Rosano v. Superior Court

Opinion

McDANIEL, J.

In these original proceedings, we address the narrow question, in an action for forcible entry, of whether a tenant is entitled to

[94]

prove up damages for lost profits allegedly incurred after the

expiration

of his right to lawful possession.

Facts

Joseph Lee Rosano, petitioner and plaintiff in the underlying action, entered into a service station agreement with Union Oil Company of California (Union), defendant in the underlying action and real party in interest herein, wherein Rosano agreed to lease and operate a service station in Indio, California, for a period of three years. The leasehold term expired July 31, 1975. The pertinent provision of the lease further stated: “The Lease ends automatically and without notice on the termination date. If the Lessee remains in possession of the Station after the termination date with Union’s express or implied consent, Lessee is a tenant from month to month on the terms and conditions specified herein.”

On August 1, 1975, the day

after

the leasehold term expired, Rosano and Union entered into a “mutual cancellation agreement.” This agreement expressly acknowledged that the lease had, in fact, terminated on July 31, 1975. The agreement also provided that the dealer changeover would occur “on or before October 1, 1975,” thus allowing Rosano to remain in possession until that time. Shortly thereafter, Union informed Rosano of their intention to evict him if he did not vacate the premises by the agreed date, October 1, 1975. However, Rosano failed to surrender possession as agreed. Early on the morning of October 1, 1975, Union representatives appeared at the station prepared to effect the dealer changeover. This was a 24-hour station but the station was closed and no one was there. Accordingly, the Union representatives proceeded to change the locks, to inventory the merchandise and equipment, and to transport Rosano’s property into storage.

Rosano then filed a complaint against Union which included six causes of action: forcible entry, conversion, trespass, tortious interference with business advantage, violation of franchise law, and deceptive practice under the Corporations Code. The case went to trial and a jury awarded Rosano $160,000 compensatory and $500,000 punitive damages. A new trial motion was thereupon granted in connection with which the latter three causes of action were dismissed with prejudice.