Springs v. Atlantic Refining Co.

205 N.C. 444
CourtSupreme Court of North Carolina
DecidedNovember 22, 1933
StatusPublished
Cited by13 cases

This text of 205 N.C. 444 (Springs v. Atlantic Refining Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Springs v. Atlantic Refining Co., 205 N.C. 444 (N.C. 1933).

Opinion

Stacy, C. J.

It is alleged in the complaint that Boyd and Mendenhall sublet the premises in question to the Red “C” Oil Company, but as they parted with their entire interest in the demised premises, what really [447]*447took place was an assignment or sale of tbe lease. Millinery Co. v. Little-Long Co., 197 N. C., 168, 148 S. E., 26. And as tbis was done witb tbe knowledge and express consent of tbe plaintiffs, it would seem tbat tbe assignees were in under tbe original lease witb tbe same rights wbicb tbeir assignors bad witb respect to removing buildings and improvements placed tbereon by Boyd and Mendenhall. Causey v. Orton, 171 N. C., 375, 88 S. E., 513.

It is further alleged in tbe answer tbat tbe buildings and other improvements erected or placed upon tbe demised premises by Boyd and Mendenhall are now “tbe sole and exclusive property of tbe defendant and it has tbe right to remove tbe same from said premises.” Under tbis allegation, it would seem tbe defendant is entitled to show, if it can, its right to remove tbe said buildings and improvements. Belvin v. Paper Co., 123 N. C., 138, 31 S. E., 655; R. R. v. Deal, 90 N. C., 110.

Tbe injunction was made permanent — not simply continued to tbe bearing — upon tbe theory tbat tbe defendant, being a tenant in possession, is estopped to deny tbe plaintiffs’ title to tbe buildings and improvements placed tbereon prior to tbe beginning of defendant’s present lease, 1 July, 1932.

It is undoubtedly a well settled principle of law, tbat where tbe conventional relation of landlord and tenant exists, and tbe latter takes possession of tbe demised premises under a lease from tbe former, tbe tenant will not be permitted to dispute tbe title of the landlord, either by setting up an adverse claim to tbe property or by undertaking to show tbat it rightfully belongs to a third person, during tbe continuance of such tenancy. Hobby v. Freeman, 183 N. C., 240, 111 S. E., 1; Clapp v. Coble, 21 N. C., 177. But tbis wholesome and salutary principle, supported both by authorities and considerations of public policy, we apprehend is not necessarily controlling in a case like tbe present, where tbe removal of buildings and improvements placed upon tbe premises by tbe tenant is expressly provided for in tbe agreement between tbe parties. Causey v. Orton, supra; Freeman v. Leonard, 99 N. C., 274, 6 S. E., 259; Feimster v. Johnson, 64 N. C., 259.

Speaking to tbe subject in Insurance Co. v. Totten, 203 N. C., 431, 166 S. E., 316, it was said: “Tbat a tenant who takes possession of demised premises under a lease from tbe landlord, or being in possession unconditionally agrees to bold as such (Riley v. Jordan, 75 N. C., 180), will not be permitted to dispute tbe landlord’s title, during tbe continuance of tbe tenancy, is established by all tbe authorities on tbe subject. Hobby v. Freeman, 183 N. C., 240, 111 S. E., 1; Clapp v. Coble, 21 N. C., 177. But tbis principle, founded upon reasons of public policy, applies only in cases where tbe simple relation of landlord and tenant exists (Abbott v. Cromartie, 72 N. C., 292), and does not extend [448]*448to instances where title to the property is brought in question or equities are to be adjusted between the parties. Hughes v. Mason, 84 N. C., 473; Hauser v. Morrison, 146 N. C., 248; Turner v. Lowe, 66 N. C., 413.”

The doctrine of fixtures has been the subject of much consideration by the courts. A number of interesting cases appear in our own Reports, and they abound with many niceties and distinctions.

For example, in Smithwick v. Ellison, 24 N. C., 326, speaking of the right of a tenant to remove manure made on a farm during the tenancy, it was said: “Whatever things the tenant has a right to remove ought to be removed within the term; for, if the tenant leave the premises without removing them, they then become the property of the reversioner. But where the tenant holds over, even so as to become a trespasser, he will not be considered as having abandoned the things he had a right to remove.” Compare 11 R. C. L., 1080.

Likewise, in Feimster v. Johnson, 64 N. C., 259, where it was held that a still “set up and encased in masonry in the usual way” did not become a part of the realty, contrary to the intention of the parties, the Court taking occasion to say: “As a general rule, whatever is attached to land is understood to be a part of the realty; but as this depends, to some extent, upon circumstances, the rights involved must always be subject to explanation by evidence. Whether a thing attached to land be a fixture or chattel personal depends upon the agreement of the parties, express or implied. Naylor v. Collins, 1 Taunt., 19; Pervy v. Brown, 2 Stark., 403; Wood v. Hewitt, 55 E. C. L., 913. A building, or other fixture which is ordinarily a part of the realty, is held to be personal property when placed on the land of another by contract or consent of the owner.”

Again, in Sanders v. Ellington, 77 N. C., 255, holding that a crop cultivated by a tenant and left standing in the field after the expiration of his term becomes the property of the landlord, the Court observed: “A tenant for years may remove fixtures and anything put there by himself, provided he does so before his term expires; but after that, all of such things belong to the owner of the land, and the quondam tenant has no right to put his foot upon the land except by license of the owner. All of the cases agree that such is the law.” See, also, Chauncy v. R. R., 195 N. C., 415, 142 S. E., 327.

But coming nearer to the subject in hand, it was said in Horne v. Smith, 105 N. C., 322, 11 S. E., 373, that as between landlord and tenant, the intent with which fixtures are attached to the freehold becomes material, and if it appear that they were for the better temporary use of the premises, they may be treated as “trade fixtures,” and hence removable. Causey v. Plaid Mills, 119 N. C., 180, 25 S. E., 863.

[449]*449The liberality extended a tenant, in favor of trade and to- encourage industry, may not apply as between vendor and vendee or mortgagor and mortgagee. Pritchard v. Steamboat Co., 169 N. C., 457, 86 S. E., 171; Overman v. Sasser, 107 N. C., 432, 12 S. E., 64; Foote v. Gooch, 96 N. C., 265, 1 S. E., 525; Bond v. Coke, 71 N. C., 97; Latham v. Blakely, 70 N. C., 368. The reason for the rigid enforcement of the rule in the one case and its relaxation in the other is clearly pointed out by Pearson, C. J., in Moore v. Valentine, 77 N. C., 188. When fixtures are annexed to the land by the owner, actual or potential, the purpose is to enhance the value of the freehold, and to be permanent. But with the tenant a different purpose is to be served, hence for the encouragement of trade, manufacturing, etc., the tenant is allowed to remove what has apparently become affixed to the land, if affixed for the purposes of trade, and not merely for the better enjoyment of the premises. Pemberton v. King, 13 N. C., 376; Basnight v. Small, 163 N. C., 15, 79 S. E., 269.

Our present consideration is limited to the relative rights of landlord and tenant. See Overman v. Sasser, supra, where the subjects are classified and distinguished and the rules applied to the different classes.

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Bluebook (online)
205 N.C. 444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/springs-v-atlantic-refining-co-nc-1933.