Kelly v. Tri-Cities Broadcasting, Inc.

S.L. Kelly leased land to the Bambricks to operate a radio station under a 20-year lease requiring any assignee to assume the lessee's obligations and requiring disputes to go to binding arbitration; Kelly's interest later passed to his sons (plaintiffs). The station was sold twice — first to Far West, which knew of and operated under the lease, then to Tri-Cities (defendant), which acknowledged the lease existed and would be assigned subject to its terms, but whose representatives never actually read the lease or expressly agreed to be bound by it. Tri-Cities operated the station for about nine months before abandoning the site, and the Kellys sued for unpaid rent; the trial court compelled arbitration, and the arbitrator found Tri-Cities had assumed the lease and owed rent, including for the period after Tri-Cities abandoned the property. The trial court confirmed the award, and Tri-Cities appealed.