Opinion ID: 1814405
Heading Depth: 1
Heading Rank: 2

Heading: Hartzog's Counterclaim Against Southland

Text: Southland (assignee) urges this Court to declare that Hartzog (lessee) breached its contract with Southland by failing to obtain the written consent of Marx (lessor) to its assignment of the lease and that Hartzog is therefore liable to Southland for $305 per month for twelve months, the amount of its increased cash payments to Marx. The trial court found that Marx had waived the requirement by accepting rent from Southland for several months and concluded that Southland's liability to Marx was caused by its own failure to pay its rent on time and not by Hartzog's failure to obtain written consent. The trial court thus held that Hartzog was entitled to recover $3,355, the amount withheld by Southland. Southland relies on the statement in Marx's letter that Hartzog's failure to obtain consent was a reason for its declaring default in February 1972. We agree with the trial court. A lessor, who, knowing of the assignment of a lease, accepts the assignee as substituted lessee by receiving rent from him without objection, is held to have consented to the assignment. City Garage & Sales Co. v. Ballenger, 214 Ala. 516, 108 So. 257 (1926). Thus, even though Marx cited Hartzog's failure to obtain its consent to the assignment as a reason for its notice of termination of the lease, Hartzog's failure to obtain Marx's consent was not a valid basis for forfeiting the lease and thus could not constitute a breach of Hartzog's contract with Southland. Furthermore, Southland's argument is based on the theory that Marx breached the lease by declaring forfeiture, but, as the trial court found, Marx had good reason for declaring forfeiture, viz., Southland's chronic tardiness in paying its rent. Since Marx did not breach the lease, Hartzog could not be liable for causing Marx to breach the lease. AFFIRMED. JONES, EMBRY and BEATTY, JJ., and CATES, J., sitting by designation of the Chief Justice, concur.