Sheridan v. O. E. Doherty, Inc.

181 P. 16, 106 Wash. 561
CourtWashington Supreme Court
DecidedApril 28, 1919
DocketNo. 15092
StatusPublished
Cited by11 cases

This text of 181 P. 16 (Sheridan v. O. E. Doherty, Inc.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheridan v. O. E. Doherty, Inc., 181 P. 16, 106 Wash. 561 (Wash. 1919).

Opinion

Chadwick, C. J.

— The facts of this case are admitted. One Gerald was a sublessee of the Seattle Brewing & Malting Company, which held by lease from the Gottstein Investment Company, the owner. The lease from the Investment Company to the Brewing Company, as well as the lease from the Brewing [562]*562Company to Gerald, expired on August 31, 1917. On November 1,1916, Gerald sublet a part of tbe premises to the appellant for a term expiring August 31, 1921. Unlike tbe two former leases, appellant’s lease contained several restrictive covenants and clauses. Tbe lease of tbe Brewing Company and tbe lease of Gerald, having expired by limitation on August 31, 1917, and not having been renewed, tbe owner (Gottstein Investment Company) leased tbe entire premises to respondents. • Appellant refused to quit upon demand. A notice was served under tbe forcible entry and detainer statute, and after three days appellant was ousted under tbe process of tbe court. Tbe ouster was sustained at tbe trial, and judgment entered.

Tbe principal reliance of appellant is that, whereas, an action of unlawful detainer will not lie unless tbe conventional relation of landlord and tenant exists between tbe parties (Meyer v. Beyer, 43 Wash. 368, 86 Pac. 661; Shannon v. Grindstaff, 11 Wash. 536, 40 Pac. 123; Seattle Operating Co. v. Cavanaugh, 6 Wash. 325, 33 Pac. 356); and there being no such relation by contract or by estoppel resting in tbe conduct of tbe parties, tbe court was in error in overruling its demurrer to tbe complaint and entering judgment upon tbe admitted facts.

It is admitted that ejectment will lie, but it is argued that, having seized upon tbe summary remedy given by statute in aid of tbe right of a landlord to re-possess himself of bis property at tbe termination of a lease, tbe court must accept the theory of tbe appellant and proceed only in tbe exercise of its special jurisdiction ; that it cannot try out tbe general issue of title and take a judgment which is in legal effect a writ of ejectment. State ex rel. Seaborn Shipyards Co. v. Sup’r Ct., 102 Wash. 215, 172 Pac. 826; Jeffries v. [563]*563Spencer, 86 Wash. 133, 149 Pac. 651; Big Bend Land Co. v. Huston, 98 Wash. 640, 168 Pac. 470.

Whether this conclusion logically follows depends upon the soundness of the premise assumed by counsel—-that is, that there is no privity of contract or estate between the parties and hence no relation of landlord and tenant.

It is argued that the owner or one claiming under him cannot maintain unlawful detainer unless it is shown that the defendant holds in the same estate as the one who stands in immediate contractual relation with the owner or his immediate successor in interest. In other words, that, appellant having taken possession under a lease containing restrictive clauses and covenants differing in form from the conditions and covenants contained in the contract of his immediate lessor, there is no such privity of estate or contract as will sustain a summary proceeding; that a forcible detainer implies a breach of contract, and appellant being in no way answerable to respondents, either by express words or by the implication of its contract, they must find their remedy, if any, in ejectment.

To sustain this theory, we must assume as a premise that the demise from Gerald to appellant is in fact and in law a sublease. It is established that, if a lessee sublet the premises or a portion of the premises for the entire term or the remainder of a term, the subletting will operate as an assignment either of the entire estate or pro tanto as the case may he. Tiffany, Landlord and Tenant, § 151; Taylor, Landlord and Tenant (9th ed.) § 16; Underhill, Law of Landlord and Tenant, §624; McAdam, Landlord and Tenant (4th ed.) §233.

In Weander v. Claussen Brewing Ass’n, 42 Wash. 226, 84 Pac. 735, 114 Am. St. 110, the question was [564]*564whether the relation of landlord and tenant existed, between the owner and a sublessee of a part of the premises for the entire term. The court said:

“In order to pass upon this question it is necessary to determine what was the legal effect of the written instrument which they jointly executed. Appellant contends that it was a lease, and that it constituted him a tenant of respondent, while the latter urges that it was in law an assignment and not a lease, for the reason that it transferred all rights which respondent acquired from its lessor, including the entire term under its lease, with no reversionary interest reserved. The instrument is in the form of a lease, and contains apt words designating it as such; but it covers the entire term which respondent had acquired by its own lease. No portion of the term whatever is reserved for reversion to respondent. It is conceded that the terms and covenants of the instrument are in the exact words of the lease held by respondent, and no other or new covenants are included therein. We think, under the authorities, that the legal effect of such an instrument is that of an assignment in full of the lease by its holder; that it is not a new lease, which creates a new lessor and subtenant, with the relation of landlord and tenant between the two, but the new nominal lessee becomes an assignee of the whole leasehold estate affected.”

So if Gerald had sublet to appellant in- the terms of his own lease and for a term equal in time, respondents could maintain an action of unlawful detainer upon the expiration of Gerald’s term unembarrassed by the plea that the conventional relation of landlord and tenant did not exist.

The controlling question, then, is whether a sublease for a, term beyond the original term: — the sublease containing independent and restrictive covenants distinguishing it in form from the contract of the immediate lessor with the owner or landlord—is a sub-, letting which will bar the relation of landlord and [565]*565tenant, or is an assignment entire or pro tanto which will create the relation and thus give the owner or one claiming under him avail of the right to maintain unlawful detainer as against a sublessee holding over after the expiration of the original term.

It is said, with much show of reason and sustaining authority, that the relation of landlord and tenant never exists between the owner and a subtenant, for there is neither privity of contract nor of estate to sustain the relation. 16 R. C. L., p. 879; Shannon v. Grindstaff, supra. We are not inclined to raise the question whether the contract as between Gerald and appellant was one other than of subtenancy; for the transaction may be called a lease between the second and third parties and nevertheless operate as an assignment as between the original lessor and such third party. 16 R. C. L., pp. 824, 825. When the question is raised between the owner and the sublessee, the courts have not hesitated to look to the legal effect of the contract. No importance is attached to the words “demise” or “lease” or to the form, covenants or conditions of the contract if its legal effect be to convey the entire term. Underhill, Landlord and Tenant, § 626; Woodhull v. Rosenthal, 61 N. Y. 382.

It is upon this principle that a subletting for the entire or remainder of a term is held to be an assignment, giving the owner a right to maintain an action of unlawful detainer as against one claiming as a sub-lessee is sustained.

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Bluebook (online)
181 P. 16, 106 Wash. 561, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheridan-v-o-e-doherty-inc-wash-1919.