Ingram v. Pantages

PRESTON (H. L.), J., pro tem.

T

his is an action for damages for breach of contract.

This case was tried by the court sitting without a jury, and judgment was entered in favor of the defendant, from which judgment plaintiffs prosecute this appeal, based on the judgment-roll alone.

The facts are not in dispute, and are briefly these: Appellants were the owners of certain real property in the city of Fort Worth, state of Texas, and on November 18, 1919, they entered into a written lease and agreement with the respondent wherein appellants agreed to lease to respondent their property in Forth Worth, Texas, for a period of thirty years from January 1, 1920, at an annual rental of $15,000. Respondent immediately went into possession of the property under the lease and was in possession on the date of the trial of this cause in the superior court.

Said lease and agreement provides, among other things, that the lessee (respondent herein) should construct a building on said leased property within four years from January 1, 1920, at a cost of not less than $100,000; and, if respondent did not begin the construction of said building on said leased premises within the first year of the lease, that is, on or before January 1, 1921, he would deposit with the appellants (the lessors herein) the sum of $12,000, which sum appellants agreed to return to respondent immediately upon his beginning the construction of said building, if begun within the four-year period. Said lease also pro

[43]

vided that respondent should have the exclusive right and option to purchase said leased property for the sum of $250,000 at any time on or before January 1, 1924.

The provision of the lease with reference to the deposit of $12,000, and the return thereof, is set forth in article VI of the lease, and is as follows:

“If lessee does not begin the construction of said building within the first year of this lease, then lessee shall deposit with lessors the sum of twelve thousand dollars ($12,000.00), which shall be immediately returned to lessee upon his beginning the construction of said building within the four-year period herein provided for, or his exercising his option to purchase hereinafter provided for, but if said building is not begun within said four-year period or said option to purchase exercised, then this twelve thousand dollars ($12,000.00) shall belong to lessors.”