Rubin v. Gochrach

44 S.E.2d 1, 186 Va. 786, 1947 Va. LEXIS 197
CourtSupreme Court of Virginia
DecidedSeptember 3, 1947
DocketRecord No. 3216
StatusPublished
Cited by17 cases

This text of 44 S.E.2d 1 (Rubin v. Gochrach) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rubin v. Gochrach, 44 S.E.2d 1, 186 Va. 786, 1947 Va. LEXIS 197 (Va. 1947).

Opinion

Spratley, J.,

delivered the opinion of the court.

This is a suit brought by; Bertram Gochrách and Frank L. Simkins against Albert L. Rubin and Rose M. Rubin to compel specific performance of an option to purchase land described in a lease of the land to the plaintiffs. By the contract and lease, dated December 28, 1939, Elias London leased to Bertram Gochrach two lots of land, with the privilege to lease an adjoining lot, situated in the city of Alexandria, Virginia, and used as a junk yard. The tenancy commenced January 10, 1940, and the original term of the lease was three years. At the beginning of the tenancy, Frank Simians and Bertram Gochrach became partners. They took possession of the three lots and treated the lease as a partnership asset, trading under the name of Seaboard Salvage' Company.

In the fall of 1942, Albert L. Rubin and Rose M. Rubin acquired a freehold in the leased premises, subject to the above lease.

The lease and contract agreement expressly stipulated:

“The said Gochrach covenants and agrees to pay for the privilege of said lease and all other lease rights herein contained, to said London, the sum of $500.00 cash and also to give him a note for $100.00 payable 30 days after the date hereof, and to pay each month during said three year period the sum of $40.00 per month on the 10th day of each month beginning on January 10, 1940.”

In another provision, the lessee agreed to pay $15 additional per month for the use of a lot adjoining the lots first mentioned.

The agreement then contained the following additional provision:

“It is also mutually covenanted and agreed that said Gochrach shall have the privilege of renewing this lease [790]*790upon the two lots first mentioned for an additional further period of two years at the rental of $60.00 per month, and during the same time if he so desires he may continue the lease upon the third lot mentioned for same said period at $15.00 per month.
“It is mutually understood and agreed that said Gochrach shall have the option to purchase from said London at any time during this lease or any renewal thereof all three of said lots at the total price of $15,000.00 * * * .”

In October, 1942, Gochrach was inducted into the Naval service of the United States. Simkins continued the operation of the partnership business, as a junk business, on the leased • premises until his entry into the Military service of the United States in January, 1943. The business was thereafter operated until October, 1943, on behalf of the partners by a man named Edward Tramwell.

In October, 1943, Sherman Pritzker was placed in charge of the operation of the business by Frank L. Simkins, who was on furlough from the Army at that particular time.

Thereafter, both Gochrach and Simians, as members of the armed service, were absent from Alexandria. In 1944 and during 1945, until they were discharged from the service, neither was able to keep in direct touch or ready communication with Pritzker, nor he with them. Gochrach was on the high seas and Simians, after going through a training camp, was in the Army in Europe. Pritzker paid the rent monthly from the funds of Gochrach and Simkins.

On August 31, 1945, Rubin sent a letter by registered mail to the Seaboard Salvage Company requesting the company to vacate the premises in thirty days. The letter was received by Pritzker. On September 1, 1945, Pritzker paid Rubin $75, covering rent to October 10, 1945.

Gochrach was discharged from the service on October 19, 1945, and Simkins on the following day. Both of them returned to Alexandria on October 20, 1945. They went directly to their place of business and finding a man named Morris Gordon apparently in charge of the premises, they [791]*791immediately called on Albert L. Rubin. They informed Rubin that they were ready and willing to buy the property. Rubin told them that their option had expired, and that he did not want to sell it. Simkins and Gochrach then consulted counsel, and tendered to Rubin payment of the rent to November 10, 1945. Rubin informed them that the rent had already been paid by Morris Gordon. The appellees then made a written offer to purchase the property and tendered the purchase price, subject to examination of its title. Rubin continued his refusal to sell.

On November 26, 1945, the appellees filed their bill for specific performance, relying on the Soldiers and Sailors Civil Relief Act of 1940, 50 U. S. C. A. Appx., section 501, et seq. The court sustained a demurrer to the bill, with right of the appellees to amend. The appellees filed an amended bill, relying, in addition, on a renewal of the tenancy and option by holding-over. A demurrer thereto was overruled. The appellants then answered.

The cause came on to be heard on the original and amended bills, the answer of the defendants, and upon the evidence taken in open court. The court held that the appellees were hold-over tenants for the term of a year, expiring January 10, 1946, under the terms and conditions of the original lease, and that, having complied during that period with the terms and conditions of the option to purchase contained in the original lease, they were entitled to specific performance. It accordingly decreed specific performance upon the payment of the sum of $15,000 by the appellees to the appellants.

The appellants contend that the court erred in decreeing specific performance because the option to purchase the property had expired at the time of the attempt to exercise it. In support of their assignment, they argue, first, that the subsequent tenancy was not a “hold-over,” but a tenancy under a new agreement not mentioning any option; second, that the option was not operative during the subsequent tenancy even if it was a “hold-over” because the [792]*792operative period was restricted to the original or single renewal term, and was not implicit in a “hold-over” tenancy; and, third, that the option, if embraced in the “holdover” was voluntarily surrendered and abandoned.

The facts which we have already stated are not in controversy. The additional evidence presents little conflict, save upon the questions whether the subsequent tenancy was a “hold-over” or tenancy under a new agreement, and, if a hold-over tenancy, whether it was voluntarily abandoned.

In reliance upon their contentions, the appellants insist that Pritzker was a partner with Gochrach and Simkins in the Seaboard Salvage Company. The evidence is wholly adverse to this contention. It discloses that Pritzker was merely employed to manage and conduct the salvage business of Gochrach and Simkins during their absence in the armed services of the United States. He had no power or authority to bind his employers to a lease, or surrender their rights as tenants of the property upon which the business was conducted.

The first term under the lease expired January 10, 1943. The second term for two years expired January 10, 1945. The renewal of the lease for the two-year period is evidenced only by the continued occupancy of the property by the appellees and their payment of the specific rent to their landlord, Rubin.

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Bluebook (online)
44 S.E.2d 1, 186 Va. 786, 1947 Va. LEXIS 197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rubin-v-gochrach-va-1947.