Majority
Headnote
1. Landlord and Tenant—Failure of Landlord to Deliver Possession— Damages.On the 5th day of April, 1902, the defendants, as executors of the last will and testament of Calvin Stevens, deceased, executed a lease in writing to the plaintiffs of part of the lower hall of premises known as No. 39 Broad street, in the city of New York, being a space 34 inches in width and 32 feet in length “for the business of telephone call booths,” and an office on the floor above for the same purpose, for the period of one year and fifteen days from the 15th day of April, 1902. The rent .reserved was $600' per annum. The lease contained the following clause: “The parties of the second part (meaning the plaintiffs) are allowed to rent their space to other parties for the same business purposes.” After the execution and delivery of the lease, but before the plaintiffs went into possession, and on the 12th day of April, 1902, the defendants notified the plaintiffs that they elected to cancel the lease, and would not permit the plaintiffs to occupy the premises. The action is brought to recover the damages sustained by the plaintiffs in consequence of this breach of contract. The plaintiffs allege as a basis for recovering special damages that they were obliged to pay a bonus of $500 in order to procure other premises for their business, and also allege that they sustained damages aggregating $1,500, for which they demand judgment.
Upon the trial plaintiffs offered no evidence of the special damages set up in the complaint. Counsel for the defendants, on the cross-examination of one of the plaintiffs, showed that the plaintiff subsequently hired the store floor of premises No. 52, on the opposite side of the street, and about 125 feet further down. The defendants having thus opened the door, counsel for the plaintiffs showed on redirect examination that these premises- were not as convenient or suitable as the premises which they leased from the defendants, and required the employment of office boys, which would -have been unnecessary had they been permitted to keep the premises leased of the defendants. No estimate was given by the witness of the difference in rental value between the premises thus actually occupied and those covered by the lease given by the defendants, nor did he specify the extra expense of messenger service. It is evident that this evidence was not received for the purpose of showing the special damages, but merely to counteract the effect of the evidence drawn out by the defendants tending to show that plaintiffs had succeeded in obtaining premises for the transaction of their business in the immediate neighborhood,
In an action by a tenant against his landlord for wrongfully withholding possession of the demised premises the plaintiff is ordinarily entitled to recover as the minimum amount of his damages the difference between the rental value of the premises for the term leased and the rent reserved, such damages being the reasonable, natural, and proximate loss sustained by the tenant through the landlord’s breach of contract; but recovery is- not in all cases confined to this difference of rental value, which is general damages; special damages, which are the natural, but not the necessary, consequences of the breach, being also recoverable, if properly alleged and shown. Englesdorf v. Sire, 64 Hun, 209 , 18 N. Y. Supp. 907 ; Driggs v. Dwight, 17 Wend. 71 , 31 Am. Dec. 283 ; Chatterton v. Fox, 5 Duer, 64 ; Dean v. Roesler, 1 Hilt. 420; Friedland v. Myers, 139 N. Y. 432 , 435, 436, 34 N. E. 1055 ; Mack v. Patchin, 42 N. Y. 167 , 1 Am. Rep. 506 ; Dodds v. Hakes, 114 N. Y. 260 , 21 N. E. 398 ; Oehlhof v. Solomon, 73 App. Div. 329 , 333, 76 N. Y. Supp. 716 ; Vanderslice v. Newton, 4 N. Y. 130 .
In behalf of the plaintiffs, competent evidence was given tending to show that the fair rental value of the premises for the purpose for which they were leased with the privileges grantéd the lessee was considerably more than the rent reserved, and this evidence was sufficient to justify the recovery of the verdict rendered by the jury. The plaintiffs were stockbrokers. They and about 200 other brokers transacted their business on the curb in front of the Stock Exchange or Mills Building on Broad street, and comprised what is known as the “Curb Market.” On account of the rebuilding of the exchange, it became necessary for the curb market brokers to select another place to transact their business. The plaintiffs, being aware that the curb brokers intended to locate in front of 39 or 35 Broad street, and knowing that the use of telephones was essential in that business, and that there would be a great demand for telephones conveniently located, obtained this lease at a low rental before the defendants became aware of these facts. The brokers did locate in front of these premises about the 1st of May, and the evidence shows that the premises leased by the plaintiffs were very valuable for the purposes for which they were to be used as specified in the lease. The plaintiffs, however, were not contented to rely upon this evidence, and they persisted in introducing incompetent evidence on the question of damages, which requires a reversal. One of the plaintiffs was asked by his counsel on direct examination, “Can you state, of your own knowledge, some of the prices paid by brokers for telephones to the curb market?” This was objected to as incompetent, and not an element of damage, or alleged in the complaint. The objections were overruled, the defendants excepted, and the witness answered, “Two hundred and fifty dollars a
If the defendants had leased to the plaintiffs a vacant lot for a term of years, and then refused to give possession, it is quite clear that the plaintiffs would not be permitted to show affirmatively the rentals that they could obtain by a certain outlay of money in erecting buildings on the premises. They could show the existing facts, the availability and adaptability of the premises and demand therefor, but they would then be confined to showing the rental value of the premises as vacant land, not with contemplated improvements thereon. The same principle applies here.
The appellants strenuously urge that they have been sued in their representative capacity, and that, therefore, the action cannot be maintained. Since this question will in all probability arise on the new trial, which is necessitated on account of the error already pointed out,
' The judgment and order should be reversed, and a new trial granted, with costs to appellant to abide the event. All concur, except, O’BRIEN, J., who dissents.
Footnotes
- ¶ ¶ 1. See Landlord and Tenant, vol. 32, Cent. Dig. § 453.
Cases cited
- Driggs v. Dwight 17 Wend. 71 p. 1049
- Dean v. Roesler 1 Hilt. 420 p. 1049
- Friedland v. Myers 139 N. Y. 432 at 435, 436, 34 p. 1049
- Mack v. Patchin 42 N. Y. 167 p. 1049
- Dodds v. Hakes 114 N. Y. 260 p. 1049
- Vanderslice v. Newton 4 N. Y. 130 p. 1049
- Giles v. O'Toole 4 Barb. 261 p. 1050
- Lawrence v. Wardwell 6 Barb. 423 p. 1050
- Litchfield v. Flint 104 N. Y. 543 p. 1051
- Stilwell v. Carpenter 62 N. Y. 639 p. 1051
- Beers v. Shannon 73 N. Y. 292 p. 1051
- First National Bank v. Shuler 153 N. Y. 163 at 173, 47 p. 1051
- O'Brien v. Jackson 167 N. Y. 31 at 60 p. 1051
- Buckland v. Gallup 105 N. Y. 453 p. 1051