Montlake Coal Co. v. Chattanooga Co.

137 Tenn. 440
CourtTennessee Supreme Court
DecidedSeptember 15, 1916
StatusPublished
Cited by16 cases

This text of 137 Tenn. 440 (Montlake Coal Co. v. Chattanooga Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montlake Coal Co. v. Chattanooga Co., 137 Tenn. 440 (Tenn. 1916).

Opinion

Mr. Justice Williams

delivered the opinion of the Court.

The hill of complaint as originally filed by the Mont-lake Coal Company, as lessee under the Chattanooga Company, Limited, was to obtain a rescission of the lease contract which covered a large and valuable boundary of coal lands, near the city of Chattanooga. The defendant interposed a demurrer attacking the complainant’s asserted right to the remedy of rescission. Thereupon the lessee company filed an amended and supplemental bill embracing other allegations and a prayer for relief, so as 'to seek, in the alternative, [442]*442a reformation of the contract of lease and to recover damages for a breach of one of its provisions — a covenant for quiet enjoyment of the demised premises.

The gist of the bill as amended is that the lease, which the defendant executed to the complainant under date of August 31,1903, fails to include a parcel of land of about eighty acres lying between the lower and the upper bluff or precipice of Walden’s Ridge within the bounds of what is known as the Waller tract as the same has since been judicially ascertained and located. The bill charges that at the time the lease was made this parcel of land was pointed out to complainant by the defendant company as a part of the leased premises and was intended to be included in the lease, but was omitted therefrom by fraud, accident, or mistake; that recently, in the course of a litigation which the Waller heirs successfully prosecuted against complainant, to recover possession of this eighty acre tract of land, it was discovered and for the first time made to appear not only that said parcel is not covered by the lease, but that the title to it was not in the defendant; and that the representation by defendant that this parcel was included in the lease was, for reasons set forth in the bill, a material consideration inducing complainant to enter into the lease. Because of its omission and the failure of title in defendant, complainant in the amended bill prays: (1) For rescission of the lease and damage for expenditures, etc.; or, in the alternative, (2) for damages in a very large sum for breach of the covenant for quiet enjoyment contained in the [443]*443lease, and, if necessary to this latter relief, (3) for reformation of the lease contract.

The lessor company filed a demurrer to the amended bill in which were repeated all of the grounds of its first demurrer, along with other grounds peculiarly applicable to the reformed bill of complaint.

The chancellor held that no right to rescind the contract existed, but that the bill made a case for reformation of the lease so as to cover the- eighty acres as part of the leased premises, and for a recovery of damages for breach of the covenant for quiet enjoyment that appeared in the lease contract.

The lessor or defendant appealed to the court of civil - appeals, and assigned errors as to that portion of that decree which was adverse to it; and an appeal was also prayed by the lessee company.

We have granted the writ of certiorari in order to a re-examination of the case and determination as to the .correctness of the decree of the last-named court..

In our opinion the disposition of the case calls for a discussion of but two of the many grounds of demurrer.

' The first of these is to the effect that, when .complainant company shows in the amended bill that it had filed its original bill alleging inducing fraud and praying for a rescission of the lease contract a conclusive election of remedies was shown to have been made as between rescission of the contract and any enforcement thereof as a valid one.

[444]*444This ground of demurrer is insisted upon- in the face of the fact that the demurrants contended below to the satisfaction of the chancellor, and have persuaded us upon this appeal that the right to rescind the contract did not exist. The contention therefore must be'that, notwithstanding that fact, a conclusive election of rescission as a remedy has been made, precluding complainant from thereafter treating the contract as an enforceable one.

This calls for a consideration of what is meant by an “election of remedies,” as relates to such a state of facts. It .frequently happens that for redress of a particular wrong the law affords two or more remedies'; and, if these remedies are so inconsistent or repugnant that the pursuit of one necessarily involves the negation of the other, the party who invokes one of them is held by some courts to have made his election and cannot thereafter have the benefit of the other. But if under a mistaken belief that he has a particular, remedy a complainant attempts to enforce it, the doctrine of election of remedies is generally- held not applicable, for the reason that no choice was ever really open to him. Or, as it has been expressed in Kinney v. Kiernan, 49 N. Y., 164:

“The institution by a party of a fruitless action, which he has not the right to maintain, will not pre-elude him from asserting the rights he really possesses.”

The supreme court of Wisconsin has expressed similar views:

[445]*445“Does that rule apply where a person, supposing he has two causes of action for the satisfaction of his claim, when he in fact has hut one, sues upon the supposed cause which has no existence, and is defeated on that ground? Is .he under such circumstances precluded from suing upon, the only cause ‘of action which he in fact had? The proposition of appellant’s counsel is that, because, plaintiff sued upon the contract, supposing it had a cause of action thereon, and was defeated because the contract had been rightfully rescinded by the defendant’s predecessor, leaving the subject thereof the property of respondent, it must nevertheless lose the same because another remedy is necessary to its recovery; that, while it was defeated because the subject of the action was not the property of Mrs. Shurts, it is in any event powerless to claim the thing which, by the judgment of the court, it owns. That seems to be unreasonable. If the doctrine as to the effect of an election' between two inconsistent causes of action goes that far, it is certainly liable to cause great injustice in some cases. That, of itself, without investigation, suggests that it does not go that far. We should hesitate to sustain counsel’s. theory if the question involved was new, but it is not.” Fuller-Warren Co. v. Harter, 110 Wis., 80, 85 N. W., 698, 53 L. R. A., 603, 84 Am. St. Rep., 867.

In Zimmerman v. Robinson & Co., 128 Iowa, 72, 102 N. W., 814, 5 Ann. Cas., 960, it appears .that notes were given by Zimmerman for the purchase price of a threshing machine, and a suit was instituted alleging [446]*446that the contract of purchase had been rescinded by Zimmerman on account of an alleged breach of warranty, and demanding recovery for the amount paid on the notes given for the purchase price. It was adjudged that no rescission of the contract had been made. Thereupon there was an abandonment of the claim of rescission and an effort to set up a cause of action based upon the contract and an alleged breach thereof. The court held that the endeavor to enforce a recovery on the theory of a rescission of the contract was not such an election of remedies as to defeat the second action.

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Bluebook (online)
137 Tenn. 440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montlake-coal-co-v-chattanooga-co-tenn-1916.