First National Mortgage Co. v. Federal Realty Investment Trust

FINDINGS OF FACT AND CONCLUSIONS OF LAW (DAMAGES PHASE)

This action was brought by First National Mortgage Company (“First National”) against Federal Realty Investment Trust (“FRIT”) for FRIT’s breach of a 10-year lease of the office building and land located at 350 South Winchester Boulevard in San Jose, California (“the Property”) and for breach of a put option which gave First National the right to require FRIT to purchase the Property during the lease term. The lease, put option and a call option are contained in a document entitled “Final Proposal” (hereinafter sometimes referred to as “Final Proposal” or “Agreement”) which was executed by the parties and dated August 24, 2000. The Final Proposal was found to be a binding agreement between the parties.

On February 22, 2006 the court, pursuant to the stipulation of the parties, bifurcated the issues of liability and damages. The liability phase (Phase I) was tried by a jury which returned a special verdict on June 29, 2006 in First National’s favor. It found:

(Docket # 464) (“Dkt #_”).

The damages phase (Phase II) was tried by the court pursuant to the parties’ stipulation to waive a jury. In their joint pretrial statement…