John B. Kilroy Co. v. Douglas Furniture of California, Inc.

Defendants, cross-complainants and appellants Douglas Furniture of California, Inc., Harold E. Applebaum, Stuart A. Applebaum, Daniel Feldman, Diane Feldman, Douglas E. Cohen and Howard I. Cohen (sometimes collectively referred to as Douglas or the owners) appeal a judgment in favor of plaintiff, cross-defendant and respondent John B. Kilroy Company, and cross-defendants and respondents John B. Kilroy, Sr., and T. E. Lalonde (sometimes collectively referred to as Kilroy) following a court trial resulting in a $177,942.81 judgment for Kilroy.

The essential issue presented is whether Kilroy is entitled to a broker’s commission for leases entered into between the owners and the same lessee subsequent to the expiration of the initial lease term and the option period specified in the original lease agreement.

The commission agreement was ambiguous in this regard. The trial court therefore properly received extrinsic evidence to resolve the ambiguity. Because the extrinsic evidence established Douglas agreed to pay a commission upon any modification or extension of the initial lease, and the subsequent leases constituted such an extension, Kilroy was entitled to a commission.…