Security Builders, Inc. v. Southwest Drug Co.

147 So. 2d 635, 244 Miss. 877, 1962 Miss. LEXIS 520
CourtMississippi Supreme Court
DecidedDecember 10, 1962
Docket42457
StatusPublished
Cited by20 cases

This text of 147 So. 2d 635 (Security Builders, Inc. v. Southwest Drug Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Security Builders, Inc. v. Southwest Drug Co., 147 So. 2d 635, 244 Miss. 877, 1962 Miss. LEXIS 520 (Mich. 1962).

Opinion

*879 McGehee, C. J.

Prior to October 22, 1957, the appellant, Security Builders, Inc., was engaged in business at Jackson, Mississippi, and the appellee, Southwest Drug Company, Inc., was engaged in the operation of a drug store in the North Hills Shopping Center at Meridian, Mississippi.

On October 22, 1957, the appellant entered into what is designated as the North Hills Shopping* Center lease-contract with the appellee, leasing a drug store and lunch counter in the said shopping center for a period of ten years.

*880 The bill of complaint, which was filed in December 1961, alleges that the appellee had given notice to the appellant that it was going ont of business and that it would cease to operate the drug- store and lunch counter covered by the lease from and after January 1, 1962.

Thereupon, the appellant filed its bill of complaint in the Chancery Court of the First Judicial District of Hinds County, Mississippi, for an injunction to prohibit the appellee from ceasing the operation of the retail drug store and lunch counter under the lease-contract, and to prevent the appellee from removing its merchandise and business from the said shopping center. On the bill of complaint, a temporary injunction was issued.

The appellant owns a tract of land in Meridian, Lauderdale County, Mississippi, on which is operated what is known as the North Hills Shopping Center, consisting of the retail drug store and lunch counter, beauty salon, grocery store, bakery and other businesses.

The lease-contract provided that the appellant was to construct and complete the drug store and lunch counter building according to plans and specifications agreed upon, and the term of the lease was to begin upon such completion. This segment of the building for the occupancy of the drug store and lunch counter was especially designed and constructed, and was to be occupied and used by the lessee with a rental of 4% of the gross annual sales, and with a specified minimum of guaranteed rental in the sum of $5,880 per annum.

The cause came on for hearing before the chancellor at Jackson, Mississippi, to dissolve the temporary injunction and on demurrer. After' a full hearing on the matter, the demurrer was sustained and the temporary injunction dissolved. Thereupon, the appellant’s bill of complaint was dismissed since the appellant had declined to plead further, upon the injunction being dissolved and the bill being dismissed. The appellant then request *881 ed ail appeal with, supersedeas, and after a hearing on this request, the supersedeas bond was fixed at the amount of $9,000. However, the appeal was finally taken without supersedeas, and presumably the guaranteed rent of $5,880 is being paid as the same becomes due.

The principal question before us for decision on this appeal is whether or not the complainant, as lessor, is entitled to require by mandatory injunction the lessee to continue the use and occupancy of the drug store and lunch counter segment of the shopping center and continue to operate such businesses therein for a period of ten years from the date of the lease. The appellant relies on the following provisions of the lease-contract:

3. Said building shall be occupied and used by Lessee as a retail drug store and lunch counter, and as rental for said store building Lessee shall pay to Lessor for each year an amount equal to four percent (4%) of the gross annual sales made from said premises, with the exception of sales of tobacco and sales to doctors which shall be two per cent (2%) of such gross sales, with a minimum guaranteed annual rental to be paid by Lessee to Lessor in the amount of Fifty Eight Hundred and Eighty Dollars for the premises covered by the building hereby leased regardless of the amount of said gross sales, to he divided into monthly payments and to be paid in equal monthly installments by Lessee to Lessor, in advance, on or before the first day of each and every month during the term of this lease. As promptly as possible after the end of the month of January of each year, Lessee shall cause to be prepared, signed by an officer of the corporation, and delivered to the Lessor a statement of its gross sales from said premises during the preceding twelve (12) month period, and in the event the percent of the gross sales during such twelve (12) month period as heretofore set forth shall exceed the monthly rental paid hereunder, then Lessee shall promptly pay to Lessor the difference be *882 tween the total of the monthly rentals paid during said period and the percent of the gross sales during said period as heretofore set forth. * * *”

The appellant’s position is that it is not relying upon an implied covenant but upon the so-called express covenant contained in the foregoing quotation from the lease. The question is presented as to whether or not the provision that the “Said building shall be occupied and used by Lessee as a retail drug’ store and lunch counter” grants merely the permissive right to so use the premises, and is intended to prevent the use of the premises for any other purpose. The appellee contends that the foregoing quoted provision of the lease is intended to restrict the lessee to the operation of this particular type of business, and that the same cannot be construed as a covenant that the lessee will, under any and all circumstances, continue to operate a drugstore and lunch counter in these premises.

The general rule, as set forth in annotation in 46 A. L. R., p. 1134, is as follows: “Apart from the question of liability for waste, it seems that the tenant is under no obligation, in the absence of specific provision therefor, to occupy or use, or continue to use, the leased premises, even though one of the parties, or both, expected and intended that they would be used for the particular purpose to which they seemed to he adapted or constructed.”

In the case of Sims v. Vanmeter Lumber Co., 96 Miss. 449, 51 So. 459, where the complainant sought specific performance of a contract requiring* the defendant to operate a tramroad for the purpose of carrying logs, the lower court granted an injunction in that behalf, but this Court reversed and dissolved the injunction, stating, among- other grounds assigned, the following: “A court of equity will not direct the specific performance of a contract, where it would require the constant superintendence of the court from day to day *883 for an indefinite time, in order to enforce the carrying out of its decree.”

Again in Jones v. Mississippi Farms Co., 116 Miss. 295, 76 So. 880, among other things, this Court said the following: “On the proposition of compelling the operation for three years in the supplemental contract, our own court has held, in Sims v. Vanmeter Lumber Co., 96 Miss. 449, 51 So. 459, that equity will not direct a specific performance of a contract where it would require constant superintendence of the court from day to day for an indefinite time in order to enforce the carrying out of its decrees. This case refused specific performance of a contract for the construction of a logging road. See, also,

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Bluebook (online)
147 So. 2d 635, 244 Miss. 877, 1962 Miss. LEXIS 520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-builders-inc-v-southwest-drug-co-miss-1962.