CASINO AMUSEMENT COMPANY, A FLORIDA CORPORATION, PLAINTIFF IN ERROR,
v.
THE OCEAN BEACH AMUSEMENT COMPANY, A FLORIDA CORPORATION, DEFENDANT IN ERROR

Fla. | 1931-04-02
Whitfield, P.J., and Terrell, J., concur., Buford, O.J., and Ellis and Brown, J.J., concur in the opinion and judgment.
101 Fla. 59 Florida Supreme Court (1931) Caution
Cited by 13 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 tenant can recover advance rent payments after being evicted for non-payment, when the lease stipulated the payment was for rent and not a deposit. The court held that such advance rent is generally not recoverable if the lease is terminated due to the tenant's default.


Holding

No, advance rent payments, explicitly designated as rent and not a deposit, are generally not recoverable by the tenant if the lease is terminated due to the tenant's default, even if the termination occurs before the period for which the rent was paid.


Key Quotes

“It also provided that “in case at any time, default shall be made by the lessee, in the payment of any of the rent herein provided for, upon the day the same becomes due or payable” that then “it shall be lawful for the lessor, at its election, to declare said demised term ended and to reenter said demised premises, etc.””

Establishes the lease terms regarding default and the lessor's right to terminate.

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Facts & Procedural History

A tenant paid $25,000 under a 99-year lease, which was to be credited as rent for the last year. The tenant defaulted on rent payments, leading to a d…

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Opinion of the Court
Daws, J.

Daws, J.

This was a suit at law to recover the sum of $25000.00 which had been paid under a lease by which the lessor demised to the lessee certain premises known as “Hardie’s Casino” for a term of ninety-nine years, commencing January 1, 1925, in consideration of rent payments, at the rate of $20,000.00 a year for the first five years, with increases thereafter during the term.

The lease provided that the sum of twenty-five thousand *61dollars “paid at the time of the signing of the lease, the receipt of which is hereby acknowledged, shall be credited as rent for the last year of this lease. ’ ’

It also provided that “in case at any time, default shall be made by the lessee, in the payment of any of the rent herein provided for, upon the day the same becomes due or payable” that then “it shall be lawful for the lessor, at its election, to declare said demised term ended and to reenter said demised premises, etc.” There was a further clause in the lease to the effect that the “right” given in the lease to the lessor to collect rent that might become due under the lease “shall not in any way affect the right of such lessor to declare this lease void, and the term hereby created ended, as herein provided, when default is made in the payment of said rent. ’ ’

The declaration shows that plaintiff defaulted in paying an installment of rent and that a distress judgment for the amount of the unpaid rent was obtained against him in the Civil Court of Record of Dade County. It is also shown by the declaration that upon judgment being so entered in the distress proceeding, the plaintiff was ousted from possession of the premises. This ouster is alleged to have taken place at a time prior to the last year of the lease, as- of course, must have been unquestionably the ease since the last year of the lease appears to be A. D. 2023.

Recovery of the $25000.00 sued for is sought on the theory that the money recited in the lease to have been paid in advance as rent was merely a deposit and that since the lessee was deprived of possession of the property prior to the period of time for which the sum was paid in advance, it may be recovered on the principles laid down in Cunningham v. Stockton, 106 Pac. 1057; Claude v. Shep*62ard, 122 N.Y. 397, 25 N.E. 358; Caesar v. Robinson, 174 N.Y. 492, 67 N.E. 58; 1 Tiffany on Landlord & Tenant, page 1159; Wallette v. Hillyard, 43 S.E. 779; Hyman v. Jockey Club Liquor & Cigar Co., 9 Colo. App. 299; 48 Pac. 671.

It is also contended that even though plaintiff failed to pay his rent when due, the default was waived when the lessor obtained his distress judgment and executed it to enforce payment, thereby recognizing the continuance of the tenancy which rendered the lessee’s ouster of plaintiff unlawful, so as to entitle him to sue for recovery of the money paid in advance as rent for the last year of the lease term.

Defendant in error, who was defendant in the court below, contends that there was no provision made in the contract to the effect that if default is made by the lessee the $25000.00 advance payment should be returned. It is also contended that where rent' is paid in advance, it may be lost to lessee because of his own default which allows the landlord to re-enter for condition broken. To this effect is cited the case of Galbraith v. Wood, 124 Minn. 2010, 144 N.W. 945, 50 L.R.A. (N.S.) 1034, which holds:

“Where rent has been paid in advance, under an agreement that it shall be so paid; and the lessor reenters for conditions broken, he is entitled to retain the rent so paid, though the re-entry is before the expira tion of the period for which the rent is paid.
A stipulation in the lease that a reentry.by the lessor for conditions broken shall not work a forfeiture of the rent due or to become due is not invalid because providing a penalty for the lessee’s breach of conditions.”

The general rule deducible from the authorities is that in the absence of provision therefor, rents paid in advance cannot be recovered by the tenant upon termination of the *63lease, unless such, termination was wrongful as against him. Evans v. McClure, 108 Ark. 531, 158 S.W. 487; Forgotston v. Brafman, 84 N.Y. Supp. 237; Rockwell v. Eiler’s Music House, 67 Wash. 478, 122 Pac. 12; 39 L.R.A. (N.S.) 894. In this respect there is a difference between an advance payment of rent and a mere deposit or security for performance such as was involved in Cunningham v. Stockton, supra, and other authorities cited by plaintiff in error.

Nor is loss of possession of the premises, whether by reentry of the landlord, or otherwise, a material circumstance as to liability because the general rule is:

“In cases in which loss of possession is due to stipulations of the lease, he may lose his advance payment, but this is merely a natural and legal result of the stipulation for payment in advance. One who agrees to pay in advance cannot well complain if, as a result of the agreement, he is in a position different from that in which he would be had he not so agreed.” Pedro v. Potter, 242 Pac. 926; 42 A.L.R. 1165, (1171).

The lease involved in this case expressly provides for an advance payment of rent, not a deposit as security for the performance of the contract, as contended.

In this view of the case, plaintiff’s declaration stated no cause of action and a demurrer thereto was properly sustained. The alleged waiver of the landlord’s right to re-enter, if available at all to the lessee under the terms of the particular lease here involved, could at most constitute a ground of defense against the landlord to prevent his recovery of possession against the tenant after distraint for the defaulted rent, but cannot add life to plaintiff’s alleged basis of recovery, which we have found does not legally exist in this case.

*64The judgment must be affirmed.

Whitfield, P.J., and Terrell, J., concur.

Buford, O.J., and Ellis and Brown, J.J., concur in the opinion and judgment.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Stenor, Inc. v. Lester, 58 So.2d 673 (Fla. 1951)
    …as security for performance of the covenants and was not to be used in payment of rent. Instead, provision was made for its return by installments near the termination of the lease period. In Casino Amusement Co. v. Ocean Beach Amusement Co., 1931, 101 Fla. 59, 133 So. 559, where a lessee sued to recover $25,000 paid at the time of execution of the lease to apply on the last years rent, the Court held that in the absence of provision therefor rents paid in advance cannot be recovered by the tenant upon te…
  • Wagner v. Rice, 97 So. 2d 267 (Fla. 1957)
    …consumed by occupancy of the tenant the lessor is not obligated to return to the lessee the amount of the advance rental payment that would otherwise have applied beyond the date of the termination. Casino Amusement Co. v. Ocean Beach Amusement Co., 101 Fla. 59, 133 So. 559. See also Brooks v. Coppedge, 71 Idaho 166, 228 P. 2d 248, 27 A.L.R.2d 645. This Court, by analogy, has therefore aligned itself with those authorities which adhere to the rule that a lawful “eviction is no defense to a claim for accru…
  • Housholder v. Black, 62 So. 2d 50 (Fla. 1952)
    …at the lease required payment. in advance for the third year, of the term and that said sum was actually paid without any strings or reservations whatsoever. This case is controlled by the case' of Casino Amusement Co. v. Ocean Beach Amusement Co., 101 Fla. 59, 133 So. 559, 560. In the Casino case there was a 99-year lease which provided that the sum of $25,000 “paid at the time of the signing of the lease * * * shall be credited as rent for the last year of this lease.” The lessee defaulted in the paymen…
    1 / 2

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