Northrop Corp. v. Chaparral Energy, Inc.

Opinion

ASHBY, Acting P. J.

In this unlawful detainer proceeding, involving an industrial property, the trial court rendered summary judgment restoring possession to the landlord, appellant Northrop Corporation (Northrop). (Code Civ. Proc., §§ 1170.7, 1174.) Northrop appeals, however, from a

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portion of the judgment which implies that the court ruled against Northrop on the issues of rent or money damages, to the possible prejudice of Northrop in other pending litigation between the parties. The tenant, respondent Chaparral Energy, Inc. (Chaparral), has not submitted a respondent’s brief. (Cal. Rules of Court, rule 17(b).) We conclude the judgment should be modified as requested by appellant Northrop.

Northrop’s predecessor in interest, Ford Motor Company (Ford), leased a small portion of its 200-acre Pico Rivera auto plant to Chaparral. Although the lease had a term of five years commencing February 1, 1981, it also provided that either party could terminate the lease at any time upon thirty days’ written notice. Ford sold the property to Northrop in April 1982 and Northrop served a 30-day notice of termination against Chaparral on May 12, 1982. Chaparral, however, remained in possession, contending that the termination clause could not be exercised because, contrary to the apparent language of the clause, Ford and Chaparral had intended that it be exercised only if certain conditions arose. This dispute led to the filing of two separate actions;

On June 14, 1982, Northrop filed its complaint for unlawful detainer in the instant case (No. SEC39543). Northrop’s unlawful detainer complaint requested (1) restitution of the premises; (2) unpaid rent of $2,751 for the period June 1 to June 12, 1982, at the contract rate of $6,878 per month; and (3) reasonable rental value, at approximately the contract rate, from June 12 until Chaparral terminated its occupancy.

Meanwhile, Chaparral filed a civil complaint against Ford and Northrop (No. C409518). Based on its theory that the termination clause in the lease could not properly be exercised, Chaparral alleged various causes of action including declaratory relief, reformation of contract, breach of contract, fraud, and injunctive relief. Northrop then filed a cross-complaint against Chaparral in No. C409518, for breach of contract, alleging consequential damages for Chaparral’s breach of its obligation to surrender possession after notice of termination. Northrop claimed that as a result of Chaparral’s breach, Northrop had been damaged in the amount of $500,000 by not being able to fully utilize its entire property and by incurring additional costs in providing services to its surrounding facilities.