Gietzen v. Covenant RE Management, Inc.
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This case stemmed from the judgment arising from Yolanda's Inc.'s action against its landlord. In this case, a shopping center lease contains a provision limiting the lessor's liability for breach of the lease to the lessor's interest in the shopping center. Yolanda's is the lessee and it obtained a judgment against its lessor, a limited partnership. The trial court denied Yolanda's motion to amend the judgment to add the general partner of the limited partner lessor as a judgment debtor.
The Court of Appeal reversed, holding that, by virtue of a foreclosure, the lease was assigned to the foreclosing lender; the assignment terminated the lessor's rights under the lease; and the termination of the lessor's rights also terminated the rights of the third party beneficiary general partner.
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