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Sinclair Refining Co. v. Shakespeare

Colorado Supreme Court
175 P.2d 389 (1946)


Facts

Shakespeare (defendant) leased property owned by Sinclair Refining Co. (plaintiff) for a five-year term. About a month prior to the lease expiration, Shakespeare informed Sinclair that it would remove all of its equipment from the property within 30 days. Shakespeare, however, remained in possession even after the lease expired. After two months had passed and Shakespeare still had not vacated the property, Sinclair informed Shakespeare that it would be treated as a holdover tenant for a new five-year term, and requested the so-far overdue rent. Shakespeare denied Sinclair’s right to extend the lease for another five-year term, and subsequently vacated the property, paying rent for the four-month holdover period. Later, Sinclair filed suit against Shakespeare seeking rent for the full year following expiration, contending that Shakespeare was bound by the lease extension after holding over. The trial court found in Sinclair’s favor, awarding Sinclair one year’s rent. The court also entered a declaratory judgment that Shakespeare was bound for another five-year term by Sinclair’s election. Shakespeare appealed.

Rule of Law

Issue

Holding and Reasoning (Stone, J.)

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