Opinion ID: 1141817
Heading Depth: 1
Heading Rank: 2

Heading: Emerson v. Anderson.

Text: The Emerson group held a May 1964 lease and option from Anderson and Robinson as lessors. The lease required lessees to construct a 50 ton capacity retort by July 15, 1964 for the purpose of refining mercury. The retort was not constructed by July 15, and lessees were given a one month extension. On August 8 a small mill was moved onto the property, but it was not until January 1965 that it was ever put into operation, and then ineffectively and only for a period of about five hours. Through expert testimony it was established that the mill had no more than a ten ton capacity, and could never be made to process any additional amount. In December 1964, the lessors notified the lessees of the lessors' intention to terminate the lease, mainly for failure to construct a 50 ton retort, and returned the December rent check. The lessees denied their breach, sent back the rent, and asserted the right to either cure the default or purchase the property within a 60 day grace period allowed by the lease. The lessees did neither during the grace period and, in March of 1965, removed their working force from the property and ceased all operations. A material breach by the lessees thus clearly appears from the record before us. They seek to excuse their default on two grounds: first, that the lessors' 1960 conveyance of the property to Wecht (which we have declared void) was an anticipatory breach by the lessors excusing further performance by the lessees. This cannot be so since the lessees' breach occurred long before they learned of the deed to Wecht (that knowledge was acquired by lessees in January 1965) and thus, there can be no connection between the two events. Next, the lessees seek to avoid forfeiture, asserting a waiver of their breach by the conduct of the lessors in accepting rent during the 60 day period within which the lessees could elect to purchase. The lessees had been notified that forfeiture for breach was being declared, but were permitted to remain on the property to either cure the default or purchase as provided in the lease. When the lessees did neither, the lessors enforced the forfeiture. The lessors' acceptance of rent while the lessees were in possession and deciding upon a course of action, was proper, and did not nullify or waive the declaration of forfeiture made two months earlier. Other assignments of errror have been considered and are without substance. Affirmed. ZENOFF and BATJER, JJ., and CRAVEN and BABCOCK, District Judges, concur.