Prime Care v. Nguyen Phat Real Estate Investment CA2/5

INTRODUCTION

Plaintiff Prime Care, Inc. brought suit, alleging that defendants Nguyen Phat Real Estate Investment, LLC (Nguyen Phat), and Sam Ho misrepresented that the commercial property they leased to plaintiff was suitable for the operation of a cannabis business. Plaintiff appeals from a judgment of dismissal in favor of defendants after the trial court sustained their demurrers. Plaintiff argues the court erred in concluding the terms of the lease agreement absolved defendants of liability for their alleged negligence, fraud, negligent misrepresentation, rescission, and damages. Plaintiff also contends it should have been granted leave to amend. We affirm.

FACTS AND PROCEDURAL BACKGROUND

1. Lease Agreement On January 29, 2019, defendant Nguyen Phat agreed to rent plaintiff an industrial building located in Montebello, California. Defendant Sam Ho managed the Nguyen Phat company at the time. The commercial lease stated that the agreed use of the premises was “Commercial Cannabis distribution, manufacturing, cultivation and retail delivery in accordance with all state and local licenses and laws.” When plaintiff and Nguyen Phat entered into the lease, plaintiff had not…