Goodan

AMENDED MEMORANDUM AND ORDER

I.

INTRODUCTION

This is an action brought by plaintiff Grand Avenue Partners, L.P. (“GAP”) against Douglas Goodan and Jean Barclay, Trustees of the E.W. Goodan Trust (“Trust”). Plaintiff seeks declaratory relief establishing that, inter alia, the monthly rental amount to be paid by GAP on the ground lease (“Lease”) of the Checkers Hotel is $2,000.00, payable in United States currency, until December 31, 2025. GAP seeks preliminary and permanent injunctions preventing defendants from evicting GAP on the basis of rent calculated under the Lease’s “gold clause.”

Trust counterclaims against GAP and Sumitomo Bank of California (“Sumitomo”) for, inter alia, a declaration that the gold clause required that rent be increased from $2,000.00 to approximately $41,817.00 per month on April 1, 1994 as a result of an alleged novation occurring when Sumitomo assigned its leasehold interest to GAP. The counterclaim also alleges that Sumitomo’s transfer of the leasehold estate to GAP constituted a material breach of the Lease, giving rise to damages and termination of the Lease.

This matter is before the court on Sumito-mo and GAP’s joint motion for summary…