Scharbauer v. Cobean

80 P.2d 785, 42 N.M. 427
New Mexico Supreme Court·Decided June 13, 1938·No. No. 4372.·Published·Cited by 6 cases

Opinion

SADLER, Justice.

On June 18, 1936, plaintiff leased to defendants for a term of one year a store in the Town of Hobbs. The lease provided for rent at the rate of $150.00 per month. On February 9, 1937, defendants vacated the premises., a fire having occurred on February 5th which did some damage to the premises and fixtures, and to • defendants’ stock of stationery and office supplies. Plaintiff brought this suit to collect $562.00 rent accrued under the terms of the lease for the remainder of the term, less $188.00 ■rental received from other tenants in mitigation of damages.

The plaintiff’s requested findings were accepted by defendants as unobjectionable and . became the agreed facts upon which the case was tried. They were formally adopted by the trial court as its findings.' The plaintiff’s complaint is that the court drew the wrong conclusion from admitted facts. The' agreed facts so adopted by the trial court are as follows:

“1. That on June 18, 1936, the parties entered into the written lease pleaded at a monthly rental of $150.00.
“2. That on the date stated in the Answer, a fire occurred starting in another room of the same building.
“3. That as a result of the fire, the walls and ceiling of defendants’ premises were damaged by smoke, and water and a portion of the ceiling was blistered so that it was necessary to remove one strip of the same approximately ten feet in length.
“4. That with the amount of stock and fixtures which defendants had on said premises, it would not have been practical • to 'have continued the business while - the ■■work of repairing the building was being : done, such: .work'consisting of. rerpainting the walls and ceiling, replacing the strip of ceiling and putting material in the hole next to the skylight and replacing the skylight, but such repairs could have been made without removing the stock of goods and fixtures from the store.
“5. That the total cost of the repairs including labor and material was $138.00.
“6. That all of such repairs could have been made within four days time with the building empty and within five days time without removing defendants’ goods.
“7. That the amount of the unpaid rent under the terms of the lease in question was $562.00 after defendant had been given credit for all rent collected during the term from subsequent tenants.
“8. That the lease in. question contains the following clause:
“ ‘It is understood that in the event of the destruction of the premises by fire or other casualty to such an extent as to render the same untenantable, this lease shall become void and of no effect.’
“9. That ten days time was actually consumed in correcting the damage done by the fire and that the expense thereof was chargeable approximately one-half to labor and one-half to materials used.”

The sole question in the case is whether the fire so destroyed the premises as to render the same untenantable within the meaning of the saving clause against casualties by fire appearing in.finding No. 8, supra, and thus -void. the lease. • The trial court held that it did and dismissed the complaint. We think the trial court erred.

At common law the accidental destruction by fire or act of God of improvements upon the leased premises does not terminate the lease.

“It is a well settled rule of the common law that where lands are the subject of a demise and the buildings or improvements thereon are accidentally destroyed before the end of the term, this destruction of the buildings by fire, tempest or flood does not discharge the covenant to pay rent in the absence of an express stipulation to that effect.” 2 Underhill on Landlord and Tenant 1339, § 788.

Unquestionably the saving clause here involved is employed to abate the rigor of the common law doctrine where not eliminated by statute. Similar provisions have been construed by the courts of' other states and discussed by text writers. The effect of these decisions and the opinion of recognized legal writers upon the subject satisfy us that there was here no such destruction of the premises as to render the same “untenantable” as intended by the use of that term in the lease. Tedstrom v. Puddephat, 99 Ark. 193, 137 S.W. 816, Ann.Cas.1913A, 1092; Tallman v. Murphy, 120 N.Y. 345, 24 N.E. 716; Lewis v. Hughes, 12 Colo. 208, 20 P. 621; Wampler v. Weinmann, 56 Minn. 1, 57 N.W. 157; Vincent v. Frelich, 50 La.Ann. 378, 23 So. 373, 69 Am.St.Rep. 436; Barry v. Herring, 153 Md. 457, 138 A. 266; Basketeria Stores v. Shelton, 199 N.C. 746, 155 S.E. 863; Post v. Brown, 142 Tenn. 304, 218 S.W. 823; Imperial Oil Marketing Co. v. Rogers, 181 Ark. 24, 24 S.W.2d 951.

In volume 2 of Underhill on Landlord and Tenant, § 792, page 1349, the author states :

“A provision in a lease' that rent shall cease if the premises are destroyed, or that rent shall cease if they shall become untenantable by fire, means a substantial destruction and a permanently untenantable condition rendering further occupancy impossible and necessitating not merely repairs but rebuilding. Mere damage by smoke or water, rendering the occupation of the tenant unpleasant and inconvenient, is not sufficient to bring the case under the stipulation.”

In Tedstrom v. Puddephat, 99 Ark. 193, 137 S.W. 816, Ann.Cas.1913A, 1092, a leading case, the following is quoted from 1 Tiffany on Landlord & Tenant, page 1203, with the comment that this rule has been formulated from authorities (page 819) :

“A provision of the lease for a termination of the tenancy or of liability for rent upon the destruction of the building, or in case it be destroyed without any reference to injury, has been decided not to apply when there is no actual destruction, but merely injuries to parts of the building by fire or other casualty, temporarily unfitting such parts for occupancy.”

The court, in Tedstrom v. Puddephat, continues as follows:

“We think that it is well settled by the authorities that, under leases containing provision for a forfeiture thereof and a cessation of the rent, in event of destruction of the premises by fire or pther casualty, or inability to occupy the same on that account, a partial destruction of the premises will not terminate the lease, though it renders the premises, or a part thereof, temporarily untenantable for the purposes of the lease, and will not relieve the tenant from future liability for rent.” (Italics supplied.)

In Tallman v. Murphy, 120 N.Y. 345, 24 N.E. 716, there was a statute, Laws N.Y. 1860, c.

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Scharbauer v. Cobean, 80 P.2d 785, 42 N.M. 427 (N.M. 1938).

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