Kashmir Corp. v. Nelson

Plaintiff (lessor) in this declaratory judgment proceeding sought a declaration of the rights of the parties after an alleged breach of a lease agreement. The only issue before us is the ability of defendant’s counterclaims to withstand a demurrer and motion to strike.1

In his first counterclaim,2 defendant (tenant) alleged that plaintiff breached its agreement to grant defendant an option to renew the lease upon expiration of the lease term. The trial judge sustained plaintiff’s demurrer to defendant’s counterclaim on the ground that it failed to state a cause of action. Defendant then filed…