Stewart v. Gorter

• Decision Date: 08 February 1889
• Citation: 16 A. 644,70 Md. 242
• Parties: STEWART v. GORTER.
• Court: Maryland Court of Appeals

16 A. 644

70 Md. 242

STEWART v. GORTER.

Court of Appeals of Maryland

February 8, 1889

Appeal from circuit court of Baltimore city.

Albert L. Gorter, being the owner in fee of a lot in Baltimore city leased it to John F. Mincher for the term of 14 years beginning April 10, 1888, for the annual ground-rent of $120 a year, redeemable after 10 years, at 5 per cent. David Stewart, on April 12, 1888, agreed to convey in fee a lot owned by him, and adjoining Gorter's lot, to said Gorter. Stewart's lot was valued in the agreement at $2,400, and he agreed to convey the same to Gorter as soon as Gorter gave him his reversionary interest in the annual ground-rent of $120 on the lot leased to Mincher, which rent Gorter stated to Stewart to be redeemable at 5 per cent., making it worth $2,400 to said Stewart. When Gorter tendered to Stewart the said $120 ground-rent, Stewart refused, and still refuses, to convey to Gorter his lot in fee, valued at $2,400, on the ground that the lease to Mincher creating Gorter's ground-rent was made after the passage of the act of 1884, c 485, as amended by Acts 1888, c. 395, and that consequently said ground-rent could be redeemed at 6 per cent.; making said Gorter's rent worth only $2,000, instead of $2,400. Upon case stated, a pro forma decree was entered, to the effect that said act is not applicable to said lease and, in addition, the lessee could and has waived his option of redemption at 6 per centum. Stewart appeals.

Argued before MILLER, STONE, ROBINSON, IRVING, BRYAN, and MCSHERRY, JJ.

John Stewart and David Stewart, for appellant.

Jas. P. Gorter and H. Arthur Stump, for appellee.

STONE J.

The question presented in this case is the true construction of Acts 1884, c. 485, and 1888, c. 395, relating to leases. It appears that on 10th of April, 1888, Gorter leased a lot of ground in Baltimore city to Mincher for the term of 14 years and the rent reserved was $120. In this lease there is a covenant on the part of the lessor for the renewal of the lease for the further term of 14 years, with the same covenants that are in the original lease. There is a further covenant on the part of the lessor that at any time after the expiration of 10 years from the date of the lease, upon payment to him of a sum of money equal to the capitalization of the rent at 5 per cent.,--that is to say, of the sum of $2,400,--the property should be released. There is also in the lease an agreement made by the lessee that he would not avail himself of any right that he might have, by virtue of any Maryland statute, to redeem the rent at a less sum than that fixed in the lease. The act of 1888, as applicable to this case, is in these words: "All rents reserved by leases or subleases of land made in this state after April 5, 1888, for...