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Torts
Landlord and Tenant
Commercial Lease

Freestyle Martial Arts Corp. dba U.S.A. Freestyle Martial Arts Corp. v. Soco, LLC, America West Properties, LP, Rieker Shoe Corp., et al.

Published: Oct. 1, 2005 | Result Date: Jun. 10, 2005 | Filing Date: Jan. 1, 1900 |

Case number: GIC824250 Verdict –  $522,645 plus attorneys fees and costs of $223,708

Judge

Jeffrey B. Barton

Court

San Diego Superior


Attorneys

Plaintiff

Giles de S.T. Townsend

James P. Frantz
(Frantz Law Group APLC)


Defendant

Anthony G. Chavos

Catherine Weinberg


Experts

Plaintiff

Paul LeBlanc
(technical)

Mark S. Truscott
(technical)

Donald W.A. Smith
(technical)

Robert A. Taylor
(technical)

Defendant

Daniel M. Close
(technical)

Robert S. Griswold CPM
(technical)

Jeff Clark
(technical)

Troy Walzak
(technical)

Bonnie Mohnsen
(technical)

Facts

In 1994, plaintiff Freestyle Martial Arts Corp., a martial arts school, leased a space at the Loma Plaza Shopping Center in San Diego. The plaintiff held the exclusive right to operate a martial arts school in the shopping center. In 2004, defendant Soco LLC, the owner of the shopping center, leased a space to a workout franchise, The Boxing Club.

Settlement Discussions

The plaintiff made a demand of $274,999 plus attorney's fees and costs; defendants' offer was $130,000.

Damages

The plaintiff claimed its business declined dramatically after The Boxing Club moved starting operating in the same shopping center. It claimed a loss of $69,000 in 2004. The plaintiff claimed lost earnings for the life of the lease, which ends in 2006, as well as for option periods, which could potentially extend the lease until 2012. The plaintiff estimated the total projected future loss was $522,645.

Result

The Boxing Club prevailed on a motion for summary judgment before trial. The jury found in favor of the plaintiff, awarding $522,645 against Soco, Rieker and American West Properties. Attorney's fees were also awarded in the amount of $185,000. An additional judgment of $223,707.54 was entered for attorneys fees and costs. Defendants were required to post a bond in the amount of $1.2 million. Judgment in favor of Freestyle was affirmed in its entirety before the California Court of Appeals, 4th District, Division 1, on Nov. 2, 2007.

Deliberation

one hour

Poll

12-0

Length

15 days


#106437

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