Janney, Semple & Co. v. Goehringer

• Decision Date: 24 February 1893
• Citation: 52 Minn. 428,54 N.W. 481
• Parties: JANNEY, SEMPLE & CO. v GOEHRINGER ET AL.
• Court: Minnesota Supreme Court

52 Minn. 428

54 N.W. 481

JANNEY, SEMPLE & CO.vGOEHRINGER ET AL.

Supreme Court of Minnesota.

Feb. 24, 1893.

(Syllabus by the Court.)

1. A lease of real estate for a term of years provided that upon its termination the lessors should purchase from the lessees, at the fair market value, the buildings which the latter might have erected, and that the value should be conclusively determined by three appraisers, for the selection of whom, in the usual way, the lease provided. It being necessary for the appraisers to construe the contract for the purpose of determining the basis upon which the value was to be estimated, held, that an appraisal made without opportunity afforded to the parties to be heard was invalid.

2. A written lease, in which material matter was inserted after its execution, held properly received in evidence; it appearing that the parties had recognized the instrument as valid subsequent to such alteration.

Appeal from district court, Hennepin county; Smith, Judge.

Action by Janney, Semple & Co. against Chris Goehringer and others to set aside an award of appraisers as to the value of a certain building erected on leased property. Judgment for plaintiff. Defendant Goehringer appeals. Affirmed.

Geo. R. Robinson, for appellant.

Hahn & Hawley, for respondent.

DICKINSON, J.

This is an appeal by the defendant Goehringer from a judgment of the district court setting aside, at the suit of the plaintiff in this action, an award of appraisers as to the value of a building. The facts, as found by the court, may be thus stated: In 1881 Mattie L. Brackett had a leasehold estate in a certain lot of land in Minneapolis, the term of which extended to the year 1929. She, with her husband, leased the premises to the members of a copartnership (Janney, Brooks & Eastman) for the term of 10 years from June 18, 1881. This latter lease contained a provision that upon the termination of the lease the lessors should purchase from the lessees the buildings on the premises, the consideration to be paid therefor being the fair market value, not exceeding $6,000, to be determined by appraisers, one of whom should be chosen by each of the two parties to the lease. The two appraisers so chosen were to select a third. The appraisement of two of the three appraisers was to be final and conclusive. The lessees, Janney, Brooks & Eastman, erected a large stone building, three stories in height, on the leased premises, at a cost of about $12,000. The appellant, Goehringer, succeeded to the interests, rights, and obligations of the lessor Mrs. Brackett; and at the expiration of the lease, in 1891, for the purpose of having determined the price which he was to pay for such building, he appointed one Basting as an appraiser, pursuant to the terms of the lease. This plaintiff, a corporation, having succeeded to the interest and rights of Janney, Brooks & Eastman, appointed one Selden as appraiser. Those two appraisers selected one Mather as the third. Thereafter, and about July 27, 1891, Basting and Mather made an appraisement of the value of the building at the sum of one dollar; in which appraisement Seldenrefused to join. No notice was served on the plaintiff of the meeting of the appraisers for the purpose of making the appraisement, and the plaintiff had no notice or knowledge thereof; nor was any opportunity given to the plaintiff to introduce any evidence, or to be heard before the appraisers. It was hence considered by the court that the appraisement was void, and judgment was entered setting it aside. This appeal is from that judgment.

The principle question in the case is as to the validity of the appraisal, under...