Pacific Insurance Associates, Ltd. v. Fashions, Inc.

1 Guam 112
CourtDistrict Court, D. Guam
DecidedJanuary 31, 1963
DocketCivil No. 25-A
StatusPublished

This text of 1 Guam 112 (Pacific Insurance Associates, Ltd. v. Fashions, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Guam primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Insurance Associates, Ltd. v. Fashions, Inc., 1 Guam 112 (gud 1963).

Opinion

PER CURIAM

OPINION

This is a second appeal in an action for unlawful detainer under Sections 1159 to 1179a of the Guam Code of Civil Procedure. In Appeal Case Civil No. 13-A the action was remanded to the Island Court with instructions to grant the present appellant a new trial in accordance with the opinion on that appeal,, which indicated that this appellant should be allowed to be fully heard on its defense (even though pleaded as a counter-claim and cross-complaint) of partial eviction. As a result of the new trial, the Island Court found there had been no partial eviction and entered judgment decreeing that all sums then on deposit in the Island Court which had been paid over pursuant to the orders of this Court to secure the rights of the parties be paid to the plaintiff-appellee, that the sublease in question had been forfeited, and that a writ of restitution [115]*115issue. The action is now before us on appeal from that judgment.

The plaintiff-appellee was the lessor in a sublease agreement assigned to the present defendant-appellant covering portions of lots numbers 1040 and 1051 in Agana, Guam, on which the defendant-appellant or its assignor was to erect a store building. The sublease was for a period of ten (10) years less one (1) day, with provision for renewal for an additional term of ten (10) years under certain conditions, or for a lesser additional term under other conditions.

At the new trial the defendant-appellant endeavored to prove two distinct partial evictions — one continuing since about the inception of the sublease based on an alleged error in the location of the wall between the plaintiffappellee’s building and that of the defendant-appellant, and the other based on the alleged use of the joint parking lot by a tenant or tenants of the plaintiff-appellee for a used and new car business during the period from July 15, 1954, to mid-December 1955.

So far as the alleged partial eviction from about the inception of the sublease is concerned, it is clear that the defendant-appellant acquiesced in the placing of the building in question and made no complaint whatever about it until long after the trouble arose about the parking lot and the sublease had already run several years. Although the rent had been paid for five (5) years in advance, at the inception of the sublease, we believe that any partial eviction based on the location of the plaintiff-appellee’s building must be considered to have been waived by the conduct of the parties. See Duncan v. Granas, 166 Cal. 41, 134 Pac. 979 (1913). We recognize, however, that in that case there was the additional element of payment of rent after the alleged partial eviction. In fact the parties seem to have been so friendly during the period of construction of the [116]*116buildings and surfacing of the parking lot that they paid little attention to the exact terms of the sublease agreement. The provision with regard to the parking lot reads as follows : — ■

“9. The parties hereto agree that the area between the buildings standing upon Lots Nos. 1040 and 1037, Agana, shall be used as a joint parking space for the convenience of the occupants of said buildings.”

Yet it clearly appears from defendant’s Exhibit 2 and the testimony concerning it, that .the plaintiff-appellee’s building on Lot 1037 as actually built abutted immediately against the defendant-appellant’s building on Lot 1040, and left no room for a parking lot at the point specified in the agreement. Instead the parties shared the cost of putting a hard top on a parking lot in front of the buildings, the defendant-appellant paying half the cost. Prior to and throughout the new trial all concerned seem to have acquiesced in considering this parking lot as the one covered by the sublease. We accordingly believe that it must be considered to have been substituted by mutual agreement for that described in the sublease agreement.

The question of whether there was a substantial partial eviction from this substituted parking lot turns, in our opinion, on the correct interpretation of the provisions of the sublease with regard to the original parking lot, quoted above. The trial court made findings that the sublease “gave defendant a right to share in the use of said parking lot and that defendant and its patrons had the use of said parking lot. That the parking lot was also used from time to time by other persons but that there were during the period complained of by defendant, sufficient empty parking spaces during business hours so as to accommodate any of the defendant’s customers and employees.” We feel, however, that those findings do not cover [117]*117the point at issue, and that the defendant-appellant was entitled to greater right in the parking lot than these findings indicate. It is well settled that a lease should be construed to give effect to the intention of the parties as shown in the lease and that, in arriving at this intention, the surrounding circumstances and the object in view and intended to be accomplished by the parties at the time, are to be considered. 32 Am.Jur., Landlord and Tenant, Section 127.

The sublease in question here contained (in paragraph 4) an express acknowledgment by the sublessor that the sublessee was, at his own expense, constructing a store building upon the subleased premises and that it was the intent of the parties that the sublessee should have the use and enjoyment of said building as owner consistent with the sublessor’s then existing leases. It also contained in paragraph 7 a covenant by the sublessor not to lease any additional units of the buildings upon Lots Nos. 1040 and 1051 to anyone in competition with or engaged in a like kind of business as the sublessee. The only reasonable inference is that the building in question was to be used for .business catering to the public. We believe that, under the proper construction of paragraph 9 of the sublease, quoted above, in the light of the objectives sought by the sublease and the conduct of the parties, the defendant-appellant was entitled not merely to share in the use of the parking lot for itself and its customers, but also to have the parking lot kept free from use other than for access to the buildings and for such parking as was normally incident to businesses carried on within the buildings, and not to have the parking lot itself used for carrying on business or as a space for dead storage or as a demonstration area.

The evidence shows that the plaintiff-appellee, either directly or indirectly, authorized a tenant of its adjoining building, over the repeated objections of the defendant-[118]*118appellant, to use this parking lot for buying and selling of automobiles, storage of used cars and equipment, and as a stand for its demonstrators. There is no conflict in the testimony as to such use from July 15, 1954, through September 1954, and such conflict as there is as to the period from October 1954 to mid-December 1955 relates to the part and proportion of the parking lot used for this automobile business, rather than to any showing that the lot was not itself used as a place of business for other than normal parking incident to a business carried on within the buildings in question. While it may be difficult to ascertain with a reasonable degree of certainty the exact extent to which this use of the parking lot damaged the defendant-appellant, it was clearly detrimental to the latter and its business and we believe was a substantial wrongful interference by the sublessor with the rights of its sublessee.

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Bluebook (online)
1 Guam 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-insurance-associates-ltd-v-fashions-inc-gud-1963.