East Broadway Corp. v. Taco Bell Corp.

ANDREASEN, Justice.

The landlord filed suit in district court requesting judgment for damages arising from the breach of a lease and its implied covenant for continued operation. The tenant had paid the base rent for the last year of the lease but paid no percentage rent because it was not operating its business at the lease site. The tenant denied there was an implied covenant for continued operation and filed a motion to adjudicate law points. After hearing on the motion the court determined that the issue as to whether the lease contained an implied covenant for continued operation…