Kearney Investment Co. v. Golden Gate Ferry Co.

LENNON, J.

On January 14, 1921, the Kearney Investment Company, as lessor, entered into a written lease with the Golden Gate Ferry Company, as lessee, which written lease covered certain properties fronting on the bay of San Francisco and which admittedly is submerged land.

On August 3, 1921, the Golden Gate Ferry Company served notice in writing on the Kearney Investment Company that the lease entered into on January 14, 1921, was rescinded.

On October 5, 1921, the Kearney Investment Company commenced this action to enforce the payment of rent due under the lease for September and October, 1921, and for attorney’s fees as in the lease provided. The Golden Gate Ferry Company filed an answer and cross-complaint denying that it ever took possession of the premises let and claiming that the Kearney Investment Company had no right, title, or interest in the property leased, and alleging that certain covenants in the lease were false, and had been fraudulently made for the purpose of inducing the Golden Gate Ferry Company to enter into the lease. The cross-complaint prayed that the lease be adjudged canceled and rescinded.

The covenants alleged to be false are as follows:

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“The lessor covenants with the lessee that it is now seized in fee simple of the real property herein described and lease, which said lease does not expire until the 25th day of March, 1950.”

designated as Parcels One and Three and that it holds the real property herein described as Parcel Two under a valid

The court below found that the Golden Gate Ferry Company had never taken possession of the premises; that no sum of money had ever become due under the lease; that the Kearney Investment Company did not at any time own the parcels described as one and three, in fee; and that it did not ever have a valid ninety-nine year lease to the parcel known as Parcel Two; that the Golden Gate Ferry Company had entered into the lease believing that the Kearney Investment Company had .the title it represented itself to have in the property, and that the lease had been rescinded.

Judgment was rendered for the Golden Gate Ferry Company for costs and the lease was declared rescinded, null, and void. This appeal by the Kearney Investment Company is from that judgment.