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Communiclique Las Angeles Landlord Sues For $374,000
Communiclique Las Angeles Landlord Sues For $374,000
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19 I.
20 PRELIMINARY ALLEGATIONS
21 A. The Parties.
22 1. At all times mentioned herein, Plaintiff was and now is a Delaware corporation,
24 2. Plaintiff is informed and believes that, at all times mentioned herein, defendant
25 Communiclique, Inc. (collectively with the below described DOE defendants, “Defendants”) is and
26 was a Delaware corporation doing business in the State of California, County of Los Angeles.
27 3. The true names and capacities, whether individual, corporate, associate or otherwise,
28 of Defendants named herein as Does 1 through 10, inclusive, are unknown to Plaintiff, who
Case No.
COMPLAINT
6169.003
Case 19-10573-KG Doc 31-14 Filed 05/06/19 Page 3 of 138
1 therefore sues such Defendants by such fictitious names. Plaintiff alleges, on information and
2 belief, that defendants Does 1 through 10, inclusive, were in some manner in possession of the
3 Premises set forth herein and/or responsible and/or liable for the damages and/or action alleged
4 herein. Plaintiff will amend this Complaint to show and/or add the true names and capacities of
5 such fictitiously named defendants when the same has been ascertained.
6 4. Plaintiff alleges on information and belief that at all times mentioned herein, each of
7 the Defendants was and now is the agent, servant, employee, representative and/or alter ego of each
8 of the other Defendants, and in doing the things hereinafter mentioned, was acting within the scope
9 of his/her authority as such agent, servant, employee, representative and/or alter ego, with the
11 B. The Sublease.
13 Subtenant, entered into a written Sublease Agreement (the “Sublease”) whereby Defendants leased
14 a portion of the premises located at 701 Ocean Front Walk, Los Angeles, CA 90291 (the
15 “Premises”) from Plaintiff . A true and correct copy of the Sublease is attached hereto as Exhibit
17 6. Plaintiff is the Tenant under a written Lease dated December 9, 2014, as amended in
18 writing on March 6, 2015 by a written First Amendment to Lease and as amended in writing on
19 May 19, 2015 by a written Second Amendment to Lease (collectively, the “Master Lease”). In
20 connection with the Sublease, Plaintiff sought and obtained the consent of the “Master Landlord”
21 under the Master Lease. A true and correct copy of the written Consent to Sublease dated
22 September 26, 2018 is attached hereto as Exhibit “B” and is incorporated herein by this reference.
23 7. Plaintiff currently is the tenant of the Premises and holds all of the right, title and
25 8. The Sublease at Section 17 provides that the prevailing party in any litigation under
26 the Sublease shall be entitled to recover its attorneys' fees and court costs from the losing party.
27 9. Plaintiff has retained the firm of David M. Cohen, A Professional Law Corporation
28 to protect its rights under the Sublease, and has incurred and will continue to incur an unascertained
2 Case No.
COMPLAINT
6169.003
Case 19-10573-KG Doc 31-14 Filed 05/06/19 Page 4 of 138
1 amount of reasonable attorneys' fees and costs. Plaintiff will seek those amounts at the time of
2 trial.
4 10. As more fully set forth in the Sublease, Defendants are required during the term of
5 the Sublease to pay monthly Rent. The total monthly Rent at the current time is $59,384.40.
6 Further, the Sublease provides for additional, non-recurring, sums that are deemed Rent.
7 11. Notwithstanding the requirements of the Sublease, Tenants failed and refused to
8 make all the payments of Rent due under the Sublease, failed to provide the Security Deposit
9 required by the Sublease, failed to provide other required items such as proof of insurance and,
10 thereafter, refused possession of the Premises. Plaintiff sent formal notice of default to Defendants
11 according to the terms of the Sublease and informed Defendants that it would subsequently
12 determine whether it would proceed under Civil Code § 1951.2 or 1951.4. By way of service of
13 this complaint, Plaintiff notifies Defendants that it elects to proceed under Civil Code § 1951.4.
14 The Sublease incorporates certain portions of the Master Lease, including its remedies, which
15 provide that Plaintiff has all of the rights and remedies set forth in of Civil Code § 1951.4.
16 II.
19 12. Plaintiff realleges and reincorporates by reference herein each and every allegation
21 13. Defendants breached the Sublease, by, among other things, failing to pay the full
23 14. Under the terms of the Sublease, Defendants are liable for Rent and damages for the
24 months of August 2018 (partial) through February 2019, in the total amount of $373,547.03.
25 Further service of this complaint shall be deemed to be the notice pursuant to section 4(c) of the
26 Sublease that a 5% late fee will be incurred on the foregoing sum if it is not paid in full within five
27 (5) days of service of the complaint. Plaintiff reserves the right to amend this complaint to add
3 Case No.
COMPLAINT
6169.003
Case 19-10573-KG Doc 31-14 Filed 05/06/19 Page 5 of 138
1 15. Plaintiff has performed all of its obligations under the Sublease, except those
3 16. By reason of the foregoing, Plaintiff is entitled to recover from Defendants damages
4 in an amount of $373,547.03, plus interest, attorneys' fees, costs of suit and any other consequential
5 damages permitted under the Sublease, according to proof at time of trial, all within the jurisdiction
6 of this Court.
7 17. Further, to the extent that Defendants wish to cure their default, they must also pay
8 the Security Deposit of $276,012.00 owing under the Sublease and cure all outstanding non-
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16 5. For such other and further relief as the Court deems just and proper.
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20 By:
David M. Cohen
21 Attorneys for Plaintiff
Snap Inc., a Delaware corporation
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4 Case No.
COMPLAINT
6169.003
Case 19-10573-KG Doc 31-14 Filed 05/06/19 Page 6 of 138
EXHIBIT A
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This FIRST AMENDMENT TO LEASE (this "First Amendment") is made and entered
into effective as of March 6, 2015, by and between THORNTON VENICE OWNER, LLC, a
Delaware limited liability company ("Landlord") and SNAPCHAT, INC., a Delaware
corporation ("Tenant").
RECITALS:
A. Landlord and Tenant entered into that certain Lease dated as of December 9, 2014
(the "Lease"), pursuant to which Landlord leases to Tenant and Tenant leases from Landlord
certain premises containing approximately 44,887 rentable square feet of space comprising the
entirety of (i) that certain building located at 701 Ocean Front Walk, Los Angeles, California
90291 (the "Initial Premises"), and (ii) that certain building located at 619 Ocean Front Walk,
Los Angeles, California 90291 (the "Must-Take Space").
B. Landlord and Tenant entered into that certain Short Term Lease dated as of
January 8, 2015 (the "Short Lease"), pursuant to which Landlord leases to Tenant and Tenant
leases from Landlord certain space comprising a portion of the Initial Premises commonly
known as "Unit 6" and containing approximately 3,353 rentable square feet of space for a term
which commenced on January 9, 2015.
C. Except as otherwise set forth herein, all capitalized terms used in this First
Amendment shall have the same meaning as such terms have in the Lease.
D. Landlord and Tenant desire to amend the Lease to confirm the Lease
Commencement Date and Lease Expiration Date and certain other matters, as hereinafter
provided.
1. Confirmation of Dates. The parties hereby confirm that: (i) the Initial Premises
have been delivered to Tenant; (ii) the Lease Term commenced as of February 15, 2015 (the
"Lease Commencement Date") for a term ending on February 28, 2022 (the "Lease Expiration
Date"), unless sooner terminated as provided in the Lease or extended pursuant to the Extension
Option Rider attached to the Lease; and (iii) the Short Term Lease expired at 11:59 p.m. on
February 14, 2015.
3. No Further Modification. Except as set forth in this First Amendment, all of the
terms and provisions of the Lease shall remain unmodified and in full force and effect.
IN WITNESS WHEREOF, this First Amendment has been executed as of the day and
year first above written.
"Landlord":
By:
Name:
Its:
"Tenant":
SNAPCHAT, INC.,
a Delaware corporation
By:
Name:
Its:
By:
Name:
Its:
EXHIBIT B
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CONSENT TO SUBLEASE
RECITALS:
A. Landlord and Tenant entered into that certain Lease dated as of December 9, 2014
(the "Original Lease"), as amended by that certain (i) First Amendment to Lease dated as of
March 6, 2015 (the "First Amendment"), and (ii) Second Amendment to Lease dated as of May 19,
2015 (the "Second Amendment", and together with the Original Lease and the First Amendment,
collectively referred to herein as, the "Lease"), pursuant to which Landlord currently leases to
Tenant, and Tenant currently leases from Landlord, certain "Premises", as more fully described in
the Lease, consisting of (i) that certain building located at 701 Ocean Front Walk, Los Angeles,
California 90291, and (ii) that certain building located at 619 Ocean Front Walk, Los Angeles,
California 90291.
C. All defined terms not otherwise expressly defined herein shall have the respective
meanings given in the Lease.
AGREEMENT:
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Subtenant to Landlord, be deemed a waiver by Landlord of any provision of the Lease or serve to
release Tenant from any liability under the terms, covenants, conditions, provisions or agreements
under the Lease. Notwithstanding the foregoing, any other payment of rent from Subtenant
directly to Landlord, regardless of the circumstances or reasons therefor, shall in no manner
whatsoever be deemed an attornment by Subtenant to Landlord in the absence of a specific written
agreement signed by Landlord to such an effect.
4. Subtenant Spaces. Without limiting Tenant's and Landlord's respective rights under
the Lease (including Section 12(a) of the Sublease and Article 23 of the Lease), Tenant and
Subtenant hereby acknowledge and agree that the Sublease is hereby amended to clarify and
confirm that (i) the Subtenant Spaces are unreserved parking spaces in the Parking Area,
(ii) Tenant (or Landlord, as the case may be) shall have the right to cause such Subtenant Spaces
to be located in any portion and in any configuration in the Parking Area that Tenant (or Landlord,
as the case may be) may determine, in its sole and absolute discretion, and (iii) if Tenant (or
Landlord, as the case may be) elects to institute a valet parking program for some or all of the
Parking Area, then Subtenant shall agrees that the Subtenant Spaces shall be subject to such valet
parking program, and Subtenant shall comply with such valet parking program.
5. General Provisions.
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d. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto, their heirs, successors and permitted assigns. As used herein, the
singular number includes the plural and the masculine gender includes the feminine and neuter.
g. Attorneys' Fees. If either party commences litigation against the other for
the specific performance of this Agreement, for damages for the breach hereof or otherwise for
enforcement of any remedy hereunder, the parties hereto agree to and hereby do waive (to the
maximum extent permitted by applicable law) any right to a trial by jury and, in the event of any
such commencement of litigation, the prevailing party shall be entitled to recover from the other
party such costs and reasonable attorneys' fees as may have been incurred.
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DocuSign Envelope ID: 1096F63E-6231-4C6B-BC02-5572EEA99AE9
Case 19-10573-KG Doc 31-14 Filed 05/06/19 Page 137 of 138
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year
first above written.
"Landlord"
By:
Name:
Title:
"Tenant"
SNAP INC.,
a Delaware corporation
(f/k/a Snapchat, Inc., a Delaware corporation)
By:
Name:
Title:
By:
Name:
Title:
"Subtenant"
COMMUNICLIQUE, INC.,
a Delaware corporation
By:
Name: Andrew Powers
Title: Founder, CEO
By:
Name:
Title:
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EXHIBIT A
THE SUBLEASE
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