Gary Fletcher & A. v. George Frisbee

This case presents issues involving an attempted exercise of a leasehold option. The defendant-landlord, refused to recognize the plaintiff-lessees' exercise of the option because he alleged that the lessees did not comply with its terms. Subsequently, the lessees brought a petition for a declaratory judgment that they in fact had effectively exercised the option, and for a preliminary and permanent injunction to enjoin the landlord from interfering with their possession of the property. The Trial Court (Bean, J.) found that the lessees had failed to exercise the option, and held that the landlord had no obligation to continue the lease after it had terminated on October 1, 1977. The lessees excepted to the rulings and findings of the court and a reserved case was prepared and transferred. We sustain lessees' exceptions and remand. The lessees operate a dry-cleaning-laundromat business in Portsmouth. They purchased the business in 1976 and at that time took an assignment of the existing lease. Several months after they had begun to operate the business, the defendant, George Frisbee, bought the building in which the lessees' business was located. Frisbee's purchase was subject to the existing leases. The lease for the dry-cleaning business provided that rent would be $150 per month. It also contained the following option clause: