Tuuk v. Andersen

175 N.W.2d 322, 21 Mich. App. 1, 1969 Mich. App. LEXIS 775
CourtMichigan Court of Appeals
DecidedDecember 10, 1969
DocketDocket 4,397, 4,398
StatusPublished
Cited by18 cases

This text of 175 N.W.2d 322 (Tuuk v. Andersen) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tuuk v. Andersen, 175 N.W.2d 322, 21 Mich. App. 1, 1969 Mich. App. LEXIS 775 (Mich. Ct. App. 1969).

Opinion

Levin, P. J.

The -plaintiff, Henry Tuuk, is a former tenant of the defendant corporation, Saginaw Recreation Company. The defendant, Prank Andersen, is the president and sole stockholder of the corporation. The defendants appeal a jury verdict of $401,680.

There are a number of issues, but a common question, central to most of them, is whether the relationship of the parties is governed by the conversations upon which Tuuk relies or the writings upon which the defendants rely.

Tuuk, as tenant, and the corporation, as landlord, entered into a five-year written lease of a bowling alley on June 1, 1951. After the expiration of the term of the lease on May 31, 1956, Tuuk remained on as a tenant until July 30, 1962, when he vacated the premises following the termination of his ten *5 ancy by tbe corporation and tbe issuance of a writ of restitution in summary proceedings for possession commenced by tbe corporation.

Tuuk’s complaint seeks tbe return of money be paid tbe corporation during tbe six-year holdover tenancy, and damages for tbe conversion of personal property which be asserts tbe corporation wrongfully insisted on keeping for itself upon termination of tbe tenancy.

Tnuk’s claim, as it was presented to tbe jury, was for $410,855,- consisting of three items:

(1) money allegedly overpaid, $53,105 ($37,855 as tbe amount overpaid plus interest of $15,250);
(2) conversion of automatic pinsetter lease, $217,750 (value $174,200 plus interest of $43,550); and
(3) conversion of fixtures and equipment, $140,-000 (value $112,000 plus interest of $28,000).

I.

Bent payable by Tuuk during holdover tenancy; money allegedly overpaid by Tuuk

During tbe six-year holdover tenancy, Andersen, for tbe corporation, wrote Tuuk three letters increasing tbe rent.

(a) Tbe first letter, dated September 14, 1956, stated that tbe rent would be increased from $40,-500 to $51,300 a year for 5 years — an increase of $10,800 a year.

Shortly after tbe term of tbe lease expired on May 31, 1956, automatic pinsetters were installed in tbe bowling alley. Tbe letter stated that tbe increase in rent reflected a five-year amortization of the sum of tbe amount expended by the corporation for installation of automatic pinsetters ($31,314.73) *6 and the amount of an old note owing by Tuulc ($13,472.73), and 6% interest on that sum for five years, and a provision for anticipated increase in property taxes.

• (b) The second letter, dated November 17, 1959, was sent after the corporation had constructed a parking lot for use in conjunction with the bowling alley. The letter stated that the parking lot cost $95,000, including the cost of the land, and that the rent would be increased to $61,875 a year beginning December 1, 1959 — an increase of $10,575 a year.

(c) The third letter, dated March 9, 1961, was sent after $14,790.29 of carpeting was installed in the bowling alley. This letter provided for a rent of $64,755 a year “starting January 1, 1961, with new lease * * * for 5 years” — an increase of $2,880 a year. A proposed lease was enclosed with the letter but was never signed by Tuuk.

Tuuk paid the increased amounts demanded by the corporation except for some installments which became due in the spring of 1962 at about the time his tenancy was terminated. He testified, however, that after he received the first letter (dated September 14, 1956) he communicated with Andersen and it was agreed that Tuuk would pay the increased rent provisionally subject to an audit.

It was Tuuk’s claim that he and Andersen agreed that the corporation’s expenditures for installation of the pinsetters ($31,314.73) would be treated as a loan by the corporation to Tuuk and that the sum of such expenditures together with the old indebtness of $13,472.73 would, indeed, be paid in the manner stated in the September 14, 1956 letter, but only until Tuuk had paid over and beyond the old annual rent of $40,500 the amounts so loaned to and already owing by Tuuk together with interest. He *7 testified that Andersen agreed that after those amounts had been repaid in the manner indicated, the corporation would account to Tuuk for any overage that he might pay.

Andersen denied that such an oral agreement was entered into and additionally asserts as defenses the parol evidence rule, the statute of frauds, the statute of limitations, the rule of law that payments voluntarily made cannot be recovered and Tuuk’s failure to plead the so-called “audit agreement.” We do not think any of the asserted defenses are applicable; the disputed factual question of whether the oral agreement was entered into was for the jury to decide.

The failure to plead the “audit agreement” issue was waived by the defendants’ failure to object to Tuuk’s testimony on that ground. Further, it appears that the defendants were fully aware of the nature of Tuuk’s claim and, thus, were aware of the nature of the issue they were called upon to defend. The issue was joined by Andersen’s testimony denying Tuuk’s audit agreement claim. See GCR 1963, 118.3; Paul v. University Motor Sales Co. (1938), 283 Mich 587, 594; Nelson v. Stewart (1913), 174 Mich 127, 136.

Tuuk did not reply in writing to any of the three letters. The defendants contend that Tuuk’s payment of the increased amounts provided for in the letters constituted an acceptance of their terms and they invoke the parol evidence rule and the statute of frauds to protect the writings.

A writing cannot, however, prove itself. Just as the fact that Tuuk paid the increased amounts was proved by parol, he had the right to prove by parol that his payment of those amounts, by agreement with Andersen, did not constitute an acceptance of the terms of the letters and that the *8 payments were made under separate oral agreements. See 3 Corbin on Contracts, § 582, pp MS-455 ; 9 Wigmore on Evidence, § 2431, pp 102-104.

The defendant’s argument that allowing proof of an oral agreement violates the provision of the statute of frauds which requires a lease for more than one year to be in writing (MCLA § 566.108 [Stat Ann 1953 Rev §26.908]) elides the fact that it is the defendant landlord, not the plaintiff tenant, who relies on an unsigned writing to establish a rental different (and greater) than that stated in the 1951 lease.

In Claerhout v. Tromley (1937), 282 Mich 649, upon which the defendant landlord relies, in contrast with this case, the tenant sought to remain in possession beyond the original term of the lease under an agreement which the Court found would constitute “an unexecuted change or modification in the terms of the written lease”; here the tenancy has terminated and the question is the amount of rent payable during the period of the holdover tenancy. C f. Lawson-Erb Lumber Co. v. Graham-Paige Co. of Michigan (1938), 283 Mich 252, 258.

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Cite This Page — Counsel Stack

Bluebook (online)
175 N.W.2d 322, 21 Mich. App. 1, 1969 Mich. App. LEXIS 775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tuuk-v-andersen-michctapp-1969.