Chumash Hill Properties, Inc. v. Peram

In Chumash Hill Properties, Inc. v. Peram (1995) 39 Cal.App.4th 1226, the primary lease specified that in the event of a bankruptcy by the lessee, a subtenant's use and possession of the property would not be disturbed so long as the subtenant complied with all sublease provisions. ( Id. at p. 1229.) Because the court found subtenant Chumash was a third party beneficiary of this nondisturbance agreement, it concluded Chumash's right to possession under the sublease was not terminated by the lessee-sublessor's bankruptcy. (Ibid.)