Facts

The defendant is the owner of real property in San Juan Capistrano. The defendant leased a portion of his property to another to use as a commercial nursery. The lease was assumed by plaintiff McLaughlin in 1997, and the lease expired in 2000, but plaintiff remained on the property as a hold-over tenant under the same lease terms. During his tenancy, the plaintiff made substantial modifications to the property to enhance his nursery/statuary business, some of which modifications ran afoul of City building codes and restrictions. The plaintiff was cited and pled guilty to one charge of violating city ordinances, and was required to make substantial corrections/modifications to the leased property as a result thereof. Defendant Stevens lived in Mexico during these occurrences.

At times during the tenancy, plaintiff McLaughlin attempted to negotiate a purchase and/or long term lease of the subject property, but the parties never agreed on the terms and no such agreement was ever reached.

In approximately 2003, defendant Stevens returned to the unleased portion of the real property. Plaintiff McLaughlin again began negotiations with defendant Stevens to purchase the property and/or enter into a long term lease, but the parties never reached any agreement.

In 2004, plaintiff McLaughlin called the police to remove defendant Stevens from the unleased portion of the property and then filed this action seeking to exclude defendant Stevens from the unleased portion of the property and for damages, seeking among other things, reimbursement for all improvements made on the property and for reimbursement of all costs associated with plaintiff's conviction and repairs made pursuant thereto. The plaintiff sought damages in excess of $300,000.

As a result of McLaughlin's conduct, Stevens served a 30 day notice to quit the tenancy, but McLaughlin refused to vacate. As such, Stevens filed an Unlawful Detainer action, obtaining possession by summary judgment, with the damages phase of the action being consolidated with McLaughlin's civil action. Stevens sought unpaid rental damages as well as damages resulting from damage left behind by the tenant McLaughlin.

McLaughlin thereafter filed a Mechanic's Lien lawsuit under the name of his construction company, claiming the construction company performed all improvements on the property at the request of Stevens. This third lawsuit was dismissed after a Motion for Sanctions was served and filed.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that he was defrauded into making all improvements, corrections, etc., on the subject property upon Stevens' promise to eventually sell the subject property to McLaughlin. McLaughlin also claimed he was entitled to damages for trespass and an injunction relating to Stevens' use of the unleased portion of the subject property.

DEFENDANT'S CONTENTIONS:
The defendant contended that no promises were ever made relating to the sale/long term lease of the property, but that the parties merely contemplated same "on occasion."

The defendant further contended that all modifications to the subject property were made by McLaughlin to display his construction/nursery wares and to attract customers. Further, McLaughlin's repairs on the subject property were made as a direct result of McLaughlin's unpermitted structures and modifications which directly violated the City ordinances, and McLaughlin, as a licensed contractor, knew the modifications were not legal or permissible.

Settlement Discussions

Defendant Stevens made no offers of settlement. After trial had begun, the plaintiff offered to dismiss his claims for $100,000.

Result

Judgment in favor of Stevens as a defendant in the civil action; judgment in favor of Stevens on the U.D. damages action for $15,000. Judgment obtained by way to stipulated settlement on the second day of trial.

Other Information

The defendants were initially Leroy and Barbara Stevens. Prior to trial, Barbara Stevens died, and the trial went forward as to Leroy Stevens only.