Glendale Steakhouse v. Superior Court CA2/1

CourtCalifornia Court of Appeal
DecidedJuly 25, 2014
DocketB253644
StatusUnpublished

This text of Glendale Steakhouse v. Superior Court CA2/1 (Glendale Steakhouse v. Superior Court CA2/1) 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
Glendale Steakhouse v. Superior Court CA2/1, (Cal. Ct. App. 2014).

Opinion

Filed 7/25/14 Glendale Steakhouse v. Superior Court CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 ONE

GLENDALE STEAKHOUSE, L.P., B253644

Petitioner, (Los Angeles County Super. Ct. No. BC525561) v.

THE SUPERIOR COURT OF LOS ANGELES COUNTY,

Respondent;

CETTG GLENDALE LLC,

Real Party in Interest.

ORIGINAL PROCEEDING; petition for writ of mandate. Kevin C. Brazile, Judge. Petition granted. McKenna Long & Aldridge, Charles A. Bird and Mark Hagarty for Petitioner. No appearance for Respondent. Fulbright & Jaworski and Todd M. Sorrell for Real Party in Interest. ____________________ Glendale Steakhouse, L.P. (Steakhouse) challenges an order denying its motion to quash service of an unlawful detainer summons and complaint filed against it by landlord CETTG Glendale LLC (CETTG), owner of the shopping center where Steakhouse’s restaurant is located. Steakhouse claims that CETTG’s notice to pay rent or quit, which includes rent deferred by agreement with the previous owners of the shopping center and due more than one year prior to the service of the notice, is void under Code of Civil Procedure section 1161. We agree. Because the notice to pay rent or quit expressly seeks the sum of $137,000, where only $20,000 of that amount was due less than one year prior to the service of the notice, the unlawful detainer complaint, based on that notice, constitutes an inadequate pleading and cannot stand. Accordingly, we hereby grant the petition, mandating respondent court to vacate its order denying the motion to quash service of the summons and complaint in the unlawful detainer action.1 BACKGROUND On November 15, 2006, Steakhouse, a franchisee of Outback Steakhouse of Florida, entered into a lease agreement with Eagle Glendale Marketplace, L.P., and AK Glendale, LLC (collectively Glendale Marketplace), the then-owners of a Glendale shopping center, with Steakhouse to pay rent on a gradually-escalating level (Monthly Rent). For the first five years, rent was set at $10,000, for each month.2 For the next five

1 We agree with the parties that Steakhouse’s use of a motion to quash service of summons and complaint was proper, because Steakhouse’s challenge to the complaint is that it failed to state a cause of action for unlawful detainer, as it seeks rent due more than one year before the notice was served. (Delta Imports, Inc v. Municipal Court (1983) 146 Cal.App.3d 1033, 1036.) 2 In pertinent part, the original lease sets forth provisions regarding rent, default, remedies and waivers. Section 3.04, entitled, “Rent—Generally,” provides: “Every payment required to be made by Tenant pursuant to this Lease shall be rent due Landlord hereunder, whether or not designated as Monthly Minimum Rent or as additional rent, and Tenant’s failure to pay such additional rent to Landlord when due shall entitle Landlord to exercise all rights and remedies provided in Article XIV [Defaults].” Section 14.01, entitled “Defaults,” provides in subdivision B: “Notice; Right to Cure. Tenant shall only be deemed in default of this Lease upon the continued 2 years, Steakhouse was to pay rent of $10,750 per month. The parties anticipated a 30- year lease and set forth options for rates through Year 30. Steakhouse and Glendale Marketplace amended the lease in 2007, postponing the payment of rent until the City of Glendale issued the required permits. On April 28, 2008, Steakhouse opened the restaurant—which continues in operation today. The record is silent as to when, if ever, Steakhouse paid rent in 2008 and 2009. On December 1, 2009, Steakhouse and Glendale Marketplace executed a second amendment to the lease, allowing Steakhouse to defer rent payments until May 31, 2010. (Deferred Rent). The Second Amendment to Shopping Center Lease (2009 Amendment) provides in part:

occurrence of (i) Tenant’s failure to pay rent or any other monetary sum within ten (10) days after written notice from Landlord to Tenant that such sums are due, . . . The notice required by this paragraph is intended to satisfy any and all notice requirements imposed by law on Landlord, including without limitation the notice required under California Code of Civil Procedure Section 1161 or any similar or successor statu[t]e, and is not in addition[] to any such requirement.” Section 14.02, entitled “Remedies,” provides, in part: “Remedies Upon Default. Upon the occurrence of an event of default by Tenant as set forth in Section 14.01, Landlord shall have the right, without further notice to Tenant and in addition to any or all other rights or remedies available to Landlord hereunder, at law or equity, to exercise any or all rights or remedies as set forth in this Section (each of which shall be cumulative and non-exclusive of any other right or remedy). No delay or omission of Landlord to exercise any right or remedy shall be construed as a waiver of any such right or remedy of any default. Landlord’s remedies shall include the right to: [¶] ‘ . . . terminate this Lease.’” Section 17.15, entitled “Waivers,” provides: “No waiver by Landlord or Tenant of any provision of this Lease shall be effective unless in writing or shall be deemed to be a waiver of any other provision hereof or any subsequent breach of the same or any other provision. Landlord’s consent to or approval of any act by Tenant requiring Landlord’s consent or approval shall not be deemed to render unnecessary the obtaining of Landlord’s consent to or approval of any subsequent act by Tenant, whether or not similar to the act so consented to or approved. No term, covenant, or condition of this Lease shall be deemed to have been waived by Landlord or Tenant, unless such waiver is in writing.” 3 “Landlord now desires to provide Tenant with its requested temporary deferral of the rental amounts payable by Tenant under the Lease and further amend the Lease; and “In consideration of the mutual benefits and covenants contained in this Agreement, the receipt and sufficiency of which is acknowledged, as of the date of this Agreement, Landlord and Tenant hereby agree to amend the Lease as follows: “1. Commencing on the date hereof and ending on May 31, 2010 (the ‘Rental Deferral Period’), Tenant shall pay no Rent (i.e., no Minimum Rent, Percentage Rent or Additional Rent). The amount of Rent which Tenant would otherwise have owed and paid to Landlord during the Rental Deferral Period pursuant to the Lease shall hereafter be referred to as the ‘Deferred Rent.’ Tenant shall resume payment of all Rent per the Lease upon expiration of the Rental Deferral Period. “2. If not paid sooner, Tenant shall repay the Deferred Rent to Landlord without interest by and through equal monthly installments of $5,000 each payable together with scheduled Rent payments due under the Lease during the period January through December of 2012.” 3 The 2009 Amendment thus required Steakhouse to make its first installment payment on January 12, 2012 of $5,000 per month to retire the Deferred Rent.

3 The 2009 Amendment further provides: “3. Section 7.02 [recapture for failure to operate the business] of the Lease and all references thereto and to Tenant having any right to close [its business] shall be of no force and effect during the Rental Deferral Period; accordingly during the Rental Deferral Period Tenant shall have no right to cease operations and must continually operate in the Premises without interruption pursuant to Lease Section 7.01(a) [use of premises for the business]. “4.

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Glendale Steakhouse v. Superior Court CA2/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glendale-steakhouse-v-superior-court-ca21-calctapp-2014.