REAL PROPERTY-LANDLORD AND TENANT-TRANSFER BY LESSEE AS SUBLEASE, NOT ASSIGNMENT

X leased lands to plaintiff for a term of years, with a provision that if property truces were assessed against the property in excess of a certain amount, plaintiff would pay X a certain proportion of the excess amount as additional rent. Plaintiff then transferred his remaining term to defendant subject to the terms of the overlying lease. In addition, the sublease provided for a right to cancel the sublease if defendant failed to restore in case of fire or in the event of taking by eminent domain. Subsequent to the sublease, the tax assessments exceeded the amount stipulated in the overlying lease. Plaintiff sued defendant to recover the taxes as additional rent. The district court found that defendant did not assume the payment of any excess tax and denied recovery. On appeal, held, affirmed; the transfer does not constitute an assignment of the overlying lease, and, therefore, the sublessee is not liable on the covenants of the overlying lease. Coles Trading Co. v. Spiegel, Inc., (9th Cir. 1951) 187 F. (2d) 984