California National Bank v. Woodbridge Plaza

This appeal involves interpretation of a provision dealing with calculation of rent for the extended term of plaintiff California National Banks lease of premises owned by defendant Woodbridge Plaza LLC. The language in question provides plaintiffs new rent, to "be at the then prevailing rate," is not to exceed rent paid by a competitor bank or "successor" in the same shopping center. At the time of plaintiffs extension, however, the competitor was defunct and its space had been divided and leased to six smaller, non-bank tenants. The court found "successor" meant successor in interest and since there was none, ruled that plaintiff was required to pay the prevailing rate paid by nearby financial institutions as calculated by defendants expert witness.