Medico-Dental Building
Company of Los Angeles v. Horton and Converse case brief summary
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132 P.2d
457
CASE SYNOPSIS: Plaintiff
lessor brought a breach of lease contract action against defendant
lessee. The Superior Court of Los Angeles County (California) ruled
for the lessee. The lessor appealed.
FACTS: The lessee's lease stated that the lessor was not to lease any other premises to another entity which operated a drug store. A doctor signed a lease which stated that he was not going to operate a drug store. The lessee advised the lessor about a breach of the restrictive covenant not to lease to a drug store when the doctor began to operate a drug store. When the lessor was unable to stop the doctor's operations, the lessee vacated before another rent payment was due.
HOLDING:
The court affirmed the decision for the lessee because, where the covenant ran to the entire consideration of the lease, the restrictive covenant was dependent on the other lease obligations according to the parties' intentions.
ANALYSIS:
The doctor clearly operated a legal drug store under Cal. Bus. & Prof. Code §§ 4030, 4035. The evidence showed that the lessee did not acquiesce in the operation of the doctor's drug store.
CONCLUSION: The court affirmed the decision for the lessee in the lessor's breach of lease contract action.
FACTS: The lessee's lease stated that the lessor was not to lease any other premises to another entity which operated a drug store. A doctor signed a lease which stated that he was not going to operate a drug store. The lessee advised the lessor about a breach of the restrictive covenant not to lease to a drug store when the doctor began to operate a drug store. When the lessor was unable to stop the doctor's operations, the lessee vacated before another rent payment was due.
HOLDING:
The court affirmed the decision for the lessee because, where the covenant ran to the entire consideration of the lease, the restrictive covenant was dependent on the other lease obligations according to the parties' intentions.
ANALYSIS:
The doctor clearly operated a legal drug store under Cal. Bus. & Prof. Code §§ 4030, 4035. The evidence showed that the lessee did not acquiesce in the operation of the doctor's drug store.
CONCLUSION: The court affirmed the decision for the lessee in the lessor's breach of lease contract action.
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