Western Camps, Inc. v. Riverway Ranch Enterprises

Plaintiff Western Camps, Inc., a California corporation, commenced an action for negligent misrepresentation, fraud and breach of contract against defendants Riverway Ranch Enterprises, a limited partnership, and Wallace McCoy, one of the limited partners, seeking damages for defendants’ alleged wrongful termination of their sublease of real property to plaintiff. The complaint alleged that such termination was caused by the forfeiture of defendant Riverway’s lease of the property from the owners thereof, upon defendant’s failure to exercise certain options to purchase real property, the exercise of such options being necessary to keep the lease in force.

The action was tried by the court without a jury. Evidence was produced showing: by a written lease executed June 25, 1965, Constructors Research Corporation, a California corporation (hereinafter CRC) leased approximately 40 acres of land in Tulare County from the owners of the land; concurrently with its execution of the lease, CRC executed an agreement to purchase real property and options to purchase real property; said agreement provided, in substance, that CRC would purchase certain land, and have options to…