Fanning v. Oregon Division of State Lands

Plaintiffs leased coastal land from the Oregon Division of State Lands (DSL) to harvest sea kelp. The lease contained a minimum harvest requirement and provided for termination of the lease in the event of failure to comply with the minimum. The lease also expressly authorized DSL to elect not to terminate the lease in such circumstances. When plaintiffs failed to meet the harvest minimum several years running, DSL terminated the lease. Plaintiffs initiated this action for breach of contract and fraud, contending that DSL previously had agreed not to enforce the harvest minimum for another…