Stadium Racing Ass'n v. City of San Diego

GRIFFIN, J. Plaintiff and appellant, a motor vehicle racing association, brought this action against the defendant, city of San Diego, for declaratory relief respecting a lease agreement between them whereby defendant leased to plaintiff for [489]five years, under a limited use lease, a portion of the city stadium located in Balboa Park in San Diego. Plaintiff also claims that the city violated the lease and seeks damages for such breach. The material provisions of the present lease, dated August 4, 1954, beginning January 1, 1955, and ending December 31, 1959, under paragraph 4, are as follows:

“Availability. Lessee shall have the right to occupy the premises during the racing season which shall consist of such hours as are agreeable to City of each Wednesday evening for the period of May 21st through January 31st during the term of this agreement. Provided, however, that City hereby reserves the right to require Lessee to surrender to the City the use of said premises for any particular day by giving to Lessee of ten (10) days’ written notice of such requirement. City shall have the right upon written application of Lessee to grant such other periods of time in which Lessee may occupy the premises either in lieu of or in addition to said Wednesday evenings.”

It also provides that lessee agrees to conduct a minimum of 25 events each year; that the rental shall be $250 for each event or a percentage of the gross income, whichever sum is greater; and that lessee shall make the necessary improvements for their intended purpose. It is also provided that the lessee has the right of removal of the fixtures and improvements. There was also in evidence prior leases from June 28, 1939 to February 1st, 1940; from May 30, 1940, to October 31, 1940; from September 19, 1945,to January 19, 1947; from August 17, 1948, to December 31, 1953. Although somewhat similar in terms, paragraph 4 of the last lease was a modification of the provisions set forth in the other leases.

It appears that the most remunerative time for holding such races was during the summer season; that it was the custom for plaintiff to submit to the park and recreational director the particular days of each week, regardless of Wednesday, and also the months when plaintiff would desire the use of the stadium. Particular emphasis was laid on Saturday nights. The director would then cancel such days, according to other public uses, for which it had been assigned or reserved, and would notify plaintiff accordingly. On emergencies or when unexpected public use arose, plaintiff was notified and its date was canceled. On most occasions another date was assigned to plaintiff. Some of the prior leases did provide that in case of cancelation of Wednesday evenings, plaintiff could select another evening in lieu of Wednesday evening “in the