Pearson v. Sullivan

176 N.W. 597, 209 Mich. 306, 9 A.L.R. 438, 1920 Mich. LEXIS 609
CourtMichigan Supreme Court
DecidedFebruary 27, 1920
DocketDocket No. 75
StatusPublished
Cited by10 cases

This text of 176 N.W. 597 (Pearson v. Sullivan) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pearson v. Sullivan, 176 N.W. 597, 209 Mich. 306, 9 A.L.R. 438, 1920 Mich. LEXIS 609 (Mich. 1920).

Opinion

Stone, J.

Bill for. injunction to restrain defendant from forfeiting a lease, and for other relief. On March 5, 1912, James Sullivan, now deceased, was the owner of the premises involved in this suit, which premises are located on the east side of Woodward avenue, near the intersection of Piquette avenue, in the city of Detroit, and are known as Nos. 1368-1370 [308]*308Woodward avenue, upon which premises is located a two-story brick building. On that date he leased the premises to the plaintiff for “hotel and bar” for a period of five years from May 1, 1912, at an annual rental of $2,000. The lease gave the plaintiff the privilege of a further period of three years from May 1, 1917, at an annual rental of $2,500; and the privilege of a still further period of 10 years from May 1,. 1920, at an annual rental of $3,000. The lease contains the following clause:

“Said party of the second part further covenants that he will not assign nor transfer this lease, or sublet said premises, or any part thereof without, the written assent of said party of the first part.”

James Sullivan died testate on June 16, 1912, being a little more than three months after the date of said lease, and the defendant, Catherine Sullivan, by virtue of the will of her husband, the said James Sullivan, became, and still is, the sole owner of said premises. The prayer for relief in the amended bill of complaint contains the following:

. “That said defendant, Catherine Sullivan, and her representatives and agents, be forever restrained by the order and injunction of this honorable court from interfering with, or preventing the full, continuous and peaceful occupation of the said premises, by this plaintiff, or any of his, subtenants, either now or in the future; or from making or installing any repairs, alterations or improvements therein during the life of said lease.”

As to the conditions, existing when the lease was made, and eliminating the testimony of the plaintiff as to matters equally within the knowledge of James Sullivan, deceased, it appears, and is uncontradicted, that the plaintiff had been a tenant and occupant of said premises for some time prior to the making of said written lease; and that he had sublet the south[309]*309erly portion of the building, known as 1368, to a barber named Dorr.

The hearing in this case occurred in September, 1919, and Mr. Dorr, among other things, testified as follows:

“I am engaged in the barber business and am located at 1368 Woodward avenue. I have been there eight years, over eight years. I pay my rent to Mr. Pearson and have done so all this time. * * * That was July eight years ago. It was a barber shop before my time at the same location. During the years 1917 and ’16, perhaps, a restaurant was in the rear of my place. A man by the name of Webber was in there about two years I should .think, around that time. * * * There are tenants upstairs at the present time other than Mr. Pearson. There were tenants, and have been tenants upstairs to my knowledge, before Mr. Pearson moved out in May. No I have not had any dealings or have ever known any of the Sullivans, or Mr. Sullivan, James Sullivan, -or Mrs. Catherine Sullivan, or Mr. Frank Sullivan.”

There was no evidence at the hearing that either James Sullivan, Catherine SuHivan, the defendant, or Frank Sullivan, her son and manager, has ever been upon the premises during the life of the' present lease. The rent has been collected monthly by an agent of the defendant, or of Frank Sullivan, who seems to have visited the premises for the purpose of collecting the rent.

It is one of the claims of the plaintiff that the occupancy of these premises must have been known to the agent who collected the rent, and that the principal is chargeable with such facts as are known to his agent; and counsel for the plaintiff cites Ireland v. Nichols, 46 N. Y. at p. 416, and quotes the following language:

“The evidence authorized the judge to assume, that John B. Ireland was the general agent of the plaintiff, in respect to the leasing and care of the premises, [310]*310and collecting the rents. His knowledge of the subletting, and the receipt by him of rent, subsequently accruing with such knowledge, had the same effect in waiving the forfeiture as such receipt by the plaintiff personally, with like knowledge, would have had.”

Counsel has failed to state that in the Ireland Case the plaintiff’s agent was the same person who signed the lease; and there was positive testimony that he was told of the under-letting of the premises. We doubt if a mere agent for the collecting of rent would have authority to waive a clause of the lease, or to so act as that his conduct should operate as an estoppel of the landlord from asserting his rights. Notice to the agent within the scope and purview of his employment is undoubtedly notice to the principal, but this qualification should be borne in mind.

We confess that it is almost inconceivable, however, that the occupancy of these premises, covering a period under the lease of over, six years, should not have been brought to the knowledge of the defendant or her son, who seems to have been her general manager, and both of whom reside in Detroit. It is undisputed, and appears by competent testimony, that the occupancy of - the barber shop and restaurant in the rear thereof, and other occupancies in the upper story, had existed to a greater or less extent during the entire period of the lease; yet it must be said, in the light of this record, that there is no affirmative evidence that James Sullivan, the defendant, Or her son and manager, had actual knowledge of such occupancy. There is no doubt that occupancy of the premises by a subtenant at the time of the making of the lease and known to the defendant would be a waiver of that clause in the lease to prohibit subletting without the written 'assent of the landlord. In such a case, we think, the principle announced by this court in Gordon v. Insurance Co., 197 Mich. 226 (L. R. A. 1918E. [311]*311402), should apply. We there held that the insurance company should be estopped from asserting a forfeiture for a condition of the premises, existing at the time of the fire, which existed to the knowledge of the company at the making of the contract. See cases there cited.

It is urged by plaintiff that Mrs. Sullivan, or her son, Frank Sullivan, cannot claim with any show of reason that they did not know that Mr. Pearson had subtenants, for, if they were not aware of the fact, how did it happen that they instructed their attorneys, Messrs. Wurzer & Wurzer, to write the letter, Exhibit 4? That was a letter dated March 1, 1918, and addressed to the plaintiff in this suit. After speaking of rent claimed to have been in arrears, that letter contains the following language:

“We further call your attention to that section of the lease which reads as follows: ‘Said party of the second part further covenants that he will not assign nor transfer this lease, or sublet said premises or any part thereof, without the written assent of said party of the first part.’ If you have any subtenant or subtenants on said premises, you will kindly remove them at once, otherwise the lease will be canceled and you will be removed as well.”

In the 6th paragraph of her answer to the amended bill the defendant said:

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Bluebook (online)
176 N.W. 597, 209 Mich. 306, 9 A.L.R. 438, 1920 Mich. LEXIS 609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pearson-v-sullivan-mich-1920.