Kruger

STATEMENT OF THE CASE1

Kruger is the owner of commercial real property located at 623 North First Street, in San Jose. On May 20, 2012, she entered into a written lease agreement with Appellants, who used

 Bonini, P.J., Arand, J., and Williams, J. 1 We take the facts from the verified pleadings and attachments and the reporter‟s transcript from the court trial. 1 the premises to operate a medical-marijuana cooperative. The lease initially required Appellants to pay as rent $2,800 per month due in advance on the first day of each calendar month during the lease term. Among other things, the lease provided that “Landlord may issue a Three-Day Notice to Pay Rent or Quit after the rent continues to be unpaid after four days after the date it is due.” Beginning June 1, 2013, the monthly rental rate was increased to $2,968 per the lease terms. By separate agreement or practice of the parties, the manner in which Appellants paid rent was by direct deposit into Kruger‟s bank account. At some point, a dispute arose between the parties about the way in which Appellants were conducting business on the premises. Kruger generally contended that illegal activities were taking place in…