Circle Star Center Associates, L.P. v. Liberate Technologies
Opinion
Opinion
Siggins, J.
On appeal from a final judgment, Circle Star Center Associates, L.P. (Circle Star), challenges orders (1) sustaining a demurrer to its cause of action for defamation; and (2) striking its claim for attorney fees. We affirm in part and reverse in part.
BACKGROUND
I. The Complaint
The facts are taken from the complaint, the lease, and the opinion of the bankruptcy court.
Circle Star owns two office buildings in San Carlos encumbered by a loan from Teachers Insurance and Annuity Association of America (TIAA). In 1999, Liberate Technologies (Liberate) became the major tenant when it leased over 180,000 square feet of office space in the two buildings. The lease term runs until 2010.
In 1999, comparable commercial space was in high demand and short supply. By 2003 market conditions had changed considerably and Liberate sought to get out of the lease, but Circle Star rejected Liberate’s overtures to renegotiate.
In October 2003 Liberate informed TIAA that Circle Star had defaulted on and breached its lease with Liberate; that Circle Star’s conduct threatened “bad faith waste and economic waste”; and that its “misconduct” was imperiling TIAA’s security interest.…