Centennial Enterprises, Inc. v. Mansfield Development Co.

The issue before us here turns upon the interpretation of an escalation clause in a subleasing agreement between Mansfield Development Co., the primary lessee, and Centennial Enterprises Inc., the sublessee. The trial court adopted Mansfield’s interpretation and the court of appeals affirmed. Mansfield Development Co. v. Centennial Enterprises, Inc., 38 Colo. App. 36, 554 P.2d 1362 (1976). We granted certiorari and we now affirm the judgment of the court of appeals.

Paragraph six of the sublease provides:

“The annual minimum lease fee payable to Lessors shall be adjusted at one year intervals…