June 21, 2021

Plaintiff lessee sued defendant lessor's estate for specific performance of an option to purchase contract

Procedural Posture

Plaintiff lessee sued defendant lessor's estate for specific performance of an option to purchase contract. The Superior Court of Kern County (California) fixed the price of the property at $ 9,000 and ordered the lessor's estate to perform the contract. The lessor's estate appealed.

Overview

A contract was entered into with the lessor for the lease of real property with an option to purchase. The lease was thereafter assigned to the lessee. The lease provided that upon its expiration, if the parties could not agree to a price and terms, the price and terms would be fixed by arbitration with each party selecting an arbitrator. The lessor's estate refused to appoint an arbitrator after the expiration of the lease. The court affirmed the judgment because (1) the trial court had jurisdiction to decree specific performance of a contract of a decedent during the administration of his estate (2) the assignment of the lease carried with it the option to purchase the land (3) the parties did not intend a formal arbitration, but an evaluation by appraisers whom they regarded as experienced and familiar with the conditions in question (4) the option to purchase, litigation attorney Los Angeles which provided for the appointment of third persons to ascertain the price, was definite enough to give rise to a contract (5) by making the appraisal impossible, the lessor's estate breached the contract.

Outcome

The court affirmed the judgment.