Old billboard lease language can get you into trouble.  That’s the lesson of Adams Outdoor Advertising v Long.  Here are the facts.

• In the 1930’s the Consolvo Chesire ad agency entered into a billboard lease to put a billboard on property in the city of Hampton.  The lease stated that the billboard was the property of the lessee who erected the billboard and that the lessee (e.g. Consolvo Chesire) had the right to remove the billboard at termination.
• The original Consolvo Chesire lease was not assigned to anyone.   The leases between successor landlords and billboard companies involving the Hampton property continued to contain language stating that signs, structures and equipment erected by the lessee were the property of the lessee and could be removed at termination.
• In 1993 the landowner Robert Long terminated the lease.  Adams outdoor (the current lessee) notified Long it was going to remove the sign.  Long brought a suit claiming ownership of the sign because the original lessee (Chesire) had not removed the sign within a reasonable period following termination.
• The Virginia Supreme Court agreed with Long.  The court stated: “We agree that each lease does address the ownership of the billboard but places ownership in the lessee who erected the billboard…Consolvo Cheshire’s lease was not assigned.  Therefore, Adams did not acquire ownership through assumption of a previous lessee’s interest in the leasehold…”

Billboard Insider’s Take:  Beware of language which says a billboard is the property of the lessee who erected it.  If a lease contains this language you better take an assignment of the lease to make sure you step into the lessee’s shoes.  An alternative is to sign a new lease which says that the billboard and any additions or replacements to the billboard are yours regardless of whether you installed it or not.

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