Silberstein v. Laibovitz

200 S.W.2d 647, 1947 Tex. App. LEXIS 680
CourtCourt of Appeals of Texas
DecidedFebruary 12, 1947
DocketNo. 9614
StatusPublished
Cited by17 cases

This text of 200 S.W.2d 647 (Silberstein v. Laibovitz) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silberstein v. Laibovitz, 200 S.W.2d 647, 1947 Tex. App. LEXIS 680 (Tex. Ct. App. 1947).

Opinions

BAUGH, Justice.

Appellant, as lessor, sued appellees for damages for breach of written lease contract on a- store building on East 6th Street, in Austin, Texas. Appellees, lessees and tenants of appellant, denied such breach by them, and by cross-action alleged breach of said contract by the lessor and prayed for damages against him. Trial was to a jury on special issues, and upon their answers thereto, judgment was rendered denying appellant any recovery and in favor of appellees for $440 on their cross-action.

The contract in question leased to ap-pellees said property from September 1, 1941 to December 31, 1943, "to be occupied for General Merchandise,” for a stipulated monthly rental “payable between the first and tenth of each and every month”; providing, among other things, that failure to pay rents would give lessor the option to annul said lease and repossess the property; and further that should the premises become vacant during the lease period, the landlord could relet same and apply the receipts from such reletting to the payment of the rents contracted to be paid by appellees.

The basis of appellant’s suit was that appellees had failed to pay the March 1942 and all subsequent monthly rentals, and had voluntarily abandoned the premises in February 1942. If his allegations were true, then appellees breached said contract, appellant alleged a proper measure of damages, and was entitled to recover as prayed for. However, appellees denied that they had voluntarily abandoned their lease, and pleaded that appellant had refused to permit them to use said premises from and after March 1, 1942, for the purposes for which they had leased same. That is, that appellant had breached said contract, to their damage. Such were the issues made by the pleadings. The first issue submitted to the jury embodied the appellant’s basis of recovery, — whether appellees had voluntarily abandoned said premises. The jury found that they had not. The next issue submitted, embraced the appellees’ contention and the ground of their recovery under their cross-action. That is, whether appellant had refused to permit them to occupy the premises “for general merchandise purposes after March 1, 1942.” The jury found that he had. The evidence is sufficient to support both of these findings. Thus there is a clear cut finding by the jury that as of March 1, 1942, when the March rent became due, the appellant, and not the appellees, had breached said contract. The jury further found appellees’ damages to be $440; that appellant repossessed said property on May 12, 1942; and that on that date the ap-pellees “were in arrears on their rent due under said contract.”

Appellant’s first contention is that under the jury findings that he repossessed the property on May 12, 1942, and that appellees were then in arrears on their rent, judgment should have been rendered in his favor because under said contract he had a right to repossess and relet [649]*649the premises when appellees became delinquent on their rent payments. This contention entirely disregards the jury findings that appellant, and not appellees, breached their contract, by refusing -to permit appellees to occupy and use the premises, after March 1, 1942, for the purposes for which they had rented them. When that occurred appellees were no longer legally liable for further rentals. As stated in Nabors v. Johnson, Tex.Civ.App., 51 S.W.2d 1081, 1082: “In order to constitute an eviction, it is not necessary that there be a manual or physical expulsion from the premises. If the landlord’s conduct be such as to materially and permanently interfere with the beneficial use of the premises and the defendant leaves as the result thereof, then there is a constructive eviction.” See also 27 Tex.Jur., § 163, p. 286; 32 Am.Jur., § 246, p. 231.

There was no dispute as to when appellant relet the premises; nor that appellees had paid no rent after March 1st. Having breached said contract by constructive eviction of his tenants prior to March 10, 1942 (the last day under the contract for payment of the March rent), their liability for further rents ceased; and, so far as appellees were concerned, it was immaterial when appellant thereafter took actual physical possession of said premises, or what use he thereafter made of them. That being true, jury findings 4 and 5 above stated become immaterial and may be disregarded. The same is also true as to the issue requested by appellant and refused by the court, inquiring whether, at the time appellant repossessed the property on May 12, 1942, it was then vacant. It is not denied that it had been since March 1st. But appellant was responsible for its being so.

The next question presented relates to the recovery by appellees of anticipated profits during the remaining 22-month period of the lease. The jury awarded ap-pellees $20 per month, as prayed for, under the instruction of the court that they were entitled to recover the “reasonable and net profits defendants would have realized out of the operation of the mercantile business during the unexpired term of the lease.” The jury finding is sustained by the testimony of appellees only. Laibovitz testified as follows: “I have been in the merchandising business, new and secondhand, in Austin for many years, selling among other things new, old and repaired shoes. I am familiar with the trade and the profit to be made in such a business in Austin. In 1942 shoe rationing had gone into effect or was just about to go into effect, and the shoe business from then on was particularly profitable. I am qualified to state what probable profit we might reasonably have made in said business at 317-1/2 East Sixth Street for the balance of the lease term if we had been permitted to carry on said business. Said sum would have been from $75 to $100 a month for 20 months. $20 a month for 20 months or $440 would be the very minimum that we might reasonably have made during such time over and above all expenses.”

Appellee Malkin testified: “We told him we wanted to conduct a shoe business in the premises, selling new, second-hand, and repaired shoes and to install shoe repair machinery to repair shoes for resale, and not to repair for the general public. Mr. Silberstein stated he would not permit us to do that. Beginning at that time there was a splendid market opening for second-hand shoes. Shoe rationing had just been put in force or it was just about to go in force and there was demand for second-hand and repaired shoes which continued through the war. I have been in the merchandise business around twenty years in Austin, selling among other things, shoes, both new, second-hand, and repaired, and I know the profits to be made in that business. I am qualified to state what the probable profit that we might reasonably have made in such business if we had been permitted to continue such business from March 1st, 1942, to the end of the term of the lease contract. Such sum is from $100 to $125 net profit. The sum of $20 a month for 20 months, or $440 is. the very minimum amount which we might probably have reasonably made during; such time.”

Said testimony was objected to by appellant on the ground that it was speculative and a mere estimate, and would not sustain any finding based thereon.

[650]*650Much has been written on recovery of anticipated profits based upon breach of contract. It is settled law that a tenant wrongfully evicted, or his possession wrongfully interfered with, may recover lost profits as damages. Belcher v.

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Bluebook (online)
200 S.W.2d 647, 1947 Tex. App. LEXIS 680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silberstein-v-laibovitz-texapp-1947.