Sixpine Leaseholders, Inc. v. Seattle Recreation Co.

171 Wash. 139
CourtWashington Supreme Court
DecidedJanuary 5, 1933
DocketNo. 24097
StatusPublished
Cited by4 cases

This text of 171 Wash. 139 (Sixpine Leaseholders, Inc. v. Seattle Recreation Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sixpine Leaseholders, Inc. v. Seattle Recreation Co., 171 Wash. 139 (Wash. 1933).

Opinion

Millard, J.

This action was brought by a landlord to establish and foreclose a lien for rent. A writ was levied, attaching the personal property on the leased premises. That personal property, the purchase price of which had not been paid, was in the possession of the tenant under a duly recorded conditional sales contract with the Brunswick-Balke-Collender Co. Upon application of plaintiff landlord, the court entered an order appointing a receiver to take possession of the attached property and the leased premises and to operate the business of the tenant and to collect-the revenue therefrom. The defendants (plaintiff’s tenant and the conditional sales vendor of the property attached) have appealed from the order appointing a receiver.

On September 1, 1928, respondent’s predecessor in interest executed a twenty-year lease of the second, third and fourth floors of a building in Seattle, to the Seattle Recreation Co. The stipulated annual rental was $26,448, payable $2,204 in advance on the fifteenth of each month. At an expense of approximately one hundred thousand dollars, the recreation company installed in its leased portion of the building thirty-two bowling alleys, thirty-six billiard tables [141]*141and other recreational equipment. The bowling and billiard equipment, for which the recreation company has not yet paid, was purchased on conditional sales contract (duly recorded as required by the statute) from the Brunswick-Balke-Collender Co.

On March 1, 1932, the respondent landlord brought this action against its lessee and the lessee’s conditional sales vendor, to recover one month’s unpaid rental due February 15, 1932, and to establish and foreclose a landlord’s lien in that amount “upon all of the furniture, fixtures, apparel and property now in the said premises.” A later (May 7,1932) amended and supplemental complaint prayed judgment for three month’s unpaid rental and a decree establishing and foreclosing a landlord’s lien for two month’s rental. The conditional sales vendor was joined as a party defendant for the reason, the respondent alleged, that it claimed an interest in the premises and had agreed with its vendee to pay the monthly rental as it accrued. The respondent filed an attachment bond in twice the amount of one month’s rental, and the sheriff levied a writ of attachment upon all the personal property except the contents of the safe and the merchandise (candy, cigarettes and cigars) on the premises. A deputy sheriff was placed on the premises to prevent removal of any of the attached property.

The affidavits in support of respondent’s application for appointment of a receiver are summarized as follows: The Seattle Recreation Co. was insolvent; the recreation company was a going concern, taking in approximately two hundred dollars daily in gross receipts; the value of the attached personal property would be depreciated if removed from the building; the conditional sales vendor of the attached property [142]*142was a foreign corporation; it was impossible for tbe respondent to ascertain, with any degree of certainty, the respective rights of tbe two appellants in tbe attached property.

Tbe gist of tbe controverting affidavits is: Tbe attachment was not valid, as tbe sheriff did not take manual control or custody of tbe property; tbe tenant bad a meritorious defense to tbe action for rent, by reason of tbe lessor’s breach of tbe contract to complete tbe building in accordance with tbe specifications and plans, with resultant damage to tbe tenant; tbe levy was excessive, as among tbe property attached were thirty-six billiard tables, each of tbe value of one thousand dollars when new, and property of sufficient value could be segregated from tbe attached property to satisfy tbe lien of tbe respondent; neither appellant was insolvent; tbe tenant had not paid for tbe attached property, which was in its possession under a duly recorded conditional sales contract with tbe other appellant, which bad no agreement with its vendee to pay tbe monthly rental.

It is unnecessary to recite tbe other steps in tbe action. Tbe motion to dissolve tbe attachment was denied, and an order was entered, as above recited, appointing a receiver. It is from that order the appeal is prosecuted.

It does not appear that either appellant was insolvent. There is no showing, other than a recital in one of tbe affidavits filed in behalf of tbe respondent, that tbe conditional sales vendor agreed with its ven-dee to pay tbe monthly rental as it accrued. Our disposition of tbe appeal renders it unnecessary to discuss tbe question whether, under such a contract, any rights would inure to tbe benefit of tbe respondent. It was clear from tbe beginning of tbe action, and [143]*143the receiver in his first report so stated on May 28, 1932, that all of the bowling and billiard equipment was covered, as appellants alleged, by conditional sales contracts, which had been placed of record as the statute requires, and that a large unpaid balance was due thereon.

Appellants argue that, under the statute (Rem. Rev. Stat. § 1203-1) such property was not subject to a lien for rent due by the vendee to the landlord. Appellants also insist that the personal property attached was worth many times the amount of the recovery sought, and that it would not have been difficult to segregate from that property sufficient to satisfy the respondent’s lien; that a levy is excessive if made on different pieces of personal property which are easily capable of segregation and are worth many times the amount of rental claimed to be due.

Assuming, but not deciding, that the attachment was valid, did the court err in appointing a receiver to manage the tenant’s business and to apply the revenue therefrom to the satisfaction of the landlord’s lien for rent? Or, may a landlord so seize the leasehold and the tenant’s business and thus evict a tenant for non-payment of rent?

Neither appellant was insolvent. Respondent did not seek the appointment of a receiver for either of appellant corporations. Both appellants deny indebtedness to the respondent. The action was solely to establish and foreclose a landlord’s lien for rent, a lien which attaches at the beginning of the tenancy, and for the enforcement of which the remedy of levy by attachment is available. The only property to . which the lien of a landlord attaches is the personal property which has been used or kept on the rented premises by the tenant, and that lien may be enforced [144]*144in the same manner as the foreclosure of a chattel mortgage.

“Any person to whom rent may he due . . . shall have a lien for such rent upon personal property which has been used or kept on the rented premises by the tenant, except property of third persons delivered to or left with the tenant . . . under conditional bills of sale duly filed, . . .” RTem. Rev. Stat., § 1203-1.

“Said lien may be enforced in the same manner as the foreclosure of a chattel mortgage in the superior court of the county in which the property or any portion thereof is situated. ’ ’ Rem. Rev. Stat., § 1203-2.

Unless there is statutory authority therefor, a general contract creditor cannot, before judgment, have a receiver appointed against his debtor on whose property the creditor has acquired no lien.

“Until a creditor has obtained a judgment at law for his.

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Bluebook (online)
171 Wash. 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sixpine-leaseholders-inc-v-seattle-recreation-co-wash-1933.