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[Sheriff-Substitute of Perthshire.
A landlord having allowed a tenant a reduction on the rent stipulated in his lease for the years 1885 and 1886, returned the reduced rent to the valuation roll for the years 1887 to 1889. In the year 1890 the tenant's estates were sequestrated, and at the date of the sequestration part of the rent for crop 1888 and the whole of the rent for crop 1889 was in arrear.
Held that the return to the valuation roll was not sufficient proof that the written lease had been departed from,
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and that the landlord was entitled to rank for the arrears of rent due under the lease.
By lease dated in September 1867 Lieutenant-General James Clerk Rattray of Craighall, let the farm of Thorn, in the county of Perth, to James Leslie for 19 years from Martinmas 1871, at the yearly rent of £650.
In 1886 General Rattray's agents wrote to Leslie informing him that General Rattray had decided to allow him a reduction of £100 on his rent for crop and year 1885, and a similar intimation was again made to Leslie in 1887 with regard to the rent for the crop of 1886.
In 1890 Leslie's estates were sequestrated, and John Graham was appointed trustee in the sequestration. General Rattray lodged two claims in the sequestration. He claimed (1) to rank for the balance still due for crop 1888 of the full rent of £650 stipulated in the lease, and (2) to rank preferably for the full amount of the rent as stipulated in the lease for crop 1889, for payment and in security of which rent the Sheriff-Substitute of Perth had sequestrated the tenant's stock and crop on 6th December 1889.
It appeared from a letter from the Assessor of Perth, written in reply to a letter from the trustee, “that the rent of Thorn farm was returned reduced in May 1887 for year 1887–88, and the reduced rent was continued for 1888–89 and 1889–90.”
On 15th April 1892 the trustee issued the following deliverance—“1. Preferable claim for rent—In respect that an abatement of £100 per annum was from 1886 allowed on the rent mentioned in the lease, and that the reduced rent of £550 was returned to the valuation roll on behalf of the landlord and by his authority as the rent of the farm, the trustee rejects this claim to the extent of £100 and admits the balance. 2. Claim for rent—For the reason above stated the trustee rejects the claim to the extent of £100.”
Against this deliverance General Rattray appealed to the Sheriff of Perthshire, and on 6th May 1892 the Sheriff-Substitute ( Grahame) dismissed the appeal and adhered to the deliverance of the trustee.
General Rattray appealed to the Court of Session, and argued—To justify his decision, the trustee was bound to show that the appellant had come under an obligation to his tenant to grant the abatement of rent, and such an alteration on the written contract of lease could only be proved by the writ or oath of the appellant. The valuation roll was made up entirely for purposes of assessment, and the fact that the reduced rent had been returned for the purposes of the valuation roll was not sufficient proof that the landlord had come under any obligation to grant the abatement of £100. He might have been ready to accept the reduced rent, though not under any obligation to do so— Menzies v. Assessor for County of Perth, June 19, 1889, 16 R. 805; Emslie v. Duff, July 2, 1865, 3 Macph. 854.
Argued for the respondent—It was possible to prove that parties had agreed to modify a written contract by proving that they had transacted with one another on the footing that the contract had been so modified— Baillie v. Fraser, June 14, 1853, 15 D. 747. There was here sufficient proof that the landlord had agreed to grant the reduction of rent. If, however, the Court thought the proof insufficient, the case should be remitted to the trustee for further inquiry.
At advising—
The question as to the appellant's other claim is left over, and the first point to be determined is, whether the Sheriff's judgment should stand. I am clearly of opinion that it should not, because the Sheriff holds that the rent stipulated in the lease had been reduced to a smaller rent. Now, the lease is the writ of the parties, and there must be competent evidence that it was departed from. The Sheriff, apparently resting merely on the letter of the assessor, held that it had. The letter is in itself no evidence of such departure, but when we look at its terms we find that the case made is, that because in the words of the assessor the rent of the farm was returned at a reduced figure, it must be held as proved against the landlord that the stipulation in the lease had been departed from. The case of Emslie v. Duff does not import that the mere return made to the assessor is conclusive against the landlord. In that case the landlord returned the farm as let on a nineteen years' lease, and not content with making this return, he wrote to the assessor saying that all his tenants were tenants on nineteen years' leases. In these circumstances it was held that the duration of the lease was proved by the writ of the landlord, but the opinions of the judges indicate that they must not be held as laying down any absolute law as to the validity and effect of returns made to the assessor in questions of this kind. It appears to me that this case has been wrongly decided by the Sheriff, because there is no proof that the stipulations of the lease have been departed from, and I think that it would be inappropriate to send the case back to the Sheriff to direct the trustee to call for further evidence, as the evidence before us may be taken to be the whole evidence in the case.
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The Court recalled the judgment of the Sheriff, and remitted to him to direct the trustee to rank the appellant for the arrears of rent due to him under the lease.
Counsel for Appellant— Craigie. Agents— J. & F. Anderson, W.S.
Counsel for Trustee— Law. Agent— John Rhind, S.S.C.