In July 1979, Jakob Schneiker (defendant) leased property to operate a car wash. In April 1980, Schneiker sublet the property to Darrell Gordon (plaintiff) to use as a car wash. The sublease was for the same term as Schneiker’s primary lease, each running through May 1983. In August 1981, Gordon stopped paying Schneiker rent and abandoned the property. Schneiker endeavored to repossess the property under a provision in the sublease, but Gordon had left the premises in a state of disrepair. Accordingly, rather than trying to relet the property, in February 1982, Schneiker reached a settlement with his lessor, surrendering the primary lease. Gordon sued Schneiker for misrepresentation, alleging that Schneiker misrepresented the profitability of operating a car wash on the property. Schneiker countersued for breach of the sublease. The trial court found in favor of Schneiker, ordering Gordon to pay rent up to the date of Schneiker’s surrender of the primary lease. The appellate court affirmed. The Colorado Supreme Court granted certiorari.