Management Partnership, Inc. v. Crumlin, 80-186.

• Decision Date: 04 December 1980
• Docket Number: No. 80-186.,80-186.
• Citation: 423 A.2d 939
• Parties: The MANAGEMENT PARTNERSHIP, INC., Appellant, v. Gwendolyn CRUMLIN, Appellee.
• Court: D.C. Court of Appeals

423 A.2d 939

The MANAGEMENT PARTNERSHIP, INC., Appellant, v. Gwendolyn CRUMLIN, Appellee.

No. 80-186.

District of Columbia Court of Appeals.

Submitted October 8, 1980.

Decided December 4, 1980.

Ronald G. Scheraga, Washington, D. C., was on the brief for appellant.

Walter R. Choroszej, Washington, D. C., was on the brief for appellee.

Before GALLAGHER, NEBEKER and PRYOR, Associate Judges.

PRYOR, Associate Judge:

The Management Partnership, Inc. appeals from an Order of the Small Claims and Conciliation Branch of the Superior Court finding appellee, Gwendolyn Crumlin, not liable for damages resultant from an alleged breach of an apartment lease. Having reviewed the record we find no evidence to support the trial court's conclusion that appellant's office manager had the apparent authority to terminate the lease. Accordingly, we must reverse and remand for a new trial.

In July 1975, appellee sought to lease an apartment from appellant at the Parkland Terrace Apartments in the District of Columbia. Because of appellee's modest financial circumstances, it was requested that an additional person share the financial responsibility of the lease. When Mr. Robert Triplett agreed to act as a cosigner, a lease agreement for one year, effective August 1, 1975, was executed. It is undisputed that initially, appellee and Triplett occupied the apartment together and that the latter normally paid the rent. As a result of domestic discord, appellee vacated the premises, without written notice, in February 1976, leaving Triplett in residence. A few months later, in April or May 1976, appellee received a notice as lessee, that the rental payments at Parkland Terrace were delinquent. In response, she visited the business office of Parkland Terrace where she spoke with Ms. Dinkins, the office manager. After explaining to Ms. Dinkins the circumstances under which she vacated the premises, the record reflects that Ms. Dinkins orally assured appellee that her responsibility as lessee had terminated. Appellee heard nothing further from appellant or anyone associated with Parkland Terrace management until January 1979, when she was summoned to the Small Claims and Conciliation Branch of the Superior Court in this matter.

After hearing the evidence at trial, the court found that: (1) appellee received no benefit from the premises during the months for which appellant sought to collect the rent; (2) appellant was not diligent in pursuing its remedy and that appellee was prejudiced by the absence of cosigner Triplett; and (3) Ms. Dinkins had apparent authority to terminate the lease.

Our discussion is guided by Super.Ct.Sm. CI.R. 12(b) which prescribes the manner in which small claims trials are to be conducted and provides:

CONDUCT OF THE TRIAL. Should the parties fail to settle the controversy, the court shall proceed with a trial on the merits of the case. The parties and witnesses shall be sworn. The judge shall conduct the trial in such manner as to do substantial justice between the parties according to the rules of substantive law, and shall not be bound by the provisions or rules of practice, procedure, pleadings or evidence, except such provisions relating to privileged communications.

In construing this Rule, this court has stated that "the relevant inquiry is whether `substantial justice' has been achieved." Eytan v. Bach, D.C.App., 374 A.2d 879, 881 (1977), citing Interstate Bankers Corp. v. Kennedy, D.C.Mun.App., 33 A.2d 165, 166 (1943). In Interstate Bankers Corp. v. Kennedy, supra, this jurisdiction acknowledged that the term "substantial justice" refers to "justice administered according to the rules of substantive law notwithstanding errors of procedure which do not deprive litigants of substantive rights." Id. at 166. The purpose of Super.Ct.Sm.Cl.R. 12(b) is to relax the technical rules of procedure so that persons not versed in the law, and unable to retain counsel, can sue or defend without encountering unknown procedural harriers. Interstate, supra at 166. Congress did not intend to give trial judges freedom to stray from accepted substantive law. Stated another way, the reference to "substantial justice" does not permit the alteration of substantive rules or principles; it is intended, however, that the court shall have some degree of procedural flexibility in resolving questions presented before the Small Claims Branch of the court.

In the case at bar, appellant sought to collect monies which it alleged were due as a result of the breach of a lease agreement. Accordingly, the substantive rules of contract law govern, for we have recognized that leases of urban dwelling units are to be construed as any other contract. District of Columbia Department of Housing and Community Development v. Pitts, D.C.App., 370 A.2d 1377 (1977). Absent a showing that an event occurred which had the legal effect of altering the original contract or discharging the...