Libaw

J.Tenant 11382 Beach Partnership (Beach) appeals from the judgment quieting title in favor of landlord Jacob Libaw. Libaw cross-appeals, contending the trial court erred in failing to award damages. Libaw also appeals from an attorney fees and costs award, complaining it was too low. We affirm the portion of the judgment quieting title in Libaw and the attorney fees and costs award. We reverse and remand the portion of the judgment denying Libaw damages.

I

Libaw leased commercial premises to Beach. The written lease provided the term expired April 30, 1996, but Beach had the option to extend for six successive five-year periods. Either party could cancel the lease if a fire destroyed the premises within two years before the lease expired.

A fire destroyed the premises on September 2, 1994. Beach immediately exercised its first five-year option. Two weeks later, Libaw canceled the lease and claimed it was entitled to all of Beach’s fire insurance proceeds.

Beach paid its October rent, but Libaw returned the check, threatening legal action to recover possession of the premises if Beach did not vacate. In response, Beach filed the underlying complaint for declaratory…