Town Square Properties v. Mansouri CA2/5

CourtCalifornia Court of Appeal
DecidedJuly 15, 2013
DocketB236871
StatusUnpublished

This text of Town Square Properties v. Mansouri CA2/5 (Town Square Properties v. Mansouri CA2/5) 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
Town Square Properties v. Mansouri CA2/5, (Cal. Ct. App. 2013).

Opinion

Filed 7/15/13 Town Square Properties v. Mansouri CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FIVE

TOWN SQUARE PROPERTIES et al., B236871

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. BC427779) v.

JAVID MANSOURI et al.,

Defendants and Appellants.

APPEAL from the judgments of the Superior Court of Los Angeles County, Daniel Buckley, Judge. Affirmed. Geiger & Merritt, Edward H. Cummings and Maria A. Caligiuri for Defendants and Appellants. Benedon & Serlin, Gerald M. Serlin and Douglas G. Benedon for Plaintiff and Respondent Town Square Properties. Law Offices of David J. Harter, David J. Harter; and Christopher L. Tinen for Plaintiff and Respondent Siavash Adabkhah. _______________________________ Defendants and appellants Javid Mansouri and Los Alamitos Denn, Inc. (LADI), appeal from a judgment following a bench trial in favor of plaintiffs and respondents Town Square Properties (TSP) and Siavash Adabkhah. Mansouri and LADI also appeal from a postjudgment order awarding attorney fees in favor of TSP. TSP leased commercial property to individuals who assigned the lease to Adabkhah, who assigned the lease to Mansouri, who assigned the lease to investors who defaulted. On appeal, Mansouri and LADI contend that as to the judgment in favor of TSP: 1) there is no substantial evidence that TSP incurred charges for common area maintenance (CAM) or provided evidence of CAM charges as required under the lease; 2) there is no substantial evidence that TSP incurred late charges; 3) there is no substantial evidence to support the amount of prejudgment interest, because damages were uncertain, settlement payments should have been taken into account, and prejudgment interest should have been awarded based on the amount of rent owed after deduction of settlement payments; 4) there was no substantial evidence that TSP met its duty to mitigate damages; 5) the trial court erred by denying their motions for a new trial and to vacate the judgment; 6) the trial court erroneously awarded mediation fees, attorney services, and parking as costs under Code of Civil Procedure section 1033.5, subdivision (c); 7) TSP did not prevail on a contract that included an attorney fee provision; 8) there was no substantial evidence that TSP incurred attorney fees; and 9) the amount of attorney fees awarded was excessive. Mansouri further contends as to the judgment in favor of Adabkhah: 1) there is no substantial evidence to support finding Mansouri breached the assignment agreement; 2) there was no substantial evidence that Adabkhah‘s settlement payment to TSP was for rent that Mansouri owed, and therefore, there was no substantial evidence that Adabkhah was entitled to indemnity from Mansouri; 3) Mansouri was not liable for equitable indemnity; and 4) the trial court erred by denying Mansouri‘s motions for a new trial and to vacate the judgment based on excessive damages and sufficiency of the evidence. We conclude that substantial evidence supports the trial court‘s findings, TSP prevailing on a contract that included an attorney fee provision, and the trial court did not

2 abuse its discretion in awarding costs or attorney fees. Therefore, we affirm the judgment and the postjudgment orders.

FACTS

TSP owns commercial property in Los Alamitos, California. On March 25, 1991, TSP entered into a lease with Raginder Paul and Baijit Paul for a term of 20 years. The Pauls operated a Denny‘s restaurant franchise at the location. Two years later, the Pauls sold the restaurant and assigned the lease to Adabkhah and Mahmood Kazemzadeh. The assignment was executed by the Pauls, Adabkhah, Kazemzadeh, and TSP. Adabkhah and Kazemzadeh agreed to make all the payments and perform all of the terms of the lease. TSP consented to the assignment, without waiving any rights under the lease as to any assignee. On October 3, 2000, Adabkhah and Kazemzadeh sold the restaurant and assigned the lease to Mansouri. Mansouri agreed to make all the payments and perform all the terms of the lease. TSP consented to the assignment, without waiving any rights under the lease as to any assignee. On June 8, 2006, Mansouri and LADI sold the restaurant and assigned the lease to Atta Ullah and Mohammed Shaikh. Mansouri, Ullah, Shaikh, and TSP executed an assignment and assumption of the lease. The document provided that notwithstanding the assignment, Mansouri remained primarily liable to TSP for performance of the tenant‘s obligations under the lease. The assignment also provided for attorney fees as follows: ―In the event that any party hereto brings any action or files any proceedings in connection with the enforcement of its respective rights under this Assignment and Consent or as a consequence of any breach by the other party hereto of its obligations hereunder, the prevailing party in such action or proceeding shall be entitled to have all of its attorney fees and out-of-pocket expenditures paid by the losing party.‖ LADI received a note from A&A Global, Ullah, and Sheikh (collectively A&A Global) in the amount of $270,000, with interest at eight percent, payable in monthly installments of $3,275.86.

3 A&A Global entered into an agreement to sell the restaurant to W.K.S. Restaurant Corporation, contingent on W.K.S. negotiating a lease extension with TSP. W.K.S. operated the restaurant from March 9, 2007, to September 30, 2009. However, TSP and W.K.S. were unable to reach an agreement. W.K.S. vacated the premises and ceased paying rent. In October 2009, TSP terminated the lease.

PROCEDURAL BACKGROUND

On December 10, 2009, TSP filed a complaint against all of the lessees and assignees for breach of a commercial lease. On January 13, 2010, Adabkhah and Kazemzadeh filed a cross-complaint against Mansouri for indemnity. The following month, Adabkhah and Kazemzadeh filed an amended cross-complaint adding causes of action for breach of contract and third party beneficiary of contract. TSP filed an amended complaint on April 8, 2010, adding causes of action for rent and damages under the Civil Code, open book account, account stated, and unjust enrichment. Adabkhah and Kazemzadeh filed a second amended cross-complaint as well. On April 1, 2011, Adabkhah and Kazemzadeh entered into a settlement agreement and paid $50,000 to TSP. Kazemzadeh dismissed the cross-complaint as to himself only. Adabkhah dismissed the third party beneficiary causes of action from the cross-complaint against Mansouri. TSP settled with the remaining defendants prior to trial, except Mansouri and LADI. A bench trial began on April 27, 2011. TSP sought $387,932.43 for rent payments, CAM charges, late charges, prejudgment interest, costs, and attorney fees. Adabkhah sought $25,000 that he had paid in settlement to TSP, plus attorney fees of $7,328.75. On May 24, 2011, the trial court found TSP‘s decisions in rejecting lease and rent offers were reasonable under the circumstances, including the impact of the economy,

4 tenant improvements, future rent, and other items. The court noted that TSP‘s total claim was for $387,932.43. ―As of September of 2009, with the $10,000 payment made in late September, the amount owed to [TSP] with [CAM] charges and late fees was $98,092.47. The Court deducts the $98,000 amount off the claim of [TSP]. [TSP] is entitled to $289,839.96. Absent any settlement[,] that would be the recovery for [TSP].

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Town Square Properties v. Mansouri CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-square-properties-v-mansouri-ca25-calctapp-2013.