Washington Sportservice, Inc. v. The M. J. Uline Company

313 F.2d 889
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 25, 1963
Docket16829
StatusPublished
Cited by3 cases

This text of 313 F.2d 889 (Washington Sportservice, Inc. v. The M. J. Uline Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Washington Sportservice, Inc. v. The M. J. Uline Company, 313 F.2d 889 (D.C. Cir. 1963).

Opinions

[890]*890WILBUR K. MILLER, Circuit Judge.

This case is before us for the second time. On the first appeal, brought by Washington Sportservice, we reversed the judgment of the District Court and remanded for further proceedings consistent with our opinion.1 Then, as we directed it to do, the District Court made a finding on the factual issue which had not been resolved the first time. What to do next became a problem because the trial judge was not sure he understood the further directions of our opinion, and the parties differed as to the scope of the remand and as to what issues were open for adjudication by the District Court, Although he expressed doubt as to the correctness of his course,2 the trial judge decided to regard the remand as so general in nature that it left him free to pronounce judgment as he saw fit on all issues originally presented. Accordingly, he did so,3 and then entered judgment for Uline, as had been done before.

Sportservice appeals, arguing that the District Court misinterpreted our former opinion. It contends that the remand was for the determination of one factual issue and that the District Court’s determination thereof should have controlled its decision, as all other issues had been decided explicitly or implicitly by this court’s opinion and were not open for adjudication after remand. Our question now is whether the judgment appealed from is consistent with our opinion on the first appeal. In considering that question, we think it desirable first to summarize the issues initially submitted to and decided by the District Court and the issues which were presented to this court on the appeal from the first judgment. This will require a brief statement of the proceedings in both courts.

By contract dated November 14, 1941, M. J. Uline Company conveyed to Jacobs Brothers for a term of years the refreshment concession in its indoor sports arena. In 1945, desiring to install extensive new facilities, Jacobs Brothers began negotiations for a longer term. Through an exchange of letters, the parties agreed that the term which was to end June 15, 1947, would be extended one year for each one thousand dollars expended by the lessee in improvements. Pursuant to the agreement, Jacobs Brothers spent nearly $40,000 on the project. On or about September 20, 1946, with Uline’s consent, the lease as amended was assigned to Washington Sportservice, which has since operated thereunder.

Uline notified Sportservice that it desired to terminate as of May 19, 1955. When Sportservice challenged its right to do so, Uline filed this suit July 27, 1955, asking the District Court to declare, inter alia, (a) the amended contract unenforceable as indefinite, as lacking in mutuality, and as based upon an inadequate consideration; (b) as an alternative, that the amended contract was good for one year only under § 45-819, D.C.Code (1951) 4 and that thereafter Sportservice held under a tenancy by sufferance which could be terminated at any time by either party, upon notice.

At the conclusion of the proceedings, the District Court made, among others, the following findings of fact:

“5. Correspondence passed between the parties in July and August of 1945 which altered the agreement [891]*891of November 14, 1941, in order to provide that the defendant would construct and install a new counter in the arena and, further, that the defendant would, as set out in its letter of July 31, 1945,
“ ‘proceed with such other and improvements and installations of equipment and uniforms as you (the plaintiff) may desire * * * with the understanding that our agreement is renewed and automatically extends itself for such yearly periods as are required to amortize at the rate of $1000 a year the amounts expended by us (the defendant) for such improvements and installations. To amplify, if we (the defendant) expend $2000 our agreement would be considered extended until June 15, 1949, and the same extension procedure is to apply to any similar expenditures that we may make from time to time with data, of course, being submitted to you as you may direct.’
“6. This modification of the lease agreement of November 14, 1941, is set forth in defendant’s letter of July 31, 1945, which was accepted by the plaintiff on August 2, 1945. But on August 11, 1945, the parties signed a memorandum on the face of the letter of August 2, 1945, stating ‘this letter is cancelled out by M. J. Uline and L. M. Jacobs.’ ”
“11. The contract was terminated between the parties on June 15, 1951 * *

Among the court’s conclusions of law are these:

“2. The contract of November 14, 1941, as amended in July and August of 1945, is a lease of real property and the tenancy created is an estate from year to year.
“3. Plaintiff terminated the estate from year to year on June 15, 1951, and the tenancy thereafter became an estate by sufferance.”
“6. The concession contract of November 14, 1941, as amended, is unenforceable and has been since June 15, 1951. It is indefinite and lacks mutuality from that date.”

Consequently, judgment was entered in favor of Uline, providing that “The contract of lease and the modifications there-0f * * * is hereby adjudged to have been unenforceable after June 15, 1951.”

It is apparent from its conclusions of law that the District Court adjudged the amended contract unenforceable after June 15, 1951, because it had concluded the amended contract, had created an estate from year to year which Uline had a right to, and did, terminate as of that date; that is to say, there was thereafter no agreement at all and Sportservice held only by sufferance.

From this judgment Sportservice took the first appeal. It contended that, contrary to the holding of the District Court, it held “an estate for years, not susceptible of unilateral termination where it was not in breach of any term or condition, and as to which no reservation for termination was had in its inception.” (Emphasis added.) Uline asserted that, as held by the District Court, the amended contract lacked mutuality, was indefinite, and provided for an estate from year to year which later became a tenancy by sufferance. In the course of its brief, Uline said:

“All parties agreed that the contract of 1941 was a leasehold agreement. The Court below concurred and found that the initial agreement was an estate for years which by its terms expired on June 15, 1947.
“The crux of the litigation is the legal effect of the amendments of July and August, 1945 * * *.
“It is appellee’s contention that the letter of July 31, 1945, and particularly that portion which permitted XJline to terminate the term of the lease upon the performance by it [892]*892of a prescribed condition created an estate by sufferance.5 * * * (Emphasis added.)

Thus the parties presented to this court these questions: 1. Did the amended contract lack mutuality? 2. Was it so indefinite as to be unenforceable? 3. Did it create a tenancy from year to year, which could be, and was, unilaterally terminated by Uline so that thereafter Sportservice held merely by sufferance? 4.

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Related

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319 F.2d 729 (D.C. Circuit, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
313 F.2d 889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/washington-sportservice-inc-v-the-m-j-uline-company-cadc-1963.