Special Referee Lancelot Hewitt
The issue of damages to be awarded owner Kitridge Realty was referred to a special referee. Kitridge and tenant Lee executed a commercial lease regarding the subject premises for a 10-year term. Lee assigned the lease to Young J. Lee Corp., who assigned the lease to Donut Corp., with Kitridge’s consent. Defendant Kim executed a guaranty agreeing to be the legal and beneficial owner of all outstanding shares of Donut Corp. under the lease and guaranteed to Kitridge fill performance and observance of all agreements. Donut Corp. failed to pay Kitridge base rent and taxes owed under the lease for October 2005 through December 2008. The referee found Kitridge established entitlement to an award of damages against Donut Corp. for over $94,000 under the lease, and for the same amount against Kim as guarantor. He found Kim did not testify credibly as to signing the guaranty as a favor to Donut Corp.’s owners, and not fully understanding the legal significant of the document. The referee stated damages awarded in breach of contract cases were intended to return parties to a position they would have been in had the contract been performed, noting damages must not be speculative, be generally foreseeable and within the contemplation of the parties.
