Confidential
Settlement – $185,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Joseph M. Kar
(Law Offices Joseph M. Kar PC)
Defendant
Scott M. Leavitt
(Daniels, Fine, Israel, Schonbuch & Lebovits LLP )
Facts
According To The Plaintiff: The plaintiff operated a theater company and multi-media production business in Hollywood. He took over premises from an existing theater company, and the theater use had existed since 1983. The property's zone changed to R-4 (residential only) in 1986, but the owners continued the non-conforming mixed use without authority. The property also suffered severe utilities and capacity problems such as electrical, plumbing and over capacity. The plaintiff was served with eviction papers shortly after having experienced three trenncial floods and rain in-doors. In turn, the plaintiff filed and served a multi-count lawsuit against the former and current owners and property managers for breach of lease, nuisance, fraud, etc. On the day the unlawful detainer action was called for trial, the premises flooded again. In discovery, it was learned that the owners (past and present) purchased the property as-is with all faults. The owners and management company consistently refused repairs or compensation for any of plaintiff's damages. They asserted that he was exclusively responsible for the damage caused from the residential part of the property. Additionally, it was discovered that the management company, Primewest Management and Real Estate, Investment Inc. misrepresented itself to be a "professional" property manager by claiming to have a real estate broker's license, but was never affiliated with a real estate broker either. Primewest also consistently hired unlicensed repairmen and day-laborers to make repairs and to maintain the property. At the time of eviction, there were at least six orders to comply, issued and outstanding since the 1980's, each requiring substantial repairs to the entire property. According To The Defendant: The lawsuit arose out of a commercial lease agreement between the plaintiff and the prior owner of a mixed commercial-residential use property in Hollywood for commercial space on the ground floor. The plaintiff approached the prior owner because his theater, The Jewel Box, was losing its lease in North Hollywood and he wanted to acquire a larger space. Before executing the lease, the plaintiff walked through the existing theater space, both during the day and at night, and was informed by the existing theater tenants that there was significant ongoing problems with the building, including persistent leaks/water damage, termites, HVAC issues, inadequate garbage bins, neighborhood crime nuisance, electrical blackouts, apartment tenants' destruction of theater property and lack of parking. Thereafter, the plaintiff signed a nine-year lease with express terms that plaintiff was receiving the premises "as is" and that plaintiff would be responsible, at his sole expense, for repairs and maintenance to his commercial space. Also according to the lease, the plaintiff was to satisfy himself with respect to the condition of the property and the present and future suitability of the property for his intended use. After taking possession of the theater space, the plaintiff was consistently delinquent in paying the monthly rent, which he claimed was excused due to zoning violations making the lease illegal. In December 1999, after the current owner purchased the property, the plaintiff continued his pattern of failing to timely pay rent. As a result, the property management company on behalf of the owner, instituted unlawful detainer actions against the plaintiff. The plaintiff gave up possession at the end of January 2003, and filed the current lawsuit for damages on Dec. 18, 2002, which action was deemed related.
Settlement Discussions
The parties were unable to settle the matter during private mediation with retired Judge Enrique Romero, as the final global demand and offer were $250,000 from the plaintiff and $125,000 from the defendants. After the plaintiff's motion to reassert a claim for punitive damages was denied, the plaintiff settled the matter globally, during informal settlement discussions, for $185,000, and the current owner dismissed the unlawful detainer action.
Damages
Damage to equipment, business and business ability.
Result
The defendants paid a total of $185,000 to plaintiff, and both matters were dismissed, with prejudice.
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