People Ex Rel. Department of Public Works v. Auman

100 Cal.App.2d 262 (1950) 223 P.2d 260 THE PEOPLE ex rel. Department of PUBLIC WORKS, Respondent,

v.

J.E. AUMAN et al., Defendants; LELAND D. O'CONNELL et al., Appellants.

Docket No. 17546. Court of Appeals of California, Second District, Division Two.

November 1, 1950. [263] William H. Wadsworth and Edgar L. Fraser for Appellants.

George C. Hadley, Hodge L. Dolle, R.B. Pegram, John N. McLaurin, Charles Glass, Jr., and Warren P. Marsden for Respondent.

McCOMB, J.

[1] From a judgment in favor of plaintiff in a condemnation action, defendants O'Connell and Livingston appeal.

Facts: Plaintiff filed a complaint in eminent domain on June 18, 1948, at which time a summons was served on the owner of the fee, J.E. Auman. Defendants at the time occupied the premises under a written lease expiring March 31, 1949.

On or about July 25, 1948, plaintiff acquired title to the property which was the subject of the condemnation suit by grant deed from the owner. Thereafter defendants entered into a rental agreement with plaintiff dated August 3, 1948, covering the property in question for the period from July 25, 1948 to October 1, 1948. This lease contained the following clause: "(11) In the event there is any prior existing lease or rental agreement between tenant and State (or its predecessor in interest) covering the subject property, it is agreed and understood that this rental agreement shall cancel and terminate said prior lease or rental agreement as of the effective date of this rental agreement."

Questions: First: Were defendants entitled to compensation for the taking of their leasehold interest on the property being condemned?

This question must be answered in the negative. By the agreement of August 3, 1948, defendants expressly recognized and agreed to the termination of the prior lease. Hence defendants did not have any property taken in the condemnation proceeding since at the time of trial they had no interest in the property.