Judge: Serena R. Murillo, Case: 22STCV06116, Date: 2023-05-24 Tentative Ruling
Case Number: 22STCV06116 Hearing Date: May 24, 2023 Dept: 31
TENTATIVE
Plaintiff’s Motion for Summary Judgment, or Summary Adjudication
is GRANTED and DENIED IN PART.
The Court GRANTS Plaintiff’s request for Summary Adjudication as
to Issues Nos. 1, 2, 3, 5, 7, 8, 10, 11, and 12 and DENIES Summary Adjudication
as to Issues Nos. 4, 6, and 9.
Background
On February 17, 2022,
Plaintiff Winstress Limited filed a Complaint against Defendants Yolanda E.
Wilber (“Wilber”); Alejandro Jose Guerrero (“Guerrero”); and Does 1 to 30 for
Breach of Lease.
On January 05, 2023,
Plaintiff filed a Motion for Summary Judgment, or Summary Adjudication in the
Alternative.
Defendant Guerrero’s
counsel’s request for relief as Counsel was granted on May 05, 2023.
On May 04, 2023, Defendant
Wilber filed opposing papers to Plaintiffs’ Motion for Summary Judgment.
Defendant Guerrero filed a Declaration in Opposition to Plaintiffs’ Motion.
Plaintiff filed a reply on
May 12, 2022.
Legal Standard
The purpose of a motion for
summary judgment or summary adjudication “is to provide courts with a mechanism
to cut through the parties’ pleadings in order to determine whether, despite
their allegations, trial is in fact necessary to resolve their dispute.”¿ (Aguilar
v. Atl. Richfield Co. (2001) 25 Cal. 4th 826, 843.) “Code of Civil
Procedure section 437c, subdivision (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.
Manor Healthcare Corp. (1992) 7 Cal.App.4th 1110, 1119.)¿¿¿¿¿
¿
“On a motion for summary
judgment, the initial burden is always on the moving party to make a prima
facie showing
that there are no triable issues of material fact.” (Scalf v. D. B. Log
Homes, Inc. (2005) 128 Cal.App.4th 1510, 1519.) The moving party is
entitled to summary judgment if they can show that there is no triable issue of
material fact or if they have a complete defense thereto. (Aguilar, supra,
25 Cal. 4th at 843.)¿ Summary adjudication may be granted as to one or more
causes of action within an action, or one or more claims for damages. (Cal.
Code of Civ. Proc. §437c(f).)¿¿¿¿¿¿
¿
A defendant moving for summary judgment bears two burdens:
(1) the burden of production – presenting admissible evidence, through material
facts, sufficient to satisfy a directed verdict standard; and (2) the burden of
persuasion – the material facts presented must persuade the court that the
plaintiff cannot establish one or more elements of a cause of action, or a
complete defense vitiates the cause of action. (Code Civ. Proc., § 437c(p)(2);¿Aguilar,¿supra,
25 Cal.4th at p. 850-851.) A defendant may satisfy this burden by showing that
the claim “cannot be established” because of the lack of evidence on some
essential element of the claim.¿¿(Union Bank v. Superior Court (1995) 31
Cal.App.4th 574, 590.)¿¿Once the defendant meets this burden, the burden shifts
to the plaintiff to show that a “triable issue of one or more material facts
exists as to that cause of action or defense thereto.”¿(Id.)¿“On ruling
on a motion for summary judgment, the court is to ‘liberally construe the
evidence in support of the party opposing summary judgment and resolve doubts
concerning the evidence in favor of that party.’” (Cheal v. El Camino
Hospital¿(2014) 223 Cal.App.4th 736, 760.)¿¿¿
¿
On a summary judgment motion, the court must therefore
consider what inferences favoring the opposing party a factfinder could
reasonably draw from the evidence. While viewing the evidence in this manner,
the court must bear in mind that its primary function is to identify issues
rather than to determine issues. [Citation.]” (Binder v. Aetna Life Ins. Co.¿(1999)
75 Cal.App.4th¿832, 839.)¿¿
¿
Defeating summary judgment requires only a single disputed
material fact. (See CCP § 437c(c) [a motion for summary judgment “shall be
granted if all the papers submitted show that there is no triable issue as to any
material fact and that the moving party is entitled to a judgment as a
matter of law.”] [emphasis added].) Thus, any disputed material fact means the
court must deny the motion – the court has no discretion to grant summary
judgment. (Zavala v. Arce (1997) 58 Cal.App.4th 915, 925, fn. 8; Saldana
v. Globe-Weis Systems Co. (1991) 233 Cal.App.3d 1505, 1511-1512.)¿¿¿
REQUEST
FOR JUDICIAL NOTICE
The
court may take judicial notice of “official acts of the legislative, executive,
and judicial departments of the United States and of any state of the United
States,” “[r]ecords of (1) any court of this state or (2) any court of record
of the United States or of any state of the United States,” and “[f]acts and
propositions that are not reasonably subject to dispute and are capable of
immediate and accurate determination by resort to sources of reasonably
indisputable accuracy.” (Evid. Code § 452, subds. (c), (d), and (h).) “Taking judicial notice of a document
is not the same as accepting the truth of its contents or accepting a particular
interpretation of its meaning.” (Joslin v. H.A.S.
Ins. Brokerage (1986) 184 Cal.App.3d
369, 374.)
Plaintiff requests judicial notice of the following:
Exhibit 1: A true and correct copy of the Resolution of the Board of
Supervisors of the County of Los Angeles Further Amending and Restating the
County of Los Angeles Covid-19 Tenant
Protections Resolution Adopted January 25, 2022.
The Court GRANTS Plaintiff’s
request for Judicial Notice as to this request.
On
reply, Plaintiff requested judicial notice of the following:
Exhibit 1: A true and correct copy of an image from Google Maps depicting
the Premises, located at 1186 S. Crocker Street, Los Angeles California 90012,
in March 2020, is attached hereto as Exhibit 1. This document can be found at
Google Maps, by searching “1186 Crocker Street, Los Angeles California 90012”
in the search bar, clicking on the picture of the street to get the street
view, clicking “See more dates,” and clicking “March 2020.”
Exhibit 2: A true and correct copy of an image from Google Maps depicting
the Premises, located at 1186 S. Crocker Street, Los Angeles California 90012,
in February 2021, is attached hereto as Exhibit 2. This document can be found
at Google Maps, by searching “1186 Crocker Street, Los Angeles California
90012” in the search bar, clicking on the picture of the street to get the
street view, clicking “See more dates,” and clicking “February 2021.”
Plaintiff presents evidence that
Google Map images have been accepted as facts and proposition not reasonable
subject to dispute. (See Pahls v. Thomas (10th Cir. 2013) 718 F.3d 1210,
1216, fn. 1 [taking judicial notice of a Google map and satellite image as a
source whose accuracy cannot reasonably be questioned]; U.S. v. Perea-Rey (9th
Cir. 2012) 680 F.3d 1179, 1182, fn. 1 [same]; Hernandez v. Caliber Bodyworks
LLC (N.D. Cal. Apr.4, 2022) No. 21-cv-5836, 2022 WL 1002450, at *4 [taking
judicial notice of Google Maps Street View images of property where relevant
events occurred]; United States v. Nettles (E.D. Mo. June 7, 2021) No. 18 CR
1007, 2021 WL 3131658, at *5 n.9 [“The undersigned may take judicial notice of
historical map information located in Google Maps”].)
While the Court is inclined
to accept Exhibits 1 and 2 as suitable for judicial notice. However, the Court
DENIES this specific request on the basis that Plaintiff presented this
evidence on reply and fails to provide a reason why the evidence was not
presented earlier.
EVIDENTIARY
OBJECTIONS
A.
Defendant
Yolanda E. Wilber Submits Evidentiary Objection to the Evidence Presented in
the Declaration of Daniel Soroudi.
Objections Nos. 1, 3, 7, 8, 9, 10, 11, and 12 are
OVERRULED.
Objections Nos. 2, 4, 5, 6, and 13 are SUSTAINED.
B.
Plaintiff
Submitted Evidentiary Objection to the portions of Defendant Wilber’s Declaration.
All objections are OVERRULED.
C.
Plaintiff
Submitted Evidentiary Objection to the portion of Defendant Guerrero’s Declaration.
Objections
Nos. 5 and 6 are SUSTAINED and all other objections are OVERRULED.
Discussion
Plaintiff Winstress Limited
moves for an Order granting Summary Judgment in its favor against Defendants
Yolanda E. Wilber (“Wilber”) and Alejandro Jose Guerrero (“Guerrero”) as to the
following issues:
Issue 1: As a matter of law,
Plaintiff’s First Cause of Action of Breach of Lease in
Plaintiff’s Complaint,
Plaintiff leased the Premises to Defendant.
Issue 2: As a matter of law,
Plaintiff’s First Cause of Action of Breach of Lease in
Plaintiff’s Complaint, Plaintiff
performed all of its obligations.
Issue 3: As a matter of law,
Plaintiff’s First Cause of Action of Breach of Lease in Plaintiff’s Complaint,
Tenant breached the Lease by, among other things, failing to deliver all of the
Rent due under the Lease.
Issue 4: As a matter of law,
Plaintiff’s First Cause of Action of Breach of Lease in Plaintiff’s Complaint,
Tenant owes to Plaintiff pursuant to the Lease $279,363.00 in unpaid Rent.
Issue 5: As matter of law,
Defendant Wilber’s Fourth Affirmative Defense of Breach of Contract by
Plaintiff on the grounds that Plaintiff breached the implied warranty of good
faith and fair dealing by acting unreasonably is without merit because the
undisputed facts establish that Plaintiff performed all of its contractual obligations.
Issue 6: As matter of law,
Defendant Wilber’s Fifth Affirmative Defense of Failure to Mitigate Damages on
the grounds that Plaintiff refused to accept a reasonable settlement offered by
Defendant, unreasonably delayed in filing the lawsuit and failed to exercise
reasonable diligence in failing to re-rent the subject property lacks merit
because the undisputed facts establish that Defendants breached the Lease and
are still in possession of the property.
Issue 7: As matter of law, Defendant
Wilber’s Seventh Affirmative Defense of Waiver on the grounds that “Plaintiff
has through representations or actions waived its right to sue” lacks merit
because the undisputed facts establish that Plaintiff did not waive their right
to recover unpaid Rent based on Defendants’ breach of the Lease.
Issue 8: As matter of law,
Defendant Wilber’s Tenth Affirmative Defense of Prevention of Performance on
the grounds that “Plaintiff prevented Defendant from performing under the
contact as defined under Civil Code 1511, due to the Covid pandemic” lacks
merit because the undisputed facts establish that Plaintiff did not prevent
Defendant from performing its obligations under the Lease.
Issue 9: As matter of law,
Defendant Wilber’s Fifteenth Affirmative Defense of No Damage to Plaintiff on
the grounds that “Plaintiff did not suffer any damages (economic loss)” lacks
merit because the undisputed facts show that Plaintiff is owed $279,363.00 in
unpaid Rent (as defined below)
Issue 10: As matter of law,
Defendant Wilber’s Eighteenth Affirmative Defense of Frustration of Purpose on
the grounds that an unexpected event or occurrence happened which prevented
Defendant from receiving use of the property lacks merit because the undisputed
facts establish that no event prevented Defendant from using the property and
performing his contractual obligations.
Issue 11: As matter of law,
Defendant Guerrero’s Third Affirmative Defense of Failure to State a Claim Upon
Which Relief Can be Granted on the grounds that Plaintiff’s demand for payment
of rent failed to comply with the County of Los Angeles’s COVID-19 Tenant
Protection Resolutions lacks merit
because the undisputed facts establish that Defendant was not protected under
the County of Los Angeles’s COVID-19 Tenant Protection Resolutions.
Issue 12: As matter of law,
Defendant Guerrero’s Fourth Affirmative Defense of Failure to State a Claim
Upon Which Relief Can be Granted on the grounds that Plaintiff seeks relief in
contravention of the County of Los Angeles’s COVID-19 Tenant Protection
Resolutions by, including, seeking relief personally against Mr. Guerrero lacks
merit because the undisputed facts establish that Defendant was not protected
under the County of Los Angeles’s COVID-19 Tenant Protection Resolutions.
I.
Statement of Facts
Plaintiff as Landlord entered into a
Commercial Lease Agreement (the “Lease”) for the subject premises located at
1186 S. Crocker Street, Los Angeles. (Compl. ¶ 6 and Ex. A of Complaint
[Lease].) Defendant Guerrero does not deny signing the Lease. (Guerrero Decl. ¶
2.) Defendant Wilber does not deny that she co-signed the Lease but asserts she
believes she was mentally incapacitated at the time of signing. (Wilber Decl. ¶
4.) Plaintiff asserts that on or about January 07, 2022, Plaintiff served Defendants
with a Demand for Payment of Rent pursuant to the Lease. (Recor Decl. ¶ 2.)
Defendant Guerrero failed to pay rent and Plaintiff filed this Complaint for
Breach of Lease on or about February 17, 2022.
II.
The Legal Standard for
Breach of Lease
“To prevail on a cause of action for breach
of contract, the plaintiff must prove (1) the contract, (2) the plaintiff's
performance of the contract or excuse for nonperformance, (3) the defendant's
breach, and (4) the resulting damage to the plaintiff.” (Richman v. Hartley
(2014) 224 Cal.App.4th 1182, 1186.) As explained below, triable issues of fact
exist as to the amount of damages owed in terms of rent and whether Plaintiff
was obligated to mitigate its damages.
III.
Defendant Wilber Failed to
Present Evidence that she Lacked the Mental Capacity to Sign the Lease
In opposition to this Motion, Defendant
Wilber submitted a declaration asserting that she is 72 years old, has serious
health issues, and for several years has taking medication that has affected
her ability to concentrate or understand. (Wilber Decl. ¶ 2.) Defendant Wilber
is a resident of Florida and has never traveled to California to sign the
Lease. (Id. ¶¶ 1, 4.) Defendant Wilber does not dispute that her
signature appears on the Lease but asserts that she was “acting under the
pressure of Mr. Guerrero” when she signed the Lease she “was likely mentally
incapacitated at the time.” (Id. ¶ 4.)
Plaintiff correctly asserts that the burden
is on Defendant Wilber to show that she was mentally incapacitated at the time
she signed the Lease. Mental incapacity is an affirmative defense that
Defendant Wilber raised as her Twelfth Affirmative Defense. (See Gomez v.
Smith (2020) 54 Cal.App.5th 1016, 1040.)
Here, Defendant Wilber was required to prove
mental incapacity by a preponderance of the evidence. (See Conservatorship
of O.B. (2020) 9 Cal.5th 989, 998 [“The default standard of proof in civil
cases is the preponderance of the evidence.”]; People v. Neidinger
(2006) 40 Cal.4th 67, 72 [“it is constitutionally permissible to place on the
defendant the burden of proving affirmative defenses by a preponderance of the
evidence, as long as the defendant is not required to negate an element of the
offense.”].) Defendant Wilber failed to meet her burden because she asserts
that she was “likely” incapacitated but does not state that she was in fact
incapacitated and thus unable to understand the nature of the contract or
appreciated its probable consequences. (See Hellman Commercial Trust &
Savings Bank v. Alden (1929) 206 Cal. 592, 603; In re Darilek's Estate
(1957) 151 Cal.App.2d 322, 326 [“Proof of extreme feebleness, sickness, old
age, etc., does not prove mental incapacity nor shift the burden of proof on
the proponent.”].)
Therefore, it is undisputed that Defendant Wilber
had the capacity to sign the Lease Agreement and is thus liable for the Lease
to the same extent as Defendant Guerrero. (Soroudi Decl. Ex. A [Lease].)
IV.
Base Rent Due
Defendants assert that on January 25, 2022,
the County of Los Angeles ended the COVID-19 Tenant Protections and all rent
previously owed is now immediately due. (D’s RJN Ex. 1.) For Commercial
Tenants, the Los Angeles Tenant Protections (“LATP”) at Section VI(B)(C)(2)
provides in part:
“a. Commercial
Tenants with nine (9) or employees or fewer shall have until January 31, 2023
to repay unpaid rent incurred during the Protected Time Period.
b. Commercial
Tenants with ten (10) or more, but fewer than 100, employees, shall have until
July 31, 2022 to repaid unpaid rent incurred during the Protected Time Period,
in equal installments, unless the commercial Tenant and Landlord agree to an
alternate payment arrangement.”
For commercial
tenants, the Protected Time Period means “March 4, 2020, through January 31,
2022, during which a commercial Tenant was unable to pay rent due to Financial
Impacts Related to COVID-19.” (LATP § IV(J)(2) It is undisputed that pursuant
to Paragraph 1.5 of the Lease, rent was $,5,600.00 beginning May 01, 2019, and
rent would be increased by five percent (5%) to $,5880.00 beginning April 2020
pursuant to paragraph 63 of the Lease, titled “Rent Adjustments. (UMF 3, 4, 5.) Therefore, even if Defendants were protected
by the COVID-19 Tenant Protections, Plaintiff has presented evidence that the
rent owed is now due as the protection period has now ended. (LATP §
VI(B)(C)(2).)
The Court finds that Plaintiff has presented
evidence that Defendants owe Base Rent in the amount of $22,803.00 for the
months of December 2020 to March 2021. (UMF 6, 38, 46, 52, 64, 78, 96.)
The burden shifts to Defendants to show that
rent is not due or shows that triable issues of fact exist as to the rent
requested for the months of December 2020 to March 2021. Defendants fail to
meet this burden. Defendants cannot that the COVID-19 Tenant Protections
stopped the accumulation of rent owed or canceled the rent owed.
V.
Additional Rent
Paragraph 4.2 of the Lease states: “Lessee
shall pay to Lessor during the term of the hereof, in addition to the Base
Rent, Lessee’s Share (as specified in Paragraph 1.6(b)) of all Common Area
Operating Expense…” (UMF 12, 41.) Similarly, Paragraph 61 of the Addendum to
the Lease provides:
“Lessor's estimate of Lessee's Share of
Common Area Operating Expenses (the "Estimated Operating Expenses"),
which Lessee agrees to pay Lessor in monthly installments as additional rent
(as described in Section 4.2 (d) of the body of the Lease), is initially
set at Four Hundred Dollars ($400.00) per month. In the event that Lessor in
any given year elects not to give Lessee any annual statement showing Lessee's
Share of the actual Common Area Operating Expenses for the preceding Lease year
(as described in Section 4.2 (d) of the body of the Lease), then the
amount of the Estimated Operating Expenses for said preceding year shall be
deemed to be Lessee's Share of the actual amounts of Common Area Operating
Expenses owed for said preceding Lease year, and there shall be no credit or
debit between Lessor and Lessee for any overpayment or deficiency from the
Estimated Operating Expenses.”
(UMF 13.)
Plaintiff in their Motion assert that the
Defendants failed to pay additional rent for the months of January 2021 to
December 2022 in the amount of $9,600.00. (Mot. at 3:26-27.) Undisputed
Material Fact (“UMF”) Nos. 42 and 48 state that Defendants failed to pay
additional Rent for the same amount for the months of January 2021 to January
2022. (UMF 42, 48.) UMF Nos. 54, 66, 80, and 98 conversely state that
Defendants failed to pay additional rent from January 2021 to December 2022.
(UMF 54, 66, 89, 98.)
Therefore, it is unclear to the Court, for
how long Defendants are alleged to have defaulted and what the amount
Defendants owed in Additional Rent. Defendants argue that the Lease was from
April 1, 2010, through March 21, 2021, but otherwise makes no statement as to
whether additional rent is owed. (Soroudi Decl. Ex. A.) Nevertheless, the
burden remains with Plaintiff to show that it is entitled to additional rent
and that no triable issues of fact exist as to the additional rent owed. Due to
the conflicting dates on when the additional rent was due, triable issues of
fact exist as to the issue of additional rent due.
VI.
Material Issues of Fact
Exist as to Whether Defendants Owe Holdover Rent and/or Are in Possession of
the Lease.
It is undisputed that Paragraph 26 of the
Lease provides for holdover rent in case Defendants retain possession of the
Lease after the Lease Expires. (UMF 7, 39.) Plaintiff asserts that Defendants
owe holdover rent in the amount of $246,960.00 for the months of April 2021 to
December 2022. (Soroudi Decl. ¶ 13, Ex. A.) In its Motion, Plaintiff asserted that
Defendants retain possession of the subject premise and as evidence cite
Exhibit A, which is a true and correct copy of the Lease. (See UMF 1 [Soroudi
Decl. ¶ 3, Ex. A].) No other evidence is cited. California Rules of Court, rule
3.1350 subdivision (d) states that in the separate statement, each undisputed
material fact must be followed by evidence that establishes the undisputed
fact. Here, Plaintiff’s Motion and Separate Statement both fail to present or
cite evidence that shows Defendants retained possession of the premises after
the Lease term ended.
In its reply, for the first time, Plaintiff
presents evidence that Defendants retained possession of the subject premises
by way of two Google Maps images purporting to show Defendant Guerrero’s
mannequins inside the store. (D’s RJN No. 2, Ex. 1, 2.) Defendant Guerrero does
not dispute that he left some mannequins and some clothes at the subject
premise, that he still has the keys to the premises, and that he removed the
mannequins and clothes shortly after the Plaintiff’s Motion was filed.
(Guerrero Decl. ¶ 4.) Defendant asserts that he tried to return the keys to
Plaintiff in 2021 and 2022 and that he was willing and able to move his things
but Plaintiff failed to provide instructions to him. (Id.) Furthermore,
Defendant Guerrero admits that he did try to run a business at the subject
premises until sometime in 2022. (Id.)
The general rule is that new evidence is not
permitted on reply unless good cause exists, and the other party is given the
opportunity to respond. (Jay v. Mahaffey (2013) 218 Cal.App.4th 1522,
1537.) Here, Plaintiff fails to explain why it did not present evidence that
Defendants’ had possession of the premise in its initial motion. Furthermore,
the Court may ignore evidence not disclosed in the moving party’s separate
statement, even if the evidence is referenced within the memorandum. (See Martine
v. Heavenly Valley Limited Partnership (2018) 27 Cal.App.5th 715,
725.) Plaintiff’s separate statement is devoid of reference to evidence that
Defendants had possession of the subject premise.
Lastly, the fact that Defendant Guerrero
tried to run a business until sometime in 2022, leaves questions as to how long
Defendant Guerrero is alleged to have been a holdover tenant. Moreover,
Defendant Wilber’s counsel presents evidence that Plaintiff’s counsel
represented to Defendant Wilber that the subject premises had already been
returned on January 13, 2022, by email. (Recor Decl. ¶ 4. Ex. B [“With regard
to possession, it has already been returned.”].) Therefore, Plaintiff may be
estopped from asserting that Defendants continue to retain possession of the
premises based on representations made by Plaintiff’s counsel to Defendants. Moreover,
nothing in Plaintiff’s January 07, 2022, Demand Letter states that Plaintiff
seeks holdover rent or repossession of the subject premises. (Shakouri Decl.
Ex. B.) Lastly, Plaintiff fails to address Defendant Wilber’s assertion that
representations were made that the subject property had already been returned.
Here, the burden was on Plaintiff to prove
that Defendants maintained possession of the subject premises for a specific
period of time or continue to retain possession of the subject premises, never
relinquished possession, and that a month-to-month tenancy was created and
continues to exist between the parties. Plaintiff has failed to meet this
burden.
VII.
Defendants Fail to Present Evidence that Plaintiff Failed to
Perform its Obligation Under the Lease
Paragraph 13.5 of the
Lease requires Defendants to Plaintiff with written notice of an obligation to
perform but failure to perform within a reasonable time is deemed a breach of
the Lease. (Soroudi Decl. ¶ 27, Ex. A.) Plaintiff asserts that it has performed
all obligations required under the Lease.
The burden is on
Defendants to show that Plaintiff has breached the Lease by failing to perform
an obligation that is required by the Lease. Defendant Guerrero asserts that
Plaintiff did not perform all of its obligations under the Lease prior to
December 2020 because Plaintiff failed to fix the air conditioning or repair
the front door after more than 30 days. (Guerrero Decl. ¶ 11.) Defendant
Guerrero does not provide evidence that he sent Plaintiff a written notice or
that the obligations to make such repairs were required by the Lease. (See Sangster
v. Paetkau (1998) 68 Cal.App.4th 151, 166 [to create a triable issue of
material fact, the opposing party must present substantial responsive
evidence].) Therefore, Defendants have failed to show that triable issues of
fact exist as to whether Plaintiff performed all obligations under the Lease.
VIII.
Other Affirmative Defenses
As to Defendant Wilber’s fifth affirmative
defense, Defendant Wilber asserts that Plaintiff cannot present evidence that
it mitigated damages because Plaintiff failed to mitigate damages by refusing
to accept a reasonable settlement offer, delaying in filing this action in order
to increase costs, failing to exercise reasonable diligence in re-renting the
subject premises, falling to use the property or remove any holdover tenants.
Plaintiff does not dispute this but asserts
that it has no obligation to mitigate damages because Defendants remain in
possession of the property. Plaintiff fails to cite any legal authority in
support of this proposition. Moreover, triable issues of fact exist as to
whether Defendants are in possession of the premises, for how long Defendants
had possession, and if Defendants continue to retain possession of the
premises.
As to Defendant Wilber’s other affirmative
defenses, Defendant Wilber filed to show by a preponderance of the evidence
that triable issues of fact exist as to her fourth, seventh, tenth, fifteenth,
and eighteenth affirmative defenses. Moreover, Defendant Guerrero has failed to
oppose this Motion and therefore cannot show by a preponderance of the evidence
that triable issues of fact exist as to his third and fourth affirmative
defense.
XI.
Final Adjudication of
Plaintiffs’ Claims
The Court finds the following to be
undisputed:
Issue 1: As a matter of law,
Plaintiff’s First Cause of Action of Breach of Lease in Plaintiff’s Complaint,
Plaintiff leased the Premises to Defendant.
Issue 2: As a matter of law,
Plaintiff’s First Cause of Action of Breach of Lease in Plaintiff’s Complaint,
Plaintiff performed all of its obligations.
Issue 3: As a matter of law,
Plaintiff’s First Cause of Action of Breach of Lease in Plaintiff’s Complaint,
Tenant breached the Lease by, among other things, failing to deliver all of the
Rent due under the Lease.
Issue 5: As matter of law,
Defendant Wilber’s Fourth Affirmative Defense of Breach of Contract by
Plaintiff on the grounds that Plaintiff breached the implied warranty of good
faith and fair dealing by acting unreasonably is without merit because the
undisputed facts establish that Plaintiff performed all of its contractual
obligations.
Issue 7: As matter of law, Defendant
Wilber’s Seventh Affirmative Defense of Waiver on the grounds that “Plaintiff
has through representations or actions waived its right to sue” lacks merit
because the undisputed facts establish that Plaintiff did not waive their right
to recover unpaid Rent based on Defendants’ breach of the Lease.
Issue 8: As matter of law,
Defendant Wilber’s Tenth Affirmative Defense of Prevention of Performance on
the grounds that “Plaintiff prevented Defendant from performing under the
contact as defined under Civil Code 1511, due to the Covid pandemic” lacks
merit because the undisputed facts establish that Plaintiff did not prevent
Defendant from performing its obligations under the Lease.
Issue 10: As matter of law, Defendant
Wilber’s Eighteenth Affirmative Defense of Frustration of Purpose on the
grounds that an unexpected event or occurrence happened which prevented
Defendant from receiving use of the property lacks merit because the undisputed
facts establish that no event prevented Defendant from using the property and
performing his contractual obligations.
Issue 11: As matter of law,
Defendant Guerrero’s Third Affirmative Defense of Failure to State a Claim Upon
Which Relief Can be Granted on the grounds that Plaintiff’s demand for payment
of rent failed to comply with the County of Los Angeles’s COVID-19 Tenant
Protection Resolutions lacks merit because the undisputed facts establish that
Defendant was not protected under the County of Los Angeles’s COVID-19 Tenant
Protection Resolutions.
Issue 12: As matter of law,
Defendant Guerrero’s Fourth Affirmative Defense of Failure to State a Claim
Upon Which Relief Can be Granted on the grounds that Plaintiff seeks relief in
contravention of the County of Los Angeles’s COVID-19 Tenant Protection
Resolutions by, including, seeking relief personally against Mr. Guerrero lacks
merit because the undisputed facts establish that Defendant was not protected
under the County of Los Angeles’s COVID-19 Tenant Protection Resolutions.
The Court finds the following to be disputed:
Issue 4: As a matter of law,
Plaintiff’s First Cause of Action of Breach of Lease in Plaintiff’s Complaint,
Tenant owes to Plaintiff pursuant to the Lease $279,363.00 in unpaid Rent.
Issue 6: As matter of law,
Defendant Wilber’s Fifth Affirmative Defense of Failure to Mitigate Damages on
the grounds that Plaintiff refused to accept a reasonable settlement offered by
Defendant, unreasonably delayed in filing the lawsuit and failed to exercise
reasonable diligence in failing to re-rent the subject property lacks merit
because the undisputed facts establish that Defendants breached the Lease and
are still in possession of the property.
Issue 9: As matter of law,
Defendant Wilber’s Fifteenth Affirmative Defense of No Damage to Plaintiff on
the grounds that “Plaintiff did not suffer any damages (economic loss)” lacks
merit because the undisputed facts show that Plaintiff is owed $279,363.00 in unpaid
Rent (as defined below).
Conclusion
Plaintiff’s Motion for Summary Judgment, or Summary Adjudication
is GRANTED and DENIED IN PART.
The Court GRANTS Plaintiff’s request for Summary Adjudication as
to Issues Nos. 1, 2, 3, 5, 7, 8, 10, 11, and 12 and DENIES Summary Adjudication
as to Issues Nos. 4, 6, and 9.
Moving
party is ordered to give notice.