Lion 2020 7th Street v. Zepeda CA2/8

CourtCalifornia Court of Appeal
DecidedDecember 2, 2015
DocketB258424
StatusUnpublished

This text of Lion 2020 7th Street v. Zepeda CA2/8 (Lion 2020 7th Street v. Zepeda CA2/8) 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
Lion 2020 7th Street v. Zepeda CA2/8, (Cal. Ct. App. 2015).

Opinion

Filed 12/2/15 Lion 2020 7th Street v. Zepeda CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 EIGHT

LION 2020 7th STREET, LLC, B258424

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. BC544259) v.

SALVADOR ZEPEDA et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Los Angeles County. Gregory W. Alarcon, Judge. Affirmed.

Law Offices of Lottie Cohen and Lottie Cohen for Defendants and Appellants.

Hollenbeck & Cardoso and Tania Cardoso for Plaintiff and Respondent.

__________________________ Salvador Zepeda and Agustin Zepeda appeal from both the unlawful detainer judgment in favor of the lessor of the building where they operated their restaurant and the trial court’s order denying their motion for relief from forfeiture of the lease on the ground of undue hardship. Because the appellate record does not include a reporter’s transcript of the unlawful detainer trial, we presume that the findings in the trial court’s statement of decision and order denying relief from forfeiture were correct. We affirm both rulings. FACTS AND PROCEDURAL HISTORY In April 2002, Salvador Zepeda entered a four-year written lease of a building on East 7th Street in Los Angeles where he operated his restaurant and dance/banquet hall known as the Chavas Café. (We will refer to Salvador and Agustin Zepeda by their first names, or collectively as appellants.) The lease required Salvador to: (1) provide copies of all necessary business licenses and operation permits; (2) keep in place a liability insurance policy with coverage limits of $2 million per occurrence that named the lessor as an additional insured; (3) pay the cost of any insurance premium increases; and (4) cover his proportionate share of any property tax increases. In 2005, the lessor and Salvador signed an addendum extending the lease until 2012, along with scheduled increases in the monthly rent. The addendum also provided an option to extend the lease another five years. Although Salvador was the sole lessee, the 2005 addendum stated that “these options” were also extended to Salvador’s son, Agustin. Both Salvador and Agustin signed the 2005 addendum. Another undated addendum signed by Salvador and Agustin describes a five-year lease extension option that would run until 2010. The undated addendum refers to the parties as being Salvador and the original lessor. Another addendum dated in July 2011 extended the lease through April 2017, along with scheduled rent increases. That addendum referred to both Salvador and Agustin as lessees and was signed by each of them. The original lessor sold the property to Lion 2020 7th Street, LLC in December 2013. On December 31, 2013, Lion sent four letters to Salvador demanding that, pursuant to the lease, he: (1) provide copies of all required business licenses and permits;

2 (2) provide a copy of a liability insurance policy with limits of $2 million per occurrence that named Lion as an additional insured; and (3) pay a property tax increase of more than $19,000 that resulted from the sale of the property. On March 18, 2014, Agustin gave Lion a copy of an insurance policy with coverage limits of $1 million per occurrence, but made no further attempts to comply with Lion’s demands at that time. On March 27, 2014, Lion gave 10- and 30-day notices to comply with the lease provisions or quit the premises. The notices were served on Salvador but stated that they applied to all others in possession. The 10-day notice was based on the failure to provide copies of both the requisite business licenses and permits as well as a copy of an insurance policy that named Lion as an additional insured in the amount of $2 million per occurrence. The 30-day notice was based on the failure to pay the property tax increase of $19,000 or a liability insurance premium increase of more than $6,100. On April 17, 2014, Agustin provided copies of all required permits and licenses except one: a City of Los Angeles tax registration certificate for retail sales. Instead, Agustin provided only a copy of a tax registration certificate for “music machines.” Appellants never paid the property tax or insurance premium increases. On April 30, 2014, Lion brought an unlawful detainer action against Salvador only. Agustin was the lone defense witness at the two-day bench trial in June 2014. One of the primary issues raised both at trial and on appeal was whether Agustin was in fact Salvador’s cotenant. If so, as appellants contend, then the notices to quit and the complaint were both defective because they did not name and were not served on Agustin. As a result, any judgment for Lion would have no effect on Agustin’s right to stay on the property. Because appellants failed to designate the reporter’s transcript of the trial, we are left with only the trial court’s statement of decision and concomitant findings to describe the trial testimony. The lease required the landlord’s written consent before Salvador could assign any portion of his interest to another person and Agustin “testified that he had not signed an addendum adding him to the lease as a formal tenant.”

3 According to the statement of decision, a witness for Lion testified that Salvador received both notices to quit. Agustin admitted seeing the 30-day notice, but denied seeing the 10-day notice. Agustin testified that after reading Lion’s demand letters he consulted a lawyer and an accountant. He claimed that he did not review the lease terms dealing with liability insurance or licensing requirements because he believed the property tax and insurance premium demands were more important. Agustin also testified that he did not obtain a liability insurance policy in the correct amount and form until May 28, 2014. The trial court found that the 30-day notice to quit was defective because it was premature and because Lion’s estimate of the property tax owed “far exceeded” a reasonable estimate. However, the trial court found for Lion on the 10-day notice to quit based on the failure to provide copies of all required business operation permits and the failure to have had in place the proper liability coverage. The trial court awarded Lion holdover damages of nearly $14,000 and attorney fees and costs of nearly $3,000. As for the status of Agustin’s possessory interest, if any, in the leased premises, the trial court found that he “had not signed any specific addendum specifically adding himself to the lease as a formal tenant.” Code of Civil Procedure section 1164 states that only tenants and subtenants who actually occupy the premises need be named in an unlawful detainer complaint.1 It also provides that anyone who “enter[s] the premises under the tenant” after the action starts is bound by the judgment as if they had been made a party. Relying on this provision, the trial court found that Agustin’s absence from the complaint was not fatal to the unlawful detainer claim and that he was bound by the judgment. The trial court then granted a motion by Lion to add Agustin as a defendant, stating that the amendment was “not at material variance with the complaint” and did not mislead Agustin or prejudice his ability to defend the action. The trial court found that Agustin “had every right and opportunity to be heard by the court, was heard by the

1 All further section references are to the Code of Civil Procedure.

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Bluebook (online)
Lion 2020 7th Street v. Zepeda CA2/8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lion-2020-7th-street-v-zepeda-ca28-calctapp-2015.