Handlery Hotels, Inc., a California Corporation v. United States

I. BACKGROUND

TAKASUGI, District Judge:

The plaintiff-appellant, Handlery Hotels, Inc. (“Handlery”), lessor, paid $85,000 to its then lessee, Kreis-Grundy Corporation (“Kreis”), to terminate a lease having an unexpired term of three years remaining. Concurrently, Handlery entered into a new and more favorable lease with Casual Corner of Stonestown, Inc. (“Casual Corner”) for a term of twenty years.

Prior to the above transactions Handlery was interested in negotiating with Kreis for an extension of Kreis’ existing lease at a higher monthly rental but instead decided to seek a new lease.

Handlery…