Caplan v. Goldstein, 74

• Decision Date: 05 November 1963
• Docket Number: No. 74,74
• Citation: 232 Md. 552,194 A.2d 622
• Parties: George CAPLAN et al. v. Morton GOLDSTEIN.
• Court: Maryland Court of Appeals

Page 552

232 Md. 552

194 A.2d 622

George CAPLAN et al. v. Morton GOLDSTEIN.

No. 74.

Court of Appeals of Maryland.

Nov. 5, 1963.

William J. Pittler and Albert L. Sklar, Baltimore (Sklar & Sullivan, Baltimore, on the brief), for appellants.

Leonard S. Jacobson, Baltimore, for appellee.

Before HENDERSON, HAMMOND, HORNEY, MARBURY and SYBERT, JJ.

HENDERSON, Judge.

This appeal presents the narrow question whether an option to purchase land, contained in a lease, may be exercised by a tenant holding over. The facts are undisputed, and the question comes here upon the granting of the tenant's motion for summary judgment in a bill for specific performance by the tenant.

On September 25, 1955, the Caplans executed a lease of a tract of unimproved land to Goldstein for a period of six months at a rental of $150.00 per month. The tenant was given the right to place improvements thereon, and did so. The lease provided in paragraph 3 that the tenant should have 'the unconditional rights and options to renew this lease subject to all of the same terms and conditions as set out for the original six month term hereof, for four successive and consecutive optional periods of five years each, the First Optional Period beginning on the first day of April, 1956 and ending on the 31st day of March, 1961; the Second Optional Period beginning on the first day of April, 1961 and ending on the 31st day of March, 1966; * * *.' There followed statements as to the terms, finally ending on March 31, 1976, and provisions that the tenant should notify the landlord a certain number of days before the end of each term, if he desired to renew, and that if notice of renewal was not sent 'then upon the expiration of such term this lease shall automatically terminate.'

Paragraph 7 of the lease provided that 'at any time after August 1, 1960, the Tenant shall have the unconditional right and option to purchase in its entirety the herein demised premises upon the giving to the Landlords of a thirty day notice in writing of the Tenant's desire to make such purchase. The purchase price to be paid to the Landlords and to be accepted by them shall be computed at the rate of Five Thousand Dollars ($5,000.00) per acre, * * *.'

Goldstein took possession of the leased premises and continuously occupied them and paid the monthly installments of rent, although he did not give the required notice of renewal prior to the expiration of the original term. The landlords accepted the monthly payments. On September 7, 1962, Goldstein sent to the Caplans by registered mail a letter purporting to exercise the option to purchase the demised premises. The Caplans refused to convey the property and this suit followed.

In Gressitt v. Anderson, 187 Md. 586, 51 A.2d 159, the tenant under a lease for a term of one years held over and attempted to exercise an option during a second year. The lease provided that the option could be exercised 'at any time during the life of this lease, after April 27, 1944', the date when the lease...