Meyer Bros.' Assignee v. Gaertner

50 S.W. 971, 106 Ky. 481, 1899 Ky. LEXIS 71
CourtCourt of Appeals of Kentucky
DecidedApril 28, 1899
StatusPublished
Cited by7 cases

This text of 50 S.W. 971 (Meyer Bros.' Assignee v. Gaertner) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meyer Bros.' Assignee v. Gaertner, 50 S.W. 971, 106 Ky. 481, 1899 Ky. LEXIS 71 (Ky. Ct. App. 1899).

Opinions

JUDGE HOBSON

delivered the opinion op the court.

This case is before us upon an agreed statement of facts. In August, 1895, appellee, Gaertner, executed to one Rosenberg a written lease of a storehouse owned by him in Louisville, which was also signed by Rosenberg, for the term of two years from April 1, 1896. By the lease it was provided that the premises should not be underlet, or the term, in whole or in part, assigned, transferred, or set over, by the act of the lessee, by process or operation of law, or in any other manner, whatever, without the written consent of the lessor, but that the lessee might sublet the building to a responsible party, to be used for <the same or a similar business, who should be acceptable to the lessor, in which event the lessee was to remain liable on the lease until its expiration. In January, 1897, Rosenberg assigned the unexpired portion of his term to Meyer Bros., and delivered his lease to them; and they took possession and occupied the property, claiming as assignees of the term, and remained in possession, paying the rent to Gaertner. On July 21, 1897, they made an assignment for the benefit of their creditors to the [485]*485Louisville Trust Company. The assignment from Rosenberg to Meyer Bros, was made in parol, and was not evidenced in any writing. It is also agreed that Meyer Bros, were acceptable to the lessor. At the time of the Meyer Bros, assignment the rent for June was due. On July 22, 1897, after the deed of assignment to the trust company, the company, for the purpose of protecting the assigned estate, and of avoiding any future liability for the rent.of the leased property, assigned all its and its assignor’s interest in the unexpired part of the term to one Kling, who accepted the assignment. That assignment is in writing. Gaertner gave no consent, written or oral, to either assignment, but continually looked to Rosenberg as tenant under the lease.

The trust company claims that upon these facts the assigned estate is liable to Gaertner only for the rent due to August 1, 1897, which it has paid him. Gaertner claims that the estate is liable to him, not only for the rent due at the time of the assignment to> the trust company, but for all the rents to become due thereafter, for the ten months to elapse before the expiration of the lease to Rosenberg, and that he has a prior lien upon the assets for all that rent. By a written agreement between Gaertner and the company, made before the sale of the stock of goods assigned, it was agreed that no distress warrant or attachment need issue for the rent of the premises, and that whatever lien Gaertner might have on the personalty should hold good on the proceeds. Gaertner filed proof of his rent claim with the trust company.

The question presented to the court for decision is whether «the assignment by the trust company to Kling of the unexpired portion of the term operated to accomplish the avowed purpose of relieving the assigned estate from [486]*486Gaertner’s landlord’s lien, which could have been asserted if no assignment had ever been made by the assignee of the term. The question thus presented is one of great interest, and has been elaborately and ably briefed.

It seems clear that the assignment by Rosenberg to Meyer Bros, in violation of the terms of the lease, as it was made without the landlord’s consent, was voidable only, and could be taken advantage of by the landlord only, by re-entry and declaration of forfeiture of the lease. (Taylor’s Landlord & Tenant, sec. 492). It is equally clear from the record that if there be' a difference between an assignment of a term, in whole or in part, and a subletting, this was an assignment; for it is stipulated in the agreed statement of facts that the remainder of the term was assigned. The original lessee had transferred his whole estate, therefore, and had no reversion, though he was still liable upon his covenant to pay the rent.

There was no privity of contract between the assignee of the term and the lessor. It is insisted that, as assignee, he was liable, only because of his possession, and so was only liable.for covenant’s broken while he remained in possession of the property, and for such rents as accrued after he took possesssion.

What effect does the assignment over by the assignee of a term have upon his liability for rents to become due. thereafter? The rule, in the absence of statutory modification, is thus stated by Taylor (volume 2, section 452): “An assignee may always discharge himself from liability for subsequent breaches, in respect to rent as well as to other covenants, by assigning over, though it be done for the express purpose of getting x'id of his responsibility, and although the second assignee neither takes possession nor receives the lease. And he [487]*487may assign to a beggar, a feme covert, or to a person who is on the eve of quitting the country forever, provided the assignment shall be executed before his departure, and even although the assignee may receive from the assignor a premium as an inducement to accept the transfer. The same result follows-, notwithstanding the assignment of the lease remains in the hands of the solicitor of the assignor, who has a lien for the expenses of preparing it, or the lease contains a covénant not to assign; for the assignment destroys the privity of estate, which was the only ground upon which the assignee was liable, and, though the tenant’s liability on his covenant to pay rent may subsist during the continuance of the lease, there is no personal confidence reposed in the assignee of the lease.”

The question presénted, therefore, is, has this rule been modified by statute, as to the property of the assignee on the premises? The statutes, so far as material to this controversy, are as follows:

“Rent may be recovered from the lessee or other person owning it, or his assignee or under-tenant, or the representative of either, by the same remedies given in the preceding sections. But the liability of the assignee or sub-tenant shall only be for the rent accrued after his interest began.”
“A distress warrant or attachment for rent shall bind, and may be levied upon any personal property of the original tenant found in the county; and upon the personal property of the assignee or under-tenant found on the leased premises, and if the tenant has removed his property to another county the distress or attachment may be directed to such county.”
“If after the commencement of any tenancy, a lien be created upon the property upon the leased [488]*488premises liable for rent, the party making or acquiring such lien may remove the property from the premises upon the following terms, and 'not otherwise; that is, by paying to the person entitled to the rent so much as is in arrear, and securing to him so' much as is to become due; what is so paid and secured not being more altogether than a year’s rent.”
“All valid liens upon the personal property of a lessee, assignee, or under-tenant, created before the property was carried upon the leased premises, shall prevail against a distress warrant or attachment for rent.

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Bluebook (online)
50 S.W. 971, 106 Ky. 481, 1899 Ky. LEXIS 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meyer-bros-assignee-v-gaertner-kyctapp-1899.