Terrace View Partners v. Three State Investment Co. CA4/1

I. FACTUAL AND PROCEDURAL BACKGROUND

Three State has owned the Property underlying the present dispute since 1964. In 1969, Three State leased the majority of the Property to Terrace View’s predecessor for a term of 55 years, ending on January 31, 2024. In October 1972, Three State agreed to amend the lease to add an additional .46-acre section at the edge of the property for an additional monthly fee. Terrace View took over the lease in 1989 and has operated a mobile home park on the Property since. Terrace View made improvements to the Property over the years and eventually expressed an interest in purchasing it. A. The Parties Execute the Agreement The parties executed the Agreement, setting forth the terms of the sale, in February 2009. Terrace View agreed to pay $7.7 million for the Property, and to place a $100,000 deposit in escrow, to be applied to the purchase price

2 at closing. The parties were to deliver a fully executed copy of the Agreement to the escrow agent, who was then to open escrow by executing a consent of escrow and delivering it to the parties. The escrow agent did so on February 25, 2009, thereby establishing the effective date of the Agreement.…