Minhall, Inc. v. Christensen CA1/5

BACKGROUND

In April 2008, BDS leased commercial retail space on Sutter Street in San Francisco from Minhall (the Lease). The specified Lease term was May 1, 2008 through January 31, 2014. The Lease provided that BDS would pay $4,250 in monthly rent for the first nine months. Beginning February 1, 2009, the rent was to double to $8,500, and the rent was subject to annual increases for the rest of the term. BDS’s President, Mr. Christensen, signed a personal guaranty of BDS’s obligations under the Lease through

1 January 31, 2013 (the Guaranty). Mr. Christensen had the option of terminating the Guaranty on January 31, 2011 if BDS paid an increased security deposit by that date. BDS was in the business of selling luxury apparel. The parties agree an economic recession occurred after the Lease was signed; Mr. Christensen averred BDS’s business was seriously impacted and BDS was unable to pay the rent increases in the Lease. Dr. Wong is Minhall’s sole director and officer, and the principal owner and decision-maker for the company. David Blatteis is Minhall’s property manager and was respondents’ point of contact for Minhall. Mr. Christensen told Mr. Blatteis that BDS could not…