Penick v. Eddleman

283 S.W. 300, 1926 Tex. App. LEXIS 1059
CourtCourt of Appeals of Texas
DecidedMarch 25, 1926
DocketNo. 1884.
StatusPublished
Cited by3 cases

This text of 283 S.W. 300 (Penick v. Eddleman) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Penick v. Eddleman, 283 S.W. 300, 1926 Tex. App. LEXIS 1059 (Tex. Ct. App. 1926).

Opinion

HIGGINS, J.

Appellee, Eddleman, owned lot 10 in block 55, in Cisco, Tex., upon which he proposed to erect a two-story building. Prior to the erection of the building he entered into a contract with the telephone company whereby he leased the second story of the building to that company. This lease contained this provision:

“For the consideration herein named, the landlord agrees not to léase or permit any lessee to lease or sublet any portion of the building in which the premises hereby leased are a part thereof, for the purpose of operating a moving picture show, garage or dance hall, or for any occupation or business which will render the premises hereby leased extra hazardous as a fire risk as specified and defined in the ‘Texas General Basis Schedule,’ or which will materially interfere with or render difficult, by noise or otherwise, the use of the premises hereby leased for the purpose of operating a telephone exchange thereon. * * * ”

Subsequent to such lease he entered into a lease contract with appellants Penick & Hay-nie for the first floor of the building. This contract recites:

Eddleman’s ownership of the lot and that he proposed to erect a two-story brick building thereon; the second story to be used by the Cisco Telephone Company, and the first floor to be rented to Penick & Haynie. “This first floor is to be arranged suitable for a mercantile business, to have solid plate glass front, 14-foot ceiling, concrete floor, plastered walls and overhead, and with regulation awning. In fact, to be complete according to plans and specifications.

“Whereas, said party of the second part desires to lease said building for a period of three years with privilege of five years and both parties have hereto reached an agreement as to terms and conditions of said lease:
“Now, therefore, it is mutually agreed by and between the parties hereto as follows:”
(1) In this paragraph Eddleman agrees to lease to Penick & Haynie the first floor of the building.
(2) Stipulates for an annual rental of $5,-000.00, payable monthly, and that the lease shall be for the term of three years from the completion of the building, with the option of five years.
(3) Stipulation as to reasonable care by the lessees.
(4) Covenant by lessor as to repairs and by lessees to surrender at expiration of term reserving to lessees “the right to remove all shelving and fixtures when surrendering building when lease expires.”
(5)This section is quoted later.

It was understood between the lessor and lessees prior to the execution of the contract that the latter expected to organize a company or corporation which would occupy the first floor and conduct therein a hardware business. The lessees never entered into possession or occupancy of the building, but, before the same was completed, fully assigned their rights under the lease contract to the Wright-Herring Motor Company, a corporation, which corporation proposed to use the building as a átoreroom in the buying and selling of automobiles, and also for garage purposes in connection with said business. The lessor notified Wright-Herring Motor -Company that he would not permit the use of the building for garage purposes and could not do so without breaching his contract with the telephone company, and that he would enjoin the use of the building for that purpose, and refused to permit Wright-Herring Motor Company to go into such possession of the building. The first floor of the building remained unoccupied and subsequent to the expiration of the .term the lessor filed this suit against the lessees to recover the agreed rental of $15,000, with interest.

The issues submitted and answered read:

“Did the plaintiff in this case use due and reasonable diligence to secure tenants (other than those excepted in the lease between the plaintiff and the Southwestern Bell Telephone Company) for the building in Cisco, Tex., erected for the plaintiff under the contract of March 20, 1920, after he had learned that the defendants had refused to occupy said building as a tenant? Answer: ‘Yes.’ ”
(3) “Did R. L. Haynie inform plaintiff of the terms of the contract between defendants and Wright-Herring Company, under which the latter were to use and occupy plaintiff’s building? Answér: ‘No.’ ”

Other issues were submitted conditionally, but, in view of the findings upon issues 1 and 3, answers were not called for and were not made. Judgment was rendered in Eddleman’s favor for the full amount sued for.

Under a number of propositions it is asserted that under the terms of the lease the appellants and their assigns had the full and unrestricted right to use and occupy the first floor of the building for any lawful purpose, and by the quoted section of the prior lease to the telephone company the ap-pellee had restricted in favor of such company the right of any tenant upon the first floor to so use and occupy the same, and had thereby disabled himself from granting and assuring unto appellants and their assigns such unrestricted right to use and occupy-the first floor, wherefore appellee was not in a position to perform the covenants and *302 obligations express and implied of tbe lease contract, and therefore not entitled to recover tbe rent sued for.

These propositions involve two assumptions, viz.: (1) That the lease was assignable; (2) that the covenant contained in the lease to the telephone company conferred upon that company some control over the use of the lower floor by the tenant thereof and disabled the plaintiff from insuring the appellants and their assigns in the right to occupy and use the premises for any lawful purpose.

In support of their contention that the lease was assignable the appellants rely upon the fifth paragraph thereof, which reads:

“This agreement shall be binding on the parties hereto, their heirs, legal assigns and executors.”

We do not think this provision of the contract had the effect contended for it.

In German-American Savings Bank v. Goll-mer, 102 P. 932, 155 Cal. 683, 21 L. R. A. (N. S.) 1066, it was said:

“The lease contained a covenant against assignment without the consent of lessor, with a provision for re-entry in the event of a breach thereof. These provisions were in no way rescinded or affected by the provisions of the supplemental agreements. The provision in the later agreements that ‘this agreement shall inure to and * * * bind the heirs, executors, administrators, successors, and assigns of the several parties,’ was not effectual to make any change in this regard. Consent of the lessor was still _ essential to any assignment which would be binding upon the lessor, and there could not be any ‘assign’ of the lessee in whose favor the provision would operate, except one who had become such by consent of or waiver by the lessor.”

While the lease involved in the present case contained no stipulation against an assignment, yet it is prohibited by article 5489, R. S. 1911, unless consented to by the landlord, his agent, or attorney. Forrest v. Durnell, 26 S. W. 481, 86 Tex. 647.

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Related

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Cite This Page — Counsel Stack

Bluebook (online)
283 S.W. 300, 1926 Tex. App. LEXIS 1059, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penick-v-eddleman-texapp-1926.