McKenna v. Reade

144 A. 812, 105 N.J.L. 408, 1929 N.J. LEXIS 226
Supreme Court of New Jersey·Decided February 4, 1929·Published·Cited by 4 cases

Opinion

The opinion of the court was delivered by

Kalisch, J.

This is an appeal from a judgment entered in the Supreme Court on the verdict of a jury, at the Mon *409 mouth Circuit, in favor of the plaintiff-respondent and against the defendant-appellant, in an action, brought by the former against the latter for the use and occupation by him, of certain premises, and also to recover compensation for injuries done to the property while the appellant was in possession thereof.

The facts, succinctly stated, are these: The plaintiff below, respondent here, was the owner of a vacant tract of land in the city of Long Branch. The tract of land is adjacent to the Broadway Theatre, owned by the Broadway Theatre Company, a corporation in which the defendant below, appellant here, held stock.

On May 9th, 1925, the parties to this controversy entered into a written agreement whereby the respondent, McKenna, agreed to sell the premises in question to Reade, the appellant, for $50,000. Reade paid McKenna $5,000 on account of the sale price of the property. The date fixed in the agreement for the passing of title was May 25th, 1925. With the permission of McKenna, after the contract was made, Reade went into possession of the premises in question. The closing of title to the premises did not take place on the date originally fixed for that purpose, but was extended from time to time by mutual arrangement between the parties for various reasons, and, finally, June 22d, 1925, was definitely fixed for the time of the passing of title. When the latter date arrived, McKenna tendered a deed for the premises to Reade, who delined to accept it. After such refusal McKenna listed the property with various real estate brokers for sale. Reade, however, retained possession.

In August, 1925, there was a sudden rise in the value of real estate in various sections of Long Branch, and it was then, as appears from the record of the Court of Chancery, in evidence, that Reade filed a bill in said court, for specific performance of the contract which had been entered into between him and McKenna, for the sale of the property, according to the terms of the agreement.

The cause was decided adversely to Reade by the Court of Chancery, upon the ground that the contract of sale which Reade was seeking to enforce, had been abandoned by him, and *410 thereupon the bill was dismissed. Reade took an appeal from the Court of Chancery to this court, which appeal resulted in an affirmance of the decree.

From the time Reade took possession of the property, under the contract of sale, he used it as a parking ground for automobiles, and as an entrance-way for the stage employes to the Broadway Theatre. Reade also caused the top soil and trees to be removed from the land. There was testimony to the effect, that about five hundred cubic yards of top soil and clay and some trees were removed by him.

An amended complaint was filed in the cause. It contained six counts, the first three of which are for use and occupation of the premises. The fourth count is to recover mesne profits from June 22d, 1925, to the commencement of the action; and the fifth and sixth counts are to recover the value of the top soil carried away or removed by Reade, and for waste committed by him upon the premises.

The trial judge ignored the counts of the amended complaint for use and occupation, upon the theory that the relation of landlord and tenant was not shown to have existed between the parties, and which circumstance, he properly held was essential in order to support an action for use and occupation. He also ignored the counts based upon the allegation of waste having been committed upon the premises, upon the same theory, namely, the absence of proof of the relation of landlord and tenant. The ease was submitted to the jury on the theory that there was a breach of contract, and the plaintiff, therefore, was entitled to recover mesne profits resulting from the breach, and also to compensation for the soil taken from the premises in question by Reade, without license from McKenna, the owner.

The trial-judge submitted the question of the plaintiff’s right to a recovery upon the two counts of the amended complaint, one of which alleges a breach of the contract by the appellant as a basis for a recovery of mesne profits, and the other alleges certain acts committed by the defendant injurious and detrimental to the land in question, as a basis for a recovery of damages. The trial judge proceeded upon the theory that an action for use and occupation required the *411 existence of the relation of landlord and tenant to sustain the action, such as was required at common law, and no action for waste would lie for the same reason.

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McKenna v. Reade, 144 A. 812, 105 N.J.L. 408, 1929 N.J. LEXIS 226 (N.J. 1929).

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