Plaza Freeway v. 1st Mountain Bank
Published: Apr. 1, 2000 | Result Date: May 12, 1999 | Filing Date: Jan. 1, 1900 |Case number: BVCV00022 Verdict – $0
Judge
Court
San Bernardino Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Michael W. Burnett
(technical)
Facts
Defendant bank had a ground lease of a detached building that sat on a parcel containing a shopping center in Big Bear. It was a successor in interest under a 25-year ground lease commenced by predecessor Security Pacific National Bank. The lease did not state a commencement or termination date. The defendant bank purchased the ground lease for approximately $472,000 from Bank of America in 1981. At that time, the ground lease rent was only $537.67 per month, and the lease contained three successive 5-year options to renew at the same monthly rental rate. Each option had to be exercised one year before the termination date of the initial term of the ground lease. In 1992, the plaintiff purchased the shopping center for approximately $4 million. As part of the purchase, the shopping center tenants, including defendant, provided estoppel certificates to the Plaza as required under the leases. The estoppel certificate from the defendant stated a termination date of October 31, 1998. In February 18, 1998, plaintiff filed an unlawful detainer lawsuit. On May 3 and 4, 1999, a bench trial took place before Judge Sylvia Husing in the San Bernardino Superior Court. The parties stipulated that the combined reasonable monthly rental value of the land and the bank building was $6,250.
Damages
The plaintiff asked for rent damages of $43,750 plus prejudgment interest.
Result
The court found for the defendant ruling that plaintiff did not rely on defendantÆs estoppel certificate. The court further found that the ground leaseÆs termination date was June 30, 1999 and that defendant timely exercised its option to renew. Finally, the court awarded attorney fees and costs.
Other Information
The verdict was reached six months after the case was filed. Plaintiff has indicated that it will appeal.
Length
2 days
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