Reed

In this unlawful detainer action plaintiffs prevailed and defendant South Shore Foods, Inc., a corporation, appeals.

On April 1, 1958, J. W. Heaton and John H. Lowe, owners of restaurant premises at Stateline (in El Dorado County) at Lake Tahoe leased them to plaintiffs, Elbert C. and Muriel S. Reed. The restaurant was first operated by the Reeds as individuals, then as copartners with Joseph and Helen Lisovie. On January 2, 1959, the business was incorporated as South Shore Foods, Inc., the appealing defendant herein. The shareholders and their respective shares were: the Lisovies 51 per cent, the Reeds 25 per cent, W. H. Weldgen 24 per cent. The Reeds transferred their lease to the corporation. The corporation, managed by the Lisovies, operated the restaurant for a year and five months. The Reeds moved to Alaska and thereafter had only a limited connection with the business although Mr. Reed was a director. Monthly rentals of $1,000 were paid by the corporation directly to the owners. In the winter of 1959-1960 the corporation was in financial difficulties. Rentals for March, April and May were in default. Notice dated May 19, 1960, was served by the owners upon the Reeds in…