Lamor Res v. Hovannesian CA4/2

I. INTRODUCTION

Plaintiff Lamor Res, Inc. filed a civil complaint against defendant Armenak

Hovannesian, alleging a single cause of action for breach of a written lease agreement

(the Lease) as the result of unpaid rent. The case was tried over two days in a court trial

resulting in a judgment in favor of defendant. In its statement of decision, the trial court

made a factual finding that defendant failed to pay the rent required under the written

terms of the Lease between October 2014 and December 2015. Nevertheless, the trial

court concluded that there was no breach because the Lease had been modified by oral

agreement to provide for a reduced rental payment. The trial court further concluded that

because defendant did not owe rent under the modified agreement, he was entitled to a

return of his security deposit and included an award of compensatory damages in favor of

defendant as part of the judgment.

Plaintiff appeals, arguing that the trial court erred (1) in concluding the Lease had

been validly modified by oral agreement, and (2) in granting affirmative relief in favor of

defendant in the absence of any pleading requesting such relief. We agree the trial…