Forbes v. Hawaii Culinary Corp.

946 P.2d 609, 85 Haw. 501, 1997 Haw. App. LEXIS 146
CourtHawaii Intermediate Court of Appeals
DecidedSeptember 19, 1997
Docket20469
StatusPublished
Cited by15 cases

This text of 946 P.2d 609 (Forbes v. Hawaii Culinary Corp.) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Forbes v. Hawaii Culinary Corp., 946 P.2d 609, 85 Haw. 501, 1997 Haw. App. LEXIS 146 (hawapp 1997).

Opinion

ACOBA, Judge.

We hold that in its January 14, 1997 amended judgment, the district court of the third circuit (the court) correctly determined that Defendants-Appellants Hawaii Culinary Corporation and Stanley Monsef (Monsef) were liable to pay additional rent to Plaintiff-Appellee Michelle Forbes (Forbes), the landlord of the subject commercial premises. However, the case must be remanded because, in addition to inconsistent statements in the judgment concerning the back rent and attorneys’ fees awarded Forbes, the court must confirm that any attorneys’ fees awarded under Hawaii Revised Statutes (HRS) § 607-14 (1993) were calculated on a judgment which included rental payments made during the litigation, HRS § 666-5 (1993), and prejudgment interest. If attorneys’ fees were also awarded Forbes under HRS § 666-14 (1993)for obtaining a writ of possession, the court must clarify that such fees did not duplicate fees already awarded under HRS § 607-14. Since the court made a lump sum attorneys’ fees award without designating the statutory provision or provisions under which the award was made, it must on remand make such a designation and render findings of fact and conclusions of law in support of its decision.

I.

On September 1, 1994, Monsef subleased premises from Forbes, the lessee under a master lease with Moon Samashima (Sama-shima), the lessor and owner of the premises. 1 Monsef operated a restaurant called Island Bistro on the premises.

Paragraph 10 of the sublease provided that if Monsef constructed additional space and thereby expanded the premises, he would pay additional rent “upon completion.” This provision stated that:

Should Sublessee construct additional space by expanding the Premises, with consent as aforesaid, then upon completion of such space, Sublessee shall pay rental therefore in the amount of $1.45 (one dollar forty five cents) per square foot per month if such construction is performed during the first year of the term of this Sublease. The rental payable shall increase by five cents per month on each anniversary of this sublease.

(Emphasis added.)

During negotiations, Forbes and Monsef discussed Monsef s desire to partially enclose the open-air lanai on the premises. Paragraph 10, therefore, also provided that Mon-sef would pay additional rent upon completion of any lanai enclosure:

Should Sublessee partially enclose existing lanai area, with consent as aforesaid, *504 then upon completion of such space, Sub-lessee shall pay rental therefore in the amount of $1.00 per square foot per month, increasing by five cents per month on each anniversary of the completion.

Prior to opening for business on December 19,1994, Monsef added a walk-in refrigerator to the outside of the restaurant, constructed a concrete foundation upon which the refrigerator rested, and erected a partition wall next to the refrigerator. Access to the refrigerator was gained from inside the restaurant.

At some point, Monsef partially enclosed the lanai.

He also constructed a 22.5 square foot addition to the rear of the premises.

The master lease between Samashima and Forbes described the premises as consisting of approximately 1600 square feet of floor space. However the sublease between Forbes and Monsef described the premises as consisting of approximately 1726 square feet. Monsef testified that he agreed to the 1726 square foot measurement at the time he was negotiating the sublease with Forbes, and only later learned that the master lease between Samashima and Forbes described the premises as consisting of 1600 square feet.

During an inspection of improvements to the building, Samashima became curious about the square footage discrepancy between the master lease and the sublease. Wanting to clarify the situation with Sama-shima, Forbes measured the entire premises and found the area was 1800 square feet.

On April 4, 1996, Samashima and Forbes entered into a subsequent agreement for additional rent and for amendment of the master lease to indicate that “[t]he base Lease rent area [would] be changed.”

After Forbes entered into the amended lease with Samashima, she demanded additional rent in an unspecified amount from Monsef for the refrigerator area, the alleged “completed” improvements to the lanai as of December. 19, 1994, the date of the restaurant’s opening, and the 22.5 square foot addition to the rear of the building.

Claiming that the partially enclosed lanai area was not yet “complete” as provided under paragraph 10 of the sublease, and that under the sublease, his rent should never exceed liability for 1726 square feet, Monsef refused to pay additional rent.

In response, on September' 19, 1996, Forbes filed a “complaint for summary possession and money damages.” The complaint sought “a writ of possession and execution thereon, pursuant to chapter 666, [ (HRS) ]” and payment of additional rent for the “addition” of the refrigerator area, the alleged “completed” lanai, and the 22.5 square foot addition to the rear of the building.

After a one-day bench trial on October 16, 1996, the court filed its written decision on October 31, 1996. It concluded that (1) “the refrigerator addition constitute[d] an ‘expansion of the premises’ for which ‘construction’ was necessarily involved,” and consequently, rent was due for this expansion from January 1, 1995; (2) “the [partial] lanai enclosure was essentially complete at the time the restaurant opened in December, 1994” and therefore, additional rent was due from January 1, 1995 for the lanai area; (3) the 22.5 square foot addition to the rear of the premises was no longer in dispute, the parties having agreed that additional rent was due for this addition; and (4) by mutual mistake of fact, the original area of the subleased premises stated as 1726 square feet was in error and in fact, the area was 1800 square feet at the time the sublease was executed. 2 The court’s October 31, 1996 decision did not mention a writ of possession.

The court ordered that judgment be entered in favor of Forbes for additional rent due from January 1, 1995 through October 1996, with credit to Monsef for partial rent paid during the litigation, and that Forbes be awarded reasonable attorneys’ fees and costs.

*505 On November 14, 1996, Forbes apparently-served Monsef -with a copy of her proposed judgment.

On November 19, 1996, Forbes’s attorney filed a declaration requesting attorneys’ fees of $6,801.60.

On December 3, 1996, Monsef filed objections to Forbes’s proposed judgment. Mon-sef objected to a proposed award for back rent of $8,247.34, contending that after deducting Monsefs $5,605.87 partial payment of rent, the rent due through October 1996 was $7,777.97.

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Bluebook (online)
946 P.2d 609, 85 Haw. 501, 1997 Haw. App. LEXIS 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forbes-v-hawaii-culinary-corp-hawapp-1997.