Percoff v. Solomon

67 So. 2d 31, 259 Ala. 482, 38 A.L.R. 2d 1100, 1953 Ala. LEXIS 337
CourtSupreme Court of Alabama
DecidedAugust 11, 1953
Docket1 Div. 479
StatusPublished
Cited by49 cases

This text of 67 So. 2d 31 (Percoff v. Solomon) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Percoff v. Solomon, 67 So. 2d 31, 259 Ala. 482, 38 A.L.R. 2d 1100, 1953 Ala. LEXIS 337 (Ala. 1953).

Opinion

*484 LAWSON, Justice.

The bill in this case was filed in the circuit court of Mobile County, in equity, by Madeline Solomon against Sam Percoff, Goldie G. Percoff and Manuel’s Inc.

Respondents Sam Percoff and Goldie G. Percoff demurred to the bill. They have appealed to this court from a decree overruling their demurrer.

The controversy arises out of a lease executed on or about September 30, 1946, wherein appellee leased to appellants a store building known and described as number 25 South Conception Street, Mobile, Alabama.

The lease is made an exhibit to the bill. The parts of the lease which we understand to be pertinent to the instant controversy are as follows:

“State of Alabama j Mobile County |
“This Lease, made this 30th day of September, 1946 between Madeline Solomon, party of the first part, hereinafter called lessor, by Julius E. Marx, as agent of lessor and Sam Percoff and Goldie G. Percoff, parties of the second part, hereinafter called the lessee.
, “Witnesseth: That the lessor does hereby lease and rent unto the lessee, the following premises in the City of Mobile, Alabama, viz: No. 25 South Conception Street for occupation by the lessee as retail store for the sale of ladies ready-to-wear, not including the right to sell jewelry, costume or genuine, of any kind whatsoever, and for no other different object or purpose, for and during the term of 60 months 15 days, to-wit: from the 15th day of October, 1946, to the 31st day of October, 1951, and the lessor shall not be liable for the failure to deliver possession of said premises, provided the lessor shall exercise due diligence.
“The lessee agrees to pay to the lessor or said agents, at the office of said agents, the sum of $10,587.50 by one installment of $262.50, due October 15, 1946, and by 59 installments of $175.00 each due and payable, respectively on the 1st day of December, 1946, and on the first day of each month thereafter, together with such additional rent as provided for under and pursuant to the terms of Additional Rent Clause Rider attached hereto and by reference made a part hereof. * * *
* * * * * #
“Additional Rent Clause Rider. It is agreed between the parties hereto that the Lessee further covenants to pay to the Lessor as additional rent annually during the term of this lease a sum of money equal to 6% of all Gross Sales resulting from the Lessee’s business conducted in, upon, or from the leased premises in excess of $35,000.00 for each annual period. The first annual period shall extend until December 31, 1950. The final period under this additional rent clause shall be from January 1, 1950, to October 31, 1951, and during said final period the Lessee agrees to pay to the Lessor as additional rent 6% of all said Gross Sales for said period in excess of $29,166.66. Additional rent payments due hereunder shall be payable for each of the above described periods on or before the 30th day of the month next succeeding the date when such period shall end; and each said payment shall be accompanied by such statements and accounts as hereinafter provided for.
“The term ‘Gross Sales’ as used herein shall include (1) the selling price of all merchandise sold by this Lessee or sub-tenants of this Lessee, whether for cash or on credit, and in case of sales on credit, whether payment is actually made or not; provided, however, that the selling price of all merchandise returned by customers to the Lessee and accepted by Lessee shall be excluded; and (2) the charges made by the Lessee, or by anyone on Lessee’s behalf, for the rendition to Lessee’s customers of service of any kind whatsoever, it being understood that such services may *485 be rendered without charge. Any sales taxes which the Lessee may be required to collect and account for to any governmental authority shall not be included in determining said ‘Gross Sales.’
“The Lessee further covenants that for the purpose of ascertaining the amounts payable as additional rent for any period as hereinabove provided, Lessee will keep at its executive offices, books ■ which shall show daily sales made by the Lessee in, on or from the demised premises, and further agrees to deliver to the Lessor duplicate statements of the total gross sales made in, on or from said premises, signed and sworn to by Lessee, and to furnish Lessor with duplicate copies of an annual audit of a certified public accountant of all such sales, and, at the election of the Lessor, to give the Lessor access to such books, accounts, records and reports of gross sales kept for the premises herein demised as show the daily gross sales of such business by Lessee and to permit Lessor to have an audit made thereof by accountant appointed by the Lessor. If any such audit reveals an error in sales, in excess of $1000.00 in any period, as result of which the Lessor has been paid less than the amount to which the Lessor is entitled, then the expenses of such audit shall be borne by the Lessee, otherwise it will be borne by the Lessor. The result of such audit shall be final and binding upon both parties. The Lessee agrees to exhibit to the Lessor, or Lessor’s agent, all tax returns, or copies thereof, made by the Lessee for State and/or Federal Income Tax or Sales or Use Tax.
“The Lessee covenants that for the purpose hereof the Lessee will install and maintain a system by which will be recorded the receipts from all gross sales and other transactions had in and upon said premises in connection with the Lessee’s business, and that Lessee will keep same on file at its executive offices for a period of not less than one year and will give to the Lessor and Lessor’s agents the privilege at any time during business hours of the Lessee of inspecting and examining Lessee’s papers, bills, vouchers, records, books of account and sales slips, and that Lessee will freely lend Lessee’s own assistance in the making of such inspection, examination or audit.
“All references to Lessee’s ‘Gross Sales’ shall be deemed to include the gross sales of Lessees, Assignees, Subtenants or concessioners, if any, and the sum shall be included in the determination of the percentage rentals in the same manner as though they represent the sales made by the Lessee. Reference herein to Assignee, Subtenants, or Concessioners of this lease create no separate rights in the Lessee to assign or sub-lease except under the conditions elsewhere in this lease provided. Rent payable under this clause shall be subject to the Agents commission in the manner and amount provided for elsewhere in this lease.”

The provisions of the first paragraph of the “Additional Rent Clause Rider” are not clear as to when payments provided for thereunder are to be made and as to what constitutes an “annual period.” It would seem that each year would constitute an “annual period” and yet it is said: “The first annual period shall extend until December 31, 1950,” thus embracing 50% months.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Billups v. State
86 So. 3d 1032 (Court of Criminal Appeals of Alabama, 2009)
Frederick Business Properties Co. v. Peoples Drug Stores, Inc.
445 S.E.2d 176 (West Virginia Supreme Court, 1994)
Aneluca Associates v. Lombardi
620 A.2d 88 (Supreme Court of Rhode Island, 1993)
Charter Southland Hosp., Inc. v. Eades
521 So. 2d 981 (Supreme Court of Alabama, 1988)
Downtown Associates, Ltd. v. Burrows Bros. Co.
518 N.E.2d 564 (Ohio Court of Appeals, 1986)
Mercury Investment Co. v. F.W. Woolworth Co.
1985 OK 38 (Supreme Court of Oklahoma, 1985)
Coulson Oil Co. v. Wilcox
671 S.W.2d 198 (Court of Appeals of Arkansas, 1984)
Holloway v. Jackson
412 So. 2d 774 (Supreme Court of Alabama, 1982)
China Doll Restaurant, Inc. v. Schweiger
580 P.2d 776 (Court of Appeals of Arizona, 1978)
Rowe v. Great Atlantic & Pacific Tea Co.
61 A.D.2d 473 (Appellate Division of the Supreme Court of New York, 1978)
DeKalb Agresearch, Inc. v. Abbott
391 F. Supp. 152 (N.D. Alabama, 1974)
Johnston v. Bridges
258 So. 2d 866 (Supreme Court of Alabama, 1972)
Bobby L. Hinds v. Plantation Pipe Line Company
455 F.2d 902 (Fifth Circuit, 1972)
Anderton v. Tompkins
228 So. 2d 460 (Supreme Court of Alabama, 1969)
Chastain & Blass Real Estate & Insurance v. Davis
195 So. 2d 782 (Supreme Court of Alabama, 1967)
Stop & Shop, Inc. v. Ganem
200 N.E.2d 248 (Massachusetts Supreme Judicial Court, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
67 So. 2d 31, 259 Ala. 482, 38 A.L.R. 2d 1100, 1953 Ala. LEXIS 337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/percoff-v-solomon-ala-1953.