Artesia Medical Development Co. v. Regency Associates Ltd.

Facts

Plaintiff and appellant, Artesia Medical Development Co. (herein referred to as Artesia) appeals from an award of attorney’s fees of $275,000 and costs of $11,715 in favor of defendants and respondents Lite Convalescent Hospital, Inc., Fleet Financial Services, Inc., Richard J. Footner, and Quality Care Facilities, Inc. (collectively referred to as Lite.)

The action below was commenced by Artesia for unlawful detainer against its tenant, Regency Associates, Ltd. (Regency), and Lite because Artesia claimed Regency violated lease provisions against assignment of the lease without the written consent of the lessor, Artesia. This purported assignment was to the Lite defendants. The lower court found that the assignment was made without consent, and that Artesia had not unreasonably withheld consent and therefore said assignment was void and did not convey any rights to Lite.

Artesia had originally developed the premises as a health care and convalescent hospital facility. It subsequently sold the business to Regency, and entered into a long-term lease with Regency as tenant.

In 1975 Regency went into possession and after a difficult period began to make a reasonable…