H. Jack Hanna and Bobbette Hanna v. Safeway Stores, Incorporated

H. Jack Hanna, Pontiac automobile dealer in La Mesa, California, in 1951 “lost his lease” on six lots (hereinafter called the Safeway lots) which were a portion of his open air used car lot. The Safeway lots are located at a corner diagonially across the intersection from Hanna’s garage, the ground under which is owned by Hanna and his wife, Bobbette, who joins him as plaintiff and appellant.

In 1948 Hanna obtained his lease, the source of this diversity litigation, from one Garland Cox, then owner of the Safeway lots.

The lease in its entirety is as follows:

On December 12,1950, Safeway, having succeeded to the rights of Cox in the fee and the lease, gave Hanna a notice to vacate as follows:

On March 15, 1951, the last day of the 90-day period, Hanna completed vacating the Safeway lots.

Then many months went by and Safeway built no structure upon the lots vacated by Hanna. Instead, on July 1, 1952, it rented the property for a nominal sum to Foster & Kleiser, a billboard company, for advertising signs. This rental is terminable on five days’ notice. And we assume as of this date Safeway has not built. Why ? The record neither tells us nor suggests an answer. Contrariwise,…