Bomberger v. Mckelvey

35 Cal.2d 607 (1950)

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Nature of the Case

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Facts

D purchased 12 lots in the city for the purpose of constructing a building and adjoining parking facilities for rental to a chain grocery store. Some of this land was acquired from P. The lots P sold were improved by a business structure occupied by the Hills under a lease, which P assigned to D. Hills agreed to surrender their lease upon payment of $4,000. As part of the transaction, it was orally agreed that D would pay P $3,500 upon the demolition and removal of the old building the lots. P informed D that they intended to use whatever material they could from the old building in constructing the new one for the Hills. The oral agreement was confirmed by a letter from D. The letter further stated that if Ps were prevented by strikes, government regulations, or the like, from completing the new building, the Hills could continue to occupy the old building and the time for its 'removal' should be 'extended to coincide with the completion of said new building.' In reliance, P changed the plans for the new building 'to fit the possible use of salvage' from the old building. P commenced construction of the new store for occupancy by the Hills, but D was unable to get materials for the contemplated chain store and parking lot. D wrote to P that they were not to dismantle the improvements nor to enter the premises except as customers of the Hills until such time as written permission was given by D, and that 'for any known violations of these instructions redress at law will be had.' P sued D for a declaration of rights. D requested that a preliminary injunction issue to restrain Ps from dismantling the old building. The trial court denied the preliminary injunction. Ps removed the plate glass and skylights from the old building and completed the new building for the Hills. Hills abandoned the old building, and Ps thereupon entered defendants' premises and demolished and removed the building. Hills then moved to the new store. D refused to pay the $3,500 and the unpaid balance of $2,500 due to the Hills for surrender of the lease. The trial court found that D was estopped from changing position because of Ps’ reliance. P got the judgment for $6000, and D appealed.