VPMF
Principal Mutual Life Insurance v. Vars, Pave, McCord & Freedman
Opinion
Opinion
Perez, J.
Defendants Jerry L. Freedman and Robert J. Vars appeal from the judgment entered on behalf of plaintiff Principal Mutual Life Insurance Company in its action for breach of a commercial lease. For the reasons set forth below, we affirm the judgment.
Facts and Procedural History
In May 1985 the law firm of Vars, Pave, McCord & Freedman (VPMF) signed a lease for office space (the lease) in an Encino office building owned by 16030 Associates (the landlord). VPMF was a general partnership formed by lawyers Robert J. Vars, Robert Pave, James W. McCord and Jerry L. Freedman. The lease, which each partner personally guaranteed, ran for five years, starting August 1, 1985. The lease included an option to be renewed for another five years.
Relevant to this appeal are the following lease terms: paragraph 31a, which stated that the lease would be deemed subordinate to all existing and future liens and mortgages on the landlord’s property; and paragraph 31c, which stated that if the landlord sold the building or lost it in foreclosure, the tenant would attorn to the landlord’s successor in interest upon request, and be bound by a new lease on the same terms as the old one.