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Property Keyed to Merrill
Gotlieb v. Taco Bell Corporation
Facts
Gotlieb and Blaymoreand Taco Bell Corporation (Taco Bell) entered into a 20-year lease agreement. Under the lease, Taco Bell’s rental payments were to begin on June 15, 1992, and Taco Bell was obligated to pay a monthly base rent, includingan additional rent for taxes and utilities. Also, Taco Bell was required to attain permits and approvals for restaurant construction and operation, however, it could cancel the lease if Taco Bell was unable obtain the permits and approvals by February 15, 1992. Lastly, Taco Bell was required to pay Gotlieb and Blaymore’sliquidated damages in case of a breach of the lease terms. Community groups were against the construction of the restaurant. On February 10, 1992, Taco Bell sent the plaintiffs a letter asking to change some of the lease agreement terms. Thereafter, Taco Bell filed to receive a permit application on February 14, 1992, and sent the plaintiffs a letter renouncing the lease on the same day. Subsequently, Gotlieb and Blaymore responded to Taco Bell’s letter by denying the request to change the terms of the agreement and stating Gotlieb and Blaymorewould hold Taco Bell liable for the agreement. On June 1992, Gotlieb and Blaymore brought suit against Taco Bell for past and future rent, and for acceleration of all future rent due under the lease. Nonetheless, Taco Bell did not pay. During trial, both, Gotlieb and Blaymore, provided testimony that on October 19, 1993, they met with Rite-Aid Corporation representative to speak about renting the premises, and on November 3, 1993, Gotlieb and Blaymore presented a proposed lease to Rite-Aid. Then, Gotlieb and Blaymore entered a new lease agreement with Rite-Aid, which had a higher rental payment fee, compared to their lease with Taco Bell.
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