Shoolman v. Wales Manufacturing Co.

118 N.E.2d 71, 331 Mass. 211, 1954 Mass. LEXIS 488
CourtMassachusetts Supreme Judicial Court
DecidedMarch 9, 1954
StatusPublished
Cited by7 cases

This text of 118 N.E.2d 71 (Shoolman v. Wales Manufacturing Co.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shoolman v. Wales Manufacturing Co., 118 N.E.2d 71, 331 Mass. 211, 1954 Mass. LEXIS 488 (Mass. 1954).

Opinion

Counihan, J.

This is a bill in equity for a declaratory decree under G. L. (Ter. Ed.) c. 231 A, inserted by St. 1945, c. 582, § 1, to establish the obligation of the defendant Farrell and of the Wales Manufacturing Company, hereinafter called Wales, to pay the plaintiff the rent reserved in a lease of the second floor of the building numbered 1165 Tremont Street, Boston. The defendant Farrell filed no answer and the bill was taken for confessed as against her. Both the plaintiff and Wales agree to the existence of a controversy between them.

The evidence is reported and the judge filed what is termed “Findings and Order for Decree.” 1 There was also a finding of fact in the final decree. 2 The final decree dismissed the bill as against Farrell and adjudged that Wales owed the plaintiff certain moneys and ordered execution to issue therefor. Wales appealed from that decree which in our opinion was not correct.

The facts out of which the controversy arose appear not to be in dispute and may be summarized as follows: On February 8,1946, the plaintiff gave this lease to one Backner and one Weene, hereinafter called the lessees. It was for a term of five years expiring April 30, 1951, at a yearly rental of $3,000 payable in equal monthly instalments of $250 in advance. The lessees had a right to assign the lease only if the premises were to be used for the light manufacture of *213 clotMng. On or about December 30, 1947, the lessees assigned the lease to Wales, which took possession and carried on a business of manufacturing top coats until the latter part of April, 1950. It paid the rent reserved up to April 30, 1950. At least two weeks prior to April 29, 1950, Wales without notice to the plaintiff began to move all of its property on the leased premises to another building which it had acquired so that on April 29,1950, the leased premises were vacant. On that day Elizabeth M. Farrell went to the leased premises with a Mr. Cooke, her nephew and an attorney for Wales, and one Cohen, the president of Wales. Mr. Cooke had with him the lease and certain other papers which he had prepared at the request of Wales. The lease, a copy of an assignment of it to Farrell, a letter from Farrell to Wales, and a copy of a letter from Wales to the plaintiff which was sent by registered mail, were in evidence as exhibits and have been properly certified for use before us. Wales admits that it caused the assignment and the other papers to be prepared and used for the purpose of divesting itself of possession of the leased premises and thus ending its obligation to pay further rent to the plaintiff. The assignment of the lease, a copy of which was in evidence because the original had been lost, was executed by Wales by its president, Cohen. A seal was affixed to the assignment and in it there was also a recital that it was under seal. See G. L. (Ter. Ed.) c. 4, § 9A. Cohen gave Farrell the lease, the assignment, and the keys to the building. Farrell gave Cohen a letter in which she acknowledged the receipt of the assignment, the lease and the keys and also stated that she had taken possession of the leased premises. On the same day Wales by a registered letter notified the plaintiff of the assignment. Farrell read the lease and the assignment when she received them but she admitted that she. paid nothing for the assignment. She further admitted that she was without funds at the time, that she did not intend to occupy the premises for any purpose, and that she did not intend to pay the plaintiff any rent. What she did was done as a favor to Mr. Cooke who later paid *214 her $10 for her services. She knew, however, that she was assuming an obligation to pay rent.

The real question before us is whether this assignment of the lease in these circumstances effectually terminated the title to the leasehold in and possession of the leased premises by Wales. We are of opinion that it did.

In Donaldson v. Strong, 195 Mass. 429, at page 431, it was said, “The defendant being the assignee was liable by reason of privity of estate for the rent accruing during the time he was the owner of the leasehold interest. ‘In such a case the liability of the original lessee does not depend upon privity of estate, for he has parted with his whole interest, but upon privity of contract, and continues during the whole term; while the liability of the assignee continues only during the term he holds the legal title to the leasehold estate under his assignment. When the privity of estate thus ceases, his liability to the lessor ceases.’ . . . Mason v. Smith, 131 Mass. 510, 511.” And further, “The assignee may destroy the privity of estate by divesting himself of the leasehold estate by assignment; and he may do this for the express purpose of relieving himself from the burdens of the lease. . . . Nor is notice to the lessor of the re-assignment necessary.” At pages 431-432 it was said, “It is argued by the plaintiff that the facts do not show that Sheehy entered under the assignment. . . . But even if Sheehy had not entered, the result would be the same. The assignment was under seal and was delivered. In the absence of fraud the assignment under seal gives the assignee a title and possessory right.” Patten v. Deshon, 1 Gray, 325, 329.

In the instant case the judge made no finding as to fraud and we do not think that fraud on the part of Wales may be inferred from the evidence. It was attempting to relieve itself of the burden of paying rent under the lease by divesting itself of the leasehold estate in and possession of the premises. If the language of Donaldson v. Strong just quoted still holds good, and in so far as we can discover it has not been reversed, what Wales did was perfectly legal. *215 The judge likewise made no finding as to the delivery of the assignment. He merely found that “it is questionable that the assignment was ever legally delivered to . . . Farrell.” Such a finding falls far short of determining that no delivery of the assignment was made to Farrell. The evidence is sufficient to warrant a finding of good delivery and we so find. We do this under the familiar rule that, in our consideration of the facts, we are not limited to those recited in the findings of the judge. All the evidence is before us, and all questions of law, fact, and discretion are open for our decision. From the evidence we can find facts not expressly found by the judge. If convinced that he was plainly wrong, we can find facts contrary to his findings. Trade Mutual Liability Ins. Co. v. Peters, 291 Mass. 79, 83-84. Lowell Bar Association v. Loeb, 315 Mass. 176, 178. Warner v. Selectmen of Amherst, 326 Mass. 435, 436.

The judge in his findings stated that the alleged assignment “was a mere paper transaction; that the scheme by which . . . Wales sought to relieve itself of rent under the lease was a mere sham and pretense,” and in the final decree it was stated that “the alleged assignment . . . was a sham and pretense and ineffectual as an assignment.” These findings were apparently based upon what was said in Harmon, Wastcoat, Dahl Co. v. Star Brewing Co.

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Bluebook (online)
118 N.E.2d 71, 331 Mass. 211, 1954 Mass. LEXIS 488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shoolman-v-wales-manufacturing-co-mass-1954.