Dover Mobile Estates v. Fiber Form Products, Inc.

Fiber Form (defendant) signed a five-year lease with Old Town Properties in 1985, and the lease stated it was subordinate to deeds of trust on the property. Old Town later put another deed of trust on the property and eventually defaulted; Dover Mobile Estates (plaintiff) bought the property at the resulting trustee's sale. Dover and Fiber Form never signed a new lease, but Fiber Form kept paying rent. In 1987, Fiber Form gave 30 days' notice it was vacating, moved out, and stopped paying rent. Dover sued; Fiber Form argued that after the foreclosure sale it had become only a month-to-month tenant, entitled to leave on 30 days' notice. The trial court agreed and ruled for Fiber Form.