S. Gumbel Realty & Securities Co. v. Levy

156 So. 70, 1934 La. App. LEXIS 839
CourtLouisiana Court of Appeal
DecidedJune 28, 1934
DocketNo. 14753.
StatusPublished
Cited by2 cases

This text of 156 So. 70 (S. Gumbel Realty & Securities Co. v. Levy) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S. Gumbel Realty & Securities Co. v. Levy, 156 So. 70, 1934 La. App. LEXIS 839 (La. Ct. App. 1934).

Opinion

JANVIER, Judge.

S. Gumbel Realty & Securities Company, Inc., was lessor, and Charles H. Levy, was lessee, in a written lease which contained the following stipulation:

u* * * Total destruction of the lease'd premises or building of which the leased premises form a part by fire or otherwise will not vitiate this lease, except at the option of the Lessor, but the Lessor shall have the option to reconstruct, and Lessee shall, at the option of the Lessor, resume occupancy immediately upon reconstruction, and Lessee shall ibe entitled simply to a credit for the period during which the Lessee shall have been excluded and the period during which the exclusion shall have been continued. Notice of the exercise of said option to rebuild shall be given by Lessor within thirty days after the fire or other casualty.”

The premises leased were the fourth floor of a building on Canal street. The term of the lease was twelve months commencing October 1, 1931, and terminating September 30, 1932. The monthly rental was fixed at $105.

On January 11, 1932, a fire occurred, and though the building was not destroyed, the interior of the fourth floor and the roof above were so badly damaged that it is conceded in that effect “there was a total destruction of the leased premises.”

On January 29, 1932, within the thirty-day period fixed in the last sentence of the above-quoted stipulation, the lessor, in writing, notified the lessee of intention to reconstruct, and on March 7,1932, again notified the lessee that the reconstruction had been completed and that liability for rent would commence on the following day, March 8, 1932.

On March 17, 1932, through counsel, the lessee denied any further liability under the lease, claiming that at the time of the fire the lease had been completely terminated for two reasons. These reasons, as stated in the letter sent by counsel for lessee to the lessor, are as follows:

1. “ * * * It is my opinion, and I have so advised my client, that the stipulation in clause 3 of‘your lease with Charles H. Levy, dated May 22nd, 1931, whereby the lessee is obligated to resume occupancy immediately. upon reconstruction of the building in the event of a fire which totally destroys the premises, at the option of the lessor, is purely potestative, and, in my opinion is not binding under the laws of this State.”

2. “Even in the event that the above clause is binding, which we especially deny, the lessee has made a careful inspection of the premises and finds them not to be reconstructed in the same manner in which they were before the fire.”

On April 6, 1932, this suit was filed, plaintiff lessor claiming rent from March 8th, the day on which it is contended the reconstructed premises were ready for occupancy, to September 30, 1932, the conventional end of the term of the lease.

Defendant lessee answered denying any liability for rent after the date on which the fire occurred and, by way of reeonventional demand, praying for a judgment canceling the lease as of that date.

In the district court there'was judgment for defendant and plaintiff in reconvention dismissing the suit of the plaintiff on the main demand and canceling the lease in accordance with the prayer of the plaintiff in reconvention.

Although we note in the brief of lessor several statements to the effect that the defense that the lease is annulled because of *72 a potestative condition “was .abandoned on the trial,” we also note that when the matter was argued before us both counsel devoted much time to a discussion of this phase of the controversy and we find in both briefs many pages addressed to it.

The first ground of defense — that the lease contains a potestative condition — is based on two articles of the Oivil Code, arts. 2024 and 2034, the first of which defines a “potes-tative condition” as one “which makes the execution of the agreement depend on an event which it is in the power of the one or the other of the" contracting parties to bring about or to hinder,” while the other article, 2034, provides for the nullity of contracts containing such potestative conditions, declaring that “every obligation is null, that has been contracted, on a potestative condition, on the part of him who binds himself.” It will be noted that a condition or stipulation is not necessarily destructive of the contract merely because it is made to depend upon the will of one of the parties, but that it has such effect only if it is the obligor who reserves the right to determine whether he shall or shall not act. In other words, a condition is potestative to the extent that it nullifies a contract only if it is left to the decision of the obligor. If A contracts to do a certain thing if B decides to require it to be done, then that condition does not nullify the contract. On the other hand, if A agrees with B that A will do a certain thing if A sees fit to do so, that condition does nullify the contract because the doing of the thing is left entirely to the decision of him by whom the thing is to be done. In other words, to use the language of article 2034, the decision is left to the will “on the part of him who binds himself.”

The distinction between the obligor and the obligee is well illustrated in the case of Conques v. Andrus, 162 La. 73, 110 So. 93, 94, in the following paragraphs:

“The defendant’s argument proceeds on the theory that every contract is null and unenforceable which contains a potestative condition depending solely on the will of one of the contracting parties, whether such party be the obligor or obligee. * * *
“There is no prohibition and no nullity is pronounced against an agreement the execution of which by the obligor is made to depend on the will of the obligee or contractee.
“And the reason for this difference in the effect of such a condition is: (1) That if the contract is made to depend solely on the will of the obligor there would be lacking a mutuality of obligation between the parties, without which no valid contract can exist; and (2) a contract by which a person assumes an obligation to do a certain thing and at the same time reserves to himself the privilege of electing not to execute is no contract at all.
“This is not true, however, where the performance of an obligation is made to depend on the will of the party to whom the promise is made. In all such cases when the obligee in the exercise of the option granted him elects to have the obligation in his favor executed, the contract which until that event happens is suspended becomes a commutative, ■binding, and enforceable contract. * * * -
“Neither the articles of the Code nor the jurisprudence of this state accord to an obli-gor the right to absolve himself from his obligation because the execution of such obligation is made to depend on the happening of an event which is within the power of the obligee to bring about or to hinder.”

See, also, LaSalle Extension University v. Paul L. Thibodeaux, 155 So. 53, of this court, decided May 21, 1934.

The lease we are considering was a most unusual one in the respect set forth.

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Bluebook (online)
156 So. 70, 1934 La. App. LEXIS 839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-gumbel-realty-securities-co-v-levy-lactapp-1934.