Dvoracek v. Gillies

Stephen Gillies (defendant) leased commercial space from Cleo Dvoracek (plaintiff). Dvoracek owned the adjoining premises and employed about 18 persons. Gillies and Dvoracek entered into a one-year lease expiring on May 31, 1984, with an option to renew for a two-year period and a right of first refusal for an additional two-year period. The lease required Gillies to give Dvoracek written renewal notice at least 60 days before the lease expired. The lease required written notices be mailed (certified or registered) to both Dvoracek’s and Gillies’s addresses listed on the lease, which for Dvoracek was the adjoining premises. On March 16, 1984, Gillies dictated a letter to renew the lease. Gillies’s secretary typed and notarized the correspondence. Gillies went into Dvoracek’s business to hand deliver the correspondence and left it with an employee at the front desk, as he customarily did with rent payments. On May 1, Dvoracek received a letter from Gillies requesting repair of the air-conditioning unit. Dvoracek’s attorney responded to the letter, advising Gillies that no lease renewal had been received and that the lease would be terminated upon expiration. Gillies attempted to pay rent for June, but the payment was refused by Dvoracek. Dvoracek filed suit for unlawful detainer. The trial court directed a verdict for Dvoracek finding that Gillies had given inadequate notice to renew the lease. Gillies appealed.