Daniels v. Straw

• Decision Date: 10 October 1892
• Citation: 53 F. 327
• Parties: DANIELS et al. v. STRAW.
• Court: U.S. District Court — District of New Hampshire

53 F. 327

DANIELS et al. v. STRAW.

United States Circuit Court, D. New Hampshire.

October 10, 1892

Bingham & Mitchell, for plaintiff.

Burnham Brown & Warren, for defendant.

ALDRICH District Judge.

This is a proceeding in equity to compel specific performance. July 18, 1881, the plaintiff Daniels was the agent of the Manchester One Price Clothing Store, doing business at Manchester. The other plaintiff, Sarah J. Bliss, was the sole owner of the business. And the defendant executed a lease of certain premises in Manchester to Daniels, reciting therein that the premises leased were the same then occupied by the Manchester One Price Clothing Store. The lease was under seal, signed by Hannah F. Straw and Franklin B. Daniels, and contained the usual covenants against underletting and occupancy by persons other than the lessee; was for the term of 5 years, and at a rental of $2,500 a year, with the right of renewal for a further term of 5 years if the lessee should so elect. At the time of its execution, Sarah J. Bliss was the sole owner of the business, and Daniels, her agent knowing this, took the lease in his own name for her benefit and for the benefit of the business, and held it in trust for the owner, and for the business. The lessor knew that it was taken for such a business, and that the premises were to be occupied by the Manchester One Price Clothing Store. Daniels did not disclose the ownership of the business, and the lessor did not inquire. Daniels assumed that the lessor knew and did not intend to conceal any material or other fact. The lessor assumed, without inquiry, that Daniels owned the business, and was carrying it on under the name and style of the Manchester One Price Clothing Store. The premises were occupied during the term of the lease for the purpose of the 'One Price Clothing' business, and until the following December, without a renewal; the occupants paying the rent by checks, sometimes signed by Daniels, as superintendent, and sometimes by Curtis, as general manager.

December 1, 1886, Daniels, acting as agent for the owner of the business, called for a renewal and for another five-years option, and a new lease was executed, with a like option for another five years; and the premises were occupied during the second term in the manner described, the occupants paying the rent by checks signed sometimes by Daniels, as superintendent, and sometimes by Curtis, as general...