Mercantile & Theatres Properties, Inc. v. Stanley Co. of America

Opinion by

Mr. Justice Linn,

Defendant appeals from judgment for rent. The legal plaintiff owned Waverly Theatre, encumbered by a mort gage securing bonds. The theatre was leased to defendant by a lease that was subject to the mortgage and which was assigned to the mortgage trustee, the use-plaintiff appellee, as additional security. The bonds matured March 15, 1932, but were not paid, whereupon a bond-holders committee, also a use-plaintiff, was formed. The rent was a sum agreed upon plus “25% of the net operating earnings of the theatre in each year.” The amount for which judgment was…