Facts

Plaintiff Perrin Lam entered into a sublease agreement with defendants Donald and Helen Woo for the express purpose of opening a wine bar. The Woos were tenants of premises located in the 1551 Traval Street Condominiums, which is owned by Taraval LLC. The Woos attempted to sublease the premises to Lam. When the agreement fell through, Lam filed suit against the Woos and Taraval LLC. Taraval LLC cross-claimed against the Woos and Lam, for breach of contract and fraud. The Woos cross-claimed Taraval LLC, for breach of the covenant of good faith and fair dealing, equitable indemnity, comparative indemnity, and comparative contribution.

Taraval LLC's cross-complaint was dismissed on the eve of trial.

PLAINTIFF/CROSS-DEFENDANT'S CONTENTIONS:
Lam contended that the Woos breached the sublease agreement by repudiating the contract. He contended that they informed him that the premises could not be utilized for the intended purpose and advised him to consider an alternative business model. Lam further contended that Taraval LLC recorded documents which purported to prohibit the use of the premises for such an establishment and objected to his attempts to obtain the proper permits and licenses.

DEFENDANT/CROSS-DEFENDANT'S CONTENTIONS:
Taraval LLC contended that the Woos requested that he permit them to sublet the premises and he consented, without seeing the sublease. Taraval LLC contended that the sublease was in direct violation of the original lease and the intended use was a violation of the CCR's of the condominium project.

DEFENDANTS/CROSS-COMPLAINANTS'

Damages

Lam sought to recover $15,500 in rent and a rental deposit and $8,631 in fees and costs spent preparing the premises for the intended use.

Result

The court found in favor of Lam on his claim and awarded $12,400 in paid rent, $3,100 for the security deposit, $8,572 for out-of-pocket expenses, $16,585 for labor expenses, $200 for a bad faith retention of security deposit, $7,544 in prejudgment interest, and $5,218 in costs. Lam was also awarded $81,460 in attorney fees, solely against the Woos. The court found in favor of the Woos, on their cross-claim against Taraval LLC, and awarded them $7,848 for lost rent and indemnification of the costs and most of the damages paid by the Woos to Lam. The Woos were also awarded $43,750 in attorney fees from Taraval LLC.

Other Information

FILING DATE: Nov. 6, 2007.