Restoration Management Co. v. Lee CA1/2

BACKGROUND

On April 11, 2017, an electrical fire broke out in the basement of a commercial building owned by the trust and managed by Michael. The fire caused damage to Alfred’s Steakhouse (Alfred’s), a restaurant that leased the

1 For clarity, we refer to James and Michael individually by their first

names and together as the Lees. We intend no disrespect.

1 basement and ground floor of the building, as well as the Balmoral Hotel (Balmoral), a single room occupancy hotel situated above Alfred’s and owned by James.2 Restoration provides emergency-related damage control for residential and commercial structures impacted by fire or flood. On the night of the fire, Balmoral’s manager, Hazel Chen, signed an “Emergency Service Agreement” with Restoration, authorizing it “to proceed with its recommended procedures to preserve and protect the Property from further damage,” including a “smoke alarm survey, structure cleaning/Air Scrubbers.” Chen signed as an “Authorized Agent” of the Lees. The following day, April 12, Alfred’s entered into a similar emergency service agreement with Restoration for smoke and water damage to “the Property,” including “Water mitigation/Extraction/drying…