Gates Rubber Co. v. Ulman

Gates (plaintiff) held an unrecorded purchase option under a long-form lease with Lesser, but only a short-form lease referencing the long-form agreement (without mentioning the option) was recorded. After a chain of conveyances brought Charles Ulman to own the property without any deed referencing the option, Gates tried to exercise its purchase option, but Ulman's estate (defendant) refused to convey, arguing Charles never had notice of the unrecorded option. The trial court found Gates's possession, while open, notorious, and exclusive, was fully consistent with the recorded lease and did not trigger a duty for Ulman to inquire further into unrecorded rights.