North Avenue Market, Inc. v. Keys

164 A. 152, 164 Md. 185, 1933 Md. LEXIS 12
CourtCourt of Appeals of Maryland
DecidedFebruary 1, 1933
Docket[No. 94, October Term, 1932.]
StatusPublished
Cited by3 cases

This text of 164 A. 152 (North Avenue Market, Inc. v. Keys) 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
North Avenue Market, Inc. v. Keys, 164 A. 152, 164 Md. 185, 1933 Md. LEXIS 12 (Md. 1933).

Opinion

*187 Sloan, J.,

delivered the opinion, of the Court.

This appeal is from an order dissolving an injunction, after submission of the question involved on bill and answer.

The bill of complaint alleges that the appellant is the owner of the North Avenue Market, in Baltimore, which consists of two hundred and fifty-eight market stands, occupied by about seventy retail merchants engaged in the sale of various and sundry food products; that- on August 30th, 1929, it leased two stands to the appellee for the term of two years beginning September 16th, 1929, the- appellee now being a hold-over tenant, to be “used exclusively and only for the sale of Delicatessen and full line of Domestic and Imported Cheese and Sliced Bacon. Westphalia Hams and Smoked Loin Backs at Retail and for no other purpose”; that, “notwithstanding the aforesaid restriction as to use, the said defendant wrongfully, in violation of the rights of” the plaintiff, “has offered for sale and does sell from said stands uncooked smoked hams of a kind and variety which are not Westphalia hams and of a kind and variety that are in violation of the aforesaid restriction”; that, after notice from the plaintiff (lessor) to the defendant of the alleged violation of the terms of his lease, the defendant gave the plaintiff by letter of July 1st, 1932, his assurance that the sale of uncooked hams would be discontinued, but that he had since resumed their sale, against which the plaintiff has no adequate remedy at law, and prayed the writ of injunction, which was granted.

The defendant (appellee) answered that it had not “done anything in violation of the rights of the plaintiff, or has done anything in violation of the terms of the lease”; that he admitted signing the letter of July 1st, but charged that it was signed “under duress, in that on Friday, July 1st, at 5 P. M., he was summoned to the office of the plaintiff, and there shown the letter which had been prepared by the attorney for the plaintiff, and he was then and (there) threatened by the agents of the plaintiff that unless he signed said letter, he would not be permitted to occupy his stand the next morning, Saturday, the day most profitable to the defend *188 ant”; that he admitted his refusal to abide by the terms of the letter so signed by him, and that he should not be obliged to, as his signature thereto was procured by duress; and further says “the selling of uncooked smoked hams in said space is not a violation of the said lease or the terms thereof,” and that he had sold such hams in said space to the plaintiff’s knowledge, and “that other tenants of the defendant occupying spaces in said market under lease from defendant for purposes almost identical with those of the lease of the defendant, sell uncooked smoked hams from and in said spaces.” The defendant denied the claims of the appellant that the alleged violation of his lease was injurious, and that it had no adequate remedy at law for the redress of its grievances. The appellant excepted to the answer and each and every part thereof, and its exceptions were overruled.

The appellee’s contention is that his answer is a full and complete denial of the allegations of the bill, and that, because the hearing was on bill and answer, his denial must be accepted as true in fact, and the allegations of the bill as sworn away. The appellant contends that the appellee’s answer is virtually an admission of the facts set up in the bill, and therefore the only question is one of construction of the lease and a definition of the defendant’s rights thereunder.

According to Alexander’s Chancery Practice, 66, after answer, if the plaintiff determines to prosecute, “he may at his election, set down the cause for hearing, at the succeeding term. But on such hearing, he would be held to admit the truth of the whole answer, or, at least, of so much as is susceptible of proof. This course is, therefore, hazardous, except in a clear case.” Mr. Miller, in his Equity Procedure, 706, summarizing the decisions on the practice in this state, says: “When a motion to dissolve is heard on bill and answer, all the allegations of the bill which are not denied by the answer, are taken to be true. This rule is said to be as well settled as any rule of practice can be. If the facts of the bill be admitted or not denied the injunction will be continued. But if any allegation of the bill be denied by the answer, such allegation cannot be considered. With *189 respect to the answer, the rule is that when a motion to dissolve is heard on bill and answer, the responsive averments of the answer are taken as true.” See also, note to Salmon v. Clagett, 3 Bland, 125, Brantley’s Ed. 142.

The substantial averment of the bill is that the appellee is selling, in violation of the terms of his lease, “uncooked smoked hams of a kind and variety which are not Westphalia hams.” The appellee, in his answer, denies that he has done anything in violation of the terms of his lease, and then admits the selling of “uncooked smoked hams,” and justifies his action, not by claiming that “uncooked smoked hams” are “delicatessen,” but because, by way of avoidance, “that other tenants of the defendant occupying spaces in said market under lease from the defendant (plaintiff) for purposes almost identical with those of the lease of the defendant, sell uncooked smoked hams from and in said spaces.”

With such an admission (State v. Northern Central Ry. Co., 18 Md. 193, 219), the case rests on the sufficiency of the averments of the bill to entitle the plaintiff to an injunction to hold the defendant within the bounds of his lease. The appellee contends that the bill is, in effect, an attempt to compel by injunction the specific performance of a contract, and is therefore subject to the principles applying to the latter remedy. Smith v. Myers, 130 Md. 64, 99 A, 938. This is not our'view. The plaintiff does not complain that the defendant is not keeping his agreement, but that he is going beyond it, and using its space to sell goods which he is not authorized to sell. In other words, he rents a market space in which he is authorized to sell certain named articles or classes of merchandise, about which there is no controversy, and for the same rent he sells other merchandise for which he has not rented or hired market space. So that the bill is filed, not to compel the defendant to do something which he has agreed to do, but to restrain him from doing something which he is not authorized to do, but which, by implication, if not expressly, he has agreed not to do (Hahn v. Concordia Society, 42 Md. 460, 463), and this principle applies to agreements between lessor and lessee to limit the *190 use of premises to the purposes covered by their contracts (22 C. J. 204; 2 Beach, Modern Eq. Jur., secs. 769-771; 1 High on Injunctions [4th Ed.], sec. 434).

No case on the subject-matter of this appeal has been more often cited in the text-books than Maddox v. White, 4 Md.

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Bluebook (online)
164 A. 152, 164 Md. 185, 1933 Md. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-avenue-market-inc-v-keys-md-1933.