Property Keyed to Saxer
Hadian v. Schwartz
On April 14, 1984, Edward Schwartz (Defendant) leased commercial property from Rose Hadian (Plaintiff). The term of the lease was for three years at $650 per month, with the option to renew for five more years at $800 per month. The parties used a form lease with pre-printed provisions. They struck out certain provisions, including a warranty that the property did not violate building codes, regulations or ordinances, as well as a warranty regarding the plumbing, lighting, and heating conditions. Furthermore, the parties struck out a provision requiring the lessee to pay property taxes. Instead, the parties arranged for Plaintiff to pay the property taxes while Defendant was to pay any increase in property taxes during the term of his lease. The lease also contained provisions requiring Defendant to comply with any applicable statutes, ordinances, and other requirements regulating his use of the property. Additionally, Plaintiff was relieved of any obligation to repair or maintain the property. After the three-year term expired, Defendant exercised his option to renew for another five years. About five months later, the City of Los Angeles informed Plaintiff that the building was susceptible to earthquake damage. In order to comply with the city’s earthquake hazard reduction program, enacted a few years prior to the signing of the lease, the building required seismic reconstruction. Plaintiff paid $34,450.26 to reconstruct the building’s frame and to replace the roof and requested that Defendant indemnify her for the cost. When Defendant refused, Plaintiff sued Defendant for breach of contract to recover the cost. The trial court found in Plaintiff’s favor. The court of appeal affirmed.
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