Property Keyed to Sprankling
Brush Grocery Kart, Inc. v. Sure Fine Market, Inc.
Plaintiff, Brush Grocery Kart, Inc., executed a five-year lease with Sure Fine Market, Inc., Defendant. Defendant was going to operate a grocery store on the premises. The lease contained a clause that indicated the real property was to be sold at the end of the lease and the price was to be based on an average of the appraisals received by both parties. At the end of the lease, Plaintiff tried to purchase the property, but the parties were unable to come to an agreement about the purchase price. Thus, Plaintiff canceled the insurance policy on the property and left possession of the real property. Subsequently, Plaintiff brought suit against Defendant’s on the grounds that the offer was executed in bad faith and that Defendant breached the leasing contract. A special master was appointed to determine a purchase price for the real property. Once the trial began, a hailstorm damaged the property, causing $60,000 of damages. Neither party had insurance on the property, and both parties alleged the other party was liable for the damages. The special master came to the conclusion that the property was worth $375,000, and Plaintiff was responsible for the $60,000 damages. Plaintiff appealed on the grounds that Defendant had the risk of loss. Further, Plaintiff petitioned for certiorari to the Supreme Court of Colorado.
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