Bed, Bath & Beyond of La Jolla, Inc. v. La Jolla Village Square Venture Partners

52 Cal. App. 4th 867, 60 Cal. Rptr. 2d 830, 97 Daily Journal DAR 1427, 97 Cal. Daily Op. Serv. 998, 1997 Cal. App. LEXIS 97
CourtCalifornia Court of Appeal
DecidedFebruary 10, 1997
DocketD021960
StatusPublished
Cited by48 cases

This text of 52 Cal. App. 4th 867 (Bed, Bath & Beyond of La Jolla, Inc. v. La Jolla Village Square Venture Partners) 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
Bed, Bath & Beyond of La Jolla, Inc. v. La Jolla Village Square Venture Partners, 52 Cal. App. 4th 867, 60 Cal. Rptr. 2d 830, 97 Daily Journal DAR 1427, 97 Cal. Daily Op. Serv. 998, 1997 Cal. App. LEXIS 97 (Cal. Ct. App. 1997).

Opinion

Opinion

JONES, J. *

Plaintiff Bed, Bath & Beyond of La Jolla, Inc., negotiated for a lease of retail space in a shopping center owned by La Jolla Village Square Venture Partners. 1 The negotiated terms of the lease were reduced to a written agreement which was signed by plaintiff but never by La Jolla. Instead, La Jolla leased the subject premises for higher rent than that negotiated by plaintiff to defendant Linens ’N Things, Inc., a retail business in direct competition with plaintiff. 2 Plaintiff filed an action against La Jolla and Linens ’N Things, asserting causes of action for specific performance, breach of contract and fraud against La Jolla and causes of action for interference with contractual relations and prospective economic advantage against Linens ’N Things. The court granted summary adjudication against plaintiff on each of its causes of action except the one for fraud, concluding the alleged lease agreement was within the statute of frauds and Linens ’N Things’ “fair competition” privilege was a complete defense to plaintiff’s claim for interference with prospective economic advantage. Plaintiff later voluntarily dismissed its fraud cause of action.

On appeal plaintiff contends: (1) the alleged lease agreement between plaintiff and La Jolla is not rendered unenforceable by the statute of frauds; *872 (2) even if the alleged lease agreement is unenforceable due to the statute of frauds, it nevertheless can be the subject of a cause of action for intentional interference with a contractual relationship; (3) the court erred by ruling the “fair competition” privilege defeats plaintiff’s cause of action for interference with prospective economic advantage as a matter of law; and (4) the court erred by entering judgment before filing a formal order after the hearing on Linens ’N Things’ motion for summary adjudication of plaintiff’s cause of action for interference with prospective economic advantage and in signing such order after plaintiff filed the instant appeal. We affirm.

Factual and Procedural Background

From May 1992 through January 1993 plaintiff negotiated with representatives of La Jolla for a lease of retail space in La Jolla Village Square, a shopping center La Jolla was then in the process of building. In February 1993 La Jolla’s legal representative in the negotiations presented plaintiff with four copies of a proposed written lease agreement and guaranty agreement to be executed by plaintiff and its guarantor, plaintiff’s parent corporation. The cover letter accompanying these documents requested they be executed by plaintiff and its guarantor and returned to La Jolla’s legal representative for “execution by the Landlord.” Plaintiff signed the lease and its parent corporation signed the guaranty. The documents were then returned to La Jolla for execution.

La Jolla never executed the lease. In late March 1993 the representative of La Jolla who negotiated the proposed lease with plaintiff informed plaintiff that La Jolla intended to lease the subject premises to Linens ’N Things, plaintiff’s competitor. Prior to that communication plaintiff was unaware that La Jolla had been negotiating with Linens ’N Things.

In April 1993 plaintiff filed its complaint in the instant action and later filed a first amended complaint. The first amended complaint included causes of action for specific performance, breach of contract, and fraud against La Jolla and causes of action for intentional interference with “economic relationship” and intentional interference with “prospective business agreement” against Linens ’N Things. The first amended complaint also included a cause of action for injunctive relief against all defendants, seeking to enjoin La Jolla from leasing the subject premises to Linens ’N Things.

Plaintiff’s claims were challenged by two separate motions for summary adjudication. First, La Jolla and Linens ’N Things jointly moved for summary adjudication as to plaintiff’s first, second, third and fifth causes of *873 action for specific performance, breach of contract, injunctive relief, and intentional interference with contractual relations, respectively. The court granted defendants’ motion, concluding: “The Statute of Frauds, as set forth in Civil Code sections 1091 and 1624[, subdivision (d)] and Code of Civil Procedure section 1971, requires that the lease alleged by plaintiff be in writing, duly subscribed by the party to be charged. The factual predicate to each of the causes of action [challenged by defendants’ motion] is a valid, enforceable lease.”

Linens ’N Things then filed a separate motion for summary adjudication of plaintiff’s sixth cause of action for intentional interference with prospective economic advantage. Linens ’N Things argued the undisputed facts established the “competition privilege” was a complete defense to plaintiff’s sixth cause of action. Plaintiff filed a cross-motion for summary adjudication on the ground there was no defense to its sixth cause of action. The court granted Linens ’N Things’ motion and denied plaintiff’s, concluding Linens ’N Things established each of the elements of the competition privilege as a matter of undisputed fact. 3

Shortly after the court granted Linens ’N Things’ second motion for summary adjudication, plaintiff dismissed its only remaining cause of action, the fourth cause for fraud against La Jolla. Consequently, the court entered judgment in favor of defendants and against plaintiff.

Discussion

On appeal from a ruling on a motion for summary judgment, the appellate court conducts its own independent review of the moving and opposition papers and applies the same standard as the trial court in determining whether the motion was properly granted. The appellate court is not bound by the trial court’s stated reasons for its ruling on the motion, as the appellate court reviews only the ruling and not its rationale. (California Aviation, Inc. v. Leeds (1991) 233 Cal.App.3d 724, 730-731 [284 Cal.Rptr. 687].)

I. Statute of Frauds

Plaintiff’s principal contention on appeal is that the trial court erred by ruling the lease between plaintiff and La Jolla is subject to the statute of *874 frauds. We conclude the trial court correctly ruled the statute of frauds renders the alleged lease agreement unenforceable. 4

Three different “statutes of fraud” apply to bar enforcement of the alleged lease agreement in this case. Civil Code section 1624, subdivision (d) specifies, as a type of contract which is invalid unless it is in writing and subscribed by the party to be charged, “[a]n agreement ... to lease real estate for a longer period than one year . . . .”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Raposas v. Stewart CA6
California Court of Appeal, 2026
Kirk v. Quirino CA2/7
California Court of Appeal, 2026
The Skinner Law Group v. Tacomania CA6
California Court of Appeal, 2025
Aegis Asset Management v. CBRE CA1/2
California Court of Appeal, 2024
Levidow v. Ahmad CA2/3
California Court of Appeal, 2023
Drink Tank Ventures v. Real Soda in Real Bottles
California Court of Appeal, 2021
Marriage of Hibbert CA2/7
California Court of Appeal, 2020
Petty v. The Corcoran Gallery of Art CA2/7
California Court of Appeal, 2020
Sen v. Amazon.com, Inc.
S.D. California, 2020
Ixchel Pharma, LLC v. Biogen, Inc.
470 P.3d 571 (California Supreme Court, 2020)
Olson v. Hornbrook Community Services Dist.
California Court of Appeal, 2019
Redfearn v. Trader Joe's Company
California Court of Appeal, 2018
Redfearn v. Trader Joe's Co.
230 Cal. Rptr. 3d 98 (California Court of Appeals, 5th District, 2018)
Alonzo v. Center for A.I.D.S. Research CA3
California Court of Appeal, 2015

Cite This Page — Counsel Stack

Bluebook (online)
52 Cal. App. 4th 867, 60 Cal. Rptr. 2d 830, 97 Daily Journal DAR 1427, 97 Cal. Daily Op. Serv. 998, 1997 Cal. App. LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bed-bath-beyond-of-la-jolla-inc-v-la-jolla-village-square-venture-calctapp-1997.