ABP Parcel 8 v. Marina Pacifica CA2/2

CourtCalifornia Court of Appeal
DecidedSeptember 11, 2025
DocketB339122
StatusUnpublished

This text of ABP Parcel 8 v. Marina Pacifica CA2/2 (ABP Parcel 8 v. Marina Pacifica CA2/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ABP Parcel 8 v. Marina Pacifica CA2/2, (Cal. Ct. App. 2025).

Opinion

Filed 9/11/25 ABP Parcel 8 v. Marina Pacifica CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION TWO

ABP PARCEL 8, LLC, B339122

Plaintiff and Respondent, Los Angeles County Super. Ct. No. 23STCP03931 v.

MARINA PACIFICA, LLC,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County, Daniel M. Crowley, Judge. Affirmed.

Greenberg Traurig and Scott D. Bertzyk for Defendant and Appellant.

Russ, August & Kabat, Jules L. Kabat, Nathan D. Meyer and Erica S. Kim for Plaintiff and Respondent. _______________________________ The parties to this appeal arbitrated a dispute over the meaning of a provision appearing in two related real property leases. Plaintiff and respondent ABP Parcel 8, LLC (ABP) prevailed and filed a petition in the superior court to confirm the award. Defendant and appellant Marina Pacifica, LLC (Marina) filed a cross-petition to vacate the award. The court granted the motion to confirm, denied the motion to vacate, awarded ABP fees and costs relating to the judicial proceeding, and entered judgment accordingly. Marina appeals, contending the superior court should have vacated the arbitration award on four statutory grounds: (1) that the arbitrator refused to hear material evidence to Marina’s substantial prejudice (Code Civ. Proc.,1 § 1286.2, subd. (a)(5)); (2) the arbitrator exceeded her powers (§ 1286.2, subd. (a)(4)); (3) ABP procured the arbitration award by fraud (§ 1286.2, subd. (a)(1)); and (4) the arbitrator’s bias against Marina amounted to misconduct that substantially prejudiced Marina (§ 1286.2, subd. (a)(3)). For the reasons set forth herein, we are unpersuaded by Marina’s arguments and affirm the judgment. FACTUAL AND PROCEDURAL BACKGROUND ABP, as lessor, and Marina, as lessee, are parties to two leases pertaining to an assemblage of real property located in Long Beach. They are not the original parties. Their respective predecessors in interest entered into these leases in the 1970’s when the land was substantially undeveloped. As part of the leases, Marina’s predecessor agreed to develop a shopping center on the assemblage and ABP’s predecessor agreed to a rent structure that would provide it a percentage of the rental revenue from retail tenants. The original lessee, together with a joint

1 Undesignated statutory references are to the Code of Civil Procedure.

2 venture partner, Ernest W. Hahn, Inc. (Hahn, Inc.) built the Marina Pacifica Shopping Center and began subleasing space to tenants. Though it has weathered periods of distress, the development is, at present, very valuable. The dispute submitted to the arbitrator concerns the original parties’ intent regarding the duration of the lessee’s rights under the leases. According to ABP, the leases terminate in 2039 and Marina’s only right after termination is a right of first refusal to enter into a new lease on terms ABP may choose to negotiate with a third party that begins in the year following termination, if any. According to Marina, it has a full year after the leases terminate to unilaterally renew them on the same terms as the original leases. Though the merits of the arbitrator’s award are not (and cannot be) at issue, we provide an overview of the circumstances surrounding the leases and their relevant terms here for context, adding pertinent detail to our analysis below as necessary. I. The Leases and Development of the Shopping Center The first lease was executed in October 1972 between San Gabriel River Improvement Co. (SGRI), as lessor, and Marina Pacifica, a limited partnership (MPLP), as lessee. The term of the lease is 65 years, beginning on the “commencement date,” defined, in relevant part, as the first date upon which each of four specified conditions was satisfied. Among these conditions was the execution of an agreement—what Marina calls the Boundary Agreement—between SGRI and various governmental entities to terminate California’s easement rights arising from “tidelands” falling within the then-existing property bounds.2 If any condition was unsatisfied by January 1,

2 The property’s status as tidelands would have been a significant consideration for the parties in negotiating the lease

3 1974, the lessee had a two-month window in which to terminate the lease. The lessee did not exercise that right. The Boundary Agreement was fully executed on March 18, 1974, rendering the leased property unencumbered by any tidelands, and the lease commenced the following day, March 19, 1974. About six weeks later, MPLP entered into a joint venture between itself and Hahn, Inc., called Marina Pacifica 1-C. Hahn, Inc., was the partner primarily responsible for developing, financing, leasing, and managing the shopping center. Construction on the shopping center was underway by no later than September 1975. Although the original parties to the 1972 lease amended it after being freed from the 66-year limitation imposed by Civil Code section 718, they did not revise its duration. Indeed, they reaffirmed it. In February 1976, they entered into an amendment to the 1972 lease to exclude a 1.5-acre parcel from its ambit and executed a separate lease for that parcel. The term of the 1976 lease matched that of the 1972 lease then underway: “sixty-five (65) years, computed from March 19, 1974 and terminating at 12:01 A.M., Pacific Coast Time, on March 19, 2039.” II. Paragraph 25 of the Leases The 1972 and 1976 leases each contain the same paragraph 25, which was the subject of the underlying arbitration. That paragraph provides: “Lessor agrees that within a period of one (1) year commencing on the termination of the full term hereof, or any holding over, extension or renewal hereof, it will not lease or rent the premises or any portion thereof to any

because of Civil Code section 718. Whereas section 718 generally limits real property leases to 99 years, it limits leases of tidelands to 66 years. The parties’ agreement to a 65-year term at the time when the property remained subject to tideland easements fell within the limitation.

4 person other than Lessee until Lessor has first offered so to lease or rent the premises or portion thereof to Lessee on the same terms and conditions and Lessee has rejected said offer. Said offer shall be made in writing, and Lessee shall have sixty (60) days from the receipt of it within which to accept or reject it.” The caption of paragraph 25 is “Right of First Renewal.” (Underscoring omitted.) However, paragraph 28A of the leases states “captions of the paragraphs and articles of this Lease are for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction.” III. Transfers of the Original Parties’ Rights Under the Leases Between July 6, 1976 and 1981, the lessee interests were assigned multiple times to entities not relevant here. In 1981, ABP’s parent entity, Alamitos Bay Partnership, LLC (ABP Parent), bought the lessor interests from SGRI. ABP Parent is owned by a number of other entities, including Watt Companies, LLC (Watt Cos.). ABP Parent later conveyed the lessor interests to its wholly owned subsidiary, ABP. For simplicity, we disregard the distinction between ABP and ABP Parent. In or about 1989, Bank of America foreclosed on the lessee interests. Marina purchased the lessee interests from Bank of America in 1995. IV.

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ABP Parcel 8 v. Marina Pacifica CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abp-parcel-8-v-marina-pacifica-ca22-calctapp-2025.