Pemstein v. Pemstein CA4/3

California Court of Appeal·Decided November 6, 2013·No. G047338·Unpublished

Opinion

Filed 11/6/13 Pemstein v. Pemstein CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FOURTH APPELLATE DISTRICT

DIVISION THREE

MARTIN PEMSTEIN,

Plaintiff and Appellant, G047338

v. (Super. Ct. No. 30-2009-00119103)

HAROLD PEMSTEIN, OPINION

Defendant and Respondent.

Appeal from a judgment of the Superior Court of Orange County, Gregory H. Lewis, Judge. Affirmed.

Manahan, Flashman & Brandon, Amanda E. Manahan and Jeffrey S.

Flashman for Plaintiff and Appellant.

Harold Pemstein, in pro. per., for Defendant and Respondent.

Martin Pemstein appeals from the judgment he obtained against his brother Harold Pemstein1 in this action for damages relating to rent defaults on leases for two commercial buildings. He challenges the amount of damages awarded. We find no error and affirm.

FACTS AND PROCEDURE

Background Martin and Harold have been battling each other for years over the breakup of their family business comprised of a corporation called The Pemma Corporation (Pemma) and a partnership called HMS Holding Company (HMS). The corporate dissolution action has already been the subject of many appeals, including one filed concurrently with this opinion (Pemstein v. Pemstein (Nov. 6, 2013, G047107) [nonpub. opn.]; Pemstein v. Pemstein (May 16, 2011, G043349) [nonpub. opn.]; Pemstein v. Pemstein (June 9, 2004, G030217) [nonpub. opn.]; Pemstein v. Pemstein (June 9, 2004, G029394) [nonpub. opn.]; Pemstein v. The Pemma Corporation (June 9, 2004, G031227) [nonpub. opn.]).

The real properties that are the subject of this action are two commercial buildings located in Santa Ana at 515 South Santa Fe Street (the 515 Building), and 519 South Santa Fe Street (the 519 Building). Originally, HMS was the owner of the buildings, and Pemma was the lessee. During the pendency of the corporate dissolution action, Pemma and HMS filed for bankruptcy. In 2006, the bankruptcy court entered an order allowing for Martin to become the sole owner of both buildings and for Harold to become the lessee of both buildings. The bankruptcy trustee created new leases for each

1 We hereafter refer to the parties by their first names for ease of reading and to avoid confusion, and not out of disrespect. (In re Marriage of James & Christine C. (2008) 158 Cal.App.4th 1261, 1264, fn. 1.)

building between HMS and Pemma and then assigned them to Martin and Harold respectively.

The two leases were identical. The lease term was for four years from January 1, 2007, to December 31, 2010. The monthly rent was $3,657.50 for the first year, subject to a three percent annual increase each year thereafter. The leases provided for rent to be paid on the first day of each month and provided for imposition of late charges and interest after five days. The leases also contained the following paragraph 3.1, pertaining to early termination of the lease term, which provided in relevant part: “While Lessee is in bankruptcy, Lessee . . . may terminate this Lease for any reason whatsoever, after providing thirty (30) days written notice to Lessor. If this Lease is terminated by Lessee during its bankruptcy, the maximum claim that Lessor may have against Lessee for early termination shall be four (4) months of rent. After Lessee’s bankruptcy, Lessee may terminate this Lease for any reason by providing at least 120 days written notice, and upon such early termination, Lessee shall pay to Lessor a lump sum amount equal to four (4) months of rent.” The Complaint Martin filed the instant action against Harold in May 2009, for damages relating to rent defaults on both buildings.

As to the 515 Building, Martin alleged that on October 30, 2007, Harold gave written notice of his intent to terminate the lease, saying he would be off the premises by November 30, 2007. Harold did not fully vacate the premises until December 20, 2007. Harold paid Martin the December rent but no rent thereafter, and did not make a lump sum payment equal to four months’ rent.

As to the 519 Building, Martin alleged Harold was routinely late in his rent payments. On December 7, 2007, Martin served Harold with a three-day notice to perform covenant or quit, and on January 20, 2008, Martin commenced an unlawful detainer action. Martin obtained a judgment in the unlawful detainer action, entered

May 7, 2008, and served on Harold May 8, giving possession of the premises back to Martin, and ordering Harold to pay Martin $1,463 in late fees for the months of August 2007 through November 2007. The unlawful detainer judgment stated Harold “may in the future become liable for daily damages, alleged in the complaint to be $139.73 per day, [but] such future damages are not properly included in this judgment . . . .” Harold did not vacate the premises until June 2008, and Martin was not able to find a new tenant. Martin alleged Harold was liable for rent throughout the remainder of the lease term, plus other damages. Martin’s complaint also contained a cause of action seeking to recover attorney fees he had incurred prosecuting the unlawful detainer action. The Trial The matter proceeded to a bench trial in April 2012, conducted solely upon the parties’ trial briefs, argument of counsel, and exhibits submitted to the court. The joint exhibit list describes 90 exhibits that were provided to the court. Some of the exhibits (we have been able to identify approximately 26 of them) are attached to the trial briefs included in the clerk’s transcript, but most of the exhibits have not been provided to us. Martin’s designation of the record on appeal identifies only one exhibit to be included in the clerk’s transcript record on appeal (see Cal. Rules of Court, rule 8.122(a)(3))—a notice of eviction—but that exhibit is not in the clerk’s transcript. Martin has not filed a rule 8.224 notice (Cal. Rules of Court, rule 8.224) designating any trial exhibits to be considered by this court, nor have any of the other exhibits been transmitted to this court.2

2 “Where exhibits are missing we will not presume they would undermine the judgment. [Citation.]” (Western Aggregates, Inc. v. County of Yuba (2002) 101 Cal.App.4th 278, 291; see also Heyman v. Franchise Mortgage Acceptance Corp. (2003) 107 Cal.App.4th 921, 925, fn. 1.)

At the beginning of trial, the parties stipulated the primary legal issue to be determined was the interpretation of paragraph 3.1 of the leases regarding what future rent was owed upon early termination of the leases. Martin argued Harold was required to pay rent during the 120-day notice period, and then upon expiration of the notice period (i.e., termination of the lease) had to also pay an amount equal to another four months of rent, i.e., eight months total for potential future rent from the time notice of termination was given. Harold argued paragraph 3.1 established four months’ rent as the maximum he would have to pay upon giving notice he was terminating the lease. Harold argued if he had to pay rent during the 120-day notice period and then also pay an amount equal to another four months’ rent, the latter would constitute an illegal penalty or liquidated damages provision.

The trial court apparently agreed with Harold’s position. It explained:

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