Judge: James C. Chalfant, Case: 23STCV31162, Date: 2024-03-05 Tentative Ruling
Case Number: 23STCV31162 Hearing Date: March 5, 2024 Dept: 85
Chol Enterprises, Inc.
v. 740 South Broadway Associates, LLC, 23STCV31162
Tentative decision on application
for a writ of possession: denied
Plaintiff
Chol Enterprises, Inc. (“Tenant”) seeks a writ of possession against Defendant 740
South Broadway Associates, LLC (“Landlord”) to recover four types of
“Irreplaceable Belongings” and 50 categories of “Additional Belongings”
(collectively, “Belongings”).
The
court has read and considered the moving papers, opposition, and reply,[1] and
renders the following tentative decision.
A. Statement of the Case
1.
First Amended Complaint
Plaintiff
Tenant filed the Complaint on December 21, 2023. The operative pleading is the First Amended
Complaint (“FAC”) filed on December 26, 2023 alleging breach of contract,
trespass to chattels, conversion, and two counts of unfair competition under Business
and Professions (“Bus. & Prof.”) Code section 17200. The FAC alleges in pertinent part as follows.
Tenant
took possession of the Globe Theatre at 740 South Broadway, Los Angeles, CA
90014 (“Premises”) in October 2012, spending two years and $5 million to
renovate it.
On
November 11, 2023, Tenant received an eviction notice for the Premises. On November 14, 2023, Tenant and Landlord’s manager
Houman Sarshar (“Sarshar”) orally agreed that Tenant had until December 13,
2023, to vacate its Belongings from the Premises. Despite this oral agreement, Landlord changed
the lock and brought a security guard with a dog to the Premises on November
27, 2023, at 7:00 a.m. This kept Tenant
from performing its obligations under the oral agreement.
On
December 4, 2023, between 11:00 a.m. and 12:00 p.m., the parties met at the Premises
to take inventory of Tenant’s Belongings to be removed. To cure Landlord’s decision to prevent Tenant
from removing its Belongings by locking it out, the parties orally agreed that
five HVAC compressors outside the Premises would remain as substitute payment for
any storage fees for the rest of the Belongings.
Despite
this second agreement, at 6:49 p.m. that day, Landlord sent Tenant a demand for
$28,000 in storage fees, plus daily fees of $2,000, effective December 16. Landlord also sought to keep all Belongings
nailed to the wall, including Tenant equipment, and a Certificate of Insurance
listing Landlord as an additional insured.
Tenant
seeks equitable relief granting access to remove its Belongings, compensatory
damages, pre-judgment and post-judgment interest, punitive damages, and
attorney’s fees and costs.
2.
Course of Proceedings
On
December 26, 2023, Tenant served Landlord with the FAC and Summons by mail.
On
January 27, 2024, Tenant personally served Landlord with the FAC and Summons.
On
January 5, 2024, and again on February 8, 2024, the court denied Tenant’s ex
parte application for a writ of possession, in part for failure to
demonstrate an emergency. The court
noted that post-judgment writs of
possession belong in the department where case was assigned. LASC
2.8. While Tenant has filed this new lawsuit, the writ of possession may
belong in the unlawful detainer department handling 740 Broadway Associates,
LLC v. Chol Enterprises, Inc., 22 STCV1203 (the “UD Action”). Tenant was ordered to file a notice of
related case in the UD Action. The court
has reviewed the court file in the UD Action and Tenant failed to comply with
its order.
B.
Applicable Law
A
writ of possession is issued as a provisional remedy in a cause of action for
claim and delivery, also known as replevin.
See Pillsbury, Madison
& Sutro v. Schectman, (1997) 55 Cal.App.4th 1279, 1288. As a provisional remedy, the right to
possession is only temporary, and title and the right to possess are determined
in the final judgment.
A
writ of possession is available in any pending action. It also is available where an action has been
stayed pending arbitration, so long as the arbitration award may be ineffectual
without provisional relief. See CCP §1281.7.
1. Procedure
Upon
the filing of the complaint or at any time thereafter, a plaintiff may apply
for an order for a writ of possession.
Unlike attachment, where Judicial Council forms are optional, the
parties must use the mandatory approved Judicial Council forms in a claim and
delivery proceeding. (Judicial Council
Forms CD-100 et seq.).
A
plaintiff must make a written application for a writ of possession. CCP §512.010(a), (b); (Mandatory Form
CD-100); CCP §512.010(a). A verified
complaint alone is insufficient. 6
Witkin, California Procedure, (5th ed. 2008) §255, p.203. The application may be supported by
declarations and/or a verified complaint.
CCP §516.030. The declarations or
complaint must set forth admissible evidence except where expressly permitted
to be shown on information and belief. Id.
The
application must be executed under oath and include: (1) A showing of the basis
of the plaintiff's claim and that the plaintiff is entitled to possession of
the property claimed. If the plaintiff's
claim is based on a written instrument, a copy of it must be attached; (2) A
showing that the property is wrongfully detained by the defendant, how the
defendant came into possession of it, and, the reasons for the detention based
on the plaintiff’s best knowledge, information, and belief; (3) A specific description
of the property and statement of its value; (4) The location of the property
according to the plaintiff’s best knowledge, information, and belief. If the property, or some part of it, is
within a private place which may have to be entered to take possession, a
showing of probable cause to believe that the property is located there; and
(5) A statement that the property has not been taken for (a) a tax, assessment,
or fine, pursuant to a statute, or (b) an execution against the plaintiff’s
property. Alternatively, a statement
that if the property was seized for one of these purposes, it is by statute
exempt from such seizure. CCP
§512.010(b).
2. The Hearing
Before
noticing a hearing, the plaintiff must serve the defendant with all of the
following: (1) A copy of the summons and complaint; (2) A Notice of Application
and Hearing; and (3) A copy of the application and any supporting declaration. CCP §512.030(a). If the defendant has not appeared in the
action, service must be made in the same manner as service of summons and
complaint. CCP §512.030(b).
Each
party shall file with the court and serve upon the other party any declarations
and points and authorities intended to be relied upon at the hearing. CCP §512.050.
At the hearing, the court decides the merits of the application based on
the pleadings and declarations. Id. Upon a showing of good cause, the court may
receive and consider additional evidence and authority presented at the
hearing, or may continue the hearing for the production of such additional
evidence, oral or documentary, or the filing of other affidavits or points and
authorities. Id.
The
court may order issuance of a writ of possession if both of the following are
found: (1) The plaintiff has established the probable validity of the
plaintiff’s claim to possession of the property; and (2) The undertaking
requirements of CCP section 515.010 are satisfied. CCP §512.060(a). “A claim has ‘probable validity’ where it is
more likely than not that the plaintiff will obtain a judgment against the
defendant on that claim.” CCP
§511.090. This requires that the
plaintiff establish a prima facie case; the writ shall not issue if the
defendant shows a reasonable probability of a successful defense to the claim
and delivery cause of action. Witkin,
California Procedure, (5th ed. 2008) §261, p.208. A defendant’s claim of defect in the property
is not a defense to the plaintiff’s right to possess it. RCA Service Co. v. Superior Court,
(1982) 137 Cal.App.3d 1, 3.
No
writ directing the levying officer to enter a private place to take possession
of any property may be issued unless the plaintiff has established that there
is probable cause to believe that the property is located there. CCP §512.060(b).
The
successful plaintiff may obtain a preliminary injunction containing the same
provisions as a TRO that remains in effect until the property is seized by the
levying officer.[2] CCP §513.010(c).
The
court may also issue a “turnover order” directing the defendant to transfer
possession of the property to the plaintiff (See Mandatory Form CD-120).
The order must notify the defendant that failure to comply may subject
him or her to contempt of court. CCP
§512.070. The turnover remedy is not
issued in lieu of a writ, but in conjunction with it to provide the plaintiff
with a less expensive means of obtaining possession. See
Edwards v Superior Court, (“Edwards”) (1991) 230 Cal.App.3d 173,
178.
3. The Plaintiff’s Undertaking
Generally,
the court cannot issue an order for a writ of possession until the plaintiff
has filed an undertaking with the court (Mandatory Form CD-140 for personal
sureties). CCP §515.010(a). The undertaking shall provide that the
sureties are bound to the defendant for the return of the property to the
defendant, if return of the property is ordered, and for the payment to the
defendant of any sum recovered against the plaintiff. Id.
The undertaking shall be in an amount not less than twice the value of
the defendant's interest in the property or in a greater amount. Id.
The value of the defendant's interest in the property is determined by
the market value of the property less the amount due and owing on any
conditional sales contract or security agreement and all liens and encumbrances
on the property, and any other factors necessary to determine the defendant’s
interest in the property. Id.
However,
where the defendant has no interest in the property, the court must waive the requirement
of the plaintiff’s undertaking and include in the order for issuance of the
writ the amount of the defendant’s undertaking sufficient to satisfy the
requirements of CCP section 515.020(b).
CCP §515.010(b).
C. Statement of Facts
1.
Tenant’s Evidence[3]
On
October 10, 2012, Tenant entered a lease for the Premises (“Lease”). Erik Decl., ¶2. Tenant then spent three years and $5 million
to restore the Premises with a variety of air conditioning, audio-visual,
lighting, and sound equipment. Erik Decl.,
¶2, Exs. A-B. The Premises became a
multi-purpose venue for Church service, corporate events, fundraising,
concerts, fashion shows, social events, film premieres, weddings, and
conferences. Erik Decl., ¶2, Ex. B.
On
September 5, 2023, Landlord applied for a writ of execution, possession, or
sale of the Premises pursuant to an unlawful detainer judgment on August 29,
2023. Erik Decl., ¶14, Ex. E. The daily rental value of the Premises was
listed as $1,207.50. Erik Decl., ¶14,
Ex. E.
On
November 11, 2023, Tenant received notice of eviction from the Premises without
any notice of vacating Belongings. Erik
Decl., ¶3, Ex. G (“Soussan Decl., ¶3”); Florence Decl., ¶2. The Irreplaceable Belongings include (1) the
Marquee Letters, whose manufacturer is no longer in business; (2) the GLOBE
Vintage Letters, (since the manufacturer who made them is no longer in
business); (3) specially ordered and handcrafted Chandeliers and Sconces; and
(4) Tenants’ Business Records like employees’ checks and tips. Erik Decl., ¶5; Florence Decl., ¶7. The manufacturers of the Marquee and GLOBE
Vintage Letters are no longer in business.
Erik Decl., ¶5; Florence Decl., ¶7.
The
Additional Belongings consist of 50 types of items with a combined value of $1,297,810. Erik Decl., ¶6. Among these are five HVAC compressors with a
combined value of $48,000. Erik Decl.,
¶6. The Additional Belongings also
include $32,000 in liquor and beverage inventory from all bar areas and storage. Erik Decl., ¶6. Other Additional Belongings include six bubble
machines and 32 video cameras. Erik
Decl., ¶17.
On
November 14, 2023, Tenant and Landlord’s manager, Sarshar, reached an oral agreement
that gave Tenant until December 13, 2023 to remove its Belongings. Erik Decl., ¶4; Florence Decl., ¶3. During this period and through mid-December,
there also were negotiations for the tenancy to continue. Erik Decl., ¶4.
On
November 27, 2023, the Los Angeles Sheriff’s Department (“LASD”) filed a Return
on Attachment stating that it had placed the Premises in Landlord’s peaceful
possession. Erik Decl., ¶15, Ex. F. November 27 was the first day LASD posted a Notice
of Eviction on the Premises. Erik Decl.,
¶7; Florence Decl., ¶4.
Also on November 27, 2023, at 7:00 a.m., Landlord changed
the lock to the Premises and brought a security guard with a dog to the Premises. Erik Decl., ¶7; Florence Decl., ¶4. This lockout prevented Tenant from retrieving
the Belongings per the parties’ oral agreement. Erik Decl., ¶7. Tenant could not return third-party
belongings like employees’ paychecks and tips, suppliers’ rental equipment, and
cleaning staff supplies and machines to their rightful owners. Erik Decl., ¶7. Tenant also became concerned that it could
not continue operations at another venue without the Belongings. Erik Decl., ¶7.
On
December 4, 2023, between 11:00 a.m. and 12:00 p.m., the parties and their counsel
met at the Premises to take inventory of Belongings. Erik Decl., ¶7. Sarshar confirmed the previous oral agreement. Erik Decl., ¶7. The only items in dispute were five movable
HVAC compressors. Erik Decl., ¶7. The parties reached a new oral agreement
whereby Landlord could keep the compressors in exchange for no storage fees for
the Belongings, which Landlord would return to Tenant. Erik Decl., ¶7; Florence Decl., ¶8.
Later
that day, Landlord sent Tenant an Access Agreement which deviated significantly
from the oral agreement. Erik Decl., ¶7. It provided for a $28,000 storage fee plus
$2,000 per day thereafter, $500 of which was for Landlord’s daily security. Erik Decl., ¶7. Landlord also sought to keep the HVAC compressors
that were supposed to serve as substitute payment for the storage fees under
the oral agreement. Erik Decl., ¶7. Landlord also sought indefinite dominion and
control of Belongings nailed to the wall, even though Civil Code section 1019
permits their removal when it would not injure the Premises. Erik Decl., ¶7.
Since
then, Tenant’s repeated requests to access the Premises to retrieve the Belongings
have been denied. Erik Decl., ¶8. Tenant’s damages include daily rental charges
of $2,575 since November 27, 2023 for failure to return sound equipment rentals. Erik Decl., ¶8, Ex. C.
Tenant
has also suffered irreparable harm to reputation and business relationships after
a decade spent building them. Erik Decl.,
¶8. Tenant cannot file its 2023 corporate
taxes without access to the business records among the Irreplaceable Belongings. Florence Decl., ¶6. Tenant cannot tell suppliers when their
property will be returned, employees when they will be paid, or cleaning
personnel when they can retrieve their supplies and machines. Erik Decl., ¶8. Its inability to generate income has
compelled Tenant to terminate its 70 employees.
Erik Decl., ¶9.
On
January 22, 2024, Tenant received a “Second Notice of Right to Reclaim
Abandoned Property” (“Second Notice”), but it never received a first notice. Erik Decl., ¶14, Ex. D. The Second Notice threatened to dispose of
the Belongings under Civil Code section 1993.03 unless Tenant paid the
reasonable cost of storage and took possession by February 6, 2024. Erik Decl., ¶14, Ex. D. Landlord listed the daily storage costs as
$2,000, which was greater than the daily rental value listed on the September writ
of possession. Erik Decl., ¶14, Ex.
D.
The
failure to take care of the Premises in a reasonable manner poses a significant
threat to the Belongings. Erik Decl., ¶18. Delicate items among the Belongings require
exacting conditions for preservation, including temperature and humidity
control, to avoid deterioration. Erik
Decl., ¶18.
2.
Landlord’s Evidence
a.
The Lease
Under the Lease, a Utility Installation is any floor or
window covering, air or vacuum line, power panel, electrical distribution, security
and fire protection system, communication cabling, lighting fixture, HVAC
equipment, plumbing, or fencing in or around the Premises. Sarshar Decl., ¶22(5), Ex. F, §7.3(a). The Utility Installations would include the
HVAC compressors, chandeliers, sconces, ceiling lights, security cameras, and Marquee
Letters (collectively “Excluded Belongings”).
Sarshar Decl., ¶22(5).
A
Trade Fixture is any machinery or equipment that could be removed without
material damage to the Premises. Sarshar
Decl., Ex. F, §7.3(a). An Alteration is
any modification or improvement other than a Utility Installation or Trade
Fixture. Sarshar Decl., Ex. F, §7.3(a).
The
Lease states that all Alterations and Utility Installations the Tenant made
would be the property of the Tenant but considered part of the Premises. Sarshar Decl., Ex. F, §7.4(a). At the expiration or termination of the
Lease, they become part of Landlord’s property and shall be surrendered with
the Premises. Sarshar Decl., Ex. F,
§7.4(a).
Trade
Fixtures remain Tenant property. Sarshar
Decl., Ex. F, §7.4(c). However, if
Tenant failed to remove any personal property upon termination of the Lease, it
shall be deemed abandoned and either disposed of or retained as Landlord so
chose. Sarshar Decl., Ex. F, §7.4(c).
b.
The UD Action
The
Landlord filed the UD Action. Sarshar
Decl., ¶3. On April 7, 2022, after Tenant
filed an answer, the parties entered a Settlement Agreement and Release
Agreement (“Settlement”). Sarshar Decl.,
¶3. The Settlement resolved the UD
Action and a separate civil action, Chol Enterprises, Inc. v. 740 Broadway
Associates, LLC, et al., Case No. 21STCV39031 (“Chol v. 740 Broadway I”). Sarshar Decl., ¶4.
Tenant
breached the Settlement. Sarshar Decl.,
¶5. On August 29, 2023, judgment in the UD Action awarded Landlord possession
of the Premises and $100,000 for past-due rent, holdover damages, and
attorneys’ fees. Sarshar Decl., ¶5, Ex.
A.
Landlord instructed LASD to execute the judgment for
possession. Sarshar Decl., ¶6.
On
November 27, 2023, LASD posted a Notice of Eviction on the Premises. Sarshar Decl., ¶10, Ex. C. The Notice of Eviction advised Tenant that
any property left on the Premises was now under Landlord’s legal control. Sarshar Decl., ¶10, Ex. C. A part of the Notice of Eviction referred to
a Notice to Vacate delivered to Tenant which described the legal procedures for
recovery of this property. Sarshar
Decl., ¶10, Ex. C. Tenant did not
reclaim the Belongings within two days of the Notice of Eviction. Sarshar Decl., ¶21.
Landlord
hired the security guard because Tenant is very litigious and it was concerned
that Tenant would sue Landlord if any of the Belongings became missing or
damaged while on the Premises. Sarshar
Decl., ¶12. Between November 27, 2023
and January 28, 2024, Landlord paid $25,250 for the security guard, at a $500
daily rate through January 5, 2024 and a $250 daily rate thereafter. Sarshar Decl., ¶12, Ex. D.
The
parties never reached the November oral agreement described by Tenant. Sarshar Decl., ¶¶ 17, 19. To argue that Landlord would allow Tenant to
enter the Premises after eviction and remove property until December 13, 2023
strains credulity. Sarshar Decl., ¶16. At one point, the parties did enter
negotiations about the removal of certain personal property and payment of
storage costs but never reached an agreement because Tenant insisted on
removing Trade Fixtures and refused to pay storage costs. Sarshar Decl., ¶18. There was never an oral agreement to allow
Tenant to retrieve personal property without paying storage costs. Sarshar Decl., ¶19.
On
January 2, 2024, Landlord recorded a Notice of Lien on the Premises (“Lien”)
with the California Secretary of State based on the judgment in the UD Action. Sarshar Decl., ¶7, Ex. B. The amount to satisfy this judgment is
$100,000. Sarshar Decl., ¶7, Ex. B.
To
date, Tenant has failed to tender either storage costs for the Belongings and
has not paid the $100,000 judgment in the UD Action. Sarshar Decl., ¶¶ 8-9. Landlord believes that Tenant has overstated
the inventory of Belongings to justify another lawsuit against Landlord. Sarshar Decl., ¶14.
The
fair rental value of the Premises is $1,207.00 per day from November 27, 2023
through February 6, 2024, or $82,110.
Sarshar Decl., ¶20. This does not
include the $28,500 in costs for a security guard, at a daily average of $419. Sarshar Decl., ¶20.
Landlord
is entitled to (1) $82,110 in storage costs through February 6, 2024, plus
$2,000 per day thereafter; (2) $28,500 for costs of hiring the security guard,
plus costs incurred after February 6, 2024; (3) $100,000 to satisfy the Lien;
(4) a bond from surety for $250,000 for damages to the Premises proximately
caused by removal of any of the Belongings, per Civil Code section 1013.5, plus
workers’ compensation insurance to cover the removal of the Belongings; and (5)
retention of the Excluded Belongings as Utility Installations under the Lease,
free from any Tenant claim. Sarshar
Decl., ¶22. Based on Tenant’s’ valuation
of the Belongings, Landlord is also entitled to a $1,297,810 bond providing
that the sureties are bound to the Landlord for the return of any removed
property. Sarshar Decl., ¶22(6).
3.
Reply Evidence
On
April 7, 2022, the parties entered a stipulation in connection with the Settlement
in the UD Action. Bearman Decl., ¶2, Ex.
A. The stipulation explained that the
action could be dismissed without prejudice, but the court would retain
jurisdiction under CCP section 664.6 for purposes of enforcement of the
Settlement. Bearman Decl., ¶2, Ex. A. The parties could also apply to the court for
any further orders and directions needed to construe, implement, or enforce the
Settlement. Bearman Decl., ¶2, Ex.
A.
D. Analysis
Plaintiff
Tenant seeks a writ of possession against Landlord for all Belongings.
1.
Procedural Failures
Landlord
electronically served the opposition to this application on February 21,
2024. An opposition to a law and motion
must be filed within nine court days of the hearing on the motion. CCP §1005(b).
Any period of notice is extended after service by electronic means by
two court days. CCP §1010.6(a)(3)(B). Because electronic service was only nine
court days before the hearing, Tenant asks the court to not consider Landlord’s
opposition. Reply at 4. The opposition is untimely. Because Tenant filed a reply addressing the opposition,
it has not been prejudiced. The court
will consider the opposition.
At
the February 8, 2024 ex parte hearing, the court stated that Tenant’s
application for a writ of
possession may belong in the UD Action. Tenant
was ordered to file a notice of related case in the UD Action. The court has reviewed the court file in the
UD Action and Tenant failed to comply with its order. Landlord also objects that Tenant’s claim
should be addressed in the UD Action.
Opp. at 4.
Tenant’s failure
to obey the court’s oder is a basis to deny Tenant’s application. As the court is uncertain whether the
application necessarily belongs in the UD Action, the court will consider the
application’s merits.
2.
Merits
a.
Oral Agreements
On
August 29, 2023, judgment in the UD Action awarded Landlord possession of the Premises
and $100,000 for past-due rent, holdover damages, and attorneys’ fees. Sarshar Decl., ¶5, Ex. A. On November 11, 2023, Tenant received the Notice
of Eviction from the Premises without any Notice to Vacate the Belongings. Erik Decl., ¶3, Ex. G (“Soussan Decl., ¶3”);
Florence Decl., ¶2.
Tenant
asserts that the parties then made two oral agreements breached by Landlord
breached. On November 14, 2023, Tenant
and Landlord’s manager, Sarshar, reached an oral agreement that Tenant would
have until December 13, 2023 to remove its Belongings from the Premises. Erik Decl., ¶4; Florence Decl., ¶3. On November 27, 2023, after LASD placed the Premises
in Landlord’s possession, Landlord changed the lock and brought a security
guard with a dog to the Premises. Erik
Decl., ¶7; Florence Decl., ¶4. This
prevented Tenant from retrieving the Belongings per the oral agreement. Erik Decl., ¶7.
Tenant
then asserts that on December 4, 2023, between 11:00 a.m. and 12:00 p.m., the
parties and counsel met at the Premises to take inventory of the Belongings. Erik Decl., ¶7. They reached another oral agreement whereby
Landlord could keep the compressors in exchange for no storage fees for the
Belongings, which Landlord would return to Tenant. Erik Decl., ¶7.
Landlord
reneged on the oral agreement that evening when it sent Tenant an Access
Agreement which provided for a $28,000 storage fee plus $2,000 per day
thereafter, $500 of which for Landlord’s daily security costs. Erik Decl., ¶7. The Access Agreement also provided that Landlord
would keep the HVAC Compressors that were supposed to serve as substitute
payment for storage fees. Erik Decl.,
¶7.
Landlord
denies that the parties entered into any oral agreement. Sarshar Decl., ¶¶ 17, 19. To argue that, after the November 27, 2023 eviction,
Landlord would give Tenant leave until December 13, 2023 to enter the Premises and
remove Belongings strains credulity.
Sarshar Decl., ¶16. The parties did
enter into negotiations for the removal of certain personal property and
payment of storage costs, but never reached an agreement, in part because
Tenant refused to pay storage costs.
Sarshar Decl., ¶18. There was
never an oral agreement to allow Tenant to retrieve personal property without
paying storage costs. Sarshar Decl.,
¶19.
No
documentary evidence supports Tenant’s position that the parties entered into
either oral agreement and the unsigned Access Agreement supports Landlord’s position
that there was no such agreement. The
court does not necessarily accept Landlord’s argument that it would not enter
into an agreement permitting Tenant until December 13 to remove the Belongings merely
because it evicted Tenant on November 27.
Landlords often want to get rid of tenant property after eviction and
enter into such agreements to avoid the hassle of dealing with it. Here, however, Landlord also has a $100,000 money
judgment against Tenant and therefore has an interest in recovering both storage
fees and disposal of the Belongings to satisfy this judgment. This circumstance makes it less likely that
Landlord would have entered into the oral agreement described by Tenant.
Ultimately,
the court cannot resolve the issue of the two oral agreements on this
application. That is a matter for trial
in which witness credibility can be better assessed. Therefore, Tenant has not satisfied its
burden for this application to show the oral agreements. The question becomes whether Tenant is entitled
to return of the Belongings in the absence of any agreement.
b.
Excluded Belongings
The
Lease states that all Alterations and Utility Installations made by Tenant
would be the property of the Tenant but considered part of the Premises. Sarshar Decl., Ex. F, §7.4(a). At the expiration or termination of the
Lease, they would become Landlord’s property and be surrendered along with the Premises. Sarshar Decl., Ex. F, §7.4(a). Under the Lease, a “Utility Installation” is
any floor or window covering, air or vacuum line, power panel, electrical
distribution, security and fire protection system, communication cabling,
lighting fixture, HVAC equipment, plumbing, or fencing in or around the Premises. Sarshar Decl., ¶22(5), Ex. F, §7.3(a).
The
list of Irreplaceable Belongings includes Marquee Letters, handcrafted
Chandeliers, and handcrafted Sconces. Erik
Decl., ¶5; Florence Decl., ¶7. The Additional
Belongings include five HVAC compressors.
Erik Decl., ¶6. Landlord asserts
that these Belongings, together with security cameras and ceiling lights, are
Excluded Belongings that Tenant cannot repossess. Sarshar Decl., ¶22(5).
It
is unclear whether the 32 video cameras included in the Additional Belongings (Erik
Decl., ¶6) are security cameras. In any
case, the court agrees that HVAC compressors, Marquee Letters, handcrafted Chandeliers,
and handcrafted Sconces are Utility Installations under the Lease. Sarshar Decl., ¶22(5), Ex. F, §7.3(a). Tenant relinquished ownership thereof to
Landlord when the Lease terminated via the Notice of Eviction. Sarshar Decl., Ex. F, §7.4(a); Soussan Decl.,
¶3; Sarshar Decl., ¶10, Ex. C.
The
application is denied as to the Excluded Belongings.
c.
Landlord’s Right to Storage Costs
Upon
judgment for repossession of premises from a tenant, the landlord shall release
the personal property to the tenant if the tenant pays the costs of storage and
claims the property not later than the date specified in the writ of possession. CCP §1174(h).
If the landlord stores the personal property on the premises, the cost
of storage is the fair rental value of the space reasonably required for that
storage for the term of the storage. Civil
Code §1990(c). Costs shall not be
assessed if the former tenant reclaims property stored on the premises within
two days of having vacated the premises.
Id.
A
writ of possession for real property shall include, inter alia, a
statement that any personal property on the property after the judgment
creditor has been placed in possession will be sold or otherwise disposed of,
in accordance with CCP section 1174, unless the judgment debtor or other owner
pays the judgment creditor the reasonable cost of storage and takes possession
of the personal property not later than 15 days after the time the judgment
creditor takes possession of the real property.
CCP §715.010(b)(3).
The
Lease states that any Tenant property left on the Premises upon termination of
the Lease will be deemed abandoned and either disposed of or retained as
Landlord chooses. Sarshar Decl., Ex. F,
§7.4(c). Tenant admits that it received a
notice of eviction from the Premises on November 11, 2023. Erik Decl., ¶3, Ex. G (“Soussan Decl., ¶3”). Tenant was not locked out until November 27,
2023. Erik Decl., ¶7; Florence Decl.,
¶4. Under the Lease, Tenant abandoned
the Belongings still inside the Premises for failure to remove them after receiving
more than two weeks of notice.
Although
not addressed by the parties, the court will assume that the Lease does not
govern over landlord-tenant statutory requirements. Therefore, Tenant as not abandoned the Belongings. Landlord asserts that LASD’s Notice of
Eviction, posted on November 27, 2023, warned Tenant to remove its personal
property or pay storage costs. Opp. at
5. The Notice of Eviction does not so
state. Reply at 6. Rather, it advised Tenant that any property
left on the Premises was now under Landlord’s legal control. Sarshar Decl., ¶10, Ex. C. The Notice of Eviction also states that
Tenant previously received a Notice to Vacate describing the legal procedures
for recovery of this property. Sarshar
Decl., ¶10, Ex. C. Tenant denies
receiving a Notice to Vacate. Reply at
6.
On
January 22, 2024, Landlord sent the Second Notice demanding that Tenant pay daily
storage costs of $2,000. Erik Decl.,
¶14, Ex. D. If Tenant failed to do so by
February 6, Landlord threatened to dispose of the Belongings under Civil Code
section 1993.03. Erik Decl., ¶14, Ex.
D.
Tenant
argues that Landlord acted in bad faith by not delivering the notice required
under CCP section 715.010(b)(3) until January 22, almost two months after it
repossessed the Premises. Reply at 7. Tenant asks that Landlord be estopped from
enforcing storage fees beyond the first 15 days. Reply at 3.
Because the September writ of possession lists the Premises’ daily rent
as $1,207.50 (Erik Decl., ¶14, Ex. E), this equals $1,207.50 x 15 =
$18,112.50. Reply at 3.
Tenant’s
argument misinterprets the protections available under CCP section 715.010(b)(3). The required notice must give the tenant 15
days to pay storage fees before the personal property is “sold or otherwise
disposed of.” CCP §715.010(b)(3). Landlord did not threaten to sell or dispose
of the Belongings until January 22, 2024.
Erik Decl., ¶14, Ex. D. As long
as Landlord does not sell or dispose of the Belongings before the 15-day period
ends, it is entitled to collect storage fees under CCP section 1174(h). Even
if, arguendo, Landlord should be estopped from asserting fees greater than
$18,112.50, Tenant would not be entitled to a writ of possession because it has
never tendered this amount. Tenant’s offer
to pay this amount in reply is insufficient.
Reply at 3.
Finally, Landlord has a $100,000 judgment lien on the
Belongings. Sarshar Decl., Exs. A-B. CCP section 697.510 permits a judgment lien
on personal property described in CCP section 697.530 by filing a notice of
judgment lien with the Secretary of State.
In turn, CCP section 697.530 provides that a judgment lien on personal
property is a lien on all interests in personal property that is subject to
enforcement of a money judgment. Landlord
argues that this lien has priority over any Tenant claim for possession of the
Belongings. Opp. at 8.
Tenant only replies that the judgment lien was created on
January 2, 2024, and Landlord performed an unauthorized attachment of the
Belongings on November 27, 2023 by locking Tenant out. Moreover, an attachment of the Belongings
valued at $1.2 million is unjust for a judgment lien of only $100,000. Reply at 5.
The timing of the judgment lien is relevant only to Tenant’s
damages for wrongful retention of the Belongings. That is, if Tenant is entitled to damages
from Landlord’s wrongful detention of the Belongings, that does not affect the
fact that the judgment lien exists now and Landlord is entitled to satisfy it
from the Belongings. That the Belongings
may have a much greater value than the $100,000 lien does not prevent Landlord
from holding the Belongings until this lien is satisfied or until there is a
court order permitting the return to Tenant of some, but not all, of the
Belongings. As a result, Tenant is not
entitled to possession of the Belongings.
E.
Conclusion
Although
it may prevail at trial, Tenant has failed to demonstrate in this application it
is entitled to possession of the Belongings.
The application for a writ of possession is denied.
[1]
Landlord failed to lodge a courtesy copy of its opposition, and Tenant the
reply, in violation of the Presiding Judge’s First Amended General Order Re:
Mandatory Electronic Filing. Both counsel
are admonished to provide courtesy copies in all future filings for this case
or they will not be considered.
[2] If the
court denies the plaintiff’s application for a writ of possession, any TRO must
be dissolved. CCP §513.010(c).
[3]
Landlord’s written evidentiary objection to paragraph 4 of the Declaration of Gerard
Soussan is sustained.