John G. Waterbury and Marcia L. Waterbury v. T.G. & Y. Stores Company, a Corporation, Blue Corporation, and Does 1-10, Inclusive

John G. Waterbury and Marcia L. Waterbury (the current owners and landlords) appeal from the district court’s order granting summary judgment in favor of T.G. & Y. Stores Company (T.G. & Y.), the current subtenant. The Waterburys present two issues for our review:

One. Whether the district court’s sua sponte action in granting summary judgment against them during argument on their motion for a summary judgment denied them a full and fair opportunity to make a showing and present argument in opposition to the entry of the adverse order?

Two. Whether the district court erred in determining that no disputed issue of material fact exists based on its interpretation of the lease agreement’s provisions regarding the amount of rent to be paid by a subtenant?

We affirm because we have concluded that the district court did not err on its interpretation of the lease. We discuss each issue and the facts pertinent thereto under separate headings.

I

SUA SPONTE GRANT OF SUMMARY JUDGMENT

The Waterburys contend that the district court’s sua sponte grant of summary judgment denied them a “full and fair opportunity to ventilate the issues involved in the motion.” We disagree.

In Cool Fuel…