Redwood City Income Partners v. Evernote Corp. CA1/4

CourtCalifornia Court of Appeal
DecidedOctober 3, 2025
DocketA169906
StatusUnpublished

This text of Redwood City Income Partners v. Evernote Corp. CA1/4 (Redwood City Income Partners v. Evernote Corp. CA1/4) 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
Redwood City Income Partners v. Evernote Corp. CA1/4, (Cal. Ct. App. 2025).

Opinion

Filed 10/3/25 Redwood City Income Partners v. Evernote Corp. CA1/4 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIRST APPELLATE DISTRICT

DIVISION FOUR

REDWOOD CITY INCOME PARTNERS LLC, Plaintiff and Respondent, A169906

v. (San Mateo County EVERNOTE CORPORATION, Super. Ct. No. 22CIV04109) Defendant and Appellant.

Evernote Corporation appeals from the trial court’s order denying its special motion to strike claims by its landlord, Redwood City Income Partners LLC, under Code of Civil Procedure section 425.16 (the anti-SLAPP law).1 We agree with the trial court that Redwood’s claims “ ‘ “arise from’ ” and are “ ‘based on” ’ ” Evernote’s settlement of litigation with its subtenant, Neutron Holdings, Inc., d/b/a Lime, “making them subject to the provisions of the anti- SLAPP statute” under the first step of the analysis. (O&C Creditors Group, LLC v. Stephens & Stephens XII, LLC (2019) 42 Cal.App.5th 546, 567 (O&C).) But we must disagree that Redwood demonstrated a probability of prevailing on its claims as required by the second step. (See id. at p. 566.)

1 Undesignated statutory references are to the Code of Civil Procedure.

1 The trial court correctly determined Redwood’s claims for breach of contract and related causes of action in its amended complaint arise from a single theory: Evernote’s settlement modified or amended Lime’s sublease without required consent from Redwood. But Evernote’s lease and related contracts do not require Redwood’s consent to every modification or amendment to a sublease, just to a “subsequent” or “further” subletting. The settlement is neither a “subsequent” nor “further” sublease. Redwood’s contrary construction is unsupported by the evidence and is foreclosed as a matter of law. And it is far too late for Redwood to offer new theories of breach now. “There is no such thing as granting an anti-SLAPP motion with leave to amend.” (Dickinson v. Cosby (2017) 17 Cal.App.5th 655, 676 (Dickinson).) “[A]nti-SLAPP is designed as a final remedy with no second chances.” (Id. at p. 679.) Accordingly, we reverse and direct the trial court to enter an order granting Evernote’s anti-SLAPP motion. I. BACKGROUND A. The Lease and Related Agreements In 2012, Evernote leased an office building in Redwood City from Redwood’s predecessor for a period of ten years. The lease allowed Evernote to sublease the premises with the landlord’s consent. If Evernote subleased any space for more than the rent it owed, the landlord was entitled to half of the “[a]dditional” or “[b]onus” rent, less Evernote’s transaction costs. Evernote subleased one floor of the building to Lime in 2018. Redwood consented to the sublease in a document executed by Redwood, Evernote, and Lime. A few months later, Evernote subleased an additional floor to Lime, which Redwood approved in a second consent to sublease substantively identical to the first one.

2 In 2020, Lime defaulted on the sublease and Evernote sued to recover past due rent and late fees. Redwood knew about this lawsuit because it responded to a subpoena from Lime, but never sought to intervene. Evernote and Lime reached a settlement, and Evernote dismissed the action against Lime with prejudice. Three months after Evernote filed a notice of settlement in its action against Lime, Redwood advised Evernote it had violated section 5 of the consent to sublease by “enter[ing] into an agreement to terminate the Sublease” without Redwood’s approval of this “modification” of the sublease. Redwood noted that its interest in “payments pursuant to the Sublease” entitled it to bonus rent payments under the lease. Over a year later, Redwood said Evernote was in default because section 5 of the consent to sublease required Redwood’s permission to terminate the sublease, and any “termination payment” Evernote received was “excess rent” Redwood was entitled to share per the lease. Evernote responded that the settlement was neither a modification nor amendment to the sublease and did not result in excess rent because Evernote received less from the settlement than the rent owed Redwood under the lease. B. Proceedings In The Trial Court In 2022, Redwood filed this action against Evernote and Lime for breach of contract, breach of the implied covenant of good faith and fair dealing, and declaratory relief. In its original complaint, Redwood alleged both defendants breached the lease and consent to sublease “by . . . failing to disclose the details” of their settlement to Redwood, “making it impossible [for Redwood] to determine how much” additional rent it was entitled to per the lease.

3 Evernote sent Redwood a copy of the settlement in December 2022. It then answered Redwood’s original complaint and filed a cross-complaint. Lime filed an anti-SLAPP motion, prompting Redwood to dismiss its claims against Lime without prejudice. Meanwhile, Redwood and Evernote stipulated to allow Redwood to file an amended complaint and Evernote to “challenge” the amended complaint “on its merits” without objection by Redwood “to Evernote’s responsive pleadings(s) as untimely.” Redwood filed the operative first amended complaint in March 2023, asserting the same causes of action as its original complaint but changing its theory of liability. Now, Redwood alleged that Evernote breached the lease “by allowing Lime to pay” something “differe[nt] from the consideration required” by the sublease, without Redwood’s consent to “this modification and/or amendment” to the sublease as “required under Section 5 of the Consent.” Evernote’s breach prevented Redwood from “understanding and asserting” its rights to additional rent and caused it to “los[e] its income stream from the Sublease.” While the original complaint had expressly described Evernote’s litigation and settlement with Lime, the amended complaint omitted any such reference. Even so, it alleged that Evernote’s breach occurred on the date the settlement was executed, making it clear the settlement was the vehicle by which Redwood claimed Evernote had modified or amended the sublease. Lime filed another anti-SLAPP motion and Redwood again dismissed its claims against Lime, this time with prejudice. Evernote also filed an anti- SLAPP motion. Redwood opposed Evernote’s motion as untimely and on its merits, arguing its claims did not arise from activity protected under the anti-SLAPP statute and were likely to succeed.

4 After a hearing, the trial court denied Evernote’s motion. The court found the motion was timely per the parties’ stipulation. It also found Evernote met its initial burden to show Redwood’s claims arose from conduct protected under the anti-SLAPP statute. In the second step of the analysis, the trial court determined it must analyze Redwood’s claims “as they are pled” and found Redwood asserted “a single theory of breach of contract- namely, Evernote’s alleged breach of Sect. 5 of the Consent to Sublease by ‘amending’/‘modifying’ the Sublease without [Redwood]’s consent.” The court declined to consider theories that Evernote failed to make payments required by the lease or by a spreadsheet exchanged between the parties that Redwood submitted with other evidence because they were first asserted in Redwood’s opposition brief, and were not alleged in the amended complaint. “Without parsing through each of Evernote’s arguments,” the trial court concluded that “[v]iewing the contract language collectively, . . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Salma v. Capon
74 Cal. Rptr. 3d 873 (California Court of Appeal, 2008)
Bergstein v. Stroock & Stroock & Lavan LLP
236 Cal. App. 4th 793 (California Court of Appeal, 2015)
Baral v. Schnitt
376 P.3d 604 (California Supreme Court, 2016)
Park v. Bd. of Trs. of the Cal. State Univ.
393 P.3d 905 (California Supreme Court, 2017)
Newport Harbor Ventures, LLC v. Morris Cerullo World Evangelism
413 P.3d 650 (California Supreme Court, 2018)
People v. Doolin
198 P.3d 11 (California Supreme Court, 2009)
Olson v. Doe
502 P.3d 398 (California Supreme Court, 2022)
Dickinson v. Cosby
225 Cal. Rptr. 3d 430 (California Court of Appeals, 5th District, 2017)
Sweetwater Union High Sch. Dist. v. Gilbane Bldg. Co.
434 P.3d 1152 (California Supreme Court, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
Redwood City Income Partners v. Evernote Corp. CA1/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redwood-city-income-partners-v-evernote-corp-ca14-calctapp-2025.