Swartz v. Meier

Briscoe, J., delivered the opinion of the Court. This appeal is taken from a decree of the Circuit Court of Baltimore City, passed on the 25th day of June, 1919, dismissing the plaintiff’s bill of complaint, for an injunction for the purpose of restraining' the defendants, as co-partners, from using! certain demised property for other purposes than those stipulated in a lease, and alleged to be in violation of the terms and covenants of the lease. ⁷³ The case was heard upon hill, answer and proof, and it will be necessary to briefly state some of the controlling facts disclosed by the record on which our determination of the ease must rest. The lease in question is dated the 11th day of September, 1915, and was executed by Mrs. Bernice M, McE'adden, of the State of Iowa, the owner of the property, leasing to the defendants, the appellees here, the property called No. 101 West Lexington Street, in the City of Baltimore, for the term of five years, with privilege of renewal, beginning on the 11th day of September, 1915, at the rental of three thousand nine hundred and six 71/100 dollars per annum, payable in equal monthly instalments of three hundred and twenty-five and 56/100 dollars; on the eleventh day of each month for the preceding month’s rent. The lease also reserved as additional rent certain increase in taxes and cost of elevator repairs.

The lease contains, among others; the following covenants and restrictions, to wit: To pay the rent when due; that they will not assign the lease or sublet the demised premises in whole or in part without the written consent of the lessor; that the lessees will use the premises for the purpose of conducting the stamping and fancy goods business; that at the expiration of the term of five years, surrender and yield up the premises unto the lessor, her heirs and assigns in as good order and condition as the same may now be in or be put in during the term of five years, usual wear and tear excepted. The lessees also covenanted that they would do nothing to contravene or impair the policy or policies of insurance on the premises and that they would not make, any alterations to the premises without the written consent of the lessor, and any improvements made shall become the property of the lessor. It was also agreed that, at the expiration of this lease, the lessees shall have the privilege of making a new lease for the property, for an additional term of five years, but at a rent of four thousand dollars per annum, plus any increase of taxes because of an increase of as-sessment ⁷⁴ over the present assessment and pins one-half of the cost of installation of the elevator, as provided in the lease. On January 24th, 1918, a contract of sale for the property was made between Mrs. McFadden, the then owner, and the appellant at the sum of seventy thousand dollars ($70,-000.00) subject to the outstanding lease held by the appellees.

The deed for the property was executed on the l7fh of August, 1918, and the lease thereafter duly assigned to the appellant. The bill of complaint filed by the appellant charges in substance that the appellees have violated and broken certain covenants and conditions of the lease, as set out in the bill and the relief asked by the prayer of the bill, is: First, that the defendants be enjoined and strictly prohibited from the further misuse and abuse of the property; that they be further required to immediately restore the premises to their former condition and to cease carrying on the business now carried on therein, and to limit themselves to the carrying on of the business as provided by the lease and, upon their failure so to do at once, that the lease may be cancelled and annulled, and the defendants be required to surrender possession of the property to the plaintiff. S'econd, that upon failure to restore the premises and to cease the business, that he may be allowed such compensation for the damage to his property, and for the violation of the covenants of the lease, before the same is annulled and declared void, as the Court may think just and proper in the premises. The defendants, in their answer to the hill, deny that they have violated any valid or effective covenant