Messall v. Merlands Club, Inc.

222 A.2d 627, 244 Md. 18
CourtCourt of Appeals of Maryland
DecidedOctober 13, 1966
Docket[No. 477, September Term, 1965.]
StatusPublished
Cited by19 cases

This text of 222 A.2d 627 (Messall v. Merlands Club, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Messall v. Merlands Club, Inc., 222 A.2d 627, 244 Md. 18 (Md. 1966).

Opinion

McWieeiams, J.,

delivered the opinion of the Court.

In our narration of what has transpired between these parties we shall do our best to distill the essential facts out of the great broth of pleading and evidence which has boiled up to us from the court below. A number of questions have been presented but, as we see it, our decision will depend on whether a judgment of the Circuit Court for Caroline County (Carter, C. J.) is res judicata in respect of the decision of the trial court (Pugh, J.) in the case at bar.

On 1 June 1956 appellants (Landlords) leased 23acres in Montgomery County to appellee (Tenant). The land was improved by a clubhouse, a swimming pool, tennis courts, a riding ring, stables and a lake stocked with fish. Tenant’s option to purchase the property had to be exercised during the first three of the last six months of the seven year term. The right to exercise the option was contingent upon Tenant’s “compliance with all its obligations” under the lease. Tenant was required to “maintain at its own expense the demised premises in good repair” and “to comply at all times, at its own cost * * * with all rules, orders, ordinances and legal requirements” of public bodies “under whose supervision the demised premises may come.” The lease also contained a provision to the effect that the devolution of the lease, by operation of law, upon any person other than Tenant would constitute a default. In 1961 a dispute arose over the computation of rent and the manner of paying it. This resulted in litigation which finally *23 found its way to this Court. Messall v. Merlands Club, 233 Md. 29, 194 A. 2d 793 (1963). The impact of our decision in Messall upon the case at bar will be discussed later.

Early in November 1962, Landlords fded a summary repossession action against Tenant in the Montgomery County People’s Court in which it was claimed that Tenant was in default as of 10 November 1962. Landlords were enjoined from proceeding with this action, however, by an ex parte order of the court in the then pending litigation. 1 On 16 November 1962, Landlords notified Tenant that the lease was in default for failure to pay the proper rent. A month later (18 December) a letter was sent to Landlords purporting to exercise the option to purchase. This was signed on behalf of the president of the Board of Trustees of Merlands Club, Inc., by counsel for Tenant. Landlords replied that the attempt to exercise the option was a nullity and again demanded the surrender of the premises forthwith.

On 1 April 1963, the day after the lease expired, Tenant filed its bill for the specific performance of the option agreement. On the same day the court, ex parte and without bond, ordered Landlords “to cease and desist from any action that would change the status quo of the position of the parties pending the resolution” of the specific performance proceeding. On 5 April, Landlords filed an action in ejectment against Tenant claiming that the lease had expired, by its own terms, on 31 March.

Landlords answered the bill for specific performance on 20 May and on the day following filed a cross-bill seeking a declaratory judgment that the lease was in default on 16 November and that the attempt to exercise the option was ineffective. The day before a scheduled hearing on Tenant’s motion to consolidate the two cases Landlords dismissed the cross-bill and filed a suggestion and affidavit of removal in the ejectment case. Judge Pugh designated Baltimore County as the new venue. Tenant succeeded in putting off the trial of the case in Baltimore County until 28 April 1964 when its last motion for a con *24 tinuance was denied. On 1 May, Tenant filed a suggestion and affidavit of removal and on the same day the court ordered the case sent to Caroline County. Landlords pressed for trial and, over Tenant’s objection, the case was assigned for trial on 22 June.

When the case was called for trial the court granted Tenant’s motion to amend its pleas. As one might expect, this generated a minor uproar at the trial table but when the dust settled Tenant, by its amended pleas and the court’s rulings in respect thereof, had posited the following issues:

1. The general issue by virtue of its plea of “not guilty.”
2. Does the People’s Court of Montgomery County have exclusive jurisdiction of Landlords’ suit?
3. Is Messall v. Merlands Club, supra, res judicata of the basic issues ?
4. As detailed in its plea on equitable grounds:
(a) The equity case was filed four days prior to the ejection case and “will be determinative of the very issues in the ejectment suit * * * [and~\ they involve the same, parties and subject matter (Emphasis supplied.)
(b) Tenant was not in default and the exercise of the option created the relationship of vendor and vendee, thereby vesting equitable title in the vendee.

The parties having agreed to try the case before Judge Carter without a jury and to exclude witnesses waiting to testify, the three day trial began in Denton, the county seat of Caroline County. After hearing argument and considering the briefs filed by counsel, Judge Carter, on 24 July, found Tenant guilty of “the trespass and ejectment mentioned * * * in the declaration.” On the same day “judgment nisi” was entered. On 27 July Tenant appealed. On 28 July judgment was made absolute. The appeal to this Court was dismissed on 14 April 1965. (Re-argument denied 25 May 1965.) Merlands Club v. Messall, 238 Md. 359, 208 A. 2d 687 (1965).

Judge Carter filed his opinion on 30 September 1964. In disposing of the issue created by Tenant’s plea of res judicata he *25 agreed that the parties and the property in Messall v. Merlands Club, 233 Md. 29 (1963) and the parties and the property in the case before him were identical. He noted also this Court’s comment in that case that “the record discloses that substantial repairs had been made in recent years, which, we think, would have been sufficient to support a finding that the lease was not in default for failure to keep the demised premises in good repair.” (233 Md. at 38.) He observed that “no evidence was admitted [at the trial in 233 Md. 29] to establish any condition subsequent to the date” of filing of the original bill and the cross-bill. (16 June 1961 and 22 August 1961 respectively.) Judge Carter went on to say:

“It, therefore, appears that the material issues that were determined in the suit previously adjudicated, which are also present in this suit, consist of: (1), the issue of whether the failure of the Lessee to make proper monthly payments under the lease amounted to defaults by the Lessee; and (2) was there a substantial failure of the Lessee to keep the premises in good repair prior to such suits or prior to August 22, 1961. The Court of Appeals determined both of these questions in favor of the Lessee in that suit.

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Bluebook (online)
222 A.2d 627, 244 Md. 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/messall-v-merlands-club-inc-md-1966.