Gardyn
Gardyn v. Sangha CA1/3
Opinion
Opinion
Siggins, J.
BACKGROUND
The following facts, which are largely undisputed, are taken from the arbitrator’s written decision. In March 2007, Gardyn, as lessor, and Sangha and her late husband, as lessees, entered into a five-year commercial lease and option agreement for Gardyn’s property in Benicia. The Sanghas intended to renovate the property and operate a pizzeria. The Sanghas agreed to pay rent of $7,500 on or before the first day of each month, with a $500 late fee for failure to make timely payments. Paragraph 11 of the California Association of Realtors form lease stated: “CONDITION OF PREMISES: Tenant has examined the Premises and acknowledges that Premise is clean and in operative condition, with the following exceptions: NO EXCEPTIONS. TENANT
1 TAKING PREMISES IN ‘AS IS CONDITION’ Items listed as exception shall be dealt with in the following manner: TENANT INTENDS TO COMPLETELY RENOVATED [sic] ALL MECHANICAL, STRUCTURAL, ELECTRICAL ETC ON AND AROUND
THE PROPERTY.”
An arbitration clause specified that any disputes between the parties would be decided by an arbitrator “in accordance with substantive California Law.” The parties also initialed the following provision: “ ‘NOTICE: BY…