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Contracts Keyed to Kuney
Ilkhchooyi v. Best
Facts
Javad Ilkhchooyi and Mohammad Bahar (Ilkhchooyi) (plaintiffs) were commercial tenants under a sublease with Westar Management, Inc. (Westar) (defendant). In 1989, Westar sent Ilkhchooyi a new lease on a take-it-or-leave-it basis, illuminating Ilkhchooyi that the new rent was the same as the past sublease. The rent gave Westar the privilege to either end the lease or increment the base lease to market value upon an assignment by Ilkhchooyi. The rent additionally gave, in little print, that if Ilkhchooyi appointed the premises and got any consideration that was more than the rent under the lease, including consideration for Ilkhchooyi's business or a covenant not to compete, Ilkhchooyi would pay Westar three-fourths of the excess consideration Ilkhchooyi sold his business to Ramsin Zobalan, with $40,000 of the business cost proposed for a non-compete covenant. Westar requested $30,000 in return for consent to the assignment. Ilkhchooyi declined to pay, and Westar declined to agree to the consent to the assignment. Zobalan decreased the price by $40,000 accordingly. The trial court found that the profit-sharing clause in the new lease amongst Ilkhchooyi and Westar was unconscionable and entered judgment for general damages of $40,000 and punitive damages of $30,000 in favor of Ilkhchooyi. Westar appealed.
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