Big Washington v. Fry CA5

CourtCalifornia Court of Appeal
DecidedFebruary 4, 2025
DocketF085743
StatusUnpublished

This text of Big Washington v. Fry CA5 (Big Washington v. Fry CA5) 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
Big Washington v. Fry CA5, (Cal. Ct. App. 2025).

Opinion

Filed 2/4/25 Big Washington v. Fry CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIFTH APPELLATE DISTRICT

BIG WASHINGTON, LLC, F085743 Plaintiff and Appellant, (Super. Ct. No. BCV17-102341) v.

THOMAS H. FRY, as Trustee, etc., et al., OPINION Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Kern County. Bernard C. Barmann, Jr., Judge. Law Office of Richard Jacobs and Richard Jacobs for Plaintiff and Appellant. Alexander & Associates, William L. Alexander and Elizabeth Estrada, for Defendants and Respondents. -ooOoo- Plaintiff and appellant Big Washington, LLC (BW) is the owner of 36 acres of commercial real property improved with 18 warehouses (subject property) that it purchased from third-party Calcot, Ltd. (Calcot) in 2017. As part of the transaction, BW received an assignment of Calcot’s claims against the prior lessees of eight of those warehouses (subject warehouses), i.e., defendants and respondents Thomas H. Fry and Ruth M. Fry, as Trustees of the T & R Fry Family Trust (Fry trust) (collectively, Fry). Fry used the warehouses to store plastic intended for recycling. In late 2015, Calcot obtained an unlawful detainer judgment against Fry for possession only of the subject warehouses. After BW purchased the subject property, it brought suit against Fry, contending Fry was required to, but did not, remove 40,000 tons of plastic stored in the subject warehouses after Fry’s lease was terminated. As Calcot’s assignee, BW sued Fry for breach of the lease between Fry and Calcot and breach of the related covenant of good faith and fair dealing (together, contract causes of action). BW also sued Fry for trespass and nuisance. The trial court granted summary adjudication of the contract causes of action in Fry’s favor and the matter went to trial on the trespass and nuisance claims. A jury found in Fry’s favor on those claims, and judgment was rendered against BW. BW appeals. We affirm the judgment in its entirety. FACTUAL AND PROCEDURAL BACKGROUND I. Trial Evidence The factual discussion that follows is developed from evidence introduced during the trial of BW’s causes of action for trespass and nuisance. A. The Fry/Calcot Lease In 2011, Fry leased two of Calcot’s warehouses. The lease term was three months, commencing in October of 2011, “and continuing thereafter until terminated[.]” Per the lease, Fry was to “use the Premises for temporary storage of polyethylene material,” a type of plastic (the “plastic”). The plastic was owned by Maintenance Services, Inc. (MSI), a corporation wholly owned by Fry. In 2013, Fry and Calcot entered into an amendment of the lease. (The lease, as amended, is hereafter referred to as the “Fry/Calcot lease.”) The amendment increased the number of warehouses leased by Fry to eight.

2. B. Third-Party Benhong Seeks to Purchase All or Part of the Subject Property and the Plastic In late 2014, Calcot began negotiating with Roger Liang of Benhong (America) Recycling Co. Ltd. (collectively, Benhong)1 for the sale and purchase of either all, or a portion, of the subject property, contingent upon Benhong also purchasing the plastic stored in the subject warehouses. Calcot’s president and chief executive officer (CEO), Jarral Neeper, testified Calcot wanted $6 million for the subject property. Liang had expressed his desire that Calcot finance Benhong’s purchase of the property. After months of negotiations, Neeper wrote Liang and stated, in part, “you have become our friend here at Calcot” and “[Calcot’s board of directors] ha[s] given me very specific instructions that they do not wish to be in the banking business and just wish to sell the property outright and are willing to take the price down to $3 million …. [¶] If you do not wish or are unable to raise the money, I need to start the process of getting the plastic moved out.” Eventually, the parties’ negotiations centered around the purchase and sale of approximately 11 acres of the subject property (the “11 acres”) on which five of the subject warehouses were located. Negotiations between Calcot and Benhong stalled and resumed twice during 2014 and 2015. Calcot enlisted Fry’s assistance in moving the deal forward. On April 7, 2015, Calcot’s treasurer returned Fry’s April rent check along with a letter that read, “Calcot is returning the enclosed check as a result of an agreement reached by Calcot and John Richardson[,]” general manager of the company that managed the Fry trust and an officer of MSI. The letter continued, “Calcot and … Richardson have agreed that, in exchange for assistance that the Fry Trust will provide to [Benhong] in [its] efforts to obtain

1 Benhong was named as a defendant in BW’s complaint but was subsequently dismissed without prejudice.

3. government approvals needed to establish a plastics recycling business at Calcot’s property, the Fry Trust will not be required to pay rent for April and May 2015. Monthly rent payments shall resume on June 1.” Richardson testified the free rent was offered to “help Benhong with the engineering and design of their plastic [recycling] plant and how it would fit on Calcot’s property.” He said Calcot deferred the rent on more than one occasion during the Calcot/Benhong negotiations in exchange for Fry’s assistance. C. Benhong and Fry Agree on the Purchase and Sale of the Plastic On July 10, 2015, the Fry trust, MSI, Benhong, and Benhong’s corporate owner entered into an agreement for the purchase and sale of the plastic (“Benhong/Fry plastic PSA”) by which Benhong agreed to buy the plastic for $700,000. A recital in the PSA acknowledged a Benhong-related company2 was in the process of finalizing negotiations with Calcot to acquire the subject property but stated the sale of the plastic was not contingent upon the purchase and sale of the subject property. Richardson testified he discussed the sale with Neeper, Neeper consented to the sale, and Calcot’s chief financial officer “was sitting in the room” when the plastic sale was negotiated. D. Calcot and Benhong Agree on the Purchase and Sale of the 11 Acres, and Calcot Terminates the Fry/Calcot Lease On or about December 8, 2015, Calcot and Benhong entered into a non-binding letter of intent (“Benhong LOI”) for the purchase and sale of the 11 acres. It contained the following contingencies: “[Benhong] to sign a purchase agreement with … Fry … to purchase all of the … plastic ….” and “[Benhong] and [Calcot] to sign a lease” for the three subject warehouses located outside the 11 acres.

2 To avoid unnecessary complexity, we sometimes refer to Benhong’s parent company, Benhong-related companies, and Liang collectively as “Benhong.”

4. On December 11, 2015, Calcot obtained an unlawful detainer judgment (“UD judgment”) against Fry for possession of the subject warehouses. The UD judgment declared the Fry/Calcot lease forfeited. No other relief was sought or obtained. Richardson testified he did not know in December of 2015 that Fry had lost its right of possession of the subject warehouse and did not learn of the UD judgment until April or May of 2016. On December 29, 2015, Calcot and Benhong entered into a purchase and sale agreement for the 11 acres (Benhong/Calcot PSA) and Benhong made a $50,000 downpayment. The Benhong/Calcot PSA acknowledged the subject warehouses were filled with plastic, and provided Benhong would “take possession of and title to the [11 acres] subject to the presence” of the plastic.

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Big Washington v. Fry CA5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/big-washington-v-fry-ca5-calctapp-2025.