Toy Fair, Inc. v. Kimmel

177 F. Supp. 129, 1959 U.S. Dist. LEXIS 2622
CourtDistrict Court, D. Maryland
DecidedSeptember 29, 1959
DocketCiv. No. 11361
StatusPublished
Cited by4 cases

This text of 177 F. Supp. 129 (Toy Fair, Inc. v. Kimmel) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Toy Fair, Inc. v. Kimmel, 177 F. Supp. 129, 1959 U.S. Dist. LEXIS 2622 (D. Md. 1959).

Opinion

THOMSEN, Chief Judge.

This action for an alleged wrongful eviction presents a maze of troublesome, novel problems, including: (A) whether under the facts defendant landlord was entitled (1) to re-enter the leased store on April 16, 1959, and change the lock, (2) to distrain for the May and June rent, and (3) to retain the air-conditioning equipment; and (B) what damages, if any, (1) the individual plaintiffs and (2) the corporate plaintiff are entitled to recover, in view of (a) what they did before April 16 and (b) what they failed to do thereafter. The fair result, how[131]*131ever, is reasonably clear and will be reached by cutting through the maze.

Defendant George P. Kimmel, aged 75, a patent attorney, is trustee under a deed of trust which he created for the benefit of his son in 1935; it is agreed that all of his acts material to this case were done as such trustee and that the defendant trust estate is liable for any damages that may be awarded.

The individual plaintiffs, Black and Francis, were partners, trading as Toy Fair, until 1957, when they organized a corporation, Toy Fair, Inc., to take over their business, and transferred to it the stock and fixtures in the four stores which they had been operating in the Washington metropolitan area.

None of the parties was a trustworthy witness.1

In February, 1955, Kimmel leased to Black and Francis a store in the Rockville Shopping Center for a term of ten years, beginning March 1, 1955. The pertinent provisions of the lease are set forth in Note 2 Black and Francis installed [132]*132show cases and other fixtures and built shelving against the walls. An air-conditioning system was installed, for which plaintiffs paid $2,400. Black and Francis conducted a toy business in the store until June, 1957, when their corporation, Toy Fair, Inc., took over the operation.

The lease called for a fixed rent and percentage rent payable in advance on the first day of each month, but by agreement of the parties $300 per month was paid and accepted as full fixed rental after January, 1956. The sales did not require any percentage rental. Until December, 1957, the rent was paid by the individuals, thereafter by the corporation; it was usually paid late, sometimes very late.

In December, 1958, Toy Fair, Inc., filed a petition in the United States District Court for the Eastern District of Virginia for an Arrangement under Chapter XI of the Bankruptcy Act, 11 U.S. C.A. § 701 et seq. Defendant was listed as a creditor for three months’ back rent, which was eventually paid on April 23, 1959. The Debtor’s Plan of Arrangement submitted in the Chapter XI proceeding rejected the Rockville lease and stated that the location had been found to be unprofitable. The Plan was approved on February 24, 1959. Meanwhile, on February 17, 1959, Black had written Kimmel as follows:

“ * -x- -x- since we are not in a position financially to conduct business in Rockville herewith is óur notice that we will close the Rockville store on March 31,1959.
“We hope you will be able to rent these premises to a new tenant by that time or shortly thereafter. Of course, we will continue to be responsible for the rent each month. In the event we are able to interest another party in taking over the store we will bring this to your attention at once. In the meantime, as you so kindly suggested, this letter will serve as a notice to you of the store’s availability as of April 1, 1959.”

Kimmel replied on February 25, asking:

“1. When do you agree to have the stock of merchandise removed from the premises?
“2. When do you agree to have the fixtures removed from the premises?
“3. What are your intentions with respect to the air-conditioning unit now installed in the premises which you have paid for and which seems to be the only thing on the premises of any possible value as security under the lease?”

On February 26, Black and Francis replied :

“(1) * * * April 5.
“(2) Since we will be paying rent on the premises until a new tenant is found, we intend to leave the fixtures on the premises in the hope the new tenant may have use for them and we could reach some sale agreement with him.
“(3) Similarly, we will leave the air conditioning unit on the premises in the hope we can sell it to the new tenant.”

Early in March plaintiffs began a “going out of business sale” at the Rockville store,3 filling the windows with large signs to that effect, stating “Everything must go!”, “All merchandise 50% off or more”, “For Rent”, “Fixtures for sale”, and the like. One sign, changed each day, showed the number of days remaining in the sale, which would end early in April.

On March 24, 1959, Black and Francis wrote Kimmel proposing: (1) “to ter[133]*133mínate our lease” at the Toy Fair store, Rockville, on May 31, 1959, “or earlier should we surrender the premises before that time”; (2) to transfer to the landlord title to the air-conditioning machine, the awning and such additional fixtures “as are not removed by us prior to 5/31/59”; and (4) that “Rental payments for April and May 1959 shall not be required”. The other proposals are not material, but plaintiffs added, “If you find a tenant who wishes occupancy prior to 5/31/59 we will be cooperative in effecting this.”

Kimmel replied on March 28, rejecting the proposal and calling attention to paragraph 8(a) of the lease, which is set out in Note 2.

Plaintiffs had planned to conclude the “going out of business sale” on Saturday, April 11, and to remove the remaining stock to their other stores shortly thereafter. The sale, however, proved unexpectedly profitable; the March sales totaled $4,539 compared with $1,861 the previous March. Some time between Saturday, April 11, and Wednesday, April 15, plaintiffs decided to continue the sale until the end of April. Plaintiffs had bought very little new stock, not over $5,000 worth for all four stores since before Christmas; the sale presented an opportunity to get rid of old, slow-moving merchandise from all of the stores. Some distress merchandise had been purchased especially for the sale; other merchandise was marked up and then marked down.

Not having received the April rent by Friday, April 10, Kimmel telephoned the plaintiffs and was told by Black that the rent check was in the mail. When it was not delivered on the morning of April 11, Kimmel went to Rockville, arranged for the issuance of a distraint, and accompanied the deputy sheriff to the store, where the distraint was executed. Under instructions from Kimmel, the deputy sheriff seized only the racks, stands, cash register, adding machine and air-conditioner, since Kimmel had told plaintiffs’ store manager that he did not wish to •interfere with the sale of merchandise then going on. The deputy sheriff, who also worked for Kimmel as a special policeman at the Shopping Center, valued the property seized at $500. The manager told Kimmel that they were closing up; that he was leaving that day, his wife the following Monday; and that plaintiffs “were going to move everything out” the following week.

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Cite This Page — Counsel Stack

Bluebook (online)
177 F. Supp. 129, 1959 U.S. Dist. LEXIS 2622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/toy-fair-inc-v-kimmel-mdd-1959.