Albers

Defendant and appellant Mathilde Albers, individually and as executrix of the estate of Henry Albers, has appealed from the judgment of the Superior Court of Alameda County in favor of plaintiff and respondent Western Medical Enterprises, Inc. The controversy in the trial court involved the construction of a lease entered into between respondent as lessee and appellant and others as lessors. The lease provided that respondent would operate a convalescent hospital on the leased premises for a 20-year term. At issue is the interpretation of the provision in the lease which requires respondent to pay as rent to lessors, a percentage of its gross sales. The trial court determined that certain Medi-Cal payments should not be construed as gross sales. We agree and affirm the judgment.

On January 31, 1974, respondent entered into a lease with appellant and others. Pursuant to the lease respondent agreed to lease the Driftwood Convalescent Hospital, Santa Rosa, California, for a 20-year term. An amendment to the lease, executed the same day, provided that respondent would pay a fixed minimum monthly rental until December 31, 1978, and after that date in addition to the minimum…