Dominguez Estate Co. v. Ruddock

YORK, P. J. This action, tried upon a stipulated statement of facts, was brought to recover rent under a fifty-year lease dated June 1, 1912, between R. M. Baker, as lessor, and E. P. Bryan and L. T. Bradford, as lessees, covering certain real property located at 833 South Spring Street in the city of Los Angeles.

It was stipulated that on August 10, 1916, Edna Price became the owner in fee of said property, as devisee under the will of said R. M. Baker, the original lessor, and on August 21, 1918, L. D. Sale by mesne assignments succeeded to all the interest of Bryan and Bradford, the original lessees under said lease. On January 25, 1922, Edna Price and her husband, and the said L. D. Sale entered into an agreement modifying the terms of the original lease with respect to the construction on the premises of a $50,000 building. On December 14, 1923, said lessee, L. D. Sale, and his wife, Katherine M. Sale, transferred all their rights in the lease to A. B. Ruddock, the respondent herein. The last named parties on the same date executed an instrument in writing (which was attached to said assignment) whereby a modification of the building agreement of January 25, 1922 between Price and Sale was made.

[106]On January 7, 1924, respondent Ruddock and his wife granted and assigned to the Southwestern Development Company “a certain Indenture of Lease, bearing date the 1st day of June, 1912.” On that day respondent Ruddock surrendered actual possession of the leased premises to said Southwestern Development Company, and since that time has disclaimed any right, title or interest in or to said lease agreement of June 1, 1912. On March 31, 1924, the Southwestern Development Company entered into an agreement whereby it leased to the Los Angeles City Club (for a period of 20 years after the date of its completion), the building proposed to be erected upon the premises covered by the original lease. On November 17, 1924, the building contemplated by the lease and the modification agreements heretofore referred to was constructed, completed and fully paid for.

On October 25, 1926, Edna Price, a widow, as owner and lessor, deeded the property and assigned the lease of June 1, 1912, to City Bond & Finance Company, which corporation on October 26, 1926 deeded the property and assigned the lease to Maria De Los Reyes D. de Francis, who on February 23, 1929 conveyed the real property to Dominguez Estate Company, appellant herein, reserving to herself as grantor a life estate therein including rents, issues and profits arising therefrom during the term of her natural life.