Burlington Coat Factory v. Bella Terra Assocs.
This case presents the question whether a commercial lease provision purporting to calculate the tenants share of the real estate taxes in a manner requiring the tenant to pay over three times the assessed amount of real estate taxes can be viewed as so clear and unambiguous that the tenant is precluded from introducing any evidence demonstrating the parties may have intended a different result.
Court conclude the answer is no, and reverse the trial courts decision sustaining the landlords demurrers without leave to amend. We also conclude the trial court erred in granting summary judgment for the landlord on tenants remaining cause of action for reformation. In moving for summary judgment, the landlord attempted to establish it was a bona fide purchaser (BFP) of the shopping center without notice of an alleged error in a number used to calculate the tenants share of real estate taxes. But the tenants estoppel certificate disclosed the tenant and landlord had not been using the disputed calculation to determine the tenants share of real estate taxes, creating a triable issue of fact whether the landlord had a duty of inquiry which, if fulfilled, would have led to the landlords discovery of the alleged mistake. Accordingly, Court also reverse the trial courts summary judgment ruling as to the tenants reformation claim.
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