KNB Enterprises, Inc. v. Great Eastern Enterprises, Inc.


    Chad Chen and Charlie Wang obtained judgment in favor of Great Eastern Enterprises, Inc., including the award of monetary damages, after a five-day bench trial over a commercial lease dispute.  The plaintiff was a commercial tenant who leased warehouse space from Great Eastern.  After the lease terminated, the plaintiff returned the premises with substantial damages to the HVAC system, the floors, and  various other fixtures, costing over sixty thousand dollars to repair.  Great Eastern kept the security deposit to make repairs on the property and initially did not want to file suit against the tenant for the extra costs.  Notwithstanding, the tenant, two months after the lease termination, filed suit against Great Eastern for breach of contract based on an alleged failure to return the security deposit.  Great Eastern answered and filed a cross-complaint for breach of contract for monetary damages for the cost of repairs it incurred in restoring the property to the original condition.

    The tenant denied it caused any of the damage and took the position that Great Easter was merely using this as an opportunity to update the property.  After a five-day bench trial, the judge agreed with Great Eastern and found that the plaintiff failed to prove its complaint and further ruled that Great Eastern was entitled to keep the security deposit for costs incurred in repairing its property.  The judge also found that the plaintiff breached the contract by returning the property in the damaged condition and that Great Eastern was entitled to all of its costs of repairs, as well as attorney’s fees under the lease agreement.


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