The College Block v. Atlantic Richfield Co.

354 Cal.Rptr. 179 (Ct. App. 1988)

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Nature of the Case

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Facts

College Block (P) rented property to ARCO (D) for a gas station. The term of the lease was 20 years, and the rent was at least $1000 per month but otherwise determined by a percentage of gasoline delivered. About three years prior to the expiration of the lease, D stopped pumping gas and paid P the minimum rent due. P sued for damages contending that D should be made to pay additional sums because a covenant of continued operations was implied into the lease.