Childs v. Warner Brothers Southern Theatres

156 S.E. 923 (1931)

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Childs v. Warner Brothers Southern Theatres

Supreme Court of North Carolina
156 S.E. 923 (1931)

RL

Facts

Childs (plaintiff) acquired commercial real estate subject to an existing lease by the Berkley Corporation. The lease prohibited assignment by the lessee without the written consent of the lessor. Childs consented to assignment of the lease by Berkley to Warner Brothers (defendant). Warner Brothers assigned the lease to Carolina Theatres without advance consent of Childs. Childs informed Warner Brothers that the lessor would continue to recognize Warner Brothers as the leaseholder and would continue to hold Warner Brothers liable for rent due under the lease. Carolina Theatres defaulted on the lease. Childs sued Warner Brothers for unpaid rent. The trial court ruled in favor of Childs and Warner Brothers appealed.

Rule of Law

Issue

Holding and Reasoning (Brogden, J.)

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