Spaulding Marine Center v. Auques Maritime Preservation CA1/4

BACKGROUND

The facts relevant to Spaulding’s arguments on appeal are few and undisputed. Spaulding is a nonprofit corporation formed to preserve a boatyard, restore ships, provide education in marine skills, and operate as a community center. In 2007, Spaulding leased a portion of its property to Arques. Arques is a nonprofit public benefit corporation, and its articles of incorporation state that its purpose is “to preserve the traditional maritime trades of the San Francisco Bay and Delta areas and to provide historical continuity for such trades by operating one or more non-profit training schools, yards, sail training ships and other facilities relating thereto.” A dispute arose between the parties, and Spaulding filed suit to obtain a declaratory judgment that Arques had breached the lease and was required to vacate the leased premises. Arques filed a cross-complaint alleging one cause of action for breach of the lease and a second cause of action seeking a declaratory judgment that Arques had not breached the lease and was entitled to remain in possession of the leased premises. After an eight-day bench trial, the trial court issued a statement of decision finding against…