In Re the Circle K Corporation, Debtor. The Circle K Corporation v. Frank F. Collins

CANBY, Circuit Judge:

Circle K Corporation leased property from landowner Frank Collins, agreeing to pay rent calculated at two percent of “gross sales” on the premises, with certain specified exceptions. After the lease was in effect, Arizona authorized a state lottery and Circle K became one of its sales agents. The lease made no mention of lottery receipts. The question for decision here is whether Collins is entitled to two percent of total lottery ticket sales, or only two percent of Circle K’s commission on those sales. We conclude that Collins is entitled only to two percent of Circle…