Foreman & Clark Corp. v. Fallon

479 P.2d 362, 3 Cal. 3d 875, 92 Cal. Rptr. 162, 1971 Cal. LEXIS 377
California Supreme Court·Decided January 19, 1971·No. L.A. 29742·Published·Cited by 722 cases

Opinion

OPINION

SULLIVAN, J.

In this action for damages for breach of a lease, plaintiff and cross-defendant Foreman & Clark Corporation (hereafter plaintiff) and defendants and cross-complainants Madeleine Fallon, Floyd H. Norris and Martha B. Norris (hereafter defendants) separately appeal from a judgment entered after a nonjury trial awarding plaintiff certain amounts as damages and denying defendants all relief upon their cross-complaint. 1

Plaintiff was engaged in the business of selling wearing apparel at retail. Defendants were the owners of a building in downtown Los Angeles. On October 20, 1964, after approximately seven months of negotiations, plaintiff as lessee and defendants as lessors entered into a written lease 2 of a portion of the ground floor, mezzanine, and basement of the building for a 15-year term beginning on January 1, 1966 and ending on December 31, *880 1980. The lease provided for a fixed minimum rental of $3,750 per month ($45,000 per year) plus an additional rental per year of 5 percent of all gross receipts in excess of $900,000 in any lease year. Defendants failed to deliver possession of the premises to plaintiff on January 1, 1966, because one of the tenants then occupying a portion of the premises, whose lease expired December 31, 1966, refused to vacate.

Plaintiff commenced the instant action seeking specific performance and damages in separate counts. However, after leasing new premises elsewhere, it filed an amended complaint deleting the specific preformance count and praying only for damages for breach of lease, attorney fees and costs. Defendants filed a cross-complaint seeking relief for rescission of the lease based on plaintiff’s misrepresentations, together with consequential damages, including the recovery from cross-defendant Lyon of the commission paid the latter as the broker in the transaction.

A bifurcated trial was held in which the court first heard evidence on the claims of misrepresentation contained in the cross-complaint. The trial court found that cross-defendant Lyon was the agent of plaintiff in negotiating the terms of the lease. After also finding as to each alleged misrepresentation that it was not material and not relied upon, and that there was no intention on the part of plaintiff or of cross-defendant Lyon to defraud defendants, the trial court heard evidence on the issue of the damages to be awarded plaintiff.

The trial court, in addition to making the above-mentioned findings on the issue of plaintiff’s alleged fraud, also found that the difference between the lease rental and the fair rental value of the leased premises for the term of the lease at the time of the breach was the sum of $25,000; and that defendants failed to pay cross-defendant Lyon the balance of $5,750 of the agreed commission as broker in procuring a lessee for the space provided. The court awarded plaintiff $25,000 in general damages, $3,991.03 in special damages for amounts spent by plaintiff in preparing the premises for its use, and $20,000 in attorneys fees. Cross-defendant Lyon was awarded the remainder of his commission together with interest and costs. Defendants were denied relief on their cross-complaint. 3

These appeals followed. Plaintiff, although appealing from the entire judgment, complains of only the inadequacy of the general damages awarded it. Defendants appeal from the entire judgment. We first consider defendants’ appeal.

*881 Defendants’ Appeal

Defendants’ contentions may be summarized as follows: (1) That the evidence does not support the finding that certain representations made to defendants by plaintiff’s agent Lyon during the negotiations for the lease were neither material nor relied upon; (2) that cross-defendant Lyon breached his duty of good faith to defendants; and (3) that plaintiff, having initially filed an action for specific performance, must prove that the agreed rent was fair and adequate before it may recover any general damages.

The crucial question in considering defendants’ first contention is whether there is any substantial evidence to support the trial court’s findings. “When a finding of fact is attacked on the ground that there is not any substantial evidence to sustain it, the power of an appellate court begins and ends with the determination as to whether there is any substantial evidence contradicted or uncontradicted which will support the finding of fact.” (Primm v. Primm (1956) 46 Cal.2d 690, 693 [299 P.2d 231]; Estate of Bristol (1943) 23 Cal.2d 221, 223 [143 P.2d 689].)

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

Foreman & Clark Corp. v. Fallon, 479 P.2d 362, 3 Cal. 3d 875, 92 Cal. Rptr. 162, 1971 Cal. LEXIS 377 (Cal. 1971).

479 P.2d 362 (Foreman & Clark Corp. v. Fallon) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Schmeder v. The Regents of the U. of Cal. CA1/2
California Court of Appeal, 2022
Hughes v. Boris CA2/5
California Court of Appeal, 2022
Orozco v. WPV San Jose, LLC
California Court of Appeal, 2019
Marriage of Brooks
California Court of Appeal, 2019
Carrington v. Starbucks Corp.
California Court of Appeal, 2018
Marteney v. Elementis Chemicals Inc.
California Court of Appeal, 2018
Palmieri v. Cal. State Personnel Bd.
California Court of Appeal, 2018
Shenouda v. Veterinary Med. Bd.
California Court of Appeal, 2018
Williams v. The Pep Boys etc.
California Court of Appeal, 2018
Fischer v. Fischer
California Court of Appeal, 2018
People v. ConAgra Grocery Products Co.
California Court of Appeal, 2017
Orange Co. Water Dist. v. Alcoa
California Court of Appeal, 2017
Hardesty v. State Mining and Geology Board
California Court of Appeal, 2017
California Chamber of Commerce v. State Air Resources Board
10 Cal. App. 5th 604 (California Court of Appeal, 2017)
P. ex rel. Reisig v. Acuna
California Court of Appeal, 2017
Pizarro v. Reynoso
California Court of Appeal, 2017
State Compensation Insurance Fund v. Superior Court
184 Cal. App. 4th 1124 (California Court of Appeal, 2010)
North American Capacity Insurance v. Claremont Liability Insurance
177 Cal. App. 4th 272 (California Court of Appeal, 2009)
Gombiner v. Swartz
167 Cal. App. 4th 1365 (California Court of Appeal, 2008)