Stedman v. Hill

74 A.2d 41, 195 Md. 568, 1950 Md. LEXIS 300
CourtCourt of Appeals of Maryland
DecidedJune 9, 1950
Docket[No. 160, October Term, 1949.]
StatusPublished
Cited by5 cases

This text of 74 A.2d 41 (Stedman v. Hill) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stedman v. Hill, 74 A.2d 41, 195 Md. 568, 1950 Md. LEXIS 300 (Md. 1950).

Opinion

Grason, J.,

delivered the opinion of the Court.

Harry Stedman and Emma Stedman, his wife, prior to November 9, 1944, owned in fee simple by the entire-ties, a property in Ridgely, Caroline County, Maryland, where they for some fifteen or sixteen years conducted a grocery, provisions and meat store. They wanted to sell it. William G. Hill decided to go in business, and the Stedmans and Hill met and discussed the matter of Hill taking over the store. The result was that on November 9, 1944, a “Contract and Agreement of Sale” was reduced to writing and signed by them. The provisions of this contract, which are of interest here, are: 1. That Hill was to rent the store property for $30.00 a month for a period of one year, with the right of continuing possession at the same rent for the period of two more years; 2. that Hill was to buy the stock in trade in the store at an appraised value, and was to pay $1,000.00 *572 in cash at the time the store and provisions were delivered to him, and the balance of the price therefor was to be paid within one year from the date of-a lease to be executed; 3. that the fixtures in the store, used in connection with its operation, were to be leased at a rental of $20.00 a month, ■ with an option' to purchase the same for $3,500.00 "at .the end of a two year period, rent paid in the meantime to be deducted from the $3,500.00; 4. that Hill was to have 'an option to'.purchase the store property at a price of $3,000.00. at any time during the three year period. There were other provisions in the contract and agreement, which we need not recite.

On the 30th day of November, 1944, there was executed by the parties a “Lease and Agreement of Rental” which was to date from November 27, 1944. This Lease and Agreement of Rental contains the same provisions as the Contract and Agreement of Sale dated November 9, 1944, and the purchase price of the stock in trade was determined to be $2,700.00. This instrument provides for a lease for one year, and “that this lease shall be renewable from year to year for a period of three years for the real estate herein described, unless the Lessee shall notify the Lessors at least thirty (30) days prior to the end of any year that he does not desire to continue said Lease, and said lease shall expire at noon on November 27, 1947, without any notice from either party and shall not be renewable beyond that time, without the consent in writing of all the parties hereto. * * * that this lease, as it pertains to the fixtures and personal property, shall be renewable on November 27th, 1945, for a period of one year unless the Lessee shall give notice in writing to the Lessors that he does not desire to continue to renew said Lease for another year; but,, in any event, said lease of the fixtures and personal property shall end on November 27, 1946 without notice to either party and shall not be renewed after that, time unless by an agreement in writing signed by all the parties hereto.” This instrument...will be .¡¡referred to herein as the first lease.

*573 Hill paid $1,000.00 in cash and he and his wife gave a note to the Stedmans for $1,700.00,, payable in one year, with interest. Hill entered possession 'of the store property on November 27, 1944.

Under this Lease and Agreement of Rental Hill conducted this business and performed all of his obligations under the first lease until September 9, 1945, when he met with an automobile accident in which he was severely injured, and was away from the store until about the first of December, 1945. From the date of the accident until that time the store was operated by the Stedmans.

When Hill came back to the store, in the early part of December, 1945, what will hereafter be called the second lease was executed, on the 6th day of December, 1945. Under its terms the Stedmans leased to Hill and his wife the store property for a period of two years, beginning November 27, 1945, and ending November 27, 1947, for $35.00 per month; “that this lease shall on November 27, 1947, become automatically renewed in its entirety at the same rental for the term of one year and from year to year thereafter unless either party hereto shall notify the other party by notice in writing at least six months prior to November 27, 1947, of his or their intention to terminate same”. It provides that the lessee shall pay all sewer and water rents incurred by reason of their occupancy of said premises, and to be responsible for the payment of charges for electric current and telephone services used by them in the conduct of the business. It provides for the removal of all fixtures or other property placed in the storeroom. This second lease is silent as to the option to buy the store property, contained in the first lease.

In May, 1947, Hill notified Stedman that he desired to exercise his optional right to purchase the store building and land on which the store building was located, and Stedman told him that he had no option to purchase the store property. The bill in this case was then filed by Hill against the Stedmans for specific performance for the sale of the prpperty, relying upon the option *574 contained in the first lease. Answer was filed by the Stedmans, testimony was taken in open court, and the chancellor decreed specific performance of the sale of the property, from which decree the appeal in this case was taken.

In a case where property has been leased for a given term, in order to surrender that term before it has expired, by a new lease providing for the same term as the old one, the Statute of Frauds requires a surrender in writing, or by act and operation of law. Alexander’s British Statutes, Coe’s Ed., Vol. 2.

In Lyon v. Reed, 13 M. & W. 285, English Reprint 153, which was decided in 1844, Baron Parke said:

“The ordinary course pursued on the renewal of a lease is for the lessee to deliver up the old lease on receiving the new one, and the new lease usually states that it is made in consideration of the surrender of the old one. No surrender by deed is necessary, where, as is commonly the case, the former lessee takes the new lease, and all which is ordinarily done to warrant the statement of the surrender of the old lease as part of the consideration for granting the new one, is, that the old lease itself, the parchment on which it is engrossed, is delivered up. Such surrender affords strong evidence that the new lease has been accepted by the old tenant, and such acceptance undoubtedly operates as a surrender by operation of law, and so both parties get all which they required. * * *

“In order to ascertain how far those two cases can be relied on as authorities, we must consider what is meant by a surrender by operation of law. This term is applied to cases where the owner of a particular estate has been a party to some act, the validity of which he is by law afterwards estopped from disputing, and which would not be valid if his particular estate had continued to exist. There the law treats the doing of such act as amounting to a surrender. Thus, if lessee for years accept a new lease for his lessor, he is estopped from saying that his lessor had not power to make the new *575

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Bluebook (online)
74 A.2d 41, 195 Md. 568, 1950 Md. LEXIS 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stedman-v-hill-md-1950.