Weber v. Crown Central Petroleum Corp.

• Decision Date: 25 June 1957
• Docket Number: No. 232,232
• Citation: 132 A.2d 857,214 Md. 115
• Parties: Adam H. WEBER et al. v. CROWN CENTRAL PETROLEUM CORPORATION.
• Court: Maryland Court of Appeals

Page 115

214 Md. 115

132 A.2d 857

Adam H. WEBER et al. v. CROWN CENTRAL PETROLEUM CORPORATION.

No. 232.

Court of Appeals of Maryland.

June 25, 1957.

Kenneth C. Proctor, Towson (Proctor, Royston & Mueller, Towson, on the brief), for appellants.

Calhoun Bond and Mannes F. Greenberg, Baltimore (Cable & McDaniel, Baltimore, on the brief), for appellee.

Before BRUNE, C. J. and COLLINS, HENDERSON, HAMMOND and PRESCOTT, JJ.

HENDERSON, Judge.

On December 1, 1948, the appellants leased to the appellee, Crown Central, a parcel of ground located at the northeast corner of Loch Raven Boulevard and Yakona Road, in Baltimore County, for the construction and operation by the lessee of a filling station. The dimensions of the lot were 100 feet by 100 feet. The lease was for a term of 10 years, with options to renew for three additional periods of 5 years each, at a monthly rental of $208.34, and an option to purchase at a stated price.

Article XXVI of the lease provided as follows: 'In the event of any change in grade of any streets, alleys or highways abutting the demised premises, or the condemnation of the whole or any part of the demised premises which Lessee shall deem to have rendered the demised premises, or such portion thereof as shall remain after such condemnation, unsuitable for the purpose of a drive-in gasoline filling and service station, Lessee may, at its option, terminate this Lease, in which event all liability on the part of Lessee shall cease upon payment of rent proportionately to the date of such termination; or Lessee may continue in possession of the remaining portion of the demised premises, in which event there shall be a proportionate reduction in rental in the same ratio as the area taken shall bear to the entire area included in this demise.'

Under Article II of the lease, appellants were obligated to secure all necessary permits for the filling station prior to June 1, 1949. On May 19, 1949, the parties executed a supplemental agreement extending the time for obtaining permits until August 15, 1949. It appears that the State Roads Commission held up the approval of the permits, because it had a plan for widening Loch Raven Boulevard in front of the property, the details of which had not then been completed. But on June 27, 1949, Crown Central sent the appellants another supplemental agreement, with a letter stating that it was 'for an additional 10 feet of land to provide for the future widening of Loch Raven Boulevard as agreed upon and as indicated by the various county and state officials.' This agreement was duly signed by the appellants.

This supplemental agreement recited the execution of the lease dated December 1, 1948, and that 'circumstances have arisen whereby the Lessee desires to lease more land than was specified under the aforementioned lease * * *.' It then provided that Article I of the lease, which described the land by metes and bounds, should be void, and another paragraph substituted therefor. The new Article I described by metes and bounds a tract 100 feet by 110 feet. The supplemental agreement also provided that Article XXVII of the original lease be void, and a new article substituted. This original article provided that in the event of a condemnation or taking of the demised premises, or part of them, the Lessee should be entitled to any and all rights to damages resulting therefrom. Under the substituted article, an exception was added, whereby the Lessors should have any and all rights to damages incident to condemnation of a ten-foot strip along Loch Raven Boulevard, described by metes and bounds. No change was made in Article XXVI or in any other article of the original lease. No consideration was stated in this supplemental agreement, but it was executed under seal, and acknowledged before a notary public on June 30, 1949. Crown Central entered into possession and constructed its filling station.

In June, 1955, the State Roads Commission put into effect its plan for widening the Boulevard in front of the property. The average width of the widening was 7.4 feet, but the strip taken was 10 feet and there were also certain limitations of access prescribed. In a letter dated September 6, 1955, Crown Central notified the lessors that it claimed to be entitled to a proportionate reduction of rent under Article XXVI of the lease. The reduction claimed was 10%, or $20.83 per month, based on a deprivation of use of a ten foot strip along the Boulevard, amounting to 1,000 square feet, and an additional loss of 100 square feet 'by the State changing the radius of the property'. Replying to the demand, the lessors did not challenge the amount of the reduction, but claimed that the lessee was not legally entitled to any reduction, on the ground that their demise of an additional ten foot strip at the rear of the lot had been a satisfaction in advance of any claim for reduction based on the widening of the Boulevard. They also threatened eviction proceedings unless the full amount of the rent was paid. Crown Central paid the full rent under protest, and filed an action at law for the refund of the alleged overpayment, a declaratory judgment construing the lease, and an injunction against the threatened eviction. The lessors filed a demurrer and answer, and the lessee moved for summary judgment. After a hearing at which testimony was offered, the court entered a judgment for rent overpaid and an injunction as prayed. From that action the appeal comes here.

The letter of Crown Central dated June 27, 1949, transmitting the supplemental agreement which was executed on June 30, 1949, was offered in evidence without objection. The letter characterized the purpose or purport of the supplemental agreement as being 'for an additional 10 feet of land to provide for the future widening of Loch Raven Boulevard * * *.' This characterization was accurate, for the supplemental...