McLaughlin
McLaughlin v. Walnut Properties, Inc.
Opinion
Opinion
Rubin, J.
Defendants Walnut Properties, Inc., the Estate of George Tate, and the George Tate Trust, appeal from the judgment entered in favor of plaintiffs Ralph McLaughlin and Nancy McLaughlin in their action for breach of two commercial ground leases. For the reasons set forth below, we affirm the judgment.
FACTS AND PROCEDURAL HISTORY
Ralph and Nancy McLaughlin (the McLaughlins) owned two adjacent parcels of land (the land) in Porterville. In 1992, Walnut Properties, Inc. (Walnut) entered into separate 20-year ground leases of those parcels in order to build a multiscreen movie theater on the land. Both leases were guaranteed by George Tate. The combined monthly rent on the leases was $22,500. By March 1994, Walnut was behind in the rent, prompting the McLaughlins to sue. In April 1994, Walnut signed a stipulated judgment for $250,000 in back rent and paid the McLaughlins $150,000 of that amount by June 1994.
In June 1994, Tate and Walnut filed chapter 11 bankruptcy actions, which were converted to chapter 7 actions in August 1994. After that time, Barry Hartsfeld of Walnut assured the McLaughlins that Walnut intended to move forward with the theater project and planned to…