Schall v. Schwartz & Co.

177 A.D. 760, 162 N.Y.S. 824, 1917 N.Y. App. Div. LEXIS 4709
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 5, 1917
StatusPublished
Cited by1 cases

This text of 177 A.D. 760 (Schall v. Schwartz & Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schall v. Schwartz & Co., 177 A.D. 760, 162 N.Y.S. 824, 1917 N.Y. App. Div. LEXIS 4709 (N.Y. Ct. App. 1917).

Opinion

Thomas, J. :

Schwartz & Co., defendant, for $175, and after enlargement of the building, $275 per month, leased in writing a moving picture place to Minnie Geiger, who kept it some three months and assigned it, with the deposit, to plaintiff, who had it two months and was dispossessed for non-payment of rent, whereupon the landlord, defendant, was unable to rent it for three months and then got $250 for two months and then got $200 per month. This action is to recover a $1,000 deposit less certain rent due, and the questions are (1) for what does the lease show the deposit was made, and (2) should the defendant have been allowed to show that there was a mistake in drawing the lease. The lease provides: “ The party of the second part has this day deposited with the party of the first part the sum of One thousand Dollars as security for the faithful performance of the terms, covenants and conditions in the within lease contained, it being expressly understood and agreed that if the party of the second part surrenders said premises, or disposes thereof prior to the expiration of this lease, then and in that event said security shall belong to the party of the first part as liquidated and stipulated damages; and the parties hereby stipulate to treat said deposit as such liquidated damages, because they cannot ascertain the exact amount of damage which the party of the first part would sustain in the event of the breach or violation heretofore mentioned. If, however, all terms, covenants and conditions are fully complied with then and in that event, said security shall be returned to the said party of the second part.” The introductory words show that the money was to secure the tenant’s covenants, whatever they were, and the broad general sentence at the end of the paragraph is to the same effect. If there were nothing more, the defendant’s right to keep the money would be undoubted. [762]*762(Feyer v. Reiss, 154 App. Div. 272.) But the breadth of the stipulation is limited by the words in the first clause, that the money shall belong to defendant “if the party of the second part surrenders said premises, or disposes thereof prior to the expiration of this lease.” If the premises should he surrendered, the defendant would keep the money. But what do the words “ or disposes thereof ” mean ? The defendant says that therein is the mistake, and that the words “or disposes” should be “or is dispossessed.” Technically, the tenant could not dispose of the premises, but he could alienate his estate for years, which would carry pro tanto a disposition of the premises. But why penalize the tenant for assigning the lease, as it provides that he “ shall have a perfect right to assign this agreement * * * without the landlord’s consent in writing.” But the plaintiff, tenant, urges that the right to assign is “to any third person who is amply responsible, except to an Italian or Negro,” and that the words “ or disposes thereof ” mean a disposition in violation of the right to assign, as, for instance, to one of the excepted nationality. But the words “ or disposes thereof ” are general and without exception, and as may well be argued, too universal to be narrowed to the mere question of the race of an assignee. To that plaintiff replies that words contracting the general words are found in the reason given for treating the deposit as liquidated damages, viz., “ because they cannot ascertain the exact amount of damage which the party of the first part would sustain in the event of the breach or violation heretofore mentioned. ” The respondent urges that the words “ the event ” refer to the surrender of the premises, and the word “violation” refers to- “or disposes thereof.” That argument simply brings the consideration back to the reason for using the words “ or disposes thereof ” and makes no step forward, and leaves the language in all its breadth; so that, to a degree, it disputes the early right given to assign the lease. But as the words are written they must be read with the sentence giving the limited right of assignment and to be confined to a violation of that right. However, after reaching such conclusion, the court would be quite prepared to hear the landlord proffer evidence that there was such mistake as defendant indicates. But he should approach the [763]*763question with competent evidence. It is expectable that he would show upon what the landlord and tenant did agree. What did the parties severally say whereby the contract was consummated in that regard ? Did they discuss it with each other, or with the agent of one or the other ? Mr. Hartman was the defendant’s lawyer and prepared the lease. He testified that Geiger, referring to the tenant’s father, was present at the execution of the lease, and he indicates that the tenant herself was also then present, and that he read it to both. He dictated the lease to his stenographer, but it does not appear that either of the parties was then present. What he, the defendant’s lawyer, said to his stenographer is not evidence against the tenant. Apparently, he dictated the lease as it was, and presumably he so read it to the parties at the time of execution, although unfortunately his testimony that he read it carefully to the parties was rejected. But now he would testify that he did not dictate the words “ or disposes thereof,” but rather the words “ or is dispossessed thereof.” That would dispute the lease and his reading of it to the parties, and would impeach the stenographer’s accuracy without any evidence that the proposed words in substitution in any degree or at any time and place were discussed by the parties so as to enter into their agreement. He is asked whether he had a talk with Geiger on the subject, but the exclusion was proper. The Geiger meant was the tenant’s father, and no authority on his part to speak or to assent for the tenant is shown. Geiger, the father, was called as a witness by the defendant and asked for a conversation with Hartman and to hearing him dictate. But he should not testify unless he was an authorized agent. I find no legal attempt to show that a mistake was made. Both parties refer to Pitcher v. Hennessey (48 N. Y. 415). There the trial court excluded evidence tending to show the agreement of the parties as expressed in the words “risk of navigation ” assumed by said Pitcher, and it was decided that the complaint was sufficient to allow evidence for the “reformation of the contract,” to use Judge Earl’s words, on account of mutual mistake, although the pleading alleging the facts showing the mistake did not specificially aver mistake. But the opinion shows that proof was required tc show the agreement [764]*764and that “ a mutual mistake was made in reducing the parol agreement to writing and in signing the written contract.” As he points out, the mistake may have been that of the draftsman, a “mistake in reducing their agreement to writing,” but I find no justification for basing correction or reformation on the statement of the draftsman that he dictated the words “or is dispossessed thereof,” and his stenographer wrote “or disposes thereof,” without evidence that the agreement authorized him to dictate what does not appear in the instrument, which the parties executed under his supervision. In Jamaica Savings Bank v. Taylor (72 App. Div. 567) the scrivener reduced to writing a contract for sale of land. The learned justice, with much detail, showed what the contract was by careful review, of the evidence, and that there was error in the description of the land sold.

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

Related

Schall v. Schwartz & Co.
177 A.D. 765 (Appellate Division of the Supreme Court of New York, 1917)

Cite This Page — Counsel Stack

Bluebook (online)
177 A.D. 760, 162 N.Y.S. 824, 1917 N.Y. App. Div. LEXIS 4709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schall-v-schwartz-co-nyappdiv-1917.