253 F. 76 | D. Mass. | 1918
The question presented by these petitions for review is how much rent shall be paid out of the estate to the landlords for the time during which the premises were occupied by the common-law assignee and by the receivers in bankruptcy. The period was from April 18 to August 1, 1916,. inclusive, 3% months. The premises were a store on Washington street, Boston, near the best retail district. They were leased by the landlords to a third person, and by it. were orally sublet to the bankrupt, on -the terms stated in the lease. In legal» effect the bankrupt was only a tenant at will; but the lessee and its guarantor on the lease had close business relations with the brankrupt, the arrangement had continued for a number of years, and for the purposes of the present question I think the case substantially the same as if the bankrupt had held directly under the lease. The failure occurred in April, 1916; the lease ran. till December 31, 1917. The total rent amounted to $26,420 per year; i. e., $2,201.66 per month.
The matter was heard by the referee and is here on his certificate, which states the facts. He finds:
“That the rental value of this store for the purposes of permanent occupancy at the time it was occupied by the receivers was greater than the rent reserved under the leases. * * * The rental value of the premises, used only- for temporary occupancy, was perhaps as low as $100 a week. The receivers were tenants at sufferance, and it was understood that they were to vacate the premises whenever a satisfactory offer to rent by lease was received by the- petitioners. * * * There was no agreement between the assignee and the owners, or between the receivers and the owners, or between the trustees and the owners, with reference to the amount of rent to be paid. A statement was made by one of the receivers to the representative of the owners, to*77 the clfect that usually the amount of rent reserved under the lease was the sum allowed.”
The learned referee allowed the sum of $1,500 per month as being what he regarded as “equitable and just,” and both parties (the landlords and the trustees) have taken review proceedings from his order.
The order of the referee is vacated, and an order may be entered in accordance with this opinion.