Rosemead Blvd. Properties v. Esteem Cleaners
This case involves the interpretation of a lease and whether the complaint by plaintiff, landlord Rosemead Boulevard Properties, LLC (hereinafter, Rosemead Properties), sufficiently alleged an issue of hazardous environmental conditions to permit it to perform invasive test drilling inside of the store of defendant, tenant Esteem Cleaners, Inc. (Esteem), to facilitate efforts by Rosemead Properties to refinance its property. We find that because a preliminary environmental site assessment reportan exhibit with the proposed second amended complaintreveals (1) county public health officials found possible hazardous chemical use (i.e., dry cleaning fluid) on the site during the early part of Esteems tenancy, and (2) Esteems assignor, a prior dry cleaning establishment, had likely used such hazardous chemicals, environmental issues exist which may be the result of Esteems activities or for which it might be responsible as assignee. Accordingly, sufficient facts were alleged in the proposed second amended complaint to permit Rosemead Properties to enter the premises and conduct testing in a reasonable and nonobstructive manner, consistent with the lease provisions and the implied covenant of good faith and fair dealing which allows investigation of an environmental hazard associated with the tenant. The trial court thus erred in dismissing the action without leave to amend, and Court reverse.
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