Discussion about Jury

THE CASE OF THE MEETING OF THE MINDS

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Plaintiff  Tarth signed a five-year commercial lease in July 2019 with the  Defendant, Oakshade Town Center, for space in a shopping center in  Davis, CA. A provision of the lease stated: “Lessee does not rely on the  fact nor does Lessor represent that any specific Lessee of type or  number of Lessees shall, during the term of this lease, occupy any space  in the Shopping Center”. Tarth vacated the premises in April 2021 and  sued Defendant for rescission and damages.

The Trial

Plaintiff  alleges that he entered into the lease in reliance on false statements  made by the defendant and its agent; that Dunkin Donuts, Wendy’s, and  Chipotle would be leasing and occupying sites near his and that they  would commence operations by the end of 2019. Dunkin Donuts and Wendy’s  never leased space. Chipotle became a tenant but not until December  2020.

Defendant admits that his agent discussed other tenants with  the Plaintiff. Defendant disputes the misrepresentation, claiming they  were not statements of fact, but statements of opinion about possible  future conduct and alleges, in any event, the alleged misrepresentation  was not material to the Plaintiff because of the provision in the lease  (stated above).

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Questions to Discuss

  • What do you think was the single biggest mistake made by Tarth?
  • Do  you believe the Defendant committed misrepresentation (fraud) and  why or why not? Be specific by using the facts and the definition of  misrepresentation and any defenses for the defendant if needed.
  • Could Tarth or Defendant have done anything to have avoided the problem, if there was one?
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