Stableford v. Schulingkamp

67 So. 2d 306, 218 Miss. 276, 38 Adv. S. 20, 1953 Miss. LEXIS 542
CourtMississippi Supreme Court
DecidedOctober 12, 1953
DocketNo. 38864
StatusPublished
Cited by1 cases

This text of 67 So. 2d 306 (Stableford v. Schulingkamp) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stableford v. Schulingkamp, 67 So. 2d 306, 218 Miss. 276, 38 Adv. S. 20, 1953 Miss. LEXIS 542 (Mich. 1953).

Opinion

Ethridge, J.

The key issues in this case are whether this is (in part) an action for rentals to become due or for damages for anticipatory repudiation of contract, and if the former, whether appellee-complainant is entitled to recover future installments of rent as well as those past due.

On May 19,1951, Mrs. Ella Louise Spencer Schulingkamp, appellee and complainant below, filed a bill of complaint in the Chancery Court of Adams County against L. B. Stableford, appellant-defendant. Since the case was decided by the trial court overruling appellant’s special demurrer and petition to dismiss the bill, for the purposes of this opinion we will assume the facts which are well pleaded to be true.

Complainant is a citizen of Louisiana and defendant Stableford is a citizen of Illinois. On August 1, 1944, [279]*279Mrs. Schulingkamp executed to Allied Pipe Line Corporation, whose president was appellant Stableford, a lease for the surface rights to approximately 20.38 acres of land south of Natchez, Mississippi. The lessee corporation was to use the land for oil storage tanks and related purposes. The lease was for a period of twenty years from August 1, 1944. For the first ten years the annual rental, payable in advance on the first day of September of each year, was to be $1,020, and for the succeeding ten years the annual rental payable in the same manner was to be $1,320. Apparently the rentals were paid for six years by lessee. On May 27, 1949, the corporation lessee assigned the lease to appellant Stableford, with the consent of the lessor Mrs. Schulingkamp..

The bill charged that appellant had failed to pay the rent due on September 1, 1950, that appellee had requested appellant to pay such rent but appellant had refused, and that appellant is indebted to her for the rent due September 1, 1950; and the bill asks for a judgment against defendant for that amount.

Paragraph 6 of the bill averred that appellant would become obligated under the lease contract to pay appellee the stated rentals on September 1, 1951, through September 1, 1963, being a total of $16,260, in addition to the past due rent which was payable on September 1, 1950. The bill then charged: ‘ ‘ that the said defendant has indicated by communications to your complainant and by his act and conduct that it is his intention not to pay any of the installments of rent that are to accrue in the future under the terms and provisions of the indentures, Exhibits ‘A’ and ‘B’ hereto, (lease and assignment) and that it is his intention to default on each of the payments as the same mature and refuse to pay the same; and, accordingly, she now charges and avers upon information and belief which she verily believes to be true that it is the intention and determination of the defendant to default in the payment of each of the subsequently maturing [280]*280annual installments of rental and to refuse to pay the same as the same become due and payable.” It was therefore averred that appellee was entitled to be secured against such acts of default and against appellant’s willful failure to abide by the terms of the lease and against his obligation to promptly pay the annual rentals as they become due and payable, and that appellee is entitled to a decree adjudicating appellant’s liability under the contract to promptly pay the annual rentals “and to require him so to do at this time in view of his evidenced intention to refuse to make the payments as the same become due.” Unless this is done, the bill stated, it would be incumbent upon appellee to bring annual suits against appellant, and since appellant is a nonresident, appellee would be forced to bring suits in other jurisdictions, which would result in hardship, loss and damage to appellee.

Paragraph 7 of the bill charged that the subsequently accruing installments of rent “constitute present obligations and items of indebtedness of the defendant unto the complainant, ’ ’ although under the terms of the lease they “are not yet due and payable”; that appellant has breached the provisions of his agreement so assumed by him; and that the nature of the assets and properties which appellant has in this state are such that they will rapidly deteriorate in value with the lapse of time, and are such that may be readily disposed of by appellant. Appellee “feared” that appellant would dispose of the same, and if this should occur appellee would be hindered in the collection of the annual rentals. The bill asked the court to determine “the amount due and to become due,” and for a judgment not only for the amounts due but also for those which are to become due, discounted at an interest rate of sis per cent per annum, and for judgment for the entire amount of all rentals so computed, including those due and to become due; and this is necessary to prevent a multiplicity of suits.

[281]*281The remaining paragraphs of the bill, Numbers 8 and 9, then charged that appellant was a nonresident, identified certain real estate owned by appellant and certain residents indebted to appellant, and asked for a chancery attachment against the property and against them under Code of 1942, Sections 2729 and 2730, to satisfy the judgment. The bill prayed that on final hearing a judgment be rendered for appellee against appellant “under the allegations of this bill,” and for general relief.

As part of appellant-defendant’s answer, he filed on October 5,1951, a special demurrer directed to the above-described Paragraphs 6 and 7 of the bill of complaint. Its basis was that appellee’s bill “sets up a cause of action based on installments of rent averred in the bill to accrue in the future and that this cause of action is brought prematurely”; that Paragraphs 6 and 7 of the bill ask for a declaratory judgment which the court did not have jurisdiction and power to grant; and that there is no special prayer contained in the bill specifying the particular relief sought.

On December 7, 1951, before a hearing was had on the special demurrer, appellant filed with the clerk of the court and made a tender of the rents which had accrued for September 1, 1950, and 1951, with interest thereon to that date, together with accrued costs. Appellant filed a pleading designated “tender and petition for dismissal,” stating that the aforesaid tender “is an unequivocal tender of money admitted to be due for installments of rent due September 1,1950, and September 1,1951, under the contract sued on . . .” and the money was tendered into court for payment to complainant under court order. Hence the petition for dismissal prayed that the court would render a decree ordering payment of this money to appellee, and dismissing the bill of complaint except as to that part of it dealing with installments already due. On February 8, 1952, the chancery court [282]*282overruled appellant’s special demurrer and petition for dismissal, and allowed an interlocutory appeal.

A right of action for damages for breach by anticipatory repudiation of a lease or rental contract has been recognized in Mississippi and in many other states, with a number of other states denying it. Weir v. Cooper, 122 Miss. 225, 84 So. 184 (1920); 32 Am. Jur., Landlord and Tenant, Section 158 and Supplement; 51 C. J. S., Landlord and Tenant, Section 250, p. 883; Anno., Doctrine of Breach by Anticipatory Repudiation of Contract as Applicable to Lease, 137 A. L. R. 432, 439 (1942).

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Bluebook (online)
67 So. 2d 306, 218 Miss. 276, 38 Adv. S. 20, 1953 Miss. LEXIS 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stableford-v-schulingkamp-miss-1953.