Procedural Posture

Defendant lessor appealed a judgment of the Superior Court of Alameda County (California) in favor of plaintiff lessee in the lessee's action for damages for breach of lease and for other relief.

Overview:

The lessee operated a restaurant in a shopping center under a lease executed by its predecessor and the lessor. Under the lease, the lessor had the right to install a soda fountain or other eating or drinking facility, which the lessee had the option to operate. The lessor sold the property and assigned its interest in the lease to the new owner. The new owner leased part of the shopping center back to the lessor who sublet to a new restaurant that assigned its interest in the lease to the lessor, which assigned it back to the new owner. The lessee sued for breach of contract. The court affirmed the trial court, finding it correctly interpreted the term "lessor" to include successors in ownership of any part of the property. The court found no basis for disturbing the trial court's damage award based on inferences that the new restaurant's business increased and reduced the lessee's share of business. Finally, the lessor had no right to terminate the lease because of the bankruptcy of one of the lessee's predecessors.

Outcome

The court affirmed the judgment.

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