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COURT RULES CLEVELAND BUILDING LEASE IS PAYABLE IN GOLD
An E-Sylum reader forwarded this item about an old 1912 lease for a landmark Cleveland, Ohio building, which a court ruled is still payable in gold coin. -EditorA 1912 lease provision that requires payment in gold coin is enforceable, a federal appellate panel held yesterday, even though the U.S. withdrew the gold coin from circulation in 1933 and the building owner, for decades after that, didn't attempt to enforce the payment term.
Because the price of gold has shot up since 1912, a lower court must now determine what the 35,000 gold coins that the lease calls for in annual rent is worth in U.S. dollars, under the ruling by the 6th U.S. Circuit Court of Appeals, reports the Associated Press.
The gold coin requirement had apparently been long forgotten until 216 Jamaica Avenue bought the building in 2006. It tried to enforce the payment provision, and sued when the tenant balked.
To read the complete article, see: 1912 Gold Coin Lease Payment Term is Enforceable, 6th Circuit Rules (http://www.abajournal.com/news/1912_gold_coin_lease_payment
To read a related article, see: Gold Rush: Thompson Hine on Losing End in Landlord/Tenant Case (http://amlawdaily.typepad.com/amlawdaily/2008/08/pay-in-gold-tho.html)
Wayne Homren, Editor
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