Merritt v. Kay

295 F. 973, 54 App. D.C. 152, 1924 U.S. App. LEXIS 3264
CourtDistrict Court, District of Columbia
DecidedFebruary 5, 1924
DocketNo. 3931
StatusPublished
Cited by29 cases

This text of 295 F. 973 (Merritt v. Kay) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merritt v. Kay, 295 F. 973, 54 App. D.C. 152, 1924 U.S. App. LEXIS 3264 (D.D.C. 1924).

Opinion

SMITH, Acting Associate Justice.

This is a writ of error to the municipal court of the District of Columbia for correction of any errors that may have be.en committed in a suit commenced by John E. Merritt for the restitution of certain premises alleged by him to be unlawfully detained by Florence Means Kay.

The record discloses that on the 28th of February, 1922, Higbie & Richardson, a corporation, in consideration of the payment to it in advance of $55 on the 1st day of every month, let and demised by its written lease to Florence Means Kay an apartment in the Rochester apartment house. The lease contained a covenant that the lessee would not sublet or assign the premises or any part thereof to any person or persons, and expressly provided that the waiver of any breach of any covenant should not be construed as a waiver of the covenant itself or of any subsequent breach thereof.

Prior to the execution of the lease Florence Means Kay had a verbal understanding with Frank L. Lockwood, an employee of Higbie & Richardson, Inc., that she would be permitted to sublet the apartment. Before the lease was signed by the parties, Lockwood informed Higbie, officer of the corporation, of that understanding, and Mr! Higbie, with full knowledge that Florence Means Kay intended to sublet, signed the [975]*975lease for the corporation. It is admitted by the plaintiff in error that the lessee on the execution of the lease entered into possession of the apartment, furnished it, and promptly sublet it to Dr. and Mrs. Brown. Higbie & Richardson, Inc., knowing at the time the lease was executed that the premises would be sublet, accepted rent from the lessee from March 1, 1922, to July 1, 1922.

The plaintiff in error was the owner of the Rochester apartment house, and he was the undisclosed principal of Higbie & Richardson, Inc., which was authorized to execute the lease involved in this proceeding. About July 1, 1922, plaintiff in error terminated the agency of Higbie & Richardson, Inc., and he himself collected from the lessee the rents accruing on the apartment for the months of July and August, 1922. He testifies, however, that he made those collections without knowledge of the subletting, and the evidence establishes that he had no actual information that the apartment had been sublet until the 22d of August, 1922. On that date he received a letter from the lessee, informing him that her tenants, Dr. and Mrs. Brown, had vacated the apartment because it was so poorly kept, and that Capt. Cheatham, to whom she had subsequently rented it, was about to move for the same reason.

Notwithstanding that letter, he received between September 15th and September 19th a check from the lessee for the September rent, which check was not returned, although he claimed that it was inadvertently accepted. In fact, the owner by his letter dated September 19th acknowledged receipt of the September rent, and notified the lessee that she must cease subletting the apartment or surrender the same on September 30th. The apartment was twice sublet after that letter was sent to the lessee. On the 27th of September, 1922, the lessee forwarded to the owner her check for $55 in payment of the October rent. That check was returned on September 29, 1922, with tire statement that suit had been filed to recover possession of the apartment. That suit was dismissed, and the suit now under review was commenced on October 9th, prior to which date the lease was assigned to the owner by Higbie & Richardson, Inc.

Plaintiff in error contends, first, that Higbie & Richardson, Inc., had no authority whatever from the owner to lease the premises with the privilege of subletting, and that it was error upon the part of the trial judge to admit over objection testimony tending to establish that the defendant had a verbal understanding with Higbie & Richardson that she could sublet the apartment; second, that the lessee, by subletting the premises, violated the express terms of her written lease, and that her right by herself or subtenant to the possession of the premises had terminated at the time this suit was commenced; third, that the rent law approved October 22, 1919, expressly prohibited the subletting without the consent of the rent commission of any apartment at a rate in excess of that paid by the tenant.

Merritt was an undisclosed principal and permitted Higbie & Richardson, Inc., to make leases of his property in its own name. The defendant did not know that the corporation was the agent of Merritt, and was not put upon inquiry as to the nature and extent of the authority or powers which the corporation was authorized to exercise as [976]*976lessor of the apartment. Indeed, having accepted a lease from Higbie & Richardson, the lessee was in no position to question the title of her landlord or the exercise of the legal rights accruing to the corporation by virtue of its status as lessor. Holt v. Martin, 51 Pa. 499; Ryerson v. Eldred, 18 Mich. 12, 21, 22; Bertram v. Cook, 32 Mich. 518, 521.

The terms of the lease could not of course be-contradicted, altered, added to, or varied by parol evidence, and the lease must for the purposes of this case be regarded as the complete and final agreement of the parties at the time it was executed as to all matters provided for therein or covered thereby.

Whether the lessor waived the covenant against subletting, or permitted its tenant to sublet, is quite another matter, however, and such waiver or permission may be proven by parol or other evidence dehors the contract. The testimony to which objection was taken, although not competent for the purpose of varying the lease, was admissible as evidence tending in some degree to show that Higbie & Richardson, Inc., was aware of the subletting of the premises to Dr. and Mrs. Brown and to Capt. Cheatham, during whose possession as subtenants it accepted from the lessee month after month without objection the rent provided by the lease.

That Higbie & Richardson, Inc., by accepting rent from March to July, waived its right to forfeit the lease because of the subletting to Dr. and Mrs. Brown and Capt. Cheatham, and that the owner himself waived the subletting to both subtenants by accepting rent for the month of September after notice of the subletting, cannot be doubted. If the lessee had simply covenanted not to sublet, those waivers might well be regarded as working a waiver of all subsequent breaches of the condition, and as entirely freeing the tenant from the obligation not to sublet. No such effect, however, can be given to the waivers mentioned, in view of the fact that the lessee, not only stipulated that she would not sublet, but expressly agreed that no waiver of any breach of that covenant of the lea.se should be construed as a waiver of the covenant itself or of any subsequent breach thereof.

If by fraud, misrepresentation, or deceit the lessee was induced to sign the lease, or if because of a mutual mistake the lease failed to express the real agreement of the parties thereto, the contract might be canceled or reformed by appropriate proceedings had for that purpose. But until the lease is either canceled or reformed its provisions must be respected and regarded as determinative of the rights of the parties. Supreme Lodge v. Catherine Wood, 286 Fed. 998, 52 App. D. C. 334; Insurance Co. v. Mowry, 96 U. S. 544, 24 L. Ed. 674. Having been warned in writing not to sublet in case the leased premises were vacated by Capt. Cheatham, and having twice sublet the apartment after Capt.

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Bluebook (online)
295 F. 973, 54 App. D.C. 152, 1924 U.S. App. LEXIS 3264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merritt-v-kay-dcd-1924.