Partner Geoffrey Murry recently tried a case in Santa Clara County Superior Court on the issue of implied public dedication of a portion of a client’s residential property in Saratoga, California. During a three-day bench trial, the parties presented evidence regarding use of the property as a public-access trail in the years prior to 1972, the early-1960s construction of the subdivision in which the property is located, planning commission requirements in advance of approval of a subdivision map, and other interesting details about the charming San Jose suburb dating back more than 50 years. It was a great experience for Geoffrey, who welcomes every opportunity to represent clients in unusual real estate-related disputes, particularly relating to use and occupation of property by third parties.
Category: Real Estate
Landlord Recovers Rents in Commercial Unlawful Detainer
The client, a landlord of a large warehouse in Berkeley, leased a commercial building to a famous cannabis dispensary as that company planned to expand operations. As has happened with many cannabis businesses in California, the expansion plans had to be shelved due to crushing tax liability that the tenant faced (thanks to IRS section 280e!). IRS section 280e says that to the extent a business deals in schedule 1 controlled substances (like cannabis), the business may only deduct the cost of goods sold. 280e has created massive tax liability for most cannabis businesses. Dispensaries face steep competition from the unregulated market as well. The tenant could not pay, and our landlord client brought a commercial unlawful detainer action. The matter was settled after sending the first set of discovery requests. Our landlord client has their building back and can now try to lease to another to raise funds. The client is satisfied with the outcome, though frustrated with the cannabis industry at large and will likely never lease to a cannabis business ever again!
Ad Astra Client Gets to Remain in Possession of Farm
Our client, cannabis growers in Northern California, had a commercial lease for the farmland that they used to grow their cannabis. The landlord and our client have been friends since childhood. However, a dispute arose as our client refused to pay rent until the landlord fulfilled his duties, such as removing trash from the property and dealing with an expired permit, to our lessee client. The landlord filed a commercial unlawful detainer against our client, claiming that the breach of the lease (which the landlord denied) was not a basis to refuse to pay rent. Unfortunately, commercial leases are different from residential leases. The client is a married couple who are expecting their first child at the end of a high-risk pregnancy, and the landlord filed the case such that the trial would be scheduled shortly after the birth of the baby. Ad Astra took over the case and made sure that the client and their family are free of stress throughout the negotiation. At the end, Ad Astra successfully negotiated a deal that kept our client in possession of the farm without much concession, and the baby was born healthy. We derive great joy out of outcomes like this where we make an immediate positive impact on our clients’ lives.