Confidential
Settlement – $30,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Facts
Plaintiff commercial tenant, a personal training center and health club, and defendant commercial landlord entered into a 5-year triple net lease on Feb. 1, 1997 with an "As Is" clause, but subject to certain specific repairs and deferred maintenance to be performed by landlord. The lease also contained a provision permitting the landlord and its agents to enter the premises for the purpose of maintenance, repairs and alterations "without any liability to tenant for a loss of occupation or quiet enjoyment . . ." In the event of "damage or destruction of the premises," the tenant may have rent abatement during the time of repairs" to the extent the tenant's use . . . is impaired." The lease also contained a standard waiver of the landlord's liability for damage to tenant's equipment and for injury to tenant "from any cause at any time." The plaintiff had occupied the premises for the prior 6 years as a subtenant of cross-defendant bank, the master tenant on a lease which had terminated on Dec. 31, 1996. The expired lease required bank to keep the premises in good order, condition and repair. Landlord, bank and cross-defendant contractor inspected the premises in the winter of 1997 and determined that the bank would engage the contractor to perform certain repairs for $30,000. Landlord expanded the scope of the construction contract and was responsible for an additional $210,000 of construction work. The construction work, primarily on the exterior of the building, the parking lot, and the roof, was performed during approximately four months in the summer and fall of 1997. The tenant brought this action against the landlord based on breach of covenant of quiet enjoyment and claimed loss of business and income and landlord sought to terminate the lease, to evict tenant for various breaches, and to recover damages of approximately $90,000 from tenant. Landlord claimed additional rent of approximately $30,000 because tenant appeared to have subleased to a chiropractor and to a parking service. Plaintiff denied that these relationships were "subleases."
Settlement Discussions
The plaintiff made a settlement demand for approximately $190,000. The defendants made no offer.
Damages
Plaintiff requested a minimum of $150,000 in damages.
Other Information
The settlement was reached approximately one year after the case was filed. A 9-hour mediation was held before Nancy Spero, resulting in the reported settlement. The settlement agreement stated that tenant accepts the leased premises "As Is" and "Where is" with no obligation of landlord to make additonal repairs except as to future damage or destruction pursuant to the existing lease. The settlement agreement also contained a written clarification of the tenant's permitted uses under the lease with regard to the chiropractor, landlord, bank and contractor equally contributed to the settlement and landlord waived claims for damages and extra rent. Contractor's contribution toward this settlement was paid by landlord; the contractor forgave landlord in the sum of $90,000 and paid plaintiff $30,000 in damages in his claim against landlord.
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