Nature of the Case
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Facts
P is a tenant of premises where it operates a supermarket. D leased the premises to Pedro Ortiz. The term of the lease was for five years. The lease gave an option to renew for an additional five-year period by written notice at least twelve months prior to December 31, 1984. P also had a first right of refusal to buy the property. D notified P on January 26, 1984, that the lease would terminate on December 31, 1984, as no notice of renewal had been given. P wrote a letter on February 6, 1984, indicating that it was his intent to renew the lease, but his attorney had died on December 14, 1983, and that letter failed to issue. P asked for reconsideration of the notice of termination. D then entered into an agreement to sell the land to McDonald's Corporation for a McDonald's restaurant. The sales price was $425,000. The purchase agreement contained no performance date but was dependent on McDonald's purchasing an adjoining premise and securing the necessary zoning approval. P sued D. At trial, P entered evidence that the fair market value of the land was $225,000 and the trial court also found that the McDonald's offer was a bona fide offer but was merely an option to purchase under certain conditions. The trial court also concluded that the loss to the landlord was speculative and that P had invested $40,000 and borrowed $390,000 from the SBA to equip the supermarket. The removal of the fixtures and freezers and loss of business would cost P $50,000. The court ruled that equity would prevent a forfeiture of the lease based on the fact that P's attorney had died particularly when considered how much money P would lose. D appealed.
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