M&C Wins Trial for Independent Film Production Company on Breach of Contract Claim
May 1, 2009
After attentively listening to three days of testimony from witnesses and experts, it took a Santa Monica jury only thirty five minutes to return a defense verdict for a case tried by Nanette G. Reed, on behalf of M&C’s client, Lakeshore Entertainment Group, LLC.
In 2004, Cave Productions leased a house in Pacific Palisades from plaintiff, John Hugo, for its Australian director, Bruce Hunt, and his family’s stay during completion of post production in Los Angeles. It was required that Lakeshore Entertainment be a guarantor on the lease. Minor plumbing problems were reported to the landlord in September 2004 and the repairs were made by Hugo. Around the Christmas holidays, the Hunts returned to Australia for a planned two-week vacation; however, their stay was extended. Hugo visited the property on January 12, 2005 and discovered extensive water damage caused by a broken pipe. The Hunts were unable to reside at the property again upon their return to the states in mid-January, and Lakeshore Entertainment sent notice of termination of the lease.
Cave Productions ultimately sued Hugo to recover the advanced rent payment and security deposit. Hugo cross-complained against Cave Productions, Lakeshore Entertainment and the tenants, Bruce and Teresa Hunt, alleging a breach of the “Maintenance Clause” of the lease requiring tenants to safeguard the premises and “immediately report all damage in writing to the landlord.”
During trial, the jury heard evidence about prior plumbing problems at the residence. Defense expert testimony confirmed that a licensed plumber should have noticed sediment indicating a slow leak, and had the part been properly replaced the incident never would have occurred. The expert testimony proved to the jury that it was impossible to determine when the pipe started leaking, or for how long it had leaked, leaving it equally impossible to determine whether or not the landlord actually discovered the leak in a reasonable time. Ultimately, the jury concluded that the “Maintenance Clause” of the lease was never intended by the parties to preclude the tenants from ever leaving the property without arranging for an inside and outside inspection on a continual basis.
With over $150,000 in attorney fees recoverable pursuant to the contract, and plaintiff’s rejection of the $30,000 defense CCP 998 offer. M&C will seek to recover close to $200,000 in fees and costs via a judgment on behalf of its client, Lakeshore Entertainment.
