Kong v. City of Hawaiian Gardens Redevelopment Agency

101 Cal. App. 4th 1317, 125 Cal. Rptr. 2d 1, 2002 Daily Journal DAR 10521, 2002 Cal. Daily Op. Serv. 9416, 2002 Cal. App. LEXIS 4623
CourtCalifornia Court of Appeal
DecidedJune 13, 2002
DocketNo. B149322
StatusPublished
Cited by13 cases

This text of 101 Cal. App. 4th 1317 (Kong v. City of Hawaiian Gardens Redevelopment Agency) 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
Kong v. City of Hawaiian Gardens Redevelopment Agency, 101 Cal. App. 4th 1317, 125 Cal. Rptr. 2d 1, 2002 Daily Journal DAR 10521, 2002 Cal. Daily Op. Serv. 9416, 2002 Cal. App. LEXIS 4623 (Cal. Ct. App. 2002).

Opinion

Opinion

SPENCER, P. J.

Introduction

Petitioner Veisna Kong, doing business as Bartha’s Donuts, appeals from the order denying his petition for writ of mandate to compel the City of Hawaiian Gardens Redevelopment Agency to pay him relocation benefits. We reverse.

Statement of Facts

In February 1993, by way of assignment, petitioner became the sublessee of a piece of commercial property commonly known as 11913 Vá Carson Street in the City of Hawaiian Gardens (the premises). Frank and Dorothy Bartha (the Barthas) were the master lessees. Petitioner owned and operated a donut shop on the premises.

The term of the sublease was five years, commencing on January 1, 1992, and ending on December 31, 1996. The sublease contained a provision giving petitioner an option to extend the lease for one 2-year period until [1320]*1320December 31, 1998. The lease further provided that “[i]f the Tenant, with the Landlord’s consent, remains in possession of the Premises after the expiration or termination of the term of this Lease, such possession by Tenant shall be deemed to be a tenancy from month-to-month at a rental in the amount of the last monthly rental plus all other charges payable hereunder, upon all the provisions of this Lease applicable to month-to-month tenancy.”

On July 22, 1993, respondent City of Hawaiian Gardens Redevelopment Agency (Agency) notified petitioner that he was eligible for relocation advisory assistance and might be eligible for relocation benefits as well. The Agency further apprised petitioner that he was a tenant in a redevelopment project area and it would be necessary for him to move at a later date in order for the Agency to carry out its redevelopment plan. Petitioner would not be required to move without 90 days’ advance written notice, however.

In August 1993, the Agency acquired the premises with public funds and for a public purpose. In a letter dated August 31, 1993, the Agency apprised petitioner that effective August 12, 1993, it had acquired the premises formerly owned by the Veady Family Trust. The Agency also told petitioner that his lease had been transferred to the Agency and that, until further notice, all provisions would remain the same. In addition, a new lease would follow within 10 working days. All payments and maintenance requests were to be sent to the Agency.

In a letter dated January 20, 1994, and addressed to petitioner, Attorney Graham A. Ritchie stated: “I represent the . . . Agency which has acquired the property on which Bartha’s Donuts is located. In order to make an appropriate offer to you with respect to the relocation of that business it is necessary to complete an analysis of the goodwill of the business and any damage to that goodwill resulting from the proposed relocation.” Attorney Ritchie requested that petitioner contact a specific individual and make arrangements to provide that person with the information necessary to properly value the goodwill of his business.

In a notice to vacate dated March 25, 1994, the Agency informed petitioner that he had 90 days to “quit, vacate, and deliver up . . . possession of the premises.” On May 5, 1994, pursuant to a disposition and development agreement, the Agency sold the property to a private developer named Dr. Irving Moskowitz. In a certified letter dated May 18, 1994, Beryl Weiner, counsel for Dr. Moskowitz, advised petitioner about the transfer of title.

In her correspondence, Attorney Weiner referenced the Agency’s notice to vacate and stated that the 90-day period ended on June 23, 1994. Counsel [1321]*1321further stated, “You were previously informed that Dr. Moskowitz is willing to permit you to remain in possession for a longer period of time, subject to your vacating the premises on a 6-month notice. However, until an agreement in writing is signed between Dr. Moskowitz and you, you will be required to vacate the premises by June 23, 1994.”

On June 8, 1994, another one of Dr. Moskowitz’s attorneys, William E. Weinberger, wrote to petitioner regarding a request he had made to continue renting the premises. In accordance with a May 26, 1994 telephone conversation, Attorney Weinberger “enclose[d] a lease and rider which provides for a tenancy in your current location at the same rental rate you previously paid.” Counsel also informed petitioner that the lease was “terminable by the landlord upon six months’ written notice” and he would be required to vacate the premises if an executed lease was not received prior to June 23, 1994. Attorney Weinberger sent petitioner another letter on June 10, along with a revised rider, changing paragraph one “to provide that, unless the landlord exercises its right to terminate the lease on six month’s [sic] notice, the lease will automatically renew for additional terms.” Counsel reminded petitioner that the lease and rider had to be signed and returned by June 23 if he wanted to remain on the premises.

Also on June 10, 1994, the Agency’s relocation agent, Kalian & Associates, sent Frank Bartha a letter confirming a June 6 conversation. A copy of the letter was sent to petitioner. The relocation agent apprised Mr. Bartha that a letter regarding a change in ownership of the premises had been sent to petitioner in error by Dr. Moskowitz’s attorney. The letter should have been sent to Mr. Bartha instead, in that he was the master lessee. With respect to relocation benefits, the relocation agent stated that “[a]s far as relocation benefits are concerned, I stated to you that in that letter an offer of extension of tenancy was made to Mr. Kong. I suggested that you should meet with Mr. Kong and find our [sic] if he is planning to pursue this offer of extension. You would be involved in this process since you are the master lessee. If you and Mr. Kong agree with the new owner on the extension terms, you will continue to pay rent and Mr. Kong can continue in business at that location. At the conclusion of the extension term, Mr. Kong will be eligible for relocation benefits. At that time the remaining term of your lease will be evaluated and a determination will be made if it has any value.” (Italics added.)

The relocation agent also informed Frank Bartha that, since their conversation, he had met with petitioner, who was “very interested in applying for the extension past June 23, 1994.” Petitioner told the relocation agent that he [1322]*1322had contacted Mr. Bartha and the new owner in order to make arrangements for an extension agreement.

On June 21, 1994, Frank Bartha, as tenant, executed a new lease with Dr. Moskowitz, as landlord. Dr. Moskowitz signed the lease on June 26. The lease was for a term of one year and was subject to termination upon six months’ notice. As a result, petitioner remained on the premises, conducting business as the Barthas’ sublessee.

On February 19, 1999, Kalian & Associates sent petitioner a number of referrals for possible replacement sites. In a letter dated February 25, 1999, Dr. Moskowitz gave petitioner and Frank Bartha notice that the current term of his lease with Mr. Bartha would end on April 30, 1999, and that he would not renew the lease for another term. In a responsive letter dated March 29, 1999, petitioner advised Dr. Moskowitz that his notice of nonrenewal was insufficient to terminate the lease, in that he had failed to give him the required six months’ notice. In petitioner’s view, the lease consequently had renewed automatically for another one-year term.

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Bluebook (online)
101 Cal. App. 4th 1317, 125 Cal. Rptr. 2d 1, 2002 Daily Journal DAR 10521, 2002 Cal. Daily Op. Serv. 9416, 2002 Cal. App. LEXIS 4623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kong-v-city-of-hawaiian-gardens-redevelopment-agency-calctapp-2002.