Swing

Defendants, Carol and Ronald Swing and Carol’s Interiors, Inc. (Carol’s Interiors or lessee), interior designers, appeal from a judgment in favor of plaintiff, Polster, Inc. (Polster or lessor) for damages and an award of prejudgment interest, for defendants’ failure to return leased property to plaintiff in the same condition as received. We affirm the judgment in part and reverse it in part.

Facts

On February 5, 1974, Polster and Carol’s Interiors entered into a written lease of a store located in Sherman Oaks, California for the term of five years. Carol’s Interiors was to conduct a retail furniture store and interior decorating business on the premises. The lease provided that the lessee must surrender the premises at the expiration of the term of the lease in the same condition as when received, reasonable use and wear thereof excepted. Upon taking possession, Carol’s Interiors remodeled the interior of the premises over a period of six to eight months for use as an interior design studio and to display furnishings. During some of that time they were open for business.

Before the term expired, the lessees informed Polster that they did not wish to renew the lease…