Izzy's Deli v. LMA & SAI 1433 Wilshire CA2/5

I. BACKGROUND

A. The Commercial Lease and Its Subsequent Extensions and Amendments 1. The original 1973 lease In 1973, property owners Ernest and Lisa Auerbach agreed to lease commercial property located at 1429-33 Wilshire Boulevard in Santa Monica, California (the premises) to Kenny’s Deli. Kenny’s Deli is the predecessor company to plaintiff and respondent Izzy’s Deli (Izzy’s). (For simplicity’s sake, we will refer to both companies as Izzy’s in the remainder of this opinion.) Ownership of the premises was ultimately conveyed from the Auerbachs to defendant and appellant LMA & SAI 1433 Wilshire LLC (LMA). (Again, for simplicity, we will refer to the owner of the premises as LMA without distinction.) The term of the original 1973 lease was 15 years: from June 1973 to May 1988. The lease specified the premises was to “be used and occupied only for a delicatessen, restaurant and catering business.” Izzy’s was obligated to pay base rent of $438,000 in specified monthly installments. LMA was to receive

2 the rent “free and clear of any and all other impositions, taxes, liens, charges or expenses of any nature whatsoever in connection with the ownership and operation of the…