County of Contra Costa v. Pacific States Aviation, Inc.

The County of Contra Costa (hereafter “County”) owns Buchanan Field, an airport. On December 19, 1961 it leased space thereon to Patterson Aircraft Co. 1 and on February 19, 1963 it leased adjoining space to Pacific States Aviation, Inc. (hereafter ‘ ‘ Pacific ”). ■

Each lease recites that “the Lessee is a California corporation primarily engaged in commercial aviation retail sales and all other general activities of fixed base operation, including aircraft sales, repair, letting, etc. ’ ’

Prior to the execution of the first of the above two leases, the County had handled the renting of cars and had received 20' percent of the gross amount of car rentals as its commission. The Patterson lease contains the following provision:

The lease executed to Pacific provides: “Upon Lessee undertaking operation of any rental ear concession, Lessee shall pay to Lessor ten (10%) percent of gross receipts received by Lessee from rental of rental vehicles.” (Italics added.)

The term “gross receipts” is also used in both leases in connection with operations other than that involved herein. This explains why the definition of “gross receipts” is in a more generalized form than would be the case…