College Block v. Atlantic Richfield Co.

Opinion

ASHBY, Acting P. J.

In this matter the trial court held as a matter of law that in the parties’ lease there was an implied covenant of continued operation. We find that although the parties intended the lessee to continually operate a gasoline service station for the entire leasehold period, the trial court acted prematurely and a further factual determination must be made before the covenant is implied.

Statement of Case and Facts

In 1965, respondent, The College Block (College Block) owned a parcel of undeveloped real property. College Block signed a 20-year lease with appellant…