that it did not set forth the intent of the parties and also what that intent was. Such a mistake may be set up as a defence' in a suit for specific performance. Hawralty v. Warren, 3 C. E. Gr. 127. But the utmost effect the proof of the mistake can have is to require the-court to consider the contract as if the omitted words were inserted. If this clause be amended by putting in the omitted words, it does not, in the present attitude of the case, affect the complainant’s right of performance. The first part of the paragraph is an absolute agreement that if the lessor finds a purchaser for the premises the lessee shall have the option during the continuance of the lease to buy at the price named. Under this the complainant seeks to enforce a conveyance to herself. The succeeding clause, where the omission occurs, only becomes applicable in case, on notice, the lessee refuses to buy. No such circumstance has occurred, so that neither the mistake nor its correction affects the complainant’s right to relief, save that the omitted words may, when restored, throw some light on the meaning of the previous clause. As the proof of the mistake is undisputed, I shall consider the words as if restored.

It is objected by the defendants that this clause giving the privilege to demand the conveyance, is unilateral and without consideration. If this clause is considered separately it does appear to be unilateral and states no specific consideration. But it forms part of the lease which is signed by both parties, and is under their seals, which import a consideration. The later decisions appear to have established the rule that where an option to purchase is proffered in a lease of lands, there is a sufficient consideration, as the privilege must be treated as part of the lease, operating as an inducement to its acceptance by the lessee, and to the agreement to pay the rent reserved. In such cases specific performance will not be refused in equity because the agreement is unilateral or without consideration. Hawralty v. Warren, 3 C. E. Gr. 126; Page v. Martin, 1 Dick. Ch. Rep. [263]*263585; Ten Eyck v. Manning, 7 Dick. Ch. Rep. 50; Waters v. Bew, 7 Dick. Ch. Rep. 791.

The defendants call attention to a clause in the lease providing that if any default should be made in any covenant then the lease should be void. That one covenant was “ not to use or permit any part of said premises to be used for any other purpose than a saloon, restaurant or dwelling.” That on McCormick’s death the place was closed, and they claim that this was a breach making void the lease. There is no showing that the demised premises have been “ used for any other purpose than a saloon, restaurant or dwelling.” The covenant is to be construed according to its terms, which are clear — they prohibit a different, use, but they do not compel a continued use for the purpose named. The premises are still plainly occupied if not actually used as a saloon and restaurant This appears from the list of goods distrained for rent, annexed to the bill. The same misconception of this covenant appears in the defendants’ contention that the lease became void, because McCormick in his will directed that the business be discontinued. He had not covenanted to continue it, but only not to use the premises “for any other purpose.”

The defendants also contend that the option to purchase contained in the lease was limited to be exercised by McCormick in his lifetime, and that as he did not demand performance while living, his legatée or devisee cannot do so after his death.

It seems to be settled that the residue of the term of an unexpired lease for years goes to the executor or administrator of the lessee, and not to the heir. Doe v. Porter, 3 T. R. 16; James v. Dean, 15 Ves. 241; Wms. Extr. (9th Am. ed.) 818.

Lord Denman, in Rubery v. Stevens, 4 Barn. & Ad. 244, declared that an executor could not refuse the unexpired term of the lease of his deceased testator lessee. With the lease the right to its renewal contained in it goes to the executor. Wms. Ex. 818. So an unexercised option to purchase, incident to a lease, passes to the administrator or executor of the lessee. Wms. Ex. 809; Re Adams and Kensington Vestry, 24 Ch. Div. 206; S. C. affirmed on appeal, 27 Ch. Div. 394. The unexpired term [264]*264for years, the privileges of renewal and of purchase are all chattel interests and not real estate. They go primarily to the executors, and afterwards to the legatee, and not to the heir.

In the lease in question there is no express demise to McCormick, his executors and administrators, either of the term, the privilege of renewal or the option, nor is there any express limitation to McCormick during his life ending the term and the privileges of renewal and purchase upon his death. In the absence of such express limitation defeating the term upon the death of the lessee, the unexpired term is an asset in the hands of the executor and administrator. An administrator of a deceased tenant recovered possession even where the tenancy was expressed to be from year to year so long as both parties pleased. Doe v. Porter, 3 T. R. 16.

In the case in hand, by the express terms of the will all the real and personal estate are given to the complainant. But however absolute may be the gift to her, if the thing given be an asset to be administered, the executor primarily takes it, and all rights touching it must, during the period of administration, be asserted by the executor as such, or it must appear that the executor assents to the possession of the legatee. The bill in this case was filed long before the expiration of the year of administration. In all the preliminary steps the complainant made her demand as legatee and devisee, and the bill appears to be filed not as executrix, but in assertion of the individual rights of the complainant as legatee of the term, and contains no allegation that the executrix had assented to the possession by the complainant of the residue of the term and its attendant privileges.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Braten v. Baker
323 P.2d 929 (Wyoming Supreme Court, 1958)
Weil v. Ann Lewis Shops, Inc.
281 S.W.2d 651 (Court of Appeals of Texas, 1955)
Plassmeyer v. Brenta
94 A.2d 508 (New Jersey Superior Court App Division, 1953)
Posner v. Air Brakes Equipment Corp.
62 A.2d 711 (New Jersey Superior Court App Division, 1948)
Siesel v. Mandeville
55 A.2d 167 (New Jersey Court of Chancery, 1947)
Congressional Amusement Corp. v. Weltman
55 A.2d 95 (District of Columbia Court of Appeals, 1947)
Schwartz v. Hoffman Foundation, C., Corp.
51 A.2d 240 (New Jersey Court of Chancery, 1947)
Bondarchuk v. Barber
38 A.2d 872 (New Jersey Court of Chancery, 1944)
Hildinger v. Bishop
8 A.2d 813 (New Jersey Court of Chancery, 1939)
Journal Plaza Holding Co. v. J.L.H. Co.
147 A. 581 (New Jersey Court of Chancery, 1929)
Flett v. South Jersey Title, C., Co.
124 A. 152 (New Jersey Court of Chancery, 1924)
Dingman v. Hilberry
149 N.W. 761 (Wisconsin Supreme Court, 1914)
Taylor v. Mathews
53 Fla. 776 (Supreme Court of Florida, 1907)
Ring v. Lund
109 N.W. 710 (Supreme Court of Iowa, 1906)

Cite This Page — Counsel Stack

Bluebook (online)
41 A. 840, 57 N.J. Eq. 257, 12 Dickinson 257, 1898 N.J. Ch. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccormick-v-stephany-njch-1898.