Silveira v. Ah Lo

16 Haw. 702, 1905 Haw. LEXIS 58
CourtHawaii Supreme Court
DecidedApril 27, 1905
StatusPublished
Cited by2 cases

This text of 16 Haw. 702 (Silveira v. Ah Lo) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silveira v. Ah Lo, 16 Haw. 702, 1905 Haw. LEXIS 58 (haw 1905).

Opinions

[703]*703OPINION OF THE COURT BY

FREAR, C.J.

Tlie plaintiff executed two leases to the defendant, one to expire May 1, 1903, the other January 1, 1905, each being for fifteen years and at a monthly rental. Before the termination of these leases he executed a third lease of the same and othei lands to one Mendonca to begin June 1, 1900, and to be rent free for the first four months and at a specified rental per month for the further term of fifty years. He afterwards brought this action for the rent that accrued under the first two leases from January 1, 1900, to February 28, 1902, and obtained a verdict for the amount claimed. The defendant took exceptions, which were overruled (aidepage 309), but a rehearing was granted (ante, page 466) and has been had upon the question whether the plaintiff was not precluded from recovering such rent after the commencement of the lease to Mendonca, on the theory that the right to rent to accrue undei the first two leases passed to Mendonca by operation of law upon the lease of the reversion to him.

It is settled law, undisputed in this case, that a grant of land which is subject to an outstanding lease carries with it as an incident of ownership the right to the rent, although the right to the rent may he severed from the reversion and reserved to the grantor by a clear expression of intention to that effect. The same is held of an overleasej which may be considered as a transfer of a part of the reversion. 18 Am. & Eng. Enc. of Law, 2nd. Ed. 283, and cases there cited. Probably less would be required to show an intention on the part of the grantor to sever the rent from the reversion in the case of an overlease than in the case of a grant of the entire reversion. The question in this case is whether there is enough to show that the plaintiff reserved to himself the rents to accrue under the first two leases after the term of the overlease began.

What is chiefly relied upon to show such an intention is a document executed by Mendonca (on the date on which he acknowledged his execution of the lease made to him) in which [704]*704he certified that he was “aware” of the fact that three of the pieces of land covered by his lease were then partly under the two leases made to the defendant and partly under a lease made to another person, and in which he “further” certified that his lease “was granted subject to the aforementioned three leases.” We will assume that this document may be regarded as part of the lease made to him and, if necessary, supported by the same consideration, in other words, that the effect of the words “granted subject to the aforementioned three leases” would be the same as if those words had been inserted in the lease itself. There are two theories upon which it might be contended that these words continued the plaintiff’s right to rent under the defendant’s leases after the execution of Mendonca’s lease. One is that they severed the rent from the reversion and operated as a reservation of the rent by the plaintiff or as a grant of the rent to the plaintiff. The other is that they postponed the commencement of Mendonca’s lease until the termination of the defendant’s leases. Neither of these theories can be sustained.

The document cannot be regarded as severing the rent from the reversion and reserving or granting it to the plaintiff, for it makes no reference to the rent, and is neither in the form of a reservation of the rent by the plaintiff nor in the form of a covenant by Mendonca that the plaintiff should have the rent. It is a mere statement or certificate by Mendonca of the fact, and of Mendoca’s knowledge of the fact, that his lease was subject to the leases then outstanding — facts that existed irrespective of any agreement. That lease could not in the nature of things have been made except subject, that is, subordinate, to the leases previously made and then unexpired. This is well brought out in the case of Biddle v. Hussman, 23 Mo. 597, in which the owner of certain land, after having leased it for a term of years, conveyed with others a portion of this land and other pieces. It was held that the lessor or grantor could not recover the whole of the rent, inasmuch as the conveyance of a portion of the land carried with it as an incident a proportion[705]*705ate part of the rent, and that a clause to the effect that the conveyance was made “subject to said lease” did not amount to a reservation of the rent to the grantor. The court said:

“The words of the clause are: ‘It being understood that some of the said first parties have made leases for portions of the wharf property thereby conveyed, the terms of which have not expired, this conveyance to the city is made by the said first parties, subject to said leases now in existence.’ These are not apt words of exception, reserving from the operation of the grant something that otherwise would have passed, and they do not import in their ordinary signification that the grantor thereby holds back and excepts from his grant something that the grantee would otherwise have taken under it. They refer to the condition of the grantor in reference to the land he is disposing of, and then declare that the grantee takes it subject to existing leases. That was all that the party could lawfully transfer, and, no matter what was the form of the deed, it could be effectual only to that extent. If no notice had been taken of the lease, the deed might have been considered in form a com veyance of the fee in possession, although it would have been in effect only a conveyance of the reversion; and the purpose in this clause, we think, was to make the deed in form what it was in effect; in a word, the declaration that the property is subject to an existing lease, and that the grantee takes it with that burden upon it, expresses only — what otherwise would not have been apparent — that the transaction is a transfer of the grantor’s reversionary interest in the property only, and not of an estate in possession. The effect of the deed, therefore, was to divest Biddle of a proportionate part of the rent.”

The words “subject to” the existing leases may be fully and most naturally explained on another theory than that they were intended to operate as a reservation of the rent, namely, on the theory that they were intended to relieve the lessor from liability on his covenant of quiet enjoyment in so far as the outstanding leases were concerned. The lessor would have been liable for a breach of that covenant in the overlease if the over-lessee had taken his lease without knowledge of the defendant’s outstanding leases. The certificate in question, that the over-lessee was aware of such leases and took his lease subject to [706]*706them, would prevent that result. It was intended to protect ox had the effect of protecting the lessor against the claims of others and not of protecting him against or in the enjoyment of his own claims. This is illustrated in Gale v. Edwards, 52 Me. 363, as well as in the Missouri case just referred to.

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Cite This Page — Counsel Stack

Bluebook (online)
16 Haw. 702, 1905 Haw. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silveira-v-ah-lo-haw-1905.