Sunday, April 28, 2013

Mullendore Theatres, Inc. v. Growth Realty Investors Co. case brief

Mullendore Theatres, Inc. v. Growth Realty Investors Co. case brief summary
691 P.2d 970

CASE SYNOPSIS: Appellant landlord challenged an order of the Superior Court for Pierce County (Washington), which entered judgment against it in respondent tenant's action for a return of the security deposit.

FACTS: The landlord and tenant were successors in interest to an original lease agreement, which contained a covenant permitting, but not requiring, the landlord to use a security deposit for the benefit of the leased property, if such deposit were forfeited.

HOLDING:In reversing the judgment, the court held that such provision was not a covenant running with the land, because it did not touch and concern the land.

The landlord was not required to spend the money for repairs or maintenance, or in any other way related to the property. Indeed, the original landlord was not even required to transfer the security deposit to his successors. It was irrelevant that the lease recited that such covenant ran with the land; intent was not enough to make a running covenant out of one that was, by its nature, personal.

CONCLUSION: The court reversed the judgment in favor of the tenant in its action against the landlord for return of a security deposit.

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