Bekins Moving & Storage Co. v. Prudential Insurance of America

Bekins Moving & Storage Company (Bekins) appeals the summary judgment granted in favor of the Prudential Insurance Company of America (Prudential) and Property Management Systems, Inc. (PMS). Bekins contends that notwithstanding its failure to exercise its option to renew its lease in accordance with the terms of the lease agreement, it is entitled to equitable relief, based on the following grounds:

1. Bekins’ actions in relation to the leased properties provided sufficient notice to Prudential of Bekins’ intent to renew. Hence, Bekins was in substantial compliance with the requirements of the renewal option.

2. Where, as here, the delay was slight, the loss to lessor was small, and denial of relief would result in such hardship to lessee as to make it unconscionable to enforce literally the condition precedent to the lease, equity should intervene. (F. B. Fountain Co. v. Stein (1922) 97 Conn. 619 [ 118 A. 47 , 27 A.L.R. 976 ].)

3. California law protects Bekins against a forfeiture.

We disagree and affirm.

In 1971, Bekins leased an office building on Flower Street from Prudential’s predecessor in interest. The parties entered into a 10-year written lease agreement…