K.J.B., Inc. v. Drakulich

OPINION

THE FACTS

In October 1978, appellant, K.J.B., Inc. (K.J.B.), acquired a leasehold interest in a building located on West Fourth Street in Reno, Nevada. K.J.B.’s lease agreement provided for annual rent increases, and the allowable rent under the lease had grown to $1,150.00 per month when Emmett Kelly became K.J.B.’s new landlord on July 1, 1985. However, K.J.B. did not pay increased rents allowed under the lease agreement pursuant to Kelly’s request. Further, K.J.B. was late in some rent payments and mistakenly paid the rent to Kelly’s predecessor in interest rather than to Kelly.…