The College Block v. Atlantic Richfield Co.
California Court of Appeal
254 Cal. Rptr. 179 (Ct. App. 1988)
The College Block (plaintiff) owned a parcel of land and contracted with Atlantic Richfield (ARCO) (defendant) to build and operate a gas station on the land for a period of 20 years. Rent was to be a percentage of the gasoline delivered, regardless of how much was delivered. However, College Block was to receive a minimum of $1,000 per month. ARCO operated a gas station for 17 years, but then closed the station and continued to pay College Block the minimum $1,000 per month for the remainder of the lease. College Block brought suit alleging a breach of an implied covenant of continued operation.
Rule of Law
Holding and Reasoning (Ashby, P.J.)
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