Stoner v. Stehm

202 N.W. 530, 200 Iowa 809
CourtSupreme Court of Iowa
DecidedMarch 10, 1925
StatusPublished
Cited by5 cases

This text of 202 N.W. 530 (Stoner v. Stehm) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stoner v. Stehm, 202 N.W. 530, 200 Iowa 809 (iowa 1925).

Opinion

Stevens, J.

I. Appellant is the owner of a two-story structure, 40x310 feet, located at, and known as, 814 Tuttle Street, in the city of Des Moines, which he leased, in 1906, to the Enamel Concrete Company for a machine shop. This lease was renewed in 1916 for another term of five years, and a new lease was executed, June-14, 1920, for a somewhat indefinite term. The latter lease was also signed by the Win Her Washer Company and the appellee Stehm, for himself and as secretary of the Enamel Concrete Company. On or about December. 20, 1920, appellant commenced an action against .his lessees for rent, aided by a landlord’s attachment. A settlement of the claim for rent was effected; but the appellee Stehm interposed, a counterclaim against appellant,-in his own behalf and as assignee of his colessees, of-their interest-in the subject-matter thereof, alleging that, prior to the execution of the lease of May 9, 1916, appellant, as an inducement to its execution, and as compensation for the inconvenience and difficulties suffered by lessees as the result of a change in the- grade of Tuttle Street *811 and the tracks of the Des Moines Union Railway Company, which were adjacent to the building, orally promised and agreed to pay them one half of the damages recovered from the city on account of the change of the street grade.

The only issues submitted tp the jury were those arising on the counterclaim. Appellant challenges both the truth and the competency of the testimony of appellee offered .in support of the alleged oral contract. It is conceded that appellant and the city entered into a written contract, on or about March 24, 1917, by the terms of which the latter agreed to raise the floors of the leased building and otherwise conform it to the grade of the street and the right of way of the railway company, which was four feet higher than originally. The work under this contract was not done, however, until, in the fall of 1920 -and the early part of January following. That the change of 'the street grade, which caused the water and dirt to be carried into the building, caused lessees considerable inconvenience and difficulty is not denied.. The evidence shows that the city expended over $4,000 in the improvement of the building and premises.

It also appears without conflict in the evidence .that, prior to the execution of the lease of June. 14, 1920, which also purports to evidence a settlement of controversies between the parties, appellant commenced and prosecuted to judgment.an action of forcible entry and detainer against the Enamel Concrete Company. Except merely formal matters, the rest of the testimony is irreconcilable. Appellee testified, in substance, that, in March, 1916, prior to the expiration of the original lease, a conference between himself, appellant, and Owen Ruffeorn, secretary of the Enamel Concrete Company, was had, to consider the subject of its renewal; that, at tliis 'c.onference and at a later one, appellant proposed that, if the lessee would renew the lease, so- that he would have something to show that the building was. valuable for rental purposes, he would allow the company one half of the damages he recovered from the city, caused by the change of street grade, or one half of the cost of. repairing the building so as to make it conform thereto; that appellant explained that, if the building was empty, ‘'‘it would look like a morgue,” and the city council would do nothing in the way .of a settlement ; that, in reliance upon this oral promise of appellant’s, the lease *812 of 1916 was executed; that, at the time of its execution, appellee suggested that the oral agreement be made a part thereof, but that appellant objected, saying that he wanted a straight lease to show to the city officials. Appellee also testified that he agreed to use his influence with the city council to get a settlement of the damages to the leased premises, and that he did interview certain members thereof, and that frequent conferences were had with appellant about the matter. All of the above testimony of appellee was admitted by the court over the objections of appellant that it tended to vary and contradict the terms of a written instrument.

Appellant denied the testimony of appellee as to the oral contract, and asserted that the only reference he ever made to a division of the damages was in connection with a proposition to sell the property to the Enamel Concrete Company, or to appellee.

The lease of June 14, 1920, contained the following provisions :

“Whereas, differences arose between the .said companies and the lessor T. I. Stoner, necessitating an action of forcible entry and detainer on the part of the said lessor, T. I. Stoner, for the immediate possession of said property, resulting in the judgment of the court in favor of the plaintiff, T. I. Stoner, and
“Whereas, the said Enamel Concrete Company, Prank Stehm and the Win Her Washer Company, are desirous to remain in the possession of said premises
“Therefore, in order to compose and settle all differences heretofore existing the following agreement is this 14th day of June, 1920, entered into, to wit:”

With reference to the alleged oral agreement which forms the basis of appellees’ counterclaim, it is the position of appellant: (a) that no such agreement ever existed; (b) that, if same is proven by the evidence, it will be conclusively presumed that its terms were merged in the lease of May 9, 1916, and the testimony offered in support thereof was admitted in violation of the parol-evidence rule; and (c) that, if neither of the above contentions of appellant is correct, appellees’ claim was conclusively settled and adjusted by the provisions of the lease of *813 June 14th quoted supra, and for' this" reason parol' evidence of the'agreement was not admissible.

The applicability of the parol-evidence rule and its so-called familiar exceptions to proven facts often present a" question very difficult of solution.

First, as to the lease of May 9, 1916: This is thi instrument that Avas executed, as appellee claims, in pursuance ‘of the alleged oral contract. The relation of landlord and tenant at this time existed between appellant and the Enamel Concrete Company, of Avhich the appellee Stehm was a stockholder and officer, under the original lease entered into in 1906.'

During the fall of 1915, the grade "of Tuttle Street and the tracks of the Union Railway Company had been raised four feet, thereby subjecting the first floor of the leased building to overflow, Avith the consequent deposit of dirt on the floor théreof. For this reason, according to the testimony of Stehm, the officers of the Enamel Concrete Company were objecting' to a renewal of the lease. It Avas in this connection that "appellee claims that appellant stated that he desired to go to the city with a lease by Avhich he could demonstrate that the property Avas valuable for rental purposes, and that, if a new lease was executed, he would allow the lessee one half of any sum recovered as damages from the city, or of the cost thereto of conforming the building to the new street grade. Stehm testified that the lease of May 9th Avould not have" been entered into by the Enamel Company, but for this oral promise and agreement as to the division of the damages recovered from the city.

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Bluebook (online)
202 N.W. 530, 200 Iowa 809, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stoner-v-stehm-iowa-1925.