Brief Aldana v. Colonial Palms Plaza

Brief Aldana v. Colonial Palms Plaza - Issue: Does a lease...

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Cameron Hartman 10/20/09 Seat #59 ALDANA v. COLONIAL PALMS PLAZA, INC.  Facts: Abby Cakes leased property in a shopping center from the defendant, Colonial Palms  Plaza (Colonial). The contract stated that after the completion of various construction  improvements, Colonial would pay Abby Cakes a construction allowance of up to $11,250.  Before the construction was completed, Abby cakes assigned its first $8,000 to Aldana so that  they would loan them $8,000 for financing purposes. The original loan terms noted that  assignments were not allowed. Regardless of the contract terms, Abby Cakes assigned rights to  Aldana, but Colonial Palms Pizza refused to assign these rights due to the contractual terms.  History: The trial court ruled in favor of the defendant, Colonial Palms Plaza, INC.  
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Unformatted text preview: Issue: Does a lease assignment cover an assignment of the right to receive financing under a construction allowance? Decision: No, the trial court ruled in favor of the plaintiff, Aldana. Reason: A prohibition against assignment of a contract will prevent assignment of contractual duties, but will not prevent assignment of the right to receive payments due unless the circumstances indicate the contrary. The court held that in this case, Colonial was given notice of the assignment and the delivery fixed accountability of the debtor to the assignee; thus, the landlord was bound by the assignment....
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This note was uploaded on 09/17/2011 for the course BLAW 300 taught by Professor King during the Spring '11 term at University of Phoenix.

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