Judge Teresa A. Beaudet, Case 20STCV28644 2022-08-01 Tentative Ruling

This matter came on for trial on April 28-29 and May 3-4, 2022, in Department 50 of the above-entitled Court before the Hon. Teresa A. Beaudet, sitting without a jury. The Court, having considered the evidence, the Joint Stipulation of Facts and the Joint Statement of Relief Requested and read the arguments of counsel, issues this Statement of Decision. This tentative and proposed Statement of Decision will become the Statement of Decision unless, within 15 days hereafter, a party serves and files objections to the proposed Statement of Decision.

1. Whether Defendant Haralambos Beverage Co. (“Haralambos”) terminated Exhibit 1, the Rental Service Agreement (“RSA”)? If so, what amount is owed by Haralambos to Plaintiff Kleen Kraft Services, Inc. (“Kleen Kraft”) pursuant to the RSA.

2. If not, was the $500 minimum payment due under the RSA excused because of a breach of the RSA by Kleen Kraft?

3. If the $500 minimum payment was not excused, what amount is owed to Kleen Kraft by Haralambos pursuant to the RSA for breach of contract.[1]

The evidence presented at trial did not establish that Haralambos terminated the RSA. The evidence did establish that it breached the RSA when it stopped paying the $500 minimum amount required because Kleen Kraft refused to provide products it was not required to provide under the RSA, namely COVID-related products such as hand sanitizer. No testimony was presented to establish that Haralambos terminated the RSA.

III. WAS THE $500 MINIMUM PAYMENT DUE UNDER THE RSA EXCUSED BECAUSE OF A BREACH OF THE RSA BY KLEEN KRAFT?

The $500 minimum payment due under the RSA was not excused because Kleen Kraft did not breach the RSA. First, Kleen Kraft was not obligated under the RSA to provide Haralambos with the COVID-related products. Second, the credible evidence did not establish that Kleen Kraft failed to provide any dust control or towel rental service due under the RSA. The Court did not find the testimony of Taylor Haralambos on this topic to be credible; the Court did find the testimony of Robert Halstead to be credible, particularly because at the time of the meeting of these two gentlemen, Haralambos was no longer an operating business with any location in the City of Industry (the RSA describes Haralambos as being located at 2300 Pellissier Place, City of Industry, CA) and it had no employees who would be using dust control and towel rentals.

IV. WHAT AMOUNT IS OWED TO KLEEN KRAFT BY HARALAMBOS PURSUANT TO THE RSA FOR BREACH OF CONTRACT?

Haralambos owes Kleen Kraft $14,500 for the remaining 29 weeks that Kleen Kraft did not receive the $500 payments from Haralambos.

The Court notes here that even if the Court were to have found that Haralambos terminated the RSA in April of 2020, the Court would not have found that additional sums were due to Kleen Kraft under the termination provision of the RSA because the evidence did not establish that as of April of 2020, there was any “merchandise covered [by the RSA] in service or held in stock” as required by paragraph 6 of the RSA.

The Court finds that Haralambos owes Kleen Kraft $14,500 in damages for breach of the RSA.

Kleen Kraft is ordered to file and serve a proposed judgment within ten days after this Statement of Decision becomes final.

[1] Although the Complaint contains common counts for “Account Stated” and “Money Owed,” neither party presented evidence nor made arguments as to these common counts.

KLEEN KRAFT SERVICES, INC, Plaintiff, vs. HARALAMBOS BEVERAGE CO., et al, Defendants.	Case No.:	20STCV28644


	[TENTATIVE AND PROPOSED] STATEMENT OF DECISION BY THE COURT AFTER TRIAL

Superior Court of California

County of Los Angeles

Department 50