Pate

This appeal involves a commercial landlord tenant dispute. Plaintiffs are tenants of the Boatworks Mall, a retail shopping mall located in Tahoe City. Plaintiffs commenced the underlying action in November 1993 against the owner of the mall, defendant Channel Lumber Company.

In May 1994, plaintiffs filed a second amended complaint. The second amended complaint pleads separate counts for breach of contract, misrepresentation, and declaratory relief. The declaratory relief issues were severed and tried separately to the court. The breach of contract and misrepresentation claims were tried before a jury.

The primary issues tendered by the breach of contract and misrepresentation counts concern common area maintenance (CAM) expenses. All of the plaintiffs operate under a triple net lease. A triple net lease is one which passes on to the tenants those costs incurred in the operation and maintenance of the premises. (See generally, Commercial Real Property Lease Practice (Cont.Ed.Bar 1976) § 1.5, pp. 4-5.) Plaintiffs’ triple net leases require they pay all of the repair and maintenance costs relating to the common areas of the mall.

The lease terms provide that a tenant…