Neal v. Craig Brown, Inc.
Court of Appeals of North Carolina
356 S.E.2d 912
Relevant factsFree
A dry-cleaning lessee subleased the premises to a third party who retained renewal options only as against the sublessor, while the sublessor kept a reversionary interest and re-entry right; after the lessee went bankrupt, Neal acquired the sublease by assignment, paid rent directly to the landlord for years, made improvements, and claimed a right to renew directly against the landlord.
IssueFree
Whether a sublease that reserves to the sublessor a reversionary interest and a right to re-enter the premises conveys to the sublessee only those rights held by the sublessor, not renewal rights held only by the original lessee.