Kyung v. El Paseo South Gate CA2/3

California Court of Appeal·Decided August 6, 2013·No. B243720·Unpublished

Opinion

Filed 8/6/13 Kyung v. El Paseo South Gate CA2/3 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 THREE

MYUNG HO KYUNG, B243720

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. VC058316 )

v.

EL PASEO SOUTH GATE, LLC, Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Yvonne T. Sanchez, Judge. Reversed and remanded with directions.

David D. Kim & Associates, David D. Kim and Daniel A. DeSoto for Plaintiff and Appellant.

Schelberg & Ross and James H. Ross for Defendant and Respondent.

INTRODUCTION

Plaintiff and appellant Myung Ho Kyung (Kyung) appeals from the granting of a motion for summary judgment (Motion) brought by his landlord, defendant and respondent El Paseo Shopping Center LLC (Respondent). In ruling upon the Motion, the trial court did not have the benefit of a recent decision by the California Supreme Court, Riverisland Cold Storage, Inc. v. Fresno-Madera Production Credit Assn. (2013) 55 Cal.4th 1169 (Riverisland). Mainly in light of that decision, we will reverse the judgment.

In reaching that conclusion, we express no opinion on the merits of Kyung‟s claims. While we make some comments below on the future of this lawsuit, we mainly focus on determining that the Motion should not have been granted in light of the current record.

FACTUAL BACKGROUND

In 2001, Kyung signed a lease (Lease) with respect to a business premises (Premises) at the El Paseo Shopping Center (Shopping Center). There, with his wife, Kyung operated a restaurant (Restaurant). Kyung entered into a written lease dated February 23, 2001 and, by assignment, Respondent subsequently became Kyung‟s landlord with respect to the Premises.

In August 2009, Respondent and Kyung executed a written amendment to the Lease (the “Lease Amendment”), which reduced the Restaurant‟s monthly rent to $1,000 and forgave back rent if Kyung remained in the Premises until the Lease‟s expiration. With ninety days written notice, paragraph 4 of the Lease Amendment gave

Respondent “the right” to relocate the Restaurant, at Respondent‟s expense, at any time during the term of the lease. Paragraph 5 afforded Respondent the “right to terminate” the Lease, also with such notice.

In late September 2010, Kyung received a notice with respect to terminating the Lease (9/10 Notice). On December 20, Respondent withdrew the 9/10 Notice and served Kyung with another termination notice (12/10 Notice), demanding his departure from the Premises by March 20, 2011.

On March 16, 2011, Kyung filed this lawsuit, alleging causes of action for breach of contract, specific performance, fraud and injunctive relief. Two days later, he requested a temporary restraining order precluding his eviction. The trial court denied the request, but set a hearing on Kyung‟s motion for preliminary injunction.

On April 18, 2011, Respondent filed an unlawful detainer action, seeking recovery of the Premises. On May 6, the trial court granted the motion for preliminary injunction. Respondent dismissed its unlawful detainer action. On June 15, Respondent moved to terminate the preliminary injunction, citing the Lease‟s expiration. On July 21, the trial court granted that motion.

On July 27, Respondent filed another unlawful detainer action, which concluded with a stipulated judgment in its favor. In December 2011, Kyung vacated the Premises and closed the Restaurant.

On June 26, 2012, in granting the Motion, the trial court stated:

“The lease, as amended, is controlling. It contains an integration clause stating „It is understood that there are no oral or written agreements

or representations between the parties hereto affecting this lease.‟ [Citation.] It further states „This lease, and all amendments hereto, are the only agreement between the parties hereto.‟ . . . Moreover, the statute of frauds requires that leases of real property for more than one year be in writing. . . .

“The terms of the lease are unambiguous. The right of relocation extends to [Respondent] only . . . . The right to rescind the notice of relocation at any time before actual relocation is implicit. In this case, [Respondent] rescinded the notice, allowed [Kyung] to remain at its original location until the lease expired on its own terms. [Citation.] [Respondent] had no duty to renew the lease or relocate [Kyung]. . . .

“The fraud allegations contradict the written contract terms. . . . Misrepresentations, to be actionable must relate to past or then existing fact, not future conduct or predictions as to future events. [Citation.] [Kyung‟s] allegations all relate to actions that [Respondent] „would‟ do or not do in the future. These types of promises sound in breach of contract not tort . . . . [C]ontracts related to long term leases of real property must be in writing . . . . [Kyung] cannot justifiably rely on such promises. Moreover, [Kyung] has not pled or shown reliance damages (as opposed to the alleged breach of contract damages).”

The trial court also ruled on various evidentiary objections. In particular, that court overruled Respondent‟s Objections to the Declarations of Kyung and Han (Objections).

On September 27, 2012, the trial court awarded Respondent attorney‟s fees.

After entry of Judgment, a Notice of Appeal was filed.1 The Restaurant‟s closure after this lawsuit‟s filing in effect mooted Kyung‟s causes of action for specific performance and injunctive relief. Hence, Kyung‟s sole operative causes of action are now breach of contract and fraud.

KYUNG’S ALLEGATIONS

In granting the Motion, the trial court rejected Kyung‟s allegations which, in his view, precluded that court‟s ruling. Inasmuch as relevant to this opinion, those allegations are set forth in this section.

Although Kyung and his wife devoted many working hours and invested in excess of $350,000, after a while the Restaurant did not generate sufficient revenue. Respondent, though, continued to let the Restaurant operate.

Respondent‟s “agent and manager in charge of the Shopping Center,” Beth Villalobos (Villalobos), offered to reduce the Premises‟ rent and forgive all past owed rent, if the Restaurant would stay open until the Lease‟s expiration. Moreover, she added, at its expense, Respondent would relocate the Restaurant to another locale in the Shopping Center, with a new lease.

1 Its tentative ruling became the order of the trial court.

As Kyung‟s English is limited, Don Han (Han), his friend, would sometimes be his translator in dealings with Respondent, including with Villalobos. Villalobos told Han that the Lease Amendment‟s reference to Respondent‟s “right” with respect to any relocation was “legalese,” and the Restaurant‟s future relocation was “100 percent” if Kyung went along with that amendment. Han told Kyung what Villalobos said. Based on those oral promises, especially as Kyung had come to rely on Villalobos, he signed the Lease Amendment.

In August 2010, Villalobos stated to Kyung that the next month the Restaurant would be relocated to a space previously occupied by TOGO‟s. Villalobos later came to the Restaurant with John Gebhardt, who introduced himself as a financial advisor for Respondent. Gebhardt told Kyung that he would be evaluating the compensation Respondent would pay Kyung as part of the relocation.

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