Schwartsman v. Wilmington Stores Co.

123 A. 343, 32 Del. 362, 2 W.W. Harr. 362, 1924 Del. LEXIS 9
CourtSuperior Court of Delaware
DecidedJanuary 24, 1924
DocketNo. 140
StatusPublished
Cited by6 cases

This text of 123 A. 343 (Schwartsman v. Wilmington Stores Co.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartsman v. Wilmington Stores Co., 123 A. 343, 32 Del. 362, 2 W.W. Harr. 362, 1924 Del. LEXIS 9 (Del. Ct. App. 1924).

Opinion

Harrington, J.,

delivering the opinion of the Court:—

The first question to be determined is whether the agreement declared on, whatever it may be termed in the declaration, is a lease, or a mere agreement to make a lease. But whatever its legal effect may be, that the plaintiff has expressly declared on the contract made by the parties is clear. If it be a lease, the full leasehold period, alleged to have been created, is within one year from the time such lease was entered into, and no question of its being a contract not to be performed within, one year from the making thereof is, therefore, involved or need be considered.

Section 2626, Rev. Code 1915, which is similar to Section 4 of the English Statute of Frauds (29 Chas. 11), provides that:

“No action shall be brought whereby to charge any person upon any agreement, etc. * * * or upon any contract or sale of lands, tenements or hereditaments, or any interest in or concerning them * * * unless the same shall be reduced to writing”, etc.

It is not alleged that the agreement declared on, though it be a lease, was in writing. It is, therefore, urged that, as every inference is against the pleader, it must be assumed that it was verbal. It is well settled that the Statute of Frauds can only be relied on as a defense, and that it is not necessary for the declaration to disclose that the statute has been complied with. Cannon v. Windsor, 1 Houst. (Del.) 143 (147); Shipman’s Common Law Pleading, p. p. 445 and 446. We, therefore, can not agree with this contention. But though we are considering the declaration on demurrer, it was admitted at the argument that the alleged lease declared on was oral. As it may be assumed that the same questions would be raised at the trial if not disposed of on [366]*366this argument, the case will, therefore, be considered from that standpoint.

Not being in writing, if the contract set out in the declaration merely amounts to an executory agreement to make a lease at a future date, and not to a present lease or demise to take effect in possession at a specified future date, it is clearly within the provisions of Section 2626 above quoted, and no action can be based thereon. Tilghman v. Fuller, 13 Mich. 113; Birckhead v. Cummins, 33 N. J. L. 44; Matthews v. Wier, 10 Del. Ch. 63, 84 Atl. 878; Archbold on Landlord & Tenant, Star page 58 (vol. 53 Law. Libr. 76 and 77); Washburn on Real Property, vol. 1, pages 480, 481 and 483; Tiffiany on Landlord & Tenant, pages 371 to 374.

The distinction between a lease and a contract therefor, under the English Statute of Frauds, as well as the evils intended to be remedied by that statute, is also clearly shown by a quotation from Sugden on Vendors and Purchasers, in Tiffany on Landlord & Tenant, vol. 1, page 223, which is, in part, as follows:

“The first and second sections appear to enact that all interests actually created without writing shall be void unless in the case of a lease not exceeding three years, etc. * * * . An actual lease for any given number of years, whether with or without rent, or any interest uncertain in point of duration, must, it should seem, equally fall within the provisions of the first section, and cannot be sustained unless it comes within the saving in the second section. This, however, would not have prevented all the evils which the act intended to avoid, for although actual estates could not be created, yet still paroi agreements might have been entered into respecting the future creation of them.
“To remedy this mischief, the provision in the fourth section was inserted, which relates not to contracts or sales of land, etc., but to any agreement made upon any contract or sale of land, etc., and as agreements are more to be dreaded than contracts actually executed, no exception was inserted after the fourth section, similar to that which follows the first section, and consequently an agreement by paroi to create even such an interest as is excepted in the second section would be merely void.”

Commenting on this paragraph, Tiffany then says:

“Applying this view, a lease comes within the provisions of the first section, while an executory contract to make a lease is governed by the fourth section * * * . The English Statute thus distinguishes, as regards the requirement of a writing, between a lease and a contract for a lease, matters which in themselves are clearly distinct.”

Whether an agreement amounts to a lease or demise, or to a mere contract therefor, and whether it be verbal or written, [367]*367is, like any other contract, a question of intention. Tiffany on Landlord & Tenant, vol. 1, page 374; Washburn on Real Property, pages 480 and 481. Though merely a question of pleading, the same principles apply here. The declaration uses the usual and customary language when declaring on a lease by its legal effect. Tilghman v. Fuller, 13 Mich. 113; Chitty on pleading, vol. 2, page 550, etc.; Woodfall on Landlord & Tenant, Star page 130.

It alleges that the defendant “did lease, demise and to farm let unto the plaintiff” the property referred to, etc., “to have and to hold the same unto the said plaintiff for the term or period of one year, etc.”

It specifically defines the beginning and ending of the term, apparently leaving nothing to be done in the future but the delivering and acceptance of possession.

It is true that according to the terms of the original lease possession was not to be given until several weeks in the future, and it is further alleged that by the terms of the lease, as finally agreed upon, possession was not to be given to the plaintiff until January 1, 1921, though such lease is alleged to have been made September 1, 1920.

Leases for years do not involve any transfer of. the seisin; they, therefore, are not subject to the rules applying to freehold estates. Tiffany on Landlord & Tenants, vol. 1, page 48; Washburn on Real Property, vol. 1, page 468, S. Page 293; Young v. Dake, 5 N. Y. (1 Seld.) 463, 55 Am. Dec. 356; Elliott v. Stone, 67 Mass. (1 Gray) 571. The mere fact that such a lease is not to take effect in possession until a future date consequently does not affect its validity as a lease, and make it a mere contract for a lease. Tiffany on Landlord & Tenant, vol. 1, page 376; Washburn on Real Property, vol. 1, page 481; Young v. Dake, 5 N. Y. (1 Seld.) 463, 55 Am. Dec. 356; Weeks v. Crocker, 79 Mass. (13 Gray) 219; Holley v. Young, 66 Me. 520; Whitney v. Allaire, 1 N. Y. (1 Comst.) 305 and 311; Tull v. Granger, 8 N. Y. (4 Seld.) 115.

While it is often difficult to determine whether a particular agreement was intended to be a lease, or a mere executory contract therefor, the only reasonable construction of the contract [368]*368declared. on is that it was intended for a lease. But though such a paroi lease for one year be declared on, is such a lease valid as a lease?

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Bluebook (online)
123 A. 343, 32 Del. 362, 2 W.W. Harr. 362, 1924 Del. LEXIS 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartsman-v-wilmington-stores-co-delsuperct-1924.