Judge: Edward B. Moreton, Jr., Case: 22SMCV00600, Date: 2022-12-12 Tentative Ruling
Case Number: 22SMCV00600 Hearing Date: December 12, 2022 Dept: 205
8250 SUNSET HOLDINGS, LLC, Plaintiff, v. 8250 SUNSET BLVD, INC., Defendant. |
Case No.:
22SMCV00600 Hearing Date: December 12, 2022 [TENTATIVE]
order RE: DEFENDANT’S MOTION FOR SUMMARY JUDGMENT |
MOVING PARTY: Defendant 8250 Sunset Blvd, Inc.
RESPONDING PARTY: Plaintiff
8250 Sunset Holdings, LLC
BACKGROUND
This
is an unlawful detainer action. The
property is located at 8250 Sunset Blvd, West Hollywood (the “Premises”). Defendant 8250 Sunset Blvd, Inc. (“Tenant”) has
been leasing the Property since 1996. Tenant
operates a strip club, the Body Shop, at the Premises. The Premises was recently sold to Plaintiff
8250 Sunset Holdings, LLC (“Landlord”).
Landlord
filed an unlawful detainer action, alleging that Tenant failed to “maintain and
repair the roof, exterior and parking lot of the [Premises]”, and to “account
and pay to Plaintiff 15% of the net profits” of Tenant. (Compl. ¶17.)
The 3 Day Notice to Perform Covenants or Quit alleges two additional
failures to “pay the current property taxes for the [Premises],” and “pay and
keep in force fire and liability insurance for the Premises.” (3 Day Notice to
Perform Covenants or Quit.)
This
hearing is on Tenant’s motion for summary judgment. Tenant argues that (1) the 3 day notice is
invalid as a matter of law because it fails to state the amount of rent due,
(2) Tenant was not obligated to maintain and repair the roof, exterior and
parking lot of the Premises under the terms of the Lease, (3) the 3 days notice
is fatally defective to the extent it demands performance of duties other than
the payment of rent, in that the Lease requires 30 days (not 3 days) notice of
a failure to perform.
LEGAL STANDARD
The function of a motion for summary
judgment or adjudication is to allow a determination as to whether an opposing
party cannot show evidentiary support for a pleading or claim and to enable an
order of summary dismissal without the need for trial. (Aguilar v.
Atlantic Ritchfield Co. (2001) 25 Cal.4th 826, 843.) Code Civ. Proc.
§437c(c) “requires the trial judge to grant summary judgment if all the
evidence submitted and ‘all inferences reasonably deducible from the evidence’
and uncontradicted by other inferences or evidence, show that there is no
triable issue as to any material fact and that the moving party is entitled to
judgment as a matter of law.” (Adler
v. Minor Healthcare Corp. (1992) 7 Cal.App.4th 1110, 1119.) “The function of the pleadings in a motion
for summary judgment is to delimit the scope of the issues; the function of the
affidavits or declarations is to disclose whether there is any triable issue of
fact within the issues delimited by the pleadings.” (Juge v. County of
Sacramento (1993) 12 Cal.App.4th 59, 67).
As to each claim as framed by the
complaint, the party moving for summary judgment must satisfy the initial
burden of proof by presenting facts to negate an essential element or to
establish a defense. (CCP §437c(p)(2); Scalf v. D.B. Log Homes, Inc.
(2005) 128 Cal.App.4th 1510, 1520.) Courts “liberally construe the
evidence in support of the party opposing summary judgment and resolve doubts
concerning the evidence in favor of that party.” (Dore v. Arnold
Worldwide, Inc. (2006) 39 Cal.4th 384, 389.)
Once the moving party has met that burden,
the burden shifts to the opposing party to show that a triable issue of one or
more material facts exists as to that cause of action or a defense
thereto. To establish a triable issue of material fact, the party
opposing the motion must produce substantial responsive evidence. (Sangster
v. Paetkau (1998) 68 Cal.App.4th 151, 166.)
DISCUSSION
“It has long been recognized
that the unlawful detainer statutes are to be strictly construed and the relief
not statutorily authorized may not be given due to the summary nature of the proceedings.” (WDT-Winchester v. Nilsson (1994) 27
Cal.App.4th 516, 526.) The
statutory requirements in such proceedings “must be followed strictly,
otherwise a landlord’s remedy is an ordinary suit for breach of contract with
all the delays that remedy normally involves and without restitution of the
demised property.” (Id.
(citations omitted).) Thus, a landlord
who invokes the summary procedures of unlawful detainer must “strictly comply
with the notice requirements of the statute under which he/she elects to
proceed.” (Id. (citations
omitted).)
Here, all the failures alleged
in the Complaint and the 3-Day Notice do not involve a failure to pay rent. If the default is other than for failure to
pay rent, the Lease provides that a default does not occur until 30 days notice
of the alleged default is given to Tenant.
(Ex. A to Almudarris Decl., Section 15.)
The provisions of the Lease govern.
In commercial leases, the landlord and tenant may “lawfully agree to
notice procedures that differ from those provided in the statutory provisions
governing unlawful detainer.” (Folberg
v. Clara G.R. Kinney Co. (1980) 104 Cal.App.3d 136, 140-141.) If the lease contains notice requirements at variance
with the requirements in the unlawful detainer statutes, the lease provisions
control. (Folberg, 104 Cal.App.3d
at 141; Culver Center Partners East No. 1, L.P. v. Baja Fresh Westlake
Village, Inc. (2010) 185 Cal.App.4th 744, 750.) Here, contrary to the terms of the Lease, Landlord
only gave 3 days notice for each of the alleged failures. Accordingly, the 3
days notice was invalid and cannot support an unlawful detainer.
Landlord argues that the Lease does not
modify the statutory requirements for a 3-Day Notice under Code Civ. Proc. §1161 et seq. Landlord argues that the 30 day notice
requirements under the Lease only relate to notices of breach under the Lease,
not notices to quit. But the notice
provisions do not have to reference the statute in order to modify the notice
requirements of a notice to quit. In Culver
City Partners East No. 1, L.P. v. Baja Fresh Westlake Village Inc., the
lease provided: “All notices, consents, approvals or demands required under
this Lease shall be in writing and shall be deemed delivered when either (a)
deposited in the United States mail, certified or registered, postage prepaid,
(b) transmitted by telegraphic or electronic means, with proof of service
provided, or (c) delivered in person, in any event addressed to or delivered to
the appropriate party at [address omitted].”
Id. at 747. The Court of
Appeal held that the 3-Day notice supporting the unlawful detainer failed to
comply with these requirements and affirmed a summary judgment for the
tenant. Id. at 749-751. Culver City confirms that notice
provisions in a commercial lease apply to 3-Day notices, even if the lease does
not specifically reference Section 1161 or a notice to quit.
Landlord next argues that the Lease has no
notice requirements for a forfeiture. Paragraph
15(b) of the Lease states that “Landlord can, at its option, terminate Tenant’s
right of possession at any time.” This
section, however, must be read in conjunction with other provisions of the
Lease. While the Landlord may terminate
the Lease at its option, it must do so in compliance with the notice provisions
in the Lease, otherwise those provisions are rendered superfluous. (Brandwein v. Butler (2013) 218
Cal.App.4th 1485, 1507 (“when interpreting a
contract, we strive to interpret the parties' agreement to give effect
to all of a contract's terms, and to avoid interpretations that render any
portion superfluous, void or inexplicable”).)
Landlord also argues that it has “substantially
complied” with the requirements of the Lease because it sent an email dated
July 2, 2021 to Tenant and it filed the Complaint in April 2022, which provides
the required 30 days notice of default.
The Lease provides that: “Notices given under this paragraph shall
specify the alleged default and the applicable lease provisions, and shall
demand that Tenant perform the provision of this Lease or pay the rent that is
in arrears as the case may be, within the applicable period of time. No such notice shall be deemed a forfeiture
or a termination of this Lease unless Landlord so elects in the notice.” The July 2, 2021 email does not meet the
requirements of the foregoing notice provision.
It does not state that each of the alleged failures in the 3 days notice
constitute a default; identify the applicable lease provisions that were
allegedly violated; demand that Tenant perform the provisions of the lease
within “the applicable period of time,” or state that the Landlord is
terminating the Lease or forfeiting the Premises. In an unlawful detainer, a summary
proceeding, Landlord must strictly comply with the notice requirements in the Lease. (Culver City, 185 Cal.App.4th
at 752 (even actual notice does not cure failure to serve in accordance with
notice provisions in the lease).) Nor
can the filing of the Complaint constitute the required notice. The Lease clearly contemplates that a notice
must be provided before a lawsuit is filed.
Otherwise, the notice provision is entirely void.
CONCLUSION
Based on the foregoing, the Court GRANTS Defendant’s
motion for summary judgment.
IT IS SO ORDERED.
DATED: December 12, 2022 ___________________________
Edward
B. Moreton, Jr.
Judge
of the Superior Court