Phelps v. Mayor of New York

This cause was submitted on the pleadings, certain documentary evidence, a stipulation entered into between the parties as to some of the facts, and briefs •of counsel. The suit is brought primarily for equitable relief, the prayer of the complaint being that an indenture of lease of dock property in the City of New York, of which ■the defendant is the lessor and the plaintiff the lessee, “ be reformed by striking out ” one of the provisions thereof, on the ground of mutual mistake of the parties in executing the instrument with that provision inserted therein. A recovery of damages is also demanded for the breach of a covenant under which the plaintiff claims the city was bound to make repairs, at the beginning of the term, to the premises in • question. The leading facts are not in dispute. It appears that on or about April 30, 1881, the commissioners of the department of docks of the City of New York leased to the ' plaintiff for the term of five years from May 1, 1882, at an annual rental of $9,000, the dock property mentioned in the ■ complaint, and agreed to renew the lease for an additional term of five years, on receiving ninety days notice of the plaintiff’s desire to have such renewal, which was to be on ■ the same terms and conditions, except that the rental was to be increased and no further covenant of renewal was to be made. The original lease, among other things, contained the following provisions : “ And the parties of the first part (lessor) promise and agree that they will, prior to the commencement of the aforesaid term of years, or as soon after such commencement as shall be found practicable, make , such repairs to the above described wharf property, as the said board of commissioners may consider necessary to put v,such wharf property in suitable condition for service during 'the aforesaid term. And the parties hereto promise, agree

The lessee for himself, etc., also covenanted “ that he-will at all times during said term, except as hereinbeforeagreed, put, keep and maintain all the said wharf property and every part thereof, and the structures thereon, in good' and sufficient repair and condition, and will well and sufficiently dredge and keep dredged the slip or slips adjacent thereto, and that all such repairs, rebuilding and dredging-during said term shall be at the sole cost ” of the lessee; and then follow conditions under which the lessor may make-these repairs in default of the lessee so doing, and for forfeiture of the term.

The plaintiff entered into possession under this lease, and' in due time, before its expiration, gave the necessary notice-requiring a renewal, and thereupon another instrument,, granting a term of five years from May 1, 1887, was executed and delivered, and the plaintiff is now in possession-thereunder. The provisions of this last instrument are-(with the exceptions as to amount of rent and covenant of renewal) identical with those of the first lease ; those relating to repairs by the lessor and lessee, respectively, are in the same • words in each instrument. By the stipulation entered into between the parties it appears that both claim and admit ' that the premises were not in a suitable condition at the commencement of the second or renewal term, and that a claim to that effect was made at the time of the execution of the second lease, and has ever since been made, and that the plaintiff has expended $15,021.02 for repairs, in and by which the whole property was put in a suitable condition for service • during the aforesaid (the last) term, and that the same was a fair and reasonable amount expended therefor, and that the-second lease was retained by the plaintiff for two days before-he executed it.

No proof has been offered to support the allegation of the-

Further, it is apparent that there was no mistake of either party in the matter. The new lease was given in pursuance of a covenant in the former one, by which it was expressly stipulated that a renewed grant should“ contain like covenants as this present one, except the covenants of renewal, and except that the rent or compensation shall be $11,000 per annum.” For five years and more the plaintiff knew that if he required the additional term under his privilege to demand it, he must acquire it in accordance with the provisions which bound the parties to the same stipulations, other than the excepted ones, contained in the first grant. The city’s obligation and his own, as to repairs and the limitation of his right, to claim anything concerning the condition of the premises at the commencement of the second term, were to be the-same as at the beginning of the first term and no other. There is nothing to be reformed, therefore, in the lease now in force. It is just what the parties intended and agreed it should be, and their respective rights and obligations under it are not to be governed by equitable considerations, but merely legal remedies are open. The plaintiff’s own argument is inconsistent with the relief sought in equity. He asserts in the brief that, by a proper construction of the instrument the-covenant prohibiting a claim that the wharf property was not in a suitable condition for the purposes of the lease at the-beginning of the new term, is not incompatible with the express covenant of the lessor to make repairs conceded to-be necessary at the beginning of the term to put the premises in suitable condition for use by the lessee. If that be so, and I think it is, the provisions of the lease do not conflict, and the interposition of a court of equity is not necessary, because-the plaintiff’s legal rights are not impaired nor obstructed.

The inquiry, then, arises as to the power of the court ins

The supreme court, with its general jurisdiction both at law and in equity, has full cognizance of the whole cause. But the remedies afforded, as applicable to either branch of its jurisdiction, are separately administered in different and differently constituted parts of the court. Equitable relief is granted by a judge alone, sitting as a chancellor, under modified proceedings, as to the taking of testimony. Legal ■remedies are allowed as at common law, in the circuit court, which is a common law court, presided over by a justice of the supreme court, and it is, “ according to the course and practice of the court,” a branch of the supreme court, although in the enumeration and classification of courts in the statute (Code Civ. Pro. § 2) it is mentioned as a separate court. Where a complaint sets forth merely a cause of action in equity, and ■equitable relief only is asked, even if the proofs show a right to a legal remedy, the plaintiff cannot obtain it in that action, and so, where a complaint is drawn only as in a common law action, equitable relief cannot be granted to the plaintiff in that action. The clear distinction between equitable and legal causes of action, and the remedies appropriate to them, still exists, and a recovery must be had secundum ■allegata ct probata. This has been stated in many reported ■cases, among them Heywood v. Buffalo, 14 N. Y. 540 ;

But there is another class of cases, relating to a complaint stating facts, which, if proven, would entitle a plaintiff to-either equitable relief or a legal remedy, and in those cases ■ it has been held that the averments of the complaint being' broad enough and the demand for judgment being appropriate, the action being presented in a double aspect, the court will retain it, and upon denying equitable relief will allow the parties, on the pleadings as they stand, to test their legal rights in the proper way (Sternberger v. McGovern, 56 N. Y. 12 ; Seeley v. N. Y. Ex. Nat’l Bank, 8 Daly, 402 ; affirmed 78 N. Y. 608 . See, also, Cogswell v. N. H. R. R. Co., 105 N. Y. 319 ). That proper way, in an action brought in the. supreme court, is trial by jury in the circuit court, unless it is waived by consent, or by omission in due time and manner to demand it, or when authorized a reference is ordered. In this case it might well be held - that a jury trial has been waived by both parties, as it has been submitted by both, but neither of them has presented to the court sufficient proofs to enable it to dispose of the whole controversy.

Omitting from consideration all that is alleged in the complaint tending only to the right to equitable relief, it appears-that the corporation of the City of New York was the owner of the pier No. 40 East River and of one-half of the adjoining bulkhead; that in April, 1881, by its duly authorized agents, the board of commissioners of docks, it leased that pier and the adjoining bulkhead to the plaintiff, and in that lease the-covenants above recited were contained; that the plaintiff personally, or by his tenants, occupied the premises throughout the whole term of the lease; that he paid the rent and performed all the covenants of the lease on his part to be performed; that, in particular, he put, kept, and maintained the premisos and every part thereof in good and sufficient repair and condition, and dredged the slips; that, before the

It is contended by the City that no liability to make repairs rests upon it because of the provision of the lease quoted, which states that no claim shall be made or allowed that the property was not, at the commencement of the term, in a suitable condition for the uses and purposes of the lease. There is no necessary inconsistency between that provision and the lessor’s covenant as to repairs to be made by it. Taking them together, and applying to them the reasonable rule that construction will be given to avoid repugnancy, where it is evident that each party intended to assume an ■obligation to the other, and the rights of neither will be in-waded by such construction, and the court can see exactly

Apart from the provisions just considered, it is further urged by the defendant that the plaintiff agreed to keep the premises in repair during the term, and that hence he was bound to make all repairs. But the plaintiff’s covenant in that regard relates to repairs,f' except as hereinbefore agreed,” and that refers to the repairs the lessor should make at the beginning of the term. All the lessee had to do was to make those repairs which would keep up the property in the condition in which he took it. If he took an old pier in condition to last during the term of the first lease (and all the city was bound to do was “ to put such wharf property in a suitable condition for service during the aforesaid term”) the lessee was not .required, at the expiration of the term, to return to the lessor a

So far as equitable relief is demanded, none can be awarded ; but the cause will be sent to the circuit for trial as a common law action for a breach of the covenant of the city to put, at the beginning of the second term, the property in suitable; condition for use during that second or renewed term.