Young v. NEILL

225 P.2d 66, 220 P.2d 89, 190 Or. 161, 1950 Ore. LEXIS 243
CourtOregon Supreme Court
DecidedDecember 5, 1950
StatusPublished
Cited by38 cases

This text of 225 P.2d 66 (Young v. NEILL) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Young v. NEILL, 225 P.2d 66, 220 P.2d 89, 190 Or. 161, 1950 Ore. LEXIS 243 (Or. 1950).

Opinions

LATOURETTE, J.

This is an appeal from a decree denying specific performance of an alleged lease of a grocery store in Ashland, Oregon, the terms and conditions thereof being embraced in a written, unsigned instrument. Plaintiff-appellant Young and her ex-husband Neill, re[164]*164spondent-cross appellant, were the lessees, and the defendants-respondents McGee, husband and wife, were the lessors. Mr. Neill and Mrs. McGee are brother and sister; Mr. McGee is a minister of the gospel. Since Mrs. Young and Mr. Neill were married at the time of the transactions involved herein, we will hereinafter designate them as “the Neills.”

The McGees were co-partners in a grocery business known as the “Boulevard Market” and owner as tenants by the entirety of the premises where the grocery business was located. About the middle of June 1946, they contemplated disposing of their business because of McGee’s ill health. Negotiations were had between the parties, whereupon the Neills quit the business in which they were engaged and took possession of the grocery store, paying to the McGees the sum of $12,-797.31 for the stock of goods and $1,000.00 for the goodwill of the business. A lease to the premises involved and a bill of sale covering the stock of goods were prepared by William Briggs, attorney for the McGees, at the instance of McGee, this lease being the one involved in this controversy. These documents were not signed by any of the parties but were delivered to the Neills who placed them in the safe in the store building. The Neills paid the McGees on a monthly basis as provided for in the written lease on the following terms: three per cent of the gross sales of the business each month up to $12,000.00, plus two per cent on all sales in excess of that amount.

The Neills were divorced in December 1946, and in July 1947, Mrs. McGee, who was very much exercised about the divorce, told Mrs. Neill that she should sell the business “because so many people were asking why we didn’t get that mess out of there. ’ ’ The matter [165]*165continued until October 24, 1947, when the McGees served notice upon the Neills to quit the premises, claiming a tenancy from month to month. Thereupon, the Neills, in looking over their paper, found that the lease and bill of sale were unsigned. This suit was then brought to compel specific performance, the claim being that the unsigned lease was the lease actually entered into between the parties. The ex-husband Neill refused to join in the suit and was made a party defendant ; however, he filed an answer which contained most of the allegations of the complaint and also asked for specific performance. The McGees answered and inter alia admitted the sale of the stock of goods at its inventory value of $12,797.31, plus an additional $1,000 for the goodwill of the business but denied that the parties ever agreed upon the terms of said lease, and alleged that said unsigned lease was null and void and of no effect. They alleged that the Neills’ occupancy was based on a tenancy from month to month and asked that the tenancy be cancelled and that they be given possession of the real property. As a separate defense they alleged, among other things, that the Neills were estranged at the time of the culmination of the transaction and withheld knowledge of such estrangement from the McGees, and had they known of such estrangement, they would not have made the sale to the Neills nor allowed them to conduct the grocery business on said premises, and, therefore, they should be estopped from asserting that the McGees agreed to be bound by the terms of the alleged lease. This defense cannot be considered as the evidence shows the McGees had knowledge of the marital troubles between the Neills at the time the transaction was closed.

[166]*166The McGees contend that this case falls within the statute of frauds, and, since the lease was unsigned, no evidence of its contents could be received. The Neills counter by contending that the case was taken out of the statute of frauds because of part performance, and that the McGees should be estopped to deny the validity of the lease.

In Oregon a lease for more than one year is void unless it is in writing, however, equity will relieve a party from the effects of such statute where the lease can be shown to be clear, certain and unambiguous in its terms and where there is part performance on the part of the lessee, such as tailing possession of the premises and payment of rental under the lease. Wallace v. Scoggins, 18 Or. 502, 21 P. 558. The statute of frauds was never designed to shield against the perpetration of a fraud.

There are three essential elements of a lease, namely, description of the property, duration of term and rental consideration. Bevan v. Templeman et al, 145 Or. 279, 289, 26 P. (2d) 775.

There is sharp conflict in the testimony of the witnesses concerning the lease, but on a close analysis of the evidence, we find that the same established the following facts: after discussions were had between the parties regarding the sale of the business, all four of the parties went to the Ashland branch of the First National Bank of Portland for the purpose of discussing the feasibility of the Neills obtaining a loan of $10,000.00 to complete the deal. Mr. Wenner, manager of the bank, testified as follows:

“ A. The main item which it was necessary for us to discuss was the matter of a lease. I was informed that they had a lease which would extend [167]*167over an indefinite period on a basis of three per cent of the gross, and I explained to them that •would not be sufficient in this particular case, for the reason that that particular type of loan was based purely on income from the business, and that it was absolutely necessary for us to be assured that the operators would have a place in which to do business for at least six months longer than the term of our loan, which in this instance would be three years and six months. At that meeting they tentatively agreed to make it a five-year lease, and it was my understanding they were going down to Mr. Briggs’ office to complete that either that same day or shortly thereafter, because my records indicate that I informed our loan production department definitely that there was a five-year lease on a three per cent gross basis.”

Discussion was had about the extent of the business which the McGees had done; whereupon McGee submitted to Wenner a profit and loss statement covering the years 1944 and 1945 and told Wenner “* * * that they (the Neills) should have no difficulty in realizing that amount of income from the business which was potential.” Thereupon McGee and Neill went to the office of William Briggs, attorney for the McGees, and asked him to draw a lease covering the premises involved. Mr. Briggs testified as follows:

“Q. Just tell the Court what conversation you had with Mr. McGee and Mr. Neill at that time as nearly as you can remember.
“A. Well, Mr. McGee and Mr. Neill came in the office, and Mr. McGee told me that he was planning on selling the grocery store to Dick and Mollie—
“Q. That’s Mr. Neill and Mrs. Young?
“A. Yes; and that they wanted a lease prepared; and Everett — that’s Mr. McGee — had a little memorandum of the various points he wanted in the [168]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kazlauskas v. KBBP, LLC
275 P.3d 171 (Court of Appeals of Oregon, 2012)
Brice v. HRDLICKA
206 P.3d 265 (Court of Appeals of Oregon, 2009)
Mukai Living Trust v. Lopez
111 P.3d 1150 (Court of Appeals of Oregon, 2005)
Badger v. Paulson Investment Co., Inc.
803 P.2d 1178 (Oregon Supreme Court, 1991)
Wicks v. O'CONNELL
748 P.2d 551 (Court of Appeals of Oregon, 1988)
Gibson v. Hrysikos
358 S.E.2d 173 (Court of Appeals of South Carolina, 1987)
First Federal Savings & Loan Ass'n v. C.P.R. Construction, Inc.
689 P.2d 981 (Court of Appeals of Oregon, 1984)
Durham v. Warnberg
660 P.2d 208 (Court of Appeals of Oregon, 1983)
Hill v. Oland
655 P.2d 1088 (Court of Appeals of Oregon, 1982)
Wiggins v. Barrett & Associates, Inc.
632 P.2d 1373 (Court of Appeals of Oregon, 1981)
Long v. Wayble
618 P.2d 22 (Court of Appeals of Oregon, 1980)
Coleman v. Parry Center for Children
604 P.2d 424 (Court of Appeals of Oregon, 1979)
Southworth v. Oliver
587 P.2d 994 (Oregon Supreme Court, 1978)
Gaffi v. Burns
563 P.2d 726 (Oregon Supreme Court, 1977)
Elvalsons v. Industrial Covers, Inc.
525 P.2d 105 (Oregon Supreme Court, 1974)
Marastoni v. Lucey
521 P.2d 521 (Oregon Supreme Court, 1974)
Karamanos v. Hamm
513 P.2d 761 (Oregon Supreme Court, 1973)
Bennett v. Pratt
365 P.2d 622 (Oregon Supreme Court, 1961)
Eugene Pioneer Cemetery Ass'n v. Spencer Butte Lodge No. 9
363 P.2d 1083 (Oregon Supreme Court, 1961)
Chase v. Beard
346 P.2d 315 (Washington Supreme Court, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
225 P.2d 66, 220 P.2d 89, 190 Or. 161, 1950 Ore. LEXIS 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-neill-or-1950.