Warner Bros. Theatres, Inc. v. Proffitt

Opinion by

Mr. Chief Justice Kephart,

Appellee leased from appellants real estate for a term of years. During the term he purchased a mortgage on the property which antedated the lease. On default he foreclosed and purchased the property. The lease contained an option agreement, by which appellee-tenant might purchase the property from the owner for a stipulated amount exceeding that actually expended by appellee in acquiring the property on foreclosure. Appellants were also indebted to the tenant on two promissory notes. In this action to recover on these notes, the landlord attempted to set…