Meyer Candy Co. v. Benninghof

133 N.E. 153, 78 Ind. App. 228, 1921 Ind. App. LEXIS 221
CourtIndiana Court of Appeals
DecidedDecember 2, 1921
DocketNo. 11,035
StatusPublished

This text of 133 N.E. 153 (Meyer Candy Co. v. Benninghof) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meyer Candy Co. v. Benninghof, 133 N.E. 153, 78 Ind. App. 228, 1921 Ind. App. LEXIS 221 (Ind. Ct. App. 1921).

Opinion

McMahan, J.

— This is an action by appellee against appellant for the possession of certain real estate and for damages for the unlawful detention thereof. The cause was tried by jury and resulted in a verdict that appellee was entitled to the possession of the property and to damages on account of the unlawful detention. Judgment having been rendered in accordance with the verdict, appellant appeals and contends that the court erred in overruling its motion for a'new trial.

The facts are in substance as follows: Appellee owns the real estate in controversy. Appellant had been in possession of said real estate for several years as tenant [229]*229under a written lease which expired April 1, 1918. On March 20, 1918, the parties, in anticipation of the expiration of the lease on April 1, of that year, executed a written month to month tenancy contract providing for a rental of $125 per month to take effect April 1, 1918, and providing that the lessor could terminate said tenancy by giving the lessee ninety days notice in writing.

Appellant continued in possession under this lease, and on July 29, 1919, appellee gave appellant a written notice terminating the month to month tenancy October 21, 1919. About two weeks later the parties met and agreed orally upon a lease for four years and eight months to run from August 1, 1919, at a rental of $175 per month, it being understood that their agreement should be reduced to writing. Appellee prepared and signed a written lease and submitted it to Mr. Meyer, the secretary of appellant company. Mr. Meyer objected to' some of the provisions contained in it, the main objection being to the provision requiring appellant to furnish security for the payment of the rent, and he had his son prepare another copy, in substance the same as the copy prepared by appellee, except no provision was made in it for the giving of security for the payment of the rent. This was rejected by appellee and never signed by any one. Appellee had a third lease drawn, but it was never signed by any one. This copy was drawn some time in October, 1919, and Mr. Meyer was notified on two occasions that it was awaiting his signature, the first notification being made a day or two after it was drawn. Mr. Meyer on behalf of appellant agreed to call and sign it. On October 26, 1919, the lease not having been signed by appellant, appellee notified appellant by letter that the lease would be withdrawn unless accepted within ten days from that date. Some time Christmas, 1919, or a little later Mr. Meyer went to the [230]*230office where the lease had been left and asked to sign same but it had been withdrawn by appellee prior to that time. On March 26, 1920, appellee caused a ninety day notice to be served upon appellant terminating the tenancy July 31, 1920. Appellant paid a monthly rental of $175 from August 1, 1919, to August 1, 1920. Appellant having failed to deliver possession pursuant to notice appellee filed his complaint herein for possession.

The nature of the objections made by the parties to the several copies of the proposed written lease prepared for their execution and the changes in the later drafts as made by them are not disclosed by the evidence except that the draft prepared by appellee contained a provision requiring appellant to give security for the payment of the rent, while the draft prepared by appellant did not contain any such provision. Appellee was insisting that Mr. Meyer, the secretary of appellant, should become surety for the payment of the rent. This appears to have been the only serious disagreement as to the terms of the new lease. Mr. Meyer says that he finally agreed to that provision, but appellee says he never was so informed. Whatever the truth may be concerning this matter, appellant made no move to sign the written lease until the last of December, 1919, or the first of January, 1920, which was a month or more after appellee had given notice that the proposition made the preceding August would be withdrawn if the written lease was not signed within ten days, and after appellee had withdrawn the draft which had been left with an agent for appellant to sign and for Mr. Meyer •to sign as surety.

It is appellant’s contention that the possession of the premises and the payment of increased rent by appellant after August 1, 1919, constitutes such performance as takes the oral lease out of operation of the statute [231]*231of frauds and that appellee by accepting the increased rent is estopped from denying the validity of the oral lease.

In St. Joseph, etc., Co. v. Globe, etc., Co. (1901), 156 Ind. 665, 59 N. E. 995, appellant was the owner of a certain water power created by a dam across the St. Joseph river. There were large brick buildings which had been used in the manufacture of paper lying between the headrace owned by appellant and the river. These buildings were empty, but the flumes connecting them with the headrace and all the water-wheels and machinery in said buildings for manufacturing paper were in-' tact. Appellee contemplated purchasing said buildings. Appellant, with knowledge of such contemplated purchase and desirous of furnishing appellee water to operate the machinery if appellee purchased said buildings, -agreed to furnish appellee water from the headrace to be delivered through said flumes, for which appellee agreed to pay a rental of $2,000 yearly. This agreement was reduced to writing but not signed by appellant. Appellee, relying upon the agreement of appellant to execute the-written lease, purchased said buildings and the real estate on which they were located and repaired and equipped the same with machinery for the manufacture of paper at an expense of $25,000, took possession thereof and operated said paper mill and paid the rent to appellant for four years in accordance with the agreement between appellant and appellee. It was there held that appellee was entitled to be placed in such position that it 'could enforce its rights the same as if the lease had been executed by appellant at the proper time, that money expended by appellee on the faith of the agreement to make a lease was sufficient to take the case out of the operation of the statute of frauds, and that specific performance thereof could be enforced.

[232]*232In Weaver v. Shipley (1890), 127 Ind. 526, 27 N. E. 146, appellees and another being desirous of procuring ground upon which to erect a tile mill and from which to procure clay to be used in the manufacture of tile entered into an agreement with the owner of certain land whereby the owner of such land agreed to and did lease to them for the term of ten years three several tracts of land lying adjoining and contiguous to each other. At the time of making said lease the parties went upon and over the three tracts so leased and the land so leased was pointed out and agreed upon. The parties reduced said lease to writing and attempted to describe therein said lands. They executed a written lease in which they believed they had sufficiently described each tract of land. After the execution of said lease and in pursuance thereto the lessees entered upon and took possession of all the real estate so pointed out, and with the knowledge and consent of the owner proceeded to and did erect thereon buildings of a permanent nature, constructed fences around the land costing about $2,700. After the erection of the tile mill the lessees began to and ever since had made and sold large quantities of tile with the knowledge and consent of the owner. The description of one of the tracts was not sufficient to identify the land.

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Cite This Page — Counsel Stack

Bluebook (online)
133 N.E. 153, 78 Ind. App. 228, 1921 Ind. App. LEXIS 221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meyer-candy-co-v-benninghof-indctapp-1921.