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Keywords

contractlease

jurisdictionequityleaseappellant

Related Cases

Jaber v. Miller, 219 Ark. 59, 239 S.W.2d 760

Facts

In 1945, Kade Jaber rented a building for a five-year term and later transferred the lease to Norber & Son. The lease stipulated that it would terminate if the building was destroyed by fire, which occurred on December 3, 1949. Miller obtained the lease from Norber & Son and executed promissory notes to Jaber for the lease payments. After the fire, Miller argued that the notes represented rent and should be canceled, while Jaber contended they were deferred payments for the lease assignment.

This is a suit brought by Miller to obtain cancellation of fourteen promissory notes, each in the sum of $175, held by the appellant, Jaber.

Issue

Was the transfer of the lease from Jaber to Norber & Son an assignment or a sublease, and did the destruction of the building by fire terminate Miller's obligation to pay the notes?

Whether this instrument of transfer is an assignment or a sublease is the pivotal issue in this case.

Rule

The distinction between an assignment and a sublease is determined by whether the instrument purports to transfer the lessee's estate for the entire term (assignment) or for less than the entire term (sublease). The intention of the parties governs this determination.

In most jurisdictions the question of whether an instrument is an assignment or a sublease is determined by principles applicable to feudal tenures.

Analysis

The court analyzed the language and structure of the transfer document, which was titled 'Contract and Assignment' and explicitly stated that Jaber 'hereby transfers and assigns' the lease. The court concluded that the document's form and language indicated an assignment rather than a sublease, despite Miller's argument that it should be treated as a sublease due to the lack of provisions for fire damage.

In this state of the law we do not feel compelled to adhere to an unjust rule which was logical only in the days of feudalism.

Conclusion

The court reversed the lower court's decree, holding that Miller was not entitled to cancel the notes because the transfer was an assignment, and the destruction of the building did not terminate his obligation to pay.

Decree reversed.

Who won?

Kade Jaber prevailed in the case because the court found that the transfer of the lease was an assignment, which meant Miller's obligation to pay the notes remained intact despite the fire.

The appellant's position is certainly not without equity.

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