Mullendore Theatres, Inc. v. Growth Realty Investors Co.

— Does a landlord's covenant to refund a tenant's security deposit run with the land, thus obligating a successor landlord to refund it? We hold it does not, where the lease permits but does not require that the deposit, if forfeited, be used for the benefit of the leased property.

In 1969, Conner Theatres Corporation became tenant of a part of the Jones Building in Tacoma under a lease that required a deposit of $22,500 as security for performance of the tenant's obligations. The lease provided in part:

Should the Tenant default in the performance of said lease, the landlord shall be entitled…