Appellant, Howard Nelson, appeals from the judgment of
the District Court, Eighteenth Judicial District, County of
Gallatin, awarding respondent $3,927.00, plus attorney fees.
We affirm.
On April 9, 1979, Nelson sold to Geissler, his business
known as Royal Honda Motors in Bozeman, Montana. The terms
of the sale provided for a total purchase price of
$130,000.00. Geissler made a downpayment of $65,000.00 and
agreed to pay the remaining $65,000.00 at the rate of
$1,309.05 per month over a five year period. Nelson was also
the owner of the premises that housed Royal Honda Motors.
Accordingly, the parties entered a lease whereby Geissler
leased the business premises from Nelson.
Among other requirements, the lease contained a
provision that Geisler deposit with Nelson a security deposit
in the amount of $9,034.00. The lease stated that the
security deposit was to be held:
[Flor the performance by tenant of the [terms] of
this lease. Said security deposit shall be
retained by landlord without interest until
termination of this lease and provided that tenant
has complied with all of the terms hereof and paid
all of the rental, such amount shall be returned
unto tenant.
The parties' lease also provided Geissler would pay
monthly rent of $4,517.05 per month. The parties, however,
apparently agreed that $3,208.00 of the payment was actually
rent and the remainder, $1,309.05, represented the money
being paid by Geissler to Nelson to be applied against the
$65,000.00 balance owed by Geissler on the purchase price of
Royal Honda Motors.
Prior to the initiation of this action, on June 7, 1983,
Nelson brought suit on the parties' lease in Cause No.
DV-83-537, in the same District Court. On October 1, 1983,
however, the lease was terminated by the parties when Nelson
entered a new lease covering the business premises with
Simpson Motor Cars Limited to whom Geissler had sold Royal
Honda Motors. Thereafter, Cause No. DV-83-537 was dismissed
by stipulation of the parties, signed October 31, 1983.
Accordingly, in the instant case, the District Court found