Shippen v. Georgia Better Foods Inc.

54 S.E.2d 704, 79 Ga. App. 813, 1949 Ga. App. LEXIS 751
CourtCourt of Appeals of Georgia
DecidedJuly 16, 1949
Docket32506.
StatusPublished
Cited by2 cases

This text of 54 S.E.2d 704 (Shippen v. Georgia Better Foods Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shippen v. Georgia Better Foods Inc., 54 S.E.2d 704, 79 Ga. App. 813, 1949 Ga. App. LEXIS 751 (Ga. Ct. App. 1949).

Opinion

Gardner, J.

(a) We think this a proper case for a declaratory judgment.

(b) The contract between the defendant as owner and the plaintiffs as subtenants (not following numerical order), among other things, provides: (1) The contract itself states that no relation other than that of landlord and tenant is created. (2) The lease carries a provision for a stipulated rental of $2000 per month and a percentage of the gross receipts. (3) The owner retained the ownership of furniture, carpets, and equipment with the right to remove certain parts thereof at any time she saw fit. (4) The owner reserved the right to have access to the books and records of the tenant. (5) The particular use to which the property could be put was limited to that of a hotel and apartment. (6) The owner remained obligated to pay taxes. (7) All furniture, fixtures and equipment placed on the premises by the tenant became the property of the owner. (8) In the event of bankruptcy or insolvency of the tenant, the lease was terminated, and the lease was not to become a part of the tenant's estate. (9) In the event of total destruction of the building by fire or other casualty, the lease was terminated. (10) In the case of partial destruction, the owner obligated herself to make the necessary repairs and restore the property to as good a condition as existed before such partial loss; and in the meantime the rent would abate in proportion to that part of the property which could be occupied. (11) The property could be mortgaged by the owner and the lease would be subservient to the mortgage. (12) The owner reserved for her own use the entire roof of the building, and in addition she *819 reserved the right to put a sign on the premises. (13) In the event the building was taken under eminent-domain proceedings, the lease would terminate. (14) The owner reserved certain space in the banquet room, basement, and workshop where the furniture, carpets, lamps, fittings, and repair parts were stored. (15) It was further provided that, in the event of default on the part of the tenant in the payment of rent and such default continuéd for a period of 30 days, or in the event the tenant refused to perform any obligation or covenant under the provisions of the contract, the owner had the option of canceling and terminating the lease and taking possession of the property. (16) Certain space in the basement occupied by a transformer belonging to the Georgia Power Company was excluded from the lease.

(c) Code § 85-805 provides: “A tenant for years is bound for all repairs or other expenses necessary for the preservation and protection of the property.” This is the general rule as to responsibility of a tenant for years. Section 61-111 provides: “The landlord must keep the premises in repair and shall be liable for all substantial improvements placed upon them by his consent.” This Code section expresses the general rule as to the- obligation of the landlord where there is no tenancy for years. Unless there is some express provision in the lease contract, these general principles of law are applicable as between the parties. However, the lease contract in its entirety, and in view of the facts and circumstances concerning the situation, will be looked to in determining the intention of the parties to the contract. When we seek to view the intention of the parties to the lease contract here under consideration, we feel that we can reach no other conclusion than that the relation between the defendant and the plaintiffs was that of landlord and tenant respectively, notwithstanding the fact that the lease was for a term of twenty years. The parties so contracted in the lease. Besides, the owner or lessor imposed so many restrictions and reservations upon the tenant that, under all the facts and circumstances in view of these restrictions and ■ reservations, it is not only lawful that the defendant be required to pay for these structural repairs, improvements and changes, but it would be inequitable and unjust not to require her to *820 bear them. As the trial court said in its opinion, the petition set forth that one of the requirements of the City of Atlanta was the construction and installation of an exit stairway to the roof. The defendant reserved the roof of the building for her exclusive use. Not only that, but she received as a rental $2000 per month and a percentage of the gross receipts. For the fiscal year ending May 31, 1947, she received, in excess of the stipulated monthly rental of $2000, the sum of $24,546.70. And for the fiscal year ending May 31, 1948, she received, in addition to the $2000 monthly rental, an excess rental of $35,-140.56. It is further alleged in the petition that the defendant expressed extreme satisfaction with the operation of the hotel.

(d) This court has had before it recently the cases of Midtown Chain Hotels Co. v. Bender, 77 Ga. App. 723 (49 S. E. 2d, 779), and Evans Theatre Corp. v. DeGive Investment Co., 79 Ga. App. 62 (52 S. E. 2d, 655), and the Supreme Court had before it the case of Kanes v. Koutras, 203 Ga. 570 (47 S. E. 2d, 558). Counsel for both the plaintiffs and the defendant cite these cases in support of their respective contentions. We will not here engage in any lengthy discussion of these cases. We find nothing in them, under their facts as compared with the facts in this case, to convince -us that the trial court erred in overruling the general demurrer in the instant case.

(e) Distinguished counsel for the defendant calls our attention to the provisions of Code § 61-111, supra, and cites many authorities as to the construction of the word “repair” as contained 'in that section. He cites Chastain v. Reserve Loan &c. Co., 43 Ga. App. 91 (158 S. E. 448), which states in substance: A landlord is under no duty in absence of an express agreement to do so to repair a patent defect in the premises where its existence was known to the tenant at the time of the rental contract, and subsequent notice by tenant of the existence of such' defect would not place upon the landlord any duty of inspection or repair. It is argued that the absence of structural changes was known to the tenant.. Counsel in this connection calls our attention to paragraph 5 of the lease, which reads as follows: “Lessee is to use the within premises for a hotel and apartment purposes, and at his own expense is to maintain the premises.” He further calls our attention to *821 paragraph 14 of the lease, which reads in part as follows: "It is agreed that the leased premises are in a condition satisfactory for the purposes herein contemplated, and the same are accepted without warranty or representation as to their condition on the part of the lessor.” Counsel calls our attention to the case of Gavan v. Norcross, 117 Ga. 356, 361 (43 S. E.

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Bluebook (online)
54 S.E.2d 704, 79 Ga. App. 813, 1949 Ga. App. LEXIS 751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shippen-v-georgia-better-foods-inc-gactapp-1949.