Cone v. Western Trust & Savings Bank

SPENCE, J. —This is an action for declaratory relief arising out of a controversy concerning the rights of the parties under a lease. There were assignments and substitutions of parties but, for the purpose of this discussion, we may refer to the parties as plaintiff and defendants in the same manner as though the original parties to the lease were the parties and the only parties to the action. It was the contention of plaintiff that under the terms of the lease, plaintiff had the right to remove the buildings, trade fixtures and personal property within a reasonable time after the expiration of the lease while it was defendants’ contention that such right terminated at the expiration of said lease. The trial court sustained the contention of plaintiff and determined that a period of thirty days was a reasonable time for such removal'. Judgment was entered accordingly and defendants appeal.

The lease, after describing the premises, recited that the title thereto “and to that certain oil and gasoline refining plant, consisting of buildings and structures, tanks, stills, boilers, agitators, machinery, and equipment, located upon said real property”, was vested in the defendants. It further recited that concurrently with the execution of the ' lease, the defendants had executed and delivered an agreement [178]under the provisions of which the defendants had sold and conveyed to plaintiff ‘ ‘ all that certain oil and gasoline refining plant above referred to and described” and had executed and delivered to plaintiff a “bill of sale thereto”, which agreement and bill of sale were “referred to and made a part” of the lease. Then followed the terms and conditions of the lease of the real property and the terms of an option to purchase the real property. The consideration for the purchase of the buildings and equipment under the above-mentioned agreement was the sum of $7,000 which was paid to defendants. Plaintiff went into possession and thereafter made other improvements and brought other personal property on the premises and the total value of all buildings, equipment and other personal property was the sum of $22,000. There are three clauses of the lease which are of particular importance in this discussion.

Clause 4 read: “The lessee shall keep said premises in a clean and healthful condition, and comply with all state, federal, county and city laws, orders and regulations in connection with the use of said premises, and agrees to deliver and yield up said demised real property to the lessor in as good order as the same is now in, at the end of the term of this lease, either by lapse of time, by forfeiture, by abandonment, or in any other manner.”