Miscione v. Barton Development Company

52 Cal. App. 4th 1320, 61 Cal.Rptr.2d 280 (1997)

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Miscione v. Barton Development Company

Court of Appeal of California for the Fourth Appellate District
52 Cal. App. 4th 1320, 61 Cal.Rptr.2d 280 (1997)

Facts

Barton Development Company (Barton) (defendant) leased space at a California shopping center. The lease contained subordination, nondisturbance, and attornment (SNDA) provisions under which Barton agreed that the lease would stay in force in the event of a foreclosure and that Barton would recognize a successor as the rightful landlord under the lease. Earlier, Barton had borrowed $7.6 million from Coast Federal Savings (Coast) in return for a trust deed on the property that required Coast’s approval of any new lease. After Barton defaulted on the lease, Coast foreclosed the deed of trust, then sold the property to John Miscione (plaintiff). Miscione, as the property’s successor landlord, sued Barton for breach of the lease and fraud. Barton moved the trial court for summary judgment, claiming that the lease was subordinate to Coast’s earlier deed of trust, which had been foreclosed. Miscione claimed that the deed of trust foreclosure did not extinguish Barton’s subordinate lease and that Barton attorned to Coast and its assignees, including Miscione, as the property’s new landlord by expressly agreeing to be bound under the lease. The trial court granted summary judgment in favor of Barton. Miscione appealed.

Rule of Law

Issue

Holding and Reasoning (Ward, C.J.)

Dissent (Hollenhorst, J.)

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