State Ex Rel. Union Temple Ass'n v. Cain

104 So. 208, 158 La. 463, 1925 La. LEXIS 2078
CourtSupreme Court of Louisiana
DecidedMarch 30, 1925
DocketNo. 26602.
StatusPublished

This text of 104 So. 208 (State Ex Rel. Union Temple Ass'n v. Cain) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Union Temple Ass'n v. Cain, 104 So. 208, 158 La. 463, 1925 La. LEXIS 2078 (La. 1925).

Opinion

OVERTON, J.

Plaintiff purchased several vacant lots at the corner of Carondelet and Lafayette streets in this city, paying therefor the sum of $02,000. Plaintiff intended in purchasing the lots to erect a building thereon, but, as plaintiff was not ready to build at the time it purchased, it concluded to lease the property. A lease was accordingly effected with J. L. Kaiser for a period of 3 years, commencing on October 1, 1921, in consideration of said Kaiser’s paying $100 a month as rent for the property. Kaiser subleased the lots almost immediately to Lawry & Palmisano, who assigned the sublease, at once, to A. J. Gumina. Gumina desired to erect temporary buildings on the lots, so that he could use the property, but before undertaking to erect the buildings he desired to acquire the right to renew his sublease at its termination for another period of three years, so that he could be assured of a sublease for approximately six years. Gumina spoke to Kaiser concerning the matter, and Kaiser engaged the services of a real estate agent to obtain from plaintiff the right to renew his lease, at its termination, so that he could sublease the lot to Gumina for another period of three years upon the expiration ofi Gumina’s sublease. The real estate agent, through one of his employees, called on R. M. Stephens, who was plaintiff’s secretary, relative to obtaining the right in behalf of his principal to renew the lease. Whether or not Stephens reported the mission of the real estate agent correctly to plaintiff’s board of directors does not appear, but be that as it may, the board, at its meeting of November 5, 1921, a little over 60 days after the lot had been leased to Kaiser, adopted, as appears from the minutes of the meeting, the following motion or resolution, to wit:

“It was moved by Bienvenue, seconded by Royes, and carried that J. L. Kaiser be given the refusal, or first consideration, at the expiration of his present lease in event the association decides to re-lease building site; that *465 no price or terms be named, and that secretary be instructed to send a copy of this resolution to Mr. Kaiser.”

Apparently, Kaiser did not receive a copy of the foregoing resolution, for something over 3 weeks after its adoption, Vorbusch, an - employee of the real estate agent, engaged by Kaiser, called to see Stephens for the purpose of ascertaining what the board of directors had done in the matter, and, if the board had passed a resolution regarding the renewal of the lease, to obtain a copy of the resolution. At this interview, Stephens informed the employee of the real estate agent that he did not have the minutes showing the proceedings of the board of directors at hand, but the employee wanted something that would show what was done, and Stephens wrote a letter, under date of November 30, 1921, in his capacity as plaintiff’s secretary, addressed to the employee, and gave it to him, reading as follows, to wit:

“I was instructed by the board of directors of this association at their meeting held on November 19, 1921, to advise Mr. J. L. Kaiser through you that a resolution was passed at said meeting giving Mr. Kaiser the privilege of renewing his lease on the vacant lot of the association at Lafayette and Carondelet streets at the expiration of the present lease.
“Union Labor Temple Association,
“R. M. Stephens, Seety.”

The letter written by Stephens was delivered to Kaiser, and Kaiser, acting upon it, ■ wrote the following letter to Gumina, the sublessee, to wit:

“This letter is to certify that I hereby agree to renew the lease given to Lawry & Palmisano on lots 1, 2, 3, and 4, square 219 of this city, for 36 months, beginning on October 1, 1924, and ending September 31, 1927, 1st dist., bounded by Lafayette, Carondelet, St. Charles, and Girod streets.
“The above as per letter written to A. R. Vorbusch by R. M. Stephens, Secretary of the Union Labor Temple Association, Inc., which was passed on by the board of directors of this Association at a meeting held November 19/21.
“Yours respectfully, J. L. Kaiser.”

Kaiser or Gumina caused the two letters quoted above to be recorded in the office of the register of conveyances for the parish of Orleans, in the early part of January, 1922; and. Gumina, having received the assurance contained in the foregoing letter from Kaiser, that the sublease would be renewed, erected, while the sublease still had over two years in which to run, the buildings that he had in view.

. About 2 years after the recordation of the letters from plaintiff’s secretary and from Kaiser, plaintiff obtained an opportunity to sell the lots in question for $100,000. However, the proposed purchaser refused to accept the title unless the inscription on the conveyance records of the letters mentioned above was canceled. -Plaintiff failed to obtain amicably the cancellation of the inscription of these letters, and, therefore, instituted the present suit against Maurice Cain, Register of Conveyances, Kaiser, Gumina, and also against Lawry & Palmisano, who were the original sublessees, and Vorbusch, who was the employee of the real estate agent to whom the letter of plaintiff’s secretary was addressed, to have the inscription erased.

The position of plaintiff is that its secretary, as the result of an error under which he was laboring, and without any authority from its board of directors, in whom alone

-,as vested the authority to authorize the renewal of the lease, wrote the letter*, stating that the board had consented to the renewal ; and that the recordation of said letter and of the one from Kaiser to the sub-lessee, Gumina, agreeing to renew the sublease, operates as a cloud upon its title, and should he erased. The position of the two defendants, Kaiser and Gumina, who are directly interested in the matter, is that, if plaintiff did not authorize the renewal of the lease, and the writing of the letter by its secretary, to the effect that the board had *467 consented to the renewal, still, as Kaiser and Gumina had acted in good faith on the letter from plaintiff’s secretary, and, as Gumina had spent large sums of money in erecting structures on the property, partly on the faith of the letter, and, as the letter had been of record for nearly two years before plaintiff claimed that its secretary was not authorized to write it, plaintiff should not be permitted at this late date, after the letter had been thus acted upon, to repudiate it, and thereby obtain the cancellation of said inscriptions. The position of the register of conveyances is that he merely complied with the law in recording said letters, and that it is a matter of no concern to him whether said inscriptions are ordered canceled or not. The remaining defendants made no appearance in the case.

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Bluebook (online)
104 So. 208, 158 La. 463, 1925 La. LEXIS 2078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-union-temple-assn-v-cain-la-1925.