Anderson v. Section 11, Inc.

Corbett, J

Section 11, Inc., was formed to develop a section of land (approximately 640 acres) which it leased from Northern Pacific Railway (now Burlington Northern) for a term of 99 years. The lease permitted sublease of recreational homesites. Fifty acres were platted into a development called Vikingdal, consisting of 101 circular, noncontiguous lots. Only 29 of the lots were leased; plaintiffs are sublessees.

This action arose when Section 11, Inc., demanded from plaintiffs a substantial increase in lease payments. Section 11, Inc., had encountered financial difficulty and sought to pass on…