Century Entertainment Center, L.P. v. Manhattan Club, Ltd., et al.
Published: Dec. 24, 1994 | Result Date: Nov. 17, 1994 | Filing Date: Jan. 1, 1900 |Case number: SC025943 – $0
Judge
Court
L.A. Superior Santa Monica
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Irving Wolf
(technical)
Defendant
Leon Katz
(technical)
Facts
Delta Towers Joint Venture (Delta) is the owner and ground lessor of the ABC Entertainment Center in Century City. Plaintiff Century Entertainment Center, LP (Century) is the present ground lessee of the ABC Entertainment Center. In the summer of 1992, Mark Bailey, and his wife Connye Morgan, purchased all of the stock of Manhattan Club, Ltd., which was a restaurant and nightclub in the ABC Entertainment Center. In connection with the stock purchase, Defendant Manhattan Club, Ltd., assigned its sublease to Jagg I, Inc., a corporation owned and controlled by Mark Bailey and Connye Morgan. The assignment of the sublease was without the consent of Delta Towers and Westside Entertainment Associates (Westside), Century's predecessor-in-interest, which was required under the master lease and sublease. Both Delta Towers and Westside notified Mark Bailey and Connye Morgan that they would not consent to the assignment of the sublease, if topless entertainment was going to be performed on the premises. Upon learning of the adult topless entertainment being performed on the premises, Delta Towers and Century's predecessor-in-interest Westside commenced unlawful detainer actions against Jagg I, Inc., Manhattan Club, Ltd., Manhattan Club and Restaurant, Inc., dba Bailey's Twenty/20 Gentlemen's Club.
Settlement Discussions
Plaintiff contends that Defendants initially demanded $3,400,000 to be bought out of their sublease; nearing trial, Defendants offered to reduce their 10-year sublease term by one year; Plaintiff Delta Towers offered to allow Defendants to remain in possession for one year, so long as Defendants would agree to forfeit the sublease and vacate the premises after the one-year term.
Damages
$166,681 in past due rent plus $960 for each day Defendants remain in possession of the premises.
Result
$166,681 in past due rent from May, 1994, through October 31, 1994; and $960 for each day that Defendants remain in possession of the premises from and including November 1, 1994, until the date of judgment awarded to Plaintiff Century Entertainment Center, L.P.; Century's motion for attorney's fees and costs is pending.
Other Information
Defendants' waiver and estoppel defenses were tried to the Court prior to impaneling the jury. After receiving evidence on Defendants' waiver and estoppel affirmative defenses, Century and Delta Towers brought a motion for judgment pursuant to CCP Section 631.8 which was granted. Thereafter, the jury was impaneled to decide the sole issue of whether Delta Towers and Westside acted commercially unreasonable when they refused to consent to the sublease. Pursuant to Civil Code Section 1995.260, the Court found that Defendants had the burden of proof to show that Plaintiffs Delta Towers, Westside, and Century acted commercially unreasonable when it failed to consent to the assignment of the sublease.
Deliberation
1 hour
Poll
11-1
Length
7 days
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