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ATLANTIC & E. CAROLINA RY. v. SO. OUTDOOR

No. COA97-1086.

501 S.E.2d 87 (1998)

ATLANTIC AND EAST CAROLINA RAILWAY COMPANY, Plaintiff, v. SOUTHERN OUTDOOR ADVERTISING, INC., and Wheatly Oil Co., Inc., Defendants.

Court of Appeals of North Carolina.

June 2, 1998.

Attorney(s) appearing for the Case

Sumrell, Sugg, Carmichael & Ashton, P.A. by James R. Sugg and Rudolph A. Ashton, III, New Bern, for plaintiff-appellant.

Wheatly, Wheatly, Nobles & Weeks, P.A. by C.R. Wheatly, III, Beaufort, for defendant-appellee Wheatly Oil Co., Inc.

Harris, Shields, Creech and Ward, P.A. by Robert S. Shields, Jr., and Charles E. Simpson, Jr., New Bern, for defendant-appellee Southern Outdoor Advertising, Inc.

HORTON, Judge.

On 30 August 1939, the North Carolina Railroad Company, as lessor, and plaintiff Atlantic and East Carolina Railway Company (Atlantic), as lessee, entered into a lease for certain properties including a tract located at 2600 Arendell Street in Morehead City. On 7 January 1985, Atlantic, as sublessor, entered into a sublease with defendant Southern Outdoor Advertising, Inc. (Southern). The habendum clause of the sublease stated the following:

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