Thompson v. Thomas & Thompson Co.

104 A. 49, 132 Md. 483, 1918 Md. LEXIS 60
CourtCourt of Appeals of Maryland
DecidedApril 3, 1918
StatusPublished
Cited by16 cases

This text of 104 A. 49 (Thompson v. Thomas & Thompson Co.) 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
Thompson v. Thomas & Thompson Co., 104 A. 49, 132 Md. 483, 1918 Md. LEXIS 60 (Md. 1918).

Opinion

Stockbridge, J.,

delivered the opinion of the Court.

The questions of law involved in this appeal are not difficult, and have been settled as far as this State is concerned by the cases of Falck v. Barlow, 110 Md. 159; King v. Kai ser, 126 Md. 213, and Read v. Nattans, 129 Md. 67 and 130 Md. 470.

The bill of complaint is one for specific performance. It will suffice to refer very briefly to certain prominent facts’ appearing from the exhibits and evidence, to make entirely plain the proper application of the legal principles as set out in the cases already mentioned.

Plaintiff's Exhibit No. 1 purports to be an agreement to lease certain premises, known as No. 103 E. Baltimore street, by John B. Thomas and Kate Thompson, Trustee, to the Thomas & Thompson Company. It is dated May 10th, 1910, *485 and appears to have been intended as a lease of the cellar and first floor of 103 E. Baltimore street, for a term of five years, at a rental of $3,600 per annum, for the half interest of the appellant therein; and further to he a lease for ten years, commencing at the expiration of the five years, at an animal rental of $4,000 for the same half-interest.

This agreement was not acknowledged by either John B. Thomas, or the Thomas & Thompson Oo., nntil the 21st day of Marfih, 1917, and was never acknowledged at a,ny time by Mrs. Kate Thompson, as Trustee. The appellant claims that the paper referred to is not a valid lease, because not in accordance with Section 1 of Article 21 of the Code. There is no allegation that the rent stipulated is inadequate, or that any of the conditions embodied are unjust or unfair to the appellant.

It is unnecessary to consider whether the paper was a valid lease for the original five-year term, from June 1st, 1910, to June 1st, 1915, for the reason that that term has fully expired, the rent been paid and accepted, and that question would at this time be purely academic.

All that this case can properly deal with, therefore, is as to the effect of Plaintiff’s Exhibit No. 1 as creating a lease, or an agreement to lease, for the ten-year period, beginning J une 1st, 1915. That it does not comply with the provisions of the Code, supra., necessary to constitute it a valid lease, is perfectly plain. At the same time if the paper is adequate in other respects it may constitute a perfectly good agreement to enter into a lease in accordance with the terms set forth, an agreement such as a Court of Equity will specifically enforce.

Mention has already been made of the fact that this agreement, though signed by Mrs. Thompson, was never acknowledged by her. Mr. Thomas and Mrs. Thompson, as life tenant and trustee under the will of her husband, were tenants in common of the property. As such Mr. Thomas, of course, *486 had no right to bind the interest of his co-tenant by any lease of the premises. This situation might have been made a ground of defense by the appellant, but no stress was laid upon it, either in the argument before the Oourt or in the brief filed by her counsel. If there had been, it would have been a sufficient answer to say that the appellant by receiving the rental of $4,000 per annum, down to the time of the bringing of this suit, had ratified the agreement, for a ratification may .be established by acts as well as by parole or by written agreement. See 7 R. C. L., 877; Pellow v. Arctic Iron Co., 164 Mich. 87, 47 L. R. A., N. S., 573, and elaborate note appended thereto; and McDonald v. Finseth, 32 N. E. 400, L. R. A. 1916, D. 149, in which a! very able opinion was filed by Bkuce, I., reviewing nearly all of the authorities.

What actually took place in this case was a notice; dated December 2nd, 1916, from Kate Thompson, Trustee,' to the Thomas & Thompson Company, to vacate the premises on the 31st May, 1917. This notice referred to the agreement, Plaintiff’s Exhibit No. 1 already mentioned, and by inference ratified that agreement as a lease for five years, and then seeks to treat the appellee company as being a tenant holding over, and, therefore, a tenant from year to year. The communication of Mr. Boyd, which accompanied the notice, speaks of the agreement as a “supposed lease” for a period of fifteen years. / The instrument to which this refers makes no mention of a term of fifteen years, that duration can only be arrived at by combining the two terms named therein, and for which terms the amount of rental payable was not the same.

This notice having been served, the appellee, on the 30th of April, 1917, filed the bill in this case, hy the prayers of which the following relief was asked: An injunction against the appellant to restrain any proceedings at law for the recovery of the premises, and a decree for a specific performance *487 or execution, of a lease, in conformity with the terms of Plaintiff’s Exhibit No-. 1.

The answer, after admitting a number of the allegations contained in the bill, relies mainly upon two grounds—first, that, under the terms of the will of her husband, Albert E. Thompson, she was without power to enter into such an agreement as that proposed; and the second ground of defense was ¿ts to the proper rule of law applicable to such cases.

The will of M r. Thompson, in so far as it places a limitation on the power of his executrix and trustee to- deal with the property, is as follows:

“I hereby confer upon my executrix, or her successor in charge of my estate, full power and authority for the purpose of changing the investments of my estate so left, or for the purpose of making division thereof, to sell and lease any part or all of the property so held, subject, however, to the approval of the Court.”

The defendant claims that no- authority of the Court having been given, such an agreement of lease as that now involved would he an ultra vires act. This, however, is a misconception of the plain intent of the- testator. The approval of the Court was evidently intended to apply only to the sale of the property for the purpose of reinvestment, o-r a partition of the estate. The proposed agreement is. neither; it looks only to- obtaining a proper and adequate- return fro-m the estate, as it had been, held by the testator without any reference to a change of investment or partition.

The legal requirements for the maintenance- of a bill for specific performance have been so frequently repeated in this Court that it would he a work of supererogation to again, recite them. They were tersely stated in King v. Kaiser, supra, when it was said: “To maintain a hill for specific performance it is requisite that the agreement, which the Court is asked to require to he performed, must he fair, just, *488 reasonable, bona fide, certain in all its parts, and made upon a good and valuable consideration.”

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Bluebook (online)
104 A. 49, 132 Md. 483, 1918 Md. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-thomas-thompson-co-md-1918.