Blumenfeld

Real Estate Investment Trust of America, Inc. (REITA) and R. H. Macy & Co., Inc. (Macy) appeal from a judgment in favor of Joseph Blumenfeld and the Sacramento Country Club Shopping Center, a partnership (collectively Blumenfeld).

Blumenfeld filed a complaint against Macy for $5 million general damages, alleging that Macy had breached an agreement to sublease space in Blumenfeld’s shopping center. REITA was brought into the action later when Blumenfeld sought a judicial declaration of whether Blumenfeld had assigned to REITA any right of action which Blumenfeld may have had against Macy.

The cause for declaratory relief, and an affirmative defense pleaded by Macy based in part on the asserted assignment to REITA of Blumenfeld’s claim against Macy, were severed from other issues and consolidated for a separate trial.

A bench trial resulted in a judgment for Blumenfeld. REITA and Macy appeal.

Blumenfeld is a family partnership that developed the Sacramento Country Club Shopping Center. In 1961, Blumenfeld sold the shopping center to REITA, taking back a lease of the realty and all improvements.

In August 1968, Blumenfeld and Macy entered into negotiations for Macy to…