Gallatin v. Markowitz

PULLEN, P. J. Malvena Gallatin, the plaintiff and respondent herein, was the owner of a lot in the city of Sacramento, on which was situated an old brick building consisting of the ground floor and two or three upper stories. The entire building was leased to George Manóles until May 31, 1923, who had subleased to Ned Licht a store on the ground floor for a term also ending May 31, 1923. In February, 1921, the upper stories of the building were condemned by the city of Sacramento; that thereafter Mal-vena Gallatin demolished the entire building, forcing Licht to vacate about March 16, 1921, and thereafter neither Manóles nor Licht were tenants of or in possession of any part of said premises.

On May 26, 1921, Malvena Gallatin entered into an agreement to sell the property to Max and Deborah Markowitz. Inasmuch as this appeal is concerned with this agreement the material portions are here set forth as follows:

. “This agreement made this 26th day of May, 1921, by and between Malvena Gallatin, hereinafter known as the seller, and Max Markowitz and Deborah Markowitz, hereinafter known as the purchasers, witnesseth: . . .

“It is understood that the property herein described has heretofore been leased to one George Manóles and that said George Manóles has sub-let the same to sundry persons and that there was formerly a building on said property, part of which was three stories and part two stories, and that the said building was condemned by the city authorities of the city of Sacramento; that in conformity with said condemnation proceedings, part of the building has been demolished and there is a question as to whether the leases covering said property could be enforced by the lessees. The purchasers hereof agree to make their own arrangements with the subtenants of said George Manóles and agree, not to hold the seller responsible in any manner whatsoever for failure or non-performance of said leases or for any claims which may be made by said lessees under said leases. It being understood, however, that in the event that said George Manolos should bring any action to enforce his lease, the [12]seller is to defend such, action and is to pay all expenses connected therewith. . . .

“In the'event that any of the tenants in the said property other than George Manóles bring action to enforce their lease, the purchasers shall defend such action and are to pay all expenses connected therewith. ...”