Facts

Leon Phan rented commercial space from Quartz Hill LLC to open a restaurant. Phan included in the lease agreement that he would obtain all permits and approvals from the city before Quartz Hill would be required to provide him the premises in "vanilla shell" condition.

Phan did not get the approvals and permits. The restaurant was never opened.

PLAINTIFF'S CONTENTIONS:
Phan contended that Quartz Hill breached the lease agreement with him and that he was owed his $45,000 deposit. He also alleged that he was entitled to reimbursement for $16,000 in expenses incurred.

DEFENDANT'S CONTENTIONS:
Quartz Hill contended that they performed all lease conditions, and that it was Phan's obligation to obtain the permits and approvals to open his business. Quartz Hill alleged that their obligation to provide the premises in "vanilla shell" condition was contingent on Phan obtaining the approvals and permits necessary to operate his restaurant. Quartz Hill cross-complained for $300,000 in future rent.

Settlement Discussions

Phan offered to settle for $25,000. Quartz Hill made no offers.

Result

No recovery on complaint and no recovery on cross-complaint.

Other Information

FILING DATE: June 26, 2007.