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U.S. NAT. BANK OF OREGON v. HOMELAND, INC.

No. 393-568; CA 15523; SC 27245.

631 P.2d 761 (1981)

291 Or. 374

UNITED STATES NATIONAL BANK OF OREGON, a National Banking Association, Plaintiff, v. HOMELAND, INC., an Oregon Corporation, and Its Receiver, Paul C. Diegel, Respondents, and Ralph D. Schlesinger and Bernice W. Schlesinger, Petitioners.

Supreme Court of Oregon.

Decided July 21, 1981.

Attorney(s) appearing for the Case

John M. Berman, Portland, argued the cause for petitioners. With him on the briefs were Spears, Lubersky, Campbell & Bledsoe, Portland.

Kevin D. Padrick, Portland, argued the cause for respondents. With him on the brief were Peter C. Richter, and Miller, Anderson, Nash, Yerke & Wiener, Portland.

Before TONGUE, P.J., and LENT, LINDE and PETERSON, JJ.

PETERSON, Justice.

Homeland, Inc., leased office space from Ralph D. Schlesinger and Bernice W. Schlesinger (hereinafter referred to as "lessor"). Prior to the expiration of the lease, Homeland abandoned the premises, after which lessor relet the premises to a new tenant for a longer term and at a higher rental. The new tenant also defaulted on the second lease. Two issues are presented:

1. When a leasehold tenant of commercial premises1...

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