GENERAL MOTORS ACCEPTANCE CORPORATION
v.
LYNCH BUILDING CORPORATION

Fla. | 1935-01-24
Ellis, P. J., and Buford, J., concur., Whitfield, C. J., and Brown and Davis, J. J., concur in the opinion and judgment.
118 Fla. 2 Florida Supreme Court (1935) Caution
Also reported at: 159 So. 785
Cited by 15 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

This case concerns whether a lower court's decision to overrule a motion to dismiss a bill of complaint for specific performance of an oral lease was correct. The appellate court affirmed, finding the bill contained sufficient equity to proceed.


Holding

Yes, the bill of complaint sufficiently alleges these elements. The court found that the allegations regarding agency, the oral lease terms, and the defendant's actions constituted sufficient part performance and fraud to overcome the Statute of Frauds and support a claim for specific performance.


Key Quotes

“The principal is bound by acts committed within the real or apparent authority of its agent and that the public may rely on the apparent authority of the agent unless the circumstances are such as to put them on inquiry.”

This quote establishes the court's reasoning on the sufficiency of agency allegations.

Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.

Join FLexlaw to unlock all legal intelligence

Facts & Procedural History

Lynch Building Corporation (plaintiff) sued General Motors Acceptance Corporation (defendant) for specific performance of an oral lease agreement. The…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
Terrell, J.

Terrell, J.

The appellee, Lynch Building Corporation, exhibited its bill of complaint in the Circuit Court of Duval County praying specific performance of an oral agreement to make a lease. The appellant who was defendant below, moved to dismiss the bill and for better particulars. Both motions were overruled and the cause comes here on appeal from s'aid orders, though the appeal from the order overruling the motion for better particulars is abandoned in this Court.

The appellant urges that the bill of complaint is defective in that the allegations of agency are insufficient, that it fails to show the offer to make and the acceptance of an oral lease, that it does not show Such past performance as to take it out of the Statute of Frauds, and that no constructive fraud being shown equity will not grant specific performance.

The bill in effect alleges that in September, 1929, the plaintiff by written contract leased to the defendant rooms 1316 to 1330 on the thirteenth floor of the Lynch Building in Jacksonville, Florida, for a period of three years, at a rental price of $610.05 per month, and that said space was occupied and used by the defendant according to the terms of said lease until May 15, 1932. It is further alleged that during the month of April, 1932, the defendant approached the agent of the plaintiff and represented to him that it (defendant) expected to concentrate the business of its Tampa and Miami offices' in the Jacksonville office and that it would need additional space for this purpose. In view *4of such consolidation it requested that the present lease be cancelled and that it be given a new and additional lease covering rooms 1313 to 1330, thirteenth floor of the Lynch Building, including the corridor space adjacent thereto, the latter lease to run from June 1, 1932, to May 31, 1933, at a yearly rental of $7866.00. The old lease was at the request of the defendant cancelled June 1, 1932, and the new lease as per terms agreed on was placed in the hands of the defendant May 4, 1932, but it has never been executed by it, defendant, though said defendánt moved into and occupied the additional floor space, paid the rental thereon for three months or as long as occupied, and the plaintiff spent approximately $700 in improvements on said office space to fit it for the purposes of defendant’s use. After all of this was done with the knowledge and consent of defendant it vacated said premises without ever executing said lease.

This being an appeal from an interlocutory order the only question before us is whether or not there is equity in the bill. The questions raised permit such argument on both sides but we consider the bill to be ample to withstand the assault on it by motion to dismiss.

On the question of agency this Court is committed to the rule that the principal is bound by acts committed within the real or apparent authority of its agent and that the public may rely on the apparent authority of the agent unless the circumstances are such as to put them on inquiry. Bush Grocery Co. v. Conely, 61 Fla. 131, 55 So. 867; American Fire Ins. Co. v. King Lumber & Mfg. Co., 74 Fla. 130, 77 So. 168; Beekman v. Sonntag Inv. Co., 67 Fla. 293, 64 So. 948. Bush Grocery Co. v. Conely, supra, further holds that whether or not an -act done is within the scope of an agent’s authority is a question of fact to be determined by the circumstances of the case.

*5Likewise we are of the opinion that there was sufficient offer to make and the acceptance of the terms of an oral lease. The defendant made the offer to lease the premises and the plaintiff relying on such offer and with the knowledge and consent of defendant expended considerable sums fitting it for defendant’s us'e while defendant continued to occupy the space covered by the old lease and at once occupied that covered by the new lease. No specific words of assent are necessary and it may as well and effectively be given by deeds' as well as words.

On the question' of whether or not the improvements were sufficient to relieve from the operation of the Statute of Frauds it is sufficient to say that the matter of improvements' in the case of an oral lease like this have no such effect as they have in the case where an oral sale ■ is involved a'nd the purchaser relies on them as part performance. In the latter case trifling repairs or improvements are not sufficient while in a case like this' the improvements were made to effect the lessee’s use and have no relation to purchase or consideration. Such improvements in no way add to the value of the estate hut are solely for the benefit of the lessee. Forrester v. Reliable Transfer Co., 59 Wash. 86, 109 Pac. 312; Seaman v. Aschermann 51 Wis. 678, 8 N. W. 818, 37 A. R. 849.

If the bar of the Statute of Frauds was not removed by payment of the monthly charge for the leased premises it was certainly removed when such payment was accompanied by the entry into possession of the leased premises under the contract. Townsend v. Vanderwerker 160 U. S. 171, 16 Sup. Ct. Rep. 258, 40 L. Ed. 383; Maloy v. Boyett, 53 Fla. 956, 43 So. 243; Eaton v. Whitaker, 188 Conn. 222.

It is finally contended that fraud not being shown equity will not relieve. As to the plaintiff any deceit, trick, or *6ruse by which it was injured would amount to the perpetration of fraud on it. The bill alleges that relying on the promise of the defendant the plaintiff spent $700 to fit the premises for the use of defendant, that by taking additional space and a three-year new. contract the defendant got a material reduction in its' rent, and after three months’ occupancy the defendant moved out and vacated the premises. Unless by chance the plaintiff secui-es another tenant desiring the same space its expenditure to condition it for defendant becomes a clear loss. These allegations' are sufficient to meet the challenge to the bill on the ground of fraud. The bill is not vulnerable to the assault made on it.

The judgment below is, therefore, affirmed.

Affirmed.

Ellis, P. J., and Buford, J., concur.

Whitfield, C. J., and Brown and Davis, J. J., concur in the opinion and judgment.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Thompkin Corp. v. Miller, 156 Fla. 388 (Fla. 1945)
    …on inquiry. The agent’s authority may be conferred by writing, by parole, or it may be inferred from the related facts of the case. Beekman v. Sonntag Inv. Co., 67 Fla. 293, 64 So. 948; General Motors Acceptance Corporation v. Lynch Building Corp., 118 Fla. 2, 159 So. 785; Tatum Land Co. v. Marjohn Realty Company, 92 Fla. 534, 109 So. 813. The evidence is bulky. It shows as the bill alleges that Thomkin Corporation was incorporated in Florida in 1931 for the purpose of taking over and operating the prop…
  • Stuyvesant Corp. v. Stahl, 62 So. 2d 18 (Fla. 1952)
    …nquiry. The agent’s authority may be conferred by writing, by parol, or it may be inferred from the related facts of the case. Beekman v. Sonntag Inv. Co., 67 Fla. 293, 64 So. 948; General Motors Acceptance Corporation v. Lynch Building Corporation, 118 Fla. 2, 159 So. 785; Tatum Land Co. v. Marjohn Realty Co., 92 Fla. 534, 109 So. 813.” It is true that although the above case was dealing with principal and agent, the same principle applies in the case at bar because LaChance had the authority or had app…
  • Stone v. Barns-Jackson Co., Inc., 129 Fla. 816 (Fla. 1937)
    …pelled to otherwise specifically perform the contract with the complainant. That a parol contract for lease may be enforced by a court of equity cannot be seriously questioned. See General Motors Acceptance Corporation v. Lynch Building Corporation, 118 Fla. 2, 159 Sou. 785; Hotel Halcyon Corporation v. Miami Real Estate Co., 89 Fla. 156, 103 Sou. 403, and cases there cited. It will be observed that the bill of complaint alleges that the complainants are entitled to have a decree requiring the execution…

Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.

Join FLexlaw to unlock all legal intelligence

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw