Amco Trust, Inc. v. Naylor

On the principal question in this case, we hold that the owner of a security interest in a leasehold estate who takes possession of the leased premises does not thereby become an assignee and liable as such to the lessor for the payment of rent under the terms of the lease.

P. C. Naylor, respondent, leased a one story building in San Antonio to South Texas Kitchens, Inc., hereinafter referred to as Kitchens, and its president, C. P. Ernster, for a term of five years, beginning December 15, 1953, at a rental of $225.00 per month. Kitchens went into possession of the property and there engaged…