Warm Springs Development Associates Ltd. Partnership v. Burrows

SWANSTROM, Judge.

Judith McElvain and Richard Burrows leased real property from Warm Springs Development Associates Limited Partnership to operate an alcohol rehabilitation center. McElvain and Burrows signed the lease as individuals but the lease contained a provision allowing them to assign the lease to a wholly-owned corporation. One year into the lease term, McElvain and Burrows exercised this right by assigning the lease to New Hope Centers, Inc., a corporation owned by them. New Hope operated the center under the lease until it began having financial difficulties and was forced to…