Norlen Investment Co. v. Minskoff

251 Cal. App. 2d 534, 59 Cal. Rptr. 484, 1967 Cal. App. LEXIS 2003
CourtCalifornia Court of Appeal
DecidedJune 2, 1967
DocketCiv. 29931
StatusPublished
Cited by2 cases

This text of 251 Cal. App. 2d 534 (Norlen Investment Co. v. Minskoff) 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
Norlen Investment Co. v. Minskoff, 251 Cal. App. 2d 534, 59 Cal. Rptr. 484, 1967 Cal. App. LEXIS 2003 (Cal. Ct. App. 1967).

Opinions

JEFFERSON, J.

— On February 25, 1960, plaintiff, a limited partnership, purchased from 747 Hill Building, also a limited partnership, the latter’s leasehold interest in an office building known as the 747 Hill Street Building. On the same date, as part of the agreement, plaintiff leased back this interest to 747 Hill Building for a term of approximately 27 years commencing March 1, 1960, and ending December 31, 1986.

The written lease-back agreement, titled “Indenture of Lease,” provided for, among other things, the payment by the lessee of rent, taxes, public utility charges and existing “ground rent” to plaintiff. The terms of the lease were complied with by 747 Hill Building until July 20, 1961, when it assigned its interest to the M.L.B. Company, a limited partnership and a defendant herein. (The two individual defendants, Walter and Leo Minskoff, are the general partners of the M.L.B. Company.)

As part of the assignment agreement, the M.L.B. Company assumed, unconditionally, the duties and obligations of the 747 Hill Building under the lease and, as tenants, took possession of the subject premises. It complied with the rental provisions of the lease through May 1962.

In the first and second stated causes of plaintiff’s second amended complaint, it is alleged that defendants failed and refused to pay rent due for the months of June through October 1962; that they failed to fulfill additional obligations required under the lease during this period; that, adding the rental arrearages and the other lease obligations, defendants owed plaintiff a total of $38,889.03.

[536]*536On October 29, Í962, by reason of defendants’ defaults in payments, plaintiff caused to be served on defendants a notice of termination of the lease, and, on October 31, 1962, defendants vacated and surrendered possession of the premises to plaintiff.

Defendants filed a motion for summary judgment against plaintiff on the causes of action above enumerated. Points and authorities and declarations in support of and in opposition to the motion were filed. The motion was heard and granted by the court below. Plaintiff appeals from the judgment entered.

The court, in determining that no triable issue of fact was raised in the action and that defendants were entitled to a summary judgment in their favor, concluded that a provision in the lease absolved defendants from all liability for rents, taxes and other obligations.

We have no doubt that the lease is ambiguous, and that extrinsic evidence is admissible to assist the court in interpreting it. Each side presented to the court its own theory of interpretation, and each submitted affidavits. To a large extent the affidavits contain arguments and conclusions. But there is no conflict in the purely factual matters which pertain to the issue presented, and neither side has suggested the existence of any additional evidence which might be produced at a trial. At the time the motion for summary judgment was determined, the trial court was in as good a position as it ever would be to interpret the lease. The summary judgment procedure was therefor appropriate, there being no triable issue of fact.

Inasmuch as the interpretation of the lease is a question of law, it is now the duty of this appellate court to make its own determination upon the record before us. (Parsons v. Bristol Dev. Co., 62 Cal.2d 861, 865 [44 Cal.Rptr. 767, 402 P.2d 839].)

The lease provides (in section 3.01 thereof and under the heading “Rent”), that the tenant agrees to pay a certain monthly rental for the use of the premises, all taxes and assessments on the property, the “ground rent” due and all utility bills. It also provides (in section 5.03 under the heading “General Covenants of Landlord”), that in the event the tenant is not “in default hereunder,” the tenant may assign or transfer his interest in the lease upon notice to the landlord and if the assignee unconditionally in writing assumes all of the obligations and liabilities under the lease. It further [537]*537provides (in the same section) that the assignee shall not be liable under any of the provisions of the lease subsequent to . any reassignment.

In section 7.01, and under the heading “Default,” the lease then provides: “If at any time the Tenant defaults in the payment of any money herein agreed to be paid to Landlord by Tenant, and if such default continues for forty-five (45) days after written notice thereof to the Tenant by the Landlord, or if the Tenant defaults in the performance of any of Tenant’s agreements, and if such default continues for one hundred eighty (180) days after written notice thereof from Landlord to Tenant (unless Tenant immediately, upon receipt of such written notice, commences and diligently prosecutes such acts and steps as may be necessary to cure such default, even though the same requires more than one hundred eighty (180) days to complete, which efforts to cure shall stay the running of said one hundred eighty (180) day period,) Landlord, at Landlord’s option, immediately may terminate this lease and the leasehold interest created by it, and may enter upon the demised premises and the buildings and improvements thereon, either with or without process of law, and may remove all persons therefrom.

“All buildings and improvements situated on the premises at the time of such default by Tenant and all additions thereto shall remain on the premises and become the absolute property of the Landlord, and no compensation therefor shall be allowed or paid to the Tenant. Without the necessity of any other or further notice or demand whatever, all right, title and interest of Tenant in or to the premises, buildings and improvements shall cease and terminate immediately. Anything to the contrary in this lease contained notwithstanding, it is expressly agreed and understood that there shall be no personal liability upon any tenant or assignee hereunder, Landlord being limited solely to the recovery of the premises and termination of this lease.” [Italics added.]

Defendants contend, in support of the trial court’s ruling granting their motion for summary judgment, that the last sentence quoted above from section 7.01, releases the tenant from liability for rent and other obligations under the lease. They argue that the sole recourse of the landlord against the tenant for failure to comply with the terms of the lease, was to exercise its right, under the default section above set out, to [538]*538retake possession of the premises. They maintain that the “Indenture of Lease” was in effect not a lease at all, but, that the interest created, ‘ could be equated to a determinable fee estate limited by both the usual condition subsequent (e.g. default in the performance of covenants of the grant), and, as in the case of leases, an outside definite term.” The tenant, defendants suggest, was in the position of a “buyer” securing his obligation with what amounted to a purchase money mortgage. Such a construction of the document was clearly not intended by its framers.

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Norlen Investment Co. v. Minskoff
251 Cal. App. 2d 534 (California Court of Appeal, 1967)

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Bluebook (online)
251 Cal. App. 2d 534, 59 Cal. Rptr. 484, 1967 Cal. App. LEXIS 2003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norlen-investment-co-v-minskoff-calctapp-1967.