Sunshine West Body Shop v. Lukic CA2/8

FACTS AND PROCEEDINGS

Landlord owns the buildings at 1653 and 1665 11th Street in Santa Monica. In May 2006, Tom Holmes and his business, Holmes Body Shop, Inc. – who are not parties to this appeal – entered into a five-year lease for the properties. In 2007, the landlord consented to a sublease of both properties to appellant, an enterprise related to, but separate from, the Holmes entities. The five-year lease contained an option to renew for five years. Unless renewed, the lease would expire on April 30, 2011. Appellant contends it timely exercised the option to renew in January 2011. Claiming, however, that appellant’s attempted renewal was ineffective, the landlord entered into a new lease with a new tenant (Santa Monica Body Craft Center, LLC) to go into effect on May 1, 2011, upon expiration of the lease’s original five-year term. Based on the landlord’s refusal to renew appellant’s sublease, appellant vacated the premises upon the new tenant’s arrival and removed its auto body shop business equipment over several days in late April and early May 2011. In December 2011, appellant filed a complaint against the landlord. The complaint alleged causes of action for breach of…