Martin v. Hambro Forest Products
Plaintiffs own a parcel of real property subject to a 96-year lease. The lease contains a provision requiring the lessee to keep the premises free and clear of encumbrances resulting from the lessee’s activities. Plaintiffs sued the current lessee, defendants Hambro Forest Products, Inc. and/or Humboldt Flakeboard Panels, Inc., a subsidiary (jointly Hambro), when Hambro executed two deeds transferring its leasehold interest in trust, contending the deeds of trust breached the lease by encumbering the property. The trial court sustained a demurrer without leave to amend, reasoning a transfer of the leasehold interest did not constitute an encumbrance of plaintiffs’ interest in the property. We affirm.
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