LAW.coLAW.co

CHRIST PAPPAS v. L. W. STARK

Minnesota Supreme Court1913-09-26No. Nos. 18,201—(248)
123 Minn. 81

Summary

Holding. The trial court erred in directing a verdict for the defendant, and the case is reversed and remanded for a new trial, as the evidence supported a reasonable jury finding that the defendant breached the contract by evicting the plaintiff without providing the required 30-day notice after accepting the full December payment had negated the earlier termination notice.

A Greek immigrant entered into a written contract with the owner of a barber shop and Turkish bath establishment to operate shoe-shining and café-checking stands in a hotel basement for one year, paying $600 in monthly installments of $50. The contract permitted termination by the owner upon 30 days' written notice for breach. After the plaintiff paid for November, the defendant served a termination notice on November 18. However, the defendant then accepted the plaintiff's full payment for December and allowed him to continue operating during that month, which had the legal effect of canceling the earlier termination notice. The defendant later evicted the plaintiff on January 2 without providing any new written notice, and the plaintiff claimed this was a breach of contract.

The trial court directed a verdict for the defendant, but the appellate court found this was error. The only witness regarding whether oral notice was given in early December was the plaintiff himself, who flatly denied receiving any such notice or agreeing to early termination. Although the defendant's later letter referenced such a conversation, the defendant presented no witnesses to corroborate this claim. The court determined that a reasonable jury could have found the defendant failed to provide the required 30-day notice before eviction.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether acceptance of payment after notice of termination renders the termination notice void
  • Whether oral notice of termination was given when only the plaintiff testified and denied receiving it
  • Whether damages for lost profits in the final month were recoverable

Procedural posture

The plaintiff appealed from an order denying a new trial after the trial court directed a verdict for the defendant at the close of the plaintiff's case.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Bunn, J.

This action was to recover damages for the alleged breach by defendant of the contract hereinafter mentioned. At the close of plaintiff’s case, a verdict was directed for defendant. Plaintiff appeals from an order refusing a new trial.

Defendant, the owner of a barber shop and Turkish bath establishment in the Andrews hotel, Minneapolis, and plaintiff, a Greek, on November 13, 1911, entered into a written contract, by the terms of which defendant granted to plaintiff the privilege to maintain the boot and shoe shining stand in the basement of the hotel, and the checking stand of the cafe. Plaintiff was to have all the revenue from these privileges for one year from September 1, 1911, and agreed to pay therefor the sum of $600 in monthly instalments of $50 each, payable in advance. The contract contained the condition that, for failure of plaintiff to keep any of its provisions, defendant should have the right to terminate the agreement upon 30 days’ notice to be given personally or by mail to plaintiff.

After the execution of this contract, plaintiff paid defendant the sum of $27 for the balance of the month of November. November 18, defendant served upon plaintiff a notice that the contract would be cancelled after 30 days from the date of the notice. About December 1, plaintiff paid to defendant $50 for the month of December; defendant accepted this payment and gave a receipt which acknowledged payment of the “rent” for the privileges from December 1 to January 1. On December 21, defendant sent plaintiff a letter notifying him that “pursuant to my notice and agreement with you on December 1st, 1911, your thirty day occupancy and privilege to wash room and check room in Andrews Hotel expires December 31st, 1911.” Plaintiff was ejected from the premises by defendant January 2, 1912, though he had tendered the “rent” for that month.

Plaintiff calls the contract a lease, while defendant insists that it is merely a contract of employment. We fail to see what differ ence this makes. Clearly there was a valid contract under which plaintiff had rights. Among these was the right to a 30-day notice before the contract could he terminated. If defendant .deprived plaintiff of the privileges granted without giving the notice required, he was guilty of a breach of the contract, and rendered himself liable for any damages resulting to plaintiff from the breach. It is not contended that defendant was not justified in canceling the contract, provided he gave the notice required. The claim is that he did not give this notice.

The notice given November 18 would have been sufficient to terminate the contract 30 days from that date, had not defendant, after giving it, accepted payment for the full month of December, and permitted plaintiff to enjoy the privileges during that month. That this acceptance of payment, whether we call it rent or by any other name, wholly destroyed the effect of the notice of November 18, there can be no doubt. Kenney v. Si Lun, 101 Minn. 253, 112 N. W. 220, 11 L.R.A.(N.S) 831, 11 Ann. Cas. 60.

It is admitted that no other written notice was given. The question then is whether there was an oral notice given to plaintiff on or about December 1. If it conclusively appears from the evidence that such a notice was given, or that plaintiff agreed to a termination of his privileges under the contract, the court rightly directed a verdict for defendant. But unless it so conclusively appears, the direction was wrong.

As plaintiff was the only witness, the question is narrowed to an inquiry as to whether he admitted the receipt of such notice, or the making of such an agreement. Defendant’s letter of December 21 refers to a notice and agreement of December 1, and we may surmise that this would have been the defense had defendant produced his witnesses; but there is no evidence on the subject save that given by plaintiff himself. An examination of his testimony shows that he denied flatly the receipt of such a notice, or the making of such an agreement. Tie admits a conversation with defendant about December 1, at the time he paid the December “rent,” and granting that a jury might be justified in finding that in this conversation it was agreed that plaintiff should vacate the last of December, there is certainly abundant justification for the contrary conclusion. We find nothing in the record that warrants us in holding, as a matter of law, that defendant ever gave plaintiff the notice required by the contract. It therefore follows that the jury would have been justified in finding that the eviction of plaintiff on January 2 was a breach of the contract, and that plaintiff was entitled to recover his actual damages caused by such breach.

There was evidence that would justify a recovery of more than nominal damages. It occurs to us that the recovery for loss of profits would necessarily be limited to the month of January, 1912. Defendant had the right to cancel the contract by giving 30 days’ notice. What occurred on January 2 would seem to be sufficient notice of defendant’s intention to terminate the relation.

The evidence was sufficient, in our opinion, to support a finding that plaintiff had an established business within the decisions of this court governing the recovery of future profits, as an element of damages, and it was clearly sufficient to form a basis of estimating the amount of such profits.

Our conclusion is that on the evidence as it stood when plaintiff rested it was error to take the case from the jury.

Order reversed and new trial granted.