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Keywords

contractbreach of contractdefendantdamagesappealtrialmotionleasegood faith
defendanttrialmotionwilllease

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Peiser v. Mettler, 50 Cal.2d 594, 328 P.2d 953, 74 A.L.R.2d 1

Facts

The dispute arose from a written lease agreement involving land in Kern County, where the landlords (original lessors) alleged that the tenant, Mettler, and subsequent subtenants removed various improvements, including irrigation equipment and buildings, from the property. The lease stipulated that the tenant would remain liable for obligations even after assignment unless written consent was obtained from the landlords. Mettler assigned the lease to Fry, who sublet to Garner and Moore, but no written consent was obtained for the assignment. The landlords claimed damages totaling $31,275.20 for breach of contract, conversion, and waste.

The complaint alleges that the controversy here involved grew out of a written lease agreement involving land situated in Kern County.

Issue

Did the trial court err in granting the defendants' motion for a change of venue based on the residence of the defendants and the nature of the action?

The motions were made and granted on the grounds of (1) residence of defendants; (2) that the action involved damage or injury to real property situated in Kern County; and (3) because of convenience of witnesses.

Rule

A tenant remains liable under a lease agreement even after assigning it unless the lessor provides written consent for the assignment. The nature of the action determines the appropriate venue, and if a resident defendant is joined in good faith, the venue cannot be changed solely based on the residence of the other defendants.

‘The nature of the cause of action so far as it affects or determines the place of trial will be ascertained from the complaint alone, and the court will inspect the complaint for the purpose of determining the character of the action and the judgment which may be rendered.’

Analysis

The court analyzed whether the complaint stated a cause of action against Mettler, the resident defendant. It concluded that since Mettler remained liable under the lease for the obligations despite the assignment, he was a proper party to the action. The court emphasized that the nature of the action was transitory, focusing on personal obligations rather than the title to real property, which justified maintaining the venue in Los Angeles County.

It is obvious from the above cited rule that defendant Mettler remained liable under the lease and was, therefore, a proper and necessary party to the action and that the complaint states a cause of action as to him.

Conclusion

The Supreme Court reversed the trial court's order granting the change of venue, determining that the complaint adequately stated a cause of action against the resident defendant, Mettler.

Order reversed.

Who won?

Landlords prevailed in the appeal because the Supreme Court found that the trial court erred in granting the change of venue based on the presence of a resident defendant who was properly joined in the action.

The Supreme Court, Carter, J., held, inter alia, that where lease provided that tenant would remain liable to landlords on lease even though he assigned it unless written consent of landlords was obtained, and no such written consent was obtained, complaint stated cause of action against tenant, a Los Angeles County resident, and it could not be said that only purpose of joining tenant was in order to secure venue in Los Angeles County.

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