Redwood Hotel v. Korbien
| Decision Date | 17 May 1950 |
| Docket Number | 138. |
| Citation | 73 A.2d 468,195 Md. 402 |
| Parties | REDWOOD HOTEL, Inc., et al. v. KORBIEN et al. |
| Court | Maryland Court of Appeals |
H. Mortimer Kremer, Baltimore, for Redwood Hotel.
Herbert Myerberg, Baltimore, for C. M. Plitt.
Harry D Kaufman and H. Harry Rosenberg, Baltimore, for appellees.
Before MARBURY, C J., and GRASON, HENDERSON and MARKELL, JJ.
The chancellor directed that an injunction issue to eject a tenant in possession of a hotel property and to restore the possession thereof to the landlords. The decree further declared the furniture and other equipment in the leased premises to be the property of the landlords, and restrained one who claimed to be the mortgagee of the furniture and the equipment from interfering with the landlords' possession of the same. The respondents appealed.
In 1946 Katharine Korbien and Irene W. Korbien (appellees) owned in fee simple property in Baltimore City known as the Redwood Hotel. They leased the property to Michael J. Cooney for a term of seven years. With appellees' consent, the lease was assigned to the Redwood Hotel, Incorporated. Earl B. Wolverton was president of the corporation, and he and his wife were directors, and under the assignment from Cooney to the corporation, and as a part thereof, they guaranteed the performance of the covenants of the lease so assigned. At that time Cooney owned the furniture and equipment necessary to operate the hotel, and the corporation and Wolverton and his wife purchased the same from Cooney. The money with which the same was purchased was secured by an indenture, dated May 22, 1946, and recorded June 5, 1946, entered into by Audrey Plitt, individually and as trustee, and the Hotel Corporation and Wolverton and his wife. In that indenture the furniture and equipment in the hotel is specifically scheduled, and referred to as located in Baltimore City at 4 E. Redwood Street. The hotel premises are known as 4, 6 and 8 East Redwood Street.
The bill in this case was filed on June 9, 1948, by appellees against the Redwood Hotel, Incorporated, a corporation, Clarence M. Plitt and his wife, Audrey Plitt, individually and as trustee, Earl B. Wolverton and Clara A. Wolverton. Clarence M. Plitt was also a director of the Redwood Hotel Incorporated.
In October, 1946, by agreement, the term of the lease assigned as aforesaid was changed so that the same would end on March 31, 1953, and that the rent should be payable in advance on the first day of each month.
After alleging what we have narrated, the bill charged a breach of covenants in the lease because the premises have not been kept in good order, and the City of Baltimore's water bills have not been paid as provided for in the lease; that an ejectment proceeding was instituted by appellees against the Hotel Corporation to recover possession of the leased premises, and subsequently dismissed without prejudice; that a distraint proceeding was instituted in May, 1948, for nonpayment of rent, that the chattels owned by the Hotel Corporation were sold on May 29, 1948, by the Constable, upon the leased premises, after due advertisement of sale; that at the sale the said furniture was knocked down to appellees for $1,400.00, they being the highest bidders therefor, and that they paid cash therefor to the Constable; that the chattels sold as aforesaid are still upon said premises, and are still being used in the hotel operated there; that Plitt and his wife claim a lien on said furniture; that plaintiffs are advised that the defendant Clarence M. Plitt is a director of, and actually controls the Hotel Corporation; that on the date of the distraint sale, and prior thereto, demand was made on the president of the Hotel Corporation for surrender of the possession of said leased premises; that at that time the rent was three months in arrears and the covenant to repair was grossly violated; the city's water bills were also in arrears, and the Hotel Corporation had no funds for the June, 1948, rent; that thereupon the president of the Hotel Corporation entered into a stipulation in writing for the surrender of said premises a week later, to wit, 'not later than June 5, 1948'; that this agreement was repudiated; that on or about May 27, 1948, plaintiffs received from the attorney for the two defendants Plitt a letter and a certified copy of the alleged mortgage referred to in said letter (which were filed with the bill as Exhibits Nos. 5 and 6). This letter, dated May 26, 1948, advised them that Audrey Plitt, as trustee, held a purchase money mortgage upon this equipment and personal property for the protection of $15,000 of bonds issued by the Redwood Hotel, Incorporated, on May 24, 1946, and the money derived from the sale of these bonds constituted the purchase price for said equipment and personal property; that appellees charge that their claim to the property under their purchase at the distraint sale is superior to the claim of Mrs. Plitt as trustee, under Exhibit No. 6; it is alleged that the claim of Audrey Plitt, trustee, under Exhibit No. 6, of $8,500.00 is invalid; that the defendant Hotel Corporation is hopelessly insolvent; it has broken several covenants in its lease, is collecting rent from its guests; it is permitting the demised premises to deteriorate greatly; that the Hotel Corporation is therefore committing waste, and causing irreparable loss to plaintiffs, for which they have no adequate remedy at law against the said Hotel Corporation, in view of the facts here alleged; that the defendants Plitt are seeking to complicate a situation already bad enough, by interjecting their usurious claims against the Hotel Corporation into plaintiffs' relations with said corporation, and that they are inciting the Hotel Corporation to refuse to surrender possession of the demised premises to them for purposes of their own, and thereby causing them great loss and damage, for which they ask money decree herein. These are the material facts alleged in the bill.
It prays: (1) For a preliminary injunction commanding the Hotel Corporation to immediately surrender possession of the leased premises, as well as the hotel chattels, and property referred to; and further enjoin the defendants Clarence M. Plitt and Audrey Plitt, trustee and individually, from interfering in any way with the said surrender of possession, upon such amount of bond as this court may determine to be proper. (2) That the injunction may be made final and permanent. (3) That the cloud on the title of the complainants to said leasehold may be decreed to be removed. (4) That the rights of the parties hereto under their respective claims to possession of the real property described herein may be determined and declared. (5) That the title and rights of the parties to the chattels and hotel property, or the said proceeds of sale thereof, may be determined. (6) That your Orators may have a money decree or decrees against the individuals herein for their respective breaches of covenant or for their illegal actions causing or inspiring the same, assessing the damages appropriate under the facts to be proved herein. (7) That said lease may be...
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