Sinclair v. Burke

287 P. 686, 133 Or. 115, 1930 Ore. LEXIS 86
CourtOregon Supreme Court
DecidedDecember 18, 1929
StatusPublished
Cited by8 cases

This text of 287 P. 686 (Sinclair v. Burke) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinclair v. Burke, 287 P. 686, 133 Or. 115, 1930 Ore. LEXIS 86 (Or. 1929).

Opinion

BEAN, J.

This is an action to recover from defendants $1,200, 'which plaintiff paid them in advance in payment of the last six months’ rent, less $585, rent due at the time of the termination of the lease.

The cause was tried to the court without the intervention of a jury. Judgment was rendered in favor of plaintiff for $615, from which defendants appeal.

The parties entered into a written lease on October 17, 1924. At the time the plaintiff was occupying the garage premises under a lease which expired December 31,1925. The term of the new lease was from January 1, 1926, to December 31,1930, for the agreed rental of $200 per month, payable in advance. The lease, which is exhibited with the complaint, in addition to the covenant on the part of the plaintiff to pay the rent promptly, contained the following provision:

“In addition to the above mentioned rentals said lessee is to pay to said lessor the following payments at times specified herein to apply on the last six months’ rental totaling twelve hundred ($1,200) dollars, as'follows:”

Then follows the dates and manner of payments, the last instalment of which became due and payable on or before January 15, 1926.

The testimony tends to show that in consideration of the plaintiff making certain improvements upon the premises, it was mutually agreed that the rentals should be reduced to $175 per month and that plaintiff paid defendants on that basis up to about May, 1927, there being $585 accrued rentals in arrears at the time of the termination of the tenancy, about August 25, *117 1927. See Sherman, Clay & Co. v. Buffmun S Pendleton, 91 Or. 352 (179 P. 241); 35 C. J., p. 1170, § 448.

There was a dispute in the testimony in regard to the reduction of the rent, the defendant claiming that the $25 per month was only deferred until the latter part of the term. This question is foreclosed by the finding of the trial court, which has the force and effect of the verdict of a jury and there being some competent evidence to support such finding, it can not be disturbed.

In August, 1927, defendants attempted to collect the rent in arrears, for May, June, July and August. Plaintiff declared he could not pay the rent he owed, and that he was quitting the place. Plaintiff, as soon as he sold the gas in the tank on August 27, 1927, turned the keys over to Mr. Burke and quit the premises, and defendants took possession thereof and leased the same to other parties.

Defendants assign that the court erred in rendering judgment in favor of plaintiff and also in refusing to render judgment in their favor upon their counterclaim for the rent in arrears. The questions are raised by appropriate motions and requested finding of facts.

It is contended by defendants that the payment of the $1,200, as rentals for the last six months of the term of the lease, was simply a payment of the rent in advance for that time and can not be recovered by plaintiff.

Plaintiff contends, in effect, that the $1,200 was a deposit as security for the last six months’ rentals and .to be applied “when the same shall become due and collectible” and should not be forfeited. Citing Cunningham v. Stockon, 81 Kan. 780 (106 P. 1057, 19 Ann. *118 Cas. 212), and other similar authorities. It is agreed that the question in regard to the return of the $1,200 is one of law.

That sum was paid by plaintiff to defendants pursuant to his covenant in the lease to do so, which money was to be applied upon the last six months’ rent. The money thereby became the absolute property of defendants. It was simply an absolute payment of rent in advance as stipulated by plaintiff in the lease. It was not a deposit as security for the performance of the agreement. The statement in plaintiff’s brief in regard to the $1,200 “to apply on the last six months’ rental, when the same shall become due and collectible,” contained the words, which we have italicized, that are not found in the stipulation of plaintiff in the lease.

To construe the agreement as if it contained such language would be making a new contract for the parties, which the court can not do: 13 C. J., p. 541, §513.

The general rule deducible from the eases involving the right of a landlord to retain rent paid by the tenant in advance, in the event of the termination of the lease, is that in the absence of provisions therefor, rents paid in advance can not be recovered by the tenant upon termination of the lease, unless such termination was wrongful as against such tenant: 50 L. R. A. (N. S.) p. 1034, note; 36 C. J., p. 340, § 1149; 1.6 E. C. L. p. 1137, § 658, see also p. 931, § 438; Moumal v. Parkhurst, 89 Or. 248 (173 P. 699); Rockwell v. Eiler’s Music House, 67 Wash. 478 (122 P. 12, 39 L. R. A. (N. S.) 894); Galbraith v. Wood, 124 Minn. 210 (144 N. W. 945, 50 L. R. A. (N. S.) 1034, Ann. Cas. 1915B, 609).

*119 The principle involved was enunciated by Mr. Justice Band in the case of Phegley v. Enke’s City Dye Works, 127 Or. 539 (272 P. 898 at page 900), in the following language:

“The effect of a valid surrender of a lease is to discharge the lessee from the payment of any rent thereafter to become due, but it does not have the effect of releasing the lessee from his liability for any sum then due.”

In the present case the $1,200, the rentals for the last six months of the lease, was due and payable on the dates mentioned in the lease. It was paid on or about such dates, which was long prior to the termination of the lease.

16 B. C. L., p. 1137, § 688, reads in part thus:

“The liability for rent accrued at the time of the forfeiture is not, however, affected thereby, and, according to the generally accepted view, this includes liability for accrued rent though it is payable in advance, and the forfeiture occurs before the period to be covered by such advance payment, and a fortiori where rent has been paid in advance, under an agreement that it shall be so paid, and the lessor re-enters for conditions broken, he is entitled to retain the rent so paid.”

In Rockwell v. Eiler’s Music House, supra, the court said, at page 895 of the case in 39 L. R. A. (N. S.):

“It is not important whether the matter set forth in the complaint be treated as a re-entry and termination of the lease for the nonpayment of rent or a surrender. In either case, there was a termination of the relation of landlord and tenant, and the right of the landlord to accrued rent was fixed and determined by the terms of the lease.”

The plaintiff in the case of Galbraith v. Wood, 124 Minn. 210 (144 N. W. 945, 50 L. R. A. (N. S.) 1034, *120 Ann. Cas. 1915B, 609), brought the action to recover from defendant the sum of $20,000, which the tenant had agreed to pay defendants as advance rent, and did pay him.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State Highway Commission v. Demarest
503 P.2d 682 (Oregon Supreme Court, 1972)
Hughes v. Bembry
470 P.2d 151 (Oregon Supreme Court, 1970)
Loew v. Antonick
310 P.2d 825 (Arizona Supreme Court, 1956)
Dearborn Stove Co. v. Caples
236 S.W.2d 486 (Texas Supreme Court, 1951)
Hargrove v. Marks
7 N.E.2d 640 (Indiana Court of Appeals, 1937)
Abrahamson v. Brett
21 P.2d 229 (Oregon Supreme Court, 1933)
Redmon v. Graham
295 P. 1031 (California Supreme Court, 1931)

Cite This Page — Counsel Stack

Bluebook (online)
287 P. 686, 133 Or. 115, 1930 Ore. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-v-burke-or-1929.