Facts

Real estate company, LBA Realty Fund II, purchased the Jarupa Business Center, a commercial office space in Ontario, from Bedford Properties. K. Hovnanian Forecast homes Inc. and K. Hovnanian Forecast Homes Southern Inc. rented the business center as per a 2003 lease agreement with Bedford Properties. This lease was valid until Aug. 31, 2006. LBA Realty then took over the lease.

In 2004, LBA Realty's predecessor-in-interest, Bedford Properties, and the Hovanian entities negotiated an amendment to the existing lease. The amendment called for enlarging of the business center to about 7,717 square feet.

In 2005, the parties negotiated a second amendment, increasing the square footage to roughly 10,961 and increasing monthly rent charges, while also extending the lease until Aug. 31, 2007. Also in 2005, the parties negotiated a third amendment again enlarging the business center to 14,838 square feet, rent increase, and extending the lease until Aug. 31, 2008.

The Hovanian entities moved out on Aug. 31, 2006, and refused to pay rent for the next two years. LBA Realty sued the Hovanian entities and asserted that the Hovanian entities negotiated and agreed to the terms of the lease amendments and were responsible for the lease until Aug. 31, 2008.

LBA Realty rented out a portion of the business center after the Hovanian entities moved out.

Damages

LBA Realty demanded $374,000 for unpaid rent over 24 months, minus the rental income from the replacement tenant.

Injuries

LBA Realty sued the Hovanian entities for breach of contract, quantum meruit, open book, common count, unpaid rent, and declaratory relief.

Result

The jury found in favor of LBA Realty, and determined that the lease amendments were valid and were extended. The jury awarded LBA Realty $374,000.

Deliberation

3.5 hours

Poll

12-0

Length

six days