Scott v. TraveLodge Corp.

265 Cal. App. 2d 881, 71 Cal. Rptr. 547, 1968 Cal. App. LEXIS 1695
CourtCalifornia Court of Appeal
DecidedSeptember 20, 1968
DocketCiv. 853
StatusPublished
Cited by1 cases

This text of 265 Cal. App. 2d 881 (Scott v. TraveLodge Corp.) 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
Scott v. TraveLodge Corp., 265 Cal. App. 2d 881, 71 Cal. Rptr. 547, 1968 Cal. App. LEXIS 1695 (Cal. Ct. App. 1968).

Opinion

CONLEY, P. J.

This is a controversy between the lessors and lessee of land located at the outskirts of Visalia and owned by the plaintiffs and on which, by virtue of a lease with a long but uncompleted term, the defendant has constructed and is conducting a motel. The plaintiffs, living at Three Rivers in the same county and owners of the land, sued the TraveLodge Corporation for the balance of rental alleged to be due under the unamended original lease. The TraveLodge Corporation in turn, by a cross-complaint, sued the Scotts for damages alleged to have been caused by the plaintiffs’ failure to comply with the terms of the lease in that the plaintiffs, by paragraph 27, covenanted to do three things, first, to construct within a reasonable length of time a restaurant and bar on lessors’ property “adjacent to and East of the premises”; second, in this connection, to obtain the written approval by lessee of the “plans and specifications of said restaurant and bar prior to commencement of construction ’ ’; and third, to have the bar and restaurant maintained so as not to conflict with “but on the contrary, to cooperate with the operation of the Inn herein referred to.” The presiding judge found, after trial, that the Scotts breached all three provisions of the agreement: (1) they failed to cause these eating and drinking accommodations to be constructed within a reasonable time, (2) they failed to obtain approval by the TraveLodge Corporation of plans for their construction, and (3) they did not cause the restaurant and bar, after construction, to be operated and maintained “so as not to conflict with, but on the contrary to cooperate with, the operation of the motel constructed by defendant.” There is no present contention by respondents that the court’s findings in these three respects are faulty; it was five years before the restaurant and bar were installed. In the meantime, contrary to *883 good neighborliness, but unfortunately not as a breach of the lease because it was not provided against therein, the Scotts within the five-year period granted a second organization the right to build and operate another motel between the TraveLodge and the newly constructed restaurant; the TraveLodge people were thus treated without a decent respect for business and social principles. The court did award the Scotts, instead of what they asked for in the complaint a much less sum, only what was due them under the modification of the lease hereinafter referred to. Realistically, the appeal involved only the question of damages on the cross-complaint including the attorneys’ fees awarded the plaintiffs.

Section 3300 of the California Civil Code provides the following measure of damages arising from a breach of contract in circumstances such as are developed in this record: “For the breach of an obligation arising from contract, the measure of damages, except where otherwise expressly provided by this code, is the amount which will compensate the party aggrieved for all the detriment proximately caused thereby, or which, in the ordinary course of things, would be likely to result therefrom. ’'

Generally speaking, the true rule to ascertain the damages suffered by the cross-complainant is thus set forth in Knock v. Haizlip, 163 Cal. 146, 154 [124 P. 998]: “It may be well, as guide to further proceedings in the court below, to indicate our view of the proper measure of damages. The court below seems, after some discussion, to have taken the position that the damages, if the plaintiffs had a right to recover, were to be measured by the difference between the value of their property if the agreement had been performed and its value under the existing conditions. This conclusion we think is correct and in accordance with the rule declared in section 3300 of the Civil Code.” (See also Couglin v. Blair, 41 Cal.2d 587, 600 [262 P.2d 305] ; Rakish v. Valerga, 125 Cal.App.2d 274 [270 P.2d 50].)

The trial court, however, made two findings with respect to damages on the cross-complaint that, in its view, prevented the award of any additional amount; the court found that an agreed amendment of the original lease with respect to rental was effected by an executed oral agreement of the parties as a complete solution of the damage question; this agreement resulted in the reduction of rental from a guaranteed minimum of $800 per month to 7% percent of the gross receipts, and the court determined that this change constituted a complete *884 settlement of damages caused in the three particulars above noted. Entirely apart from that controlling reason, the court believed that the proof of alleged damages was vitally deficient.

Among various suggestions made by the appellant, it seems to contend that in each of the three instances in which the plaintiffs did not comply with the agreement there could be separate damages. This construction loses sight of the practical situation caused by the three requirements inserted in the lease with respect to the building and maintenance of the bar and restaurant. While they were separately stated, they actually consisted basically of but one undertaking with respect to the building and maintenance of a restaurant and bar, and it would be difficult if not impossible, it seems to us, to carve out separate damages as flowing from each of the three failures. We do not see, for example, how the failure to secure the written approval of the plans for the restaurant and bar could be realistically separated as to damages from the provision requiring cooperation, or in fact from the provision requiring the construction of the restaurant and bar within a reasonable time. All three provisions are interdependent and it would be virtually impossible to segregate three separate areas of damage. To do so would be analogous to splitting a cause of action.

We mention this rather obvious fact before we consider the findings of the court to the effect that the amendment of the lease accordingly was in effect a final arrangement relative to the right to seek damages by other means.

Paragraph 10 of the findings of fact reads as follows:

“The lease dated July 27, 1959 between the parties was modified by the Plaintiffs and Defendants by an executed oral agreement entered into on or about January 30, 1961. This agreement modified Paragraphs 2 and 26 of the lease agreement in- the following particulars:

“ (a) It was agreed that the minimum monthly rental at the rate of $800.00 per month provided in Paragraph 2 of said lease would not be effective from and after the effective date of said amendment until such time as Plaintiffs shall comply with the provisions of Paragraph 27 of said lease.
“(b) It was further agreed that the rentals to be paid by Defendant under said Paragraphs 2 and 26 would be equivalent to 7Y2% of the amount of the gross receipts (as that term is defined in Paragraph 26) from the operation of the lease. *885 payable monthly, until such time as Plaintiffs shall comply with the provisions of Paragraph 27 of said lease.

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Cite This Page — Counsel Stack

Bluebook (online)
265 Cal. App. 2d 881, 71 Cal. Rptr. 547, 1968 Cal. App. LEXIS 1695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-travelodge-corp-calctapp-1968.