Stern Co. v. Friedman

179 N.W. 366, 211 Mich. 639, 1920 Mich. LEXIS 725
CourtMichigan Supreme Court
DecidedSeptember 30, 1920
DocketDocket No. 67
StatusPublished
Cited by1 cases

This text of 179 N.W. 366 (Stern Co. v. Friedman) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stern Co. v. Friedman, 179 N.W. 366, 211 Mich. 639, 1920 Mich. LEXIS 725 (Mich. 1920).

Opinion

Moore, C. J.

On January 16, 1915, Alexander W. Hompe leased to Morris Friedman and Joseph Roth, co-partners doing business under the firm name of M. Friedman & Company, certain premises in the city of Grand Rapids, situated at 116 Monroe avenue, including an extension of said building fronting on Ottawa avenue, and known as No. 123 Ottawa avenue N. W. This lease was for a term of five years from and after [640]*640January 1, 1915. The following provision signed by Mr. Iiompe was indorsed on the foot of the lease:

“I hereby agree to renew thisi lease for a further period of five years from the expiration hereof upon the same terms and conditions herein contained, except that the rent which shall be determined by arbitration at least six months before the expiration hereof shall not be less than five thousand dollars per year, plus taxes, assessments and insurance. This option shall expire July 1, 1919.”

Under date of June 10,1916, the plaintiff took a sublease from Messrs. Friedman and Roth covering the above described premises, except the ground floor and basement of the store known as 123 Ottawa avenue N. W., for a period of three years and six months from and after July 1, 1916, which sub-lease contained the following provision:

“It is further agreed that said second party may at its option renew and extend this lease for a further period of five years from the expiration hereof at a rental to be agreed, upon between the parties hereto or determined by arbitration, but which shall not be less than $5,000 per annum, written notice of its intention to exercise such option to be given not later than January 1, 1919, and upon such notice being given, said first parties shall forthwith exercise their option with the owner of said premises for such renewal and extension and proceed to carry into effect for the benefit of said second party all rights and privileges of renewal to which they are entitled under their lease from the owner of said premises, and in determining the rental for such additional period the amount received as rent for the remaining portion of the premises described in the lease between said first parties and the owner, or the fair %>ro rata rental value thereof, shall be taken into consideration and due allowance therefor to said second party.”

Late in December, 1918, The Stern Company sent by mail to defendant Friedman (said Joseph Roth having died on or about November 12, 1918) a notice as follows:

[641]*641“To Morris Friedman and Joseph. Roth, Co-partners, trading as M. Friedman & Company.
“Sirs: You will please take notice that The Stem Company, lessee of the four-story brick building situated at No. 116 Monroe avenue, Grand Rapids, Michigan, and including the portion of said building fronting on Ottawa avenue known as 123 Ottawa avenue N. W., with the exception of the ground floor and basement on Ottawa avenue formerly occupied by Charles A. Kelley and leased by the Anheuser-Busch Brewing Association of St. Louis, Missouri, under lease from you dated June 9, 1916, hereby gives notice under the terms of said lease of its intentions to exercise the option in said lease contained and hereby exercises its option to renew and extend said lease for a further period of five (5) years from the expiration thereof, at a rental to be agreed upon as in said lease provided.
“Dated December, 1918.
“The Stern Company,
“By Herman Stern, President.”

After receipt of this notice it does not appear that plaintiff and Friedman took any action with reference to renewing the lease, or agreeing upon the amount of the rental or with reference to arbitration, except that early in the year 1919 Mr. Friedman’s attorneys advised the attorneys for the plaintiff that in their judgment the provisions in these leases with reference to renewals thereof were invalid and unenforceable because the minds of the parties had not met upon the amount of rental to be paid or the method whereby the same should be determined by arbitration.

The petition in this case was filed under Act No. 150 of the Public Acts of 1919, asking for a declaration of the rights of the parties to these leases.

Defendant interposed defenses as follows:

1. That the minds of the parties had not met upon the amount of the rental to be paid for the extended period.

[642]*6422. That the method whereby the amount of rental was to be determined by arbitration had not been agreed upon.

3. That the notice given by The Stern Company was not a sufficient or proper election to renew the lease in the manner provided for in the clause with respect to such renewal, the provision in the lease being that the renewal was to be “at a rental to be agreed upon between the parties hereto, or determined by arbitration,” whereas plaintiff in its notice attempted to renew “at a rental to be agreed upon.”

4. That the' original lease with Mr. Hompe was not subject to renewal at the election of Mr. Friedman, because the original lease was with Friedman and Roth, and Mr. Roth had died, consequently Mr. Hompe could not be compelled to renew with Mr. Friedman alone.

On September 24, 1919, plaintiff filed this bill in chancery, designated as a bill for declaration of rights, making Messrs. Friedman and Hompe defendants in the bill. The case was heard in open court, oral testimony was taken, on the objection of the defendant, as to the agreement about arbitration made as is alleged in a conversation before the lease was drawn. The objection was that the testimony was not competent under the pleadings, was within the statute of frauds, and that it was merged in the writing which was drawn later.

At the conclusion of the hearing a decree was entered, reading in part:

“The method of determining the rent as provided in the lease having been abandoned by the defendant Friedman, plaintiff is authorized to proceed in this case or elsewhere in this court to have the rental value of the premises covered by its lease and the rental value of the remainder of the premises covered in the lease from defendant Hompe to defendant Friedman determined, and upon such determination plaintiff has the right to require defendant Friedman to put it into possession for the renewal term under the conditions of the lease, or to proceed against the defendant Fried[643]*643man and recover from Mm such damages as he may have sustained by reason of the failure of defendant Friedman to seasonably perform said agreement for renewal.
“No right now exists in either the plaintiff or the defendant Friedman against the defendant Hompe to compel an extension by him of the lease to defendant Friedman.”

The case is brought here by appeal.

When the case reached here the court of its own motion raised the question of the constitutionality of Act No. 150 of the Public Acts of 1919, and invited briefs in relation thereto. A brief has been filed upon that subject by the appellee, but the appellant contents itself by saying:

“The bill in this case was filed under the statute heretofore referred to for a declaration of rights.

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Related

Stern Co. v. Friedman
201 N.W. 961 (Michigan Supreme Court, 1925)

Cite This Page — Counsel Stack

Bluebook (online)
179 N.W. 366, 211 Mich. 639, 1920 Mich. LEXIS 725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stern-co-v-friedman-mich-1920.