H. Greenway Albert and Maja Greenway Albert v. Ira B. Joralemon

On or about September 21, 1956, H. Green way Albert and Maja Greenway Albert, husband and wife, appellants and lessors, leased to Ira B. Joralemon, ap-pellee and lessee, certain mining claims in Arizona. The lease required the lessee to make monthly payments of $1,000 and to make additional quarterly payments of $7,000, beginning with the quarterly payment due November 8, 1956. The lease also contained clauses giving the lessee the right to terminate under certain conditions.

A dispute arose between the lessor, Albert, and the lessee as to whether the lessee had in fact terminated the lease in the manner provided therefor in the lease, and the lessee brought an action in the United States District Court for the District of Arizona for a declaration of the parties’ rights under the lease. Appellants are citizens of Arizona and the appellee is a citizen of California. Jurisdiction of the District Court is derived from diversity of citizenship, 28 U.S.C.A. § 1332 .

The lease, which was not recorded, contained two paragraphs which referred to the right of termination. They were as follows:

It appears that under paragraph 3, the lease may be terminated by (1) notice in writing of…