Dover Mobile Estates v. Fiber Form Products, Inc.
California Court of Appeal
270 Cal. Rptr. 183 (1990)
In 1985, Fiber Form Products, Inc. (Fiber Form) (defendant) leased a property from Old Town Properties, Inc. (Old Town). The five-year lease stated it was subordinate to deeds of trust on the property. After the lease was signed, Old Town encumbered the property with another deed of trust. Old Town defaulted, and Dover Mobile Estates (Dover) (plaintiff) purchased the property at a trustee’s sale. Dover and Fiber Form did not sign a new lease, but Fiber Form continued paying rent. In 1987, Fiber Form notified Dover that it was vacating the premises in 30 days. Fiber Form did so and in accordance with its decision stopped paying rent. Dover brought suit. Fiber Form claimed that after the trustee’s sale, it became a month-to-month tenant and thus could terminate the tenancy with 30 days’ notice. The trial court found in favor of Fiber Form. Dover appealed.
Rule of Law
Holding and Reasoning (Elia, J.)
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