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Contracts
Declaratory Relief
Competition

Thomas M. Lavo v. Agoura Hills Investment; Frank Niesner; J.D. Daniel, Inc.; William Haugh, et al.

Published: Nov. 21, 1998 | Result Date: May 26, 1997 | Filing Date: Jan. 1, 1900 |

Case number: BC147947 Verdict –  $0

Judge

Anthony J. Mohr

Court

L.A. Superior Central


Attorneys

Plaintiff

Ronald S. Sofen


Defendant

James C. Fedalen
(HFL Law Group LLP)

Arnold C. Wayne


Facts

In early 1986, defendant William F. Haugh leased a commercial space from defendant Agoura Hills Investment, a partnership organized by defendant Frank Niesner. The lease stipulated that the premises leased by Haugh were to be used for "Automotive lube and oil change" services. Haugh was aware that Niesner was attempting to develop automotive service centers where the tenants were engaged in non-competing automobile related activities. Haugh sold air filters and wiper blades at other stores he operated and intended to sell them at his newly leased store. In mid 1986, Haugh sold the premises to a Jiffy Lube franchise who subleased from Haugh. In 1987, Agoura Hills leased the balance of the premises to defendant, J.D. Daniel, Inc., who wanted to do everything else relating to work on cars. J.D. Daniel acknowledged that it would not have the exclusive right to perform lube and oil change services. In 1990, the Jiffy Lube franchise was taken over by Jiffy Lube International and sold to a new franchisee, A Fanticola Companies, Inc. ("Fanticola"). Fanticola executed a new sublease with Haugh based upon problems with the prior franchisee. The sublease contained additonal clarifying language which prohibited any use which conflicted with the J.D. Daniel lease. The intent of this language was to make it clear that the lease contained a restricted use clause for "automotive - lube and oil change" services. Fanticola added automatic transmission fluid change and selling air filters as an ancillary service without the landlord's consent. In 1992, plaintiff, Thomas Lavo ("Lavo"), subleased the premises from Fanticola. The use provision of the sublease was identical to language of the Fanticola-Haugh sublease. All subleases incorporated the terms of the Haugh-Agoura Hills lease. In late 1992, Jiffy Lube International published a list of "approved ancillary services" which its franchisees could perform in addition to lube and oil changes. In late 1993, Lavo added radiator flushing and fuel injection cleaning to his business. Lavo was informed by Nieser that J.D. Daniel objected to the added services. In 1994, Haugh, Levy and Lavo met in an effort to resolve the dispute and Lavo stopped performing radiator flushing and fuel injection services. In late 1995, Lavo resumed performing radiator flushing and fuel injection services. In 1996, another meeting took place and Niesner wrote Lavo letters in an effort to resolve the dispute. Lavo continued to perform automatic transmission services. In 1996, Jiffy Lube International increased its ancillary service list to twenty-four "approved ancillary services" and Lavo wanted to perform most of the newly approved ancillary services. J.D. Daniel objected. A dispute also arose over parking.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $_______. The defendant made a C.C.P. º998 offer of compromsie for $ ________.

Damages

The plaintiff claimed ___________ in damages.

Other Information

The verdict was reached approximately two years and one month after the case was filed. Plaintiff's use of the subject premises is limited to automotive lube and oil change activities (Jiffy Lube fourteen point service), sale of windshield wipers and automatic transmission service limited to removal and replacement of the automatic transmission fluid and the removal and cleaning and/or replacement of the automatic transmission fluid filter. Any other services require the consent of Niesner and J.D. Daniel. Plaintiff is entitled to the use of the one unassigned parking space in the Center.


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