2845 Monterey Road, LLC v. Posada CA6

Background The facts of the underlying litigation are not disputed. In April 2001 appellant and respondent's predecessor, Michel Developments, executed a commercial lease permitting appellant to operate Alfa Autoland, an automobile heating and air conditioning repair business in San Jose. The lease provided for a five-year term with an option to renew for another five years. Among its terms was a provision for attorney fees, which stated, "If Landlord incurs any expense, including attorneys' fees and costs, as a result of a default by Tenant hereunder, the sum or expense incurred by Landlord, shall be due immediately from Tenant to Landlord." In September 2004 appellant's cousin, Camilo Posada, took over the operation of appellant's business and assumed the obligations of the lease. The five-year term expired on April 30, 2006, and the lease terminated, no one having exercised the option to renew. Thereafter, the court found, Camilo Posada occupied the premises under a month-to- month tenancy. On July 26, 2010, Camilo Posada's business license was revoked. He paid the rent for August, but then appellant moved back into the property, and while conducting…