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Property Keyed to Merrill
Kendall v. Ernest Pestana, Inc.
Citation:
709 P.2d 837
ProfessorTodd Berman
CaseCast™ – "What you need to know"
Facts
The City of San Jose, as owner of the property, leased 14,400 square feet of hangar space at the San Jose Municipal Airport to Irving and Janice Perlitch, who in turn assigned their interest to respondent Ernest Pestana, Inc. The lease provided that written consent of the lessor was required before the lessee could assign his interest, and that failure to obtain such consent rendered the lease voidable at the option for the lessor. Accordingly, Bixler requested consent from Ernest Pestana, Inc. Respondent refused to consent to the assignment and maintained that it had an absolute right arbitrarily to refuse any such request. The proposed assignees brought suit, seeking a declaration that the refusal of Ernest Pestana, Inc. to consent to the assignment of the lease is unreasonable and is an unlawful restraint on the freedom of alienation.
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