Smathers v. Standard Oil Co.

199 A.D. 368, 191 N.Y.S. 843, 1922 N.Y. App. Div. LEXIS 8024
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 13, 1922
StatusPublished
Cited by7 cases

This text of 199 A.D. 368 (Smathers v. Standard Oil Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smathers v. Standard Oil Co., 199 A.D. 368, 191 N.Y.S. 843, 1922 N.Y. App. Div. LEXIS 8024 (N.Y. Ct. App. 1922).

Opinion

Greenbaum, J.:

The complaint alleges that on March 1, 1920, plaintiff leased to the defendant for the term of ninety-nine years, premises known as No. 12 Broadway, in the city of New York, at the yearly rental of $250,000. The provision in the lease as to the payment of rents is as follows: “ To have and to hold said premises * * * unto the tenant from and after twelve o’clock noon on the first day of March in the year One Thousand Nine Hundred and Twenty (1920), for and during the term of ninety-nine (99) years, that is to say, until twelve (12) o’clock noon on the last day of February in the year Two Thousand and Nineteen (2019) * * * rendering and paying for the same to the landlord as rental, the net annual rent or sum * * * of Two Hundred and Fifty Thousand Dollars ($250,000) * * * payable in equal quarterly payments, that is to say, Sixty-Two Thousand Five Hundred Dollars ($62,500) on the first day of the months of April, July, October and January in every year during the said term * * * the first payment to be made upon the execution and delivery of this lease, of an amount proportionate to the time during which the Tenant occupies the [370]*370premises and receives the rents up to the first of April in the year One Thousand Nine Hundred and Twenty and the receipt of said rentals up to said first day of April, 1920, is hereby acknowledged.”

After alleging that defendant entered into the possession of the premises under the terms of the lease and paid the rent up to the 1st of April, 1920, it is averred that “ on the first day of April, 1920, the plaintiff duly demanded of the defendant payment of Sixty-Two Thousand Five Hundred ($62,500) being the quarterly payment due on that date.”

The defendant’s answer substantially admits the allegations of the complaint excepting the right of the plaintiff to demand payment of a quarterly rent on the 1st day of April, 1920, and affirmatively alleges that the rent was not due for the quarter commencing April 1, 1920, but would become due upon the expiration of that quarter. It is further alleged that the original agreements in reference to said lease were in writing, true copies of which are hereto attached and made part of this answer and marked Exhibits A-l, A-2 and A-3.”

These exhibits were communications that passed between the broker and the plaintiff and the plaintiff and the defendant as to the general terms upon which the lease was to be executed. They make no mention of payment of rent in advance.

The answer also sets up a copy of a proposed lease marked Exhibit B, which the plaintiff had prepared and which had been submitted to defendant for approval. One of the provisions of this proposed lease was that the said yearly rental should be paid quarterly in advance.”

The answer then alleges: “ That defendant refused to execute said proposed lease, being unwilling to make such quarterly payments of rental in advance and being dissatisfied with many other provisions of said proposed lease; ” that “ after some negotiations defendant was requested by plaintiff to rewrite the entire lease,” which was accordingly done; that a new proposed lease was thereupon submitted to plaintiff for approval; that the lease as rewritten and subsequently executed omitted the words in advance; ” that plaintiff after retaining the new lease for several days returned it to the defendant suggesting a slight change in certain paragraphs, none of which in any way related to the payment of rental; [371]*371that the final lease by its terms was to take effect March 1st, 1920, from which date defendant was to be liable for rental, but for the convenience of the parties it was agreed orally that plaintiff would collect the rentals due him from tenants of the building up to the 1st of April, 1920, and pay the expenses of operating said building up to said date, and that thereupon the additional rental due plaintiff over and above the amount thus received from the tenants would be adjusted and paid to plaintiff by defendant.”

It is a mere commonplace to reiterate the law that in the case of a written contract whose meaning is clearly ascertainable from its language the court will not look beyond the provisions expressed therein and that no evidence of prior negotiations leading up to its execution is admissible to contradict or vary its plain terms.

It is, however, equally well settled that where the language of a contract is ambiguous, indefinite or uncertain in its meaning, extrinsic evidence of the circumstances attending its execution will be permitted to reach the intent of the parties in making it.

In construing the lease before us it is also important to recognize the rule that the presumption is that rent is not payable until after it has been earned, and that in the absence of an express agreement to the contrary, rent is payable at the end of the term and not in advance. (2 McAdam Landl. & Ten. [4th ed.] 1001; 24 Cyc. 1170;. 1 Washb. Real Prop. [5th ed.] 10, § 6; Duryee v. Turner, 20 Mo. App. 34; Kistler v. McBride, 65 N. J. L. 553; 48 Atl. Rep. 558; Matter of Dalton, 183 Iowa, 1013; 168 N. W. Rep. 334.)

It has been held that a provision in a lease fixing stated periods of time for which rentals are to be paid during the term of the lease does not, in the absence of other provisions that the rent is payable in advance for each stated period, imply that the rent is payable in advance, but on the contrary that it is payable at the end of each period. (Goldsmith v. Schroeder, 93 App. Div. 206; McCahill v. Megs Palace Amusement Co., Inc., 167 N. Y. Supp. 373; Castleman v. Du Val, 89 Md. 657; 43 Atl. Rep. 821.)

In the Goldsmith Case (supra), which is a decision of this court, plaintiff leased to the defendant an apartment in a [372]*372building known as No. 2 West Ninety-fourth street for the term of one year, seven and one-half months commencing February 15, 1902, and ending October 1, 1903, at the annual rental of $1,500 payable in equal payments of $125 on the first day of each and every month.” The court stated (Ingraham, J., writing): “ There was no provision in the lease that the rent was payable in advance. The defendant agreed to pay an annual rent of $1,500 payable in equal monthly payments on the first day of each and every month during the term; but this is not stated to be in advance. The payment was to be made on the first day of each month for the rent that had accrued for the preceding month.”

The McCahill Case (supra) followed the rule stated in the Goldsmith case. In Castleman v. DuVal (supra), which is a Maryland case, there was a lease which provided for the term of eleven months beginning on the 20th day of October, 1897, and ending on the 20th day of September, 1898, at $641.63 payable $58.33 on the twentieth day of each and every month. In its opinion the court said: The lease contains no express stipulation that the monthly installments of rent are to be payable in advance, or at the beginning of the respective months, nor any expression of like import, nor is there anything in its contents creating a necessary implication that it was the purpose of the parties to make the rent payable in advance. The appellee relies largely upon the use in the lease of the words,

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Bluebook (online)
199 A.D. 368, 191 N.Y.S. 843, 1922 N.Y. App. Div. LEXIS 8024, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smathers-v-standard-oil-co-nyappdiv-1922.