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Keydata Corporation v. United States

United States Court of Claims
504 F.2d 1115 (1974)


Facts

In 1968, Keydata Corporation (Keydata) (plaintiff) and the National Aeronautics and Space Administration (NASA) both leased space in a building owned by Wyman Street Trust. Keydata’s rented space included a computer room. Keydata and the United States (defendant), acting for NASA, agreed that on January 1, 1969, Keydata would surrender possession of the computer room, and the United States would begin to lease it. Keydata and the United States also agreed that the United States would pay $39,000 for improvements to the computer room. Keydata did not vacate the computer room on January 1, 1969. The next day, the United States sent Keydata a letter canceling the United States’ lease of the computer room, because the room was not available for occupancy. The United States also did not pay the $39,000 for the improvements. Keydata later vacated the space, and Wyman’s assignee brought suit against the United States for payment of the $39,000. Keydata argued Wyman fully performed its obligations as landlord, because Wyman was only obligated to convey to the United States the right of possession of the computer room, not actual possession of the room. Keydata argued the United States’ rescission of the lease was therefore illegal, and the United States owed the $39,000. Both parties moved for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Davis, J.)

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