Opinion
George and Marie Burnett appeal from a judgment on the pleadings in favor of Chimney Sweep, LLC, and Courtland-Dane Management Group, Inc., respondents. They also appeal from postjudgment orders awarding attorney fees to respondents. The action arises from the growth of mold in premises leased by appellants from Chimney Sweep. Courtland-Dane is Chimney Sweep’s property manager.
Appellants contend: (1) respondents’ motions for judgment on the pleadings were untimely; (2) in ruling on the motions, the trial court erroneously considered extrinsic evidence; (3) judgment on the pleadings was erroneously granted; (4) the trial court abused its discretion in refusing to grant leave to amend the complaint; (5) Courtland-Dane was not entitled to attorney fees because it was not a party to the lease; and (6) the attorney fees awarded were excessive. We reverse the order granting judgment on the pleadings. This moots the fourth, fifth and sixth contentions.
Procedural and Factual Background
Commencing September 1, 1998, Chimney Sweep leased to appellants a commercial space (hereafter the premises) consisting of approximately 470 square feet in a hotel in Solvang. Appellants were doing business as Beau Monde Perfumes. The lease permitted them to use the premises as a “gift shop and hotel convenience shop.”
On April 5, 2002, appellants filed a complaint against respondents alleging seven causes of action: premises liability, general negligence, breach of contract, negligent maintenance of premises, negligent maintenance of nuisance, intentional infliction of emotional distress, and conversion. In the complaint, appellants alleged as follows: when they “entered the [premises] in 1998, they observed water stains on the back wall and ceiling of the [premises].” Between April and September 2001, they “observed the existence of excessive moisture and the growth of mildew and mold” on the premises. The complaint did not state the cause or source of the excessive moisture.
Appellants “immediately and repeatedly notified” respondents of this “dangerous condition” and requested that it “be repaired.” Respondents refused to repair it. Appellants, consequently, “inhale[d] the toxic airborne spores and fumes emitted from the mold,” sustaining “severe physical injury and discomfort, and severe emotional and mental distress.” Furthermore, their “business inventory and belongings” became “contaminated by toxic mold and airborne mold spores,” requiring “immediate and extensive cleaning and/or disposal . . . .” Appellants were unable “to conduct their business” at the premises.
In moving for judgment on the pleadings, respondents contended that paragraphs 8.4 and 8.8 of the lease shielded them from liability. Paragraph 8.4 required appellants to maintain “full replacement cost” insurance coverage on their personal property. Paragraph 8.8 was entitled “Exemption of Lessor from Liability.” It provided; “Lessor shall not be liable for injury or damage to the person or goods, wares, merchandise, or other property of Lessee, . . . whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether said injury or damage results from conditions arising upon the Premises or upon other portions of the Building of which the Premises are
Relying on paragraphs 8.4 and 8.8 of the lease, the trial court granted the motions for judgment on the pleadings. It awarded attorney fees of $101,600 to Chimney Sweep and $38,020 to Courtland-Dane. 1
The Trial Court Did Not Err in Granting Permission to File Untimely Motions for Judgment on the Pleadings
The trial court granted respondents’ applications for permission to file untimely motions for judgment on the pleadings. Appellants contend that the trial court erred because respondents failed to establish good cause for the late filings.
Appellants’ contention is without merit. The applicable statute—Code of Civil Procedure section 438, subdivision (e)
2
—“authorizes the trial court to permit late filings of such motions and does not specify any grounds which might serve to limit its power to do so.”
(Sutherland
v.
City of Fort Bragg
(2000)
“It is evident that whether to grant. . . leave [to file a late motion for judgment on the pleadings] is a matter residing in the trial court’s discretion to control litigation before it.”
(Sutherland v. City of Fort Bragg, supra,
The Trial Court Did Not Erroneously Consider Extrinsic Evidence
“Presentation of extrinsic evidence is . . . not proper on a motion for judgment on the pleadings. [Citation.]”
(Cloud
v.
Northrop Grumman Corp.
(1998)
In support of their motions for judgment on the pleadings, respondents provided a signed, completed copy of the lease. Appellants did not object to the trial court’s consideration of this copy. In their written opposition to respondents’ motions, appellants quoted verbatim from paragraph 1.2(a) of the signed copy.
In the absence of an objection, the trial court could consider the signed copy of the lease. (See
Pomona College
v.
Superior Court
(1996)
Appellants, on the other hand, objected to the trial court’s consideration of the management contract between Chimney Sweep and Courtland-Dane. The trial court, however, expressly stated that it did not consider the management agreement: “[Appellants] say that I relied upon the management agreement, which I couldn’t, and I didn’t. . . .” “[A]ll I relied upon was the lease itself and the pleadings . . . .”
Judgment on the Pleadings Was Erroneously Granted
A. Standard of Review
“A motion for judgment on the pleadings performs the same function as a general demurrer, and hence attacks only defects disclosed on the face of the pleadings or by matters that can be judicially noticed. [Citations.]”
(Cloud
v.
Northrop Grumman Corp., supra, 61
Cal.App.4th at p. 999.) “ ‘Our only task in reviewing a ruling on a demurrer is to determine whether the complaint states a cause of action.’ ”
(People ex rel. Lungren v. Superior Court
(1996)
Because a motion for judgment on the pleadings, like a demurrer, raises only questions of law, we may consider new theories on appeal to challenge or justify the trial court’s ruling.
(O’Neil
v.
General Security Corp.
(1992)
B. Chimney Sweep
Appellants contend that the exculpatory clause of paragraph 8.8 did not preclude them from stating a cause of action against Chimney Sweep. They maintain that the clause was unenforceable. An exculpatory clause “may stand only if it does not involve ‘the public interest.’ ”
(Tunkl v. Regents of University of California
(1963)
We disagree. An invalid exculpatory clause affecting the public interest “involves a transaction which exhibits some or all of the following [six] characteristics. [1] It concerns a business of a type generally thought suitable for public regulation. [2] The party seeking exculpation is engaged in performing a service of great importance to the public, which is often a matter of practical necessity for some members of the public. [3] The party holds himself out as willing to perform this service for any member of the public who seeks it, or at least for any member coming within certain established standards. [4] As a result of the essential nature of the service, in the economic setting of the transaction, the party invoking exculpation possesses a decisive advantage of bargaining strength against any member of the public who seeks his services. [5] In exercising a superior bargaining power the party confronts the public with a standardized adhesion contract of exculpation, and makes no provision whereby a purchaser may pay additional
reasonable fees and obtain protection against negligence. [6] Finally, as a result of the transaction, the person or property of the purchaser is placed under the control of the seller, subject to the risk of carelessness by the seller or his agents.”
(Tunkl
v.
Regents of University of California, supra,
The matter, however, is not resolved simply because the exculpatory clause has no impact upon the public interest. “[T]he law does not look with favor upon attempts to avoid liability or secure exemption for one’s own negligence, and such provisions are strictly construed against the person relying upon them. [Citations.]”
(Basin Oil Co. of Cal.
v.
Baash-Ross Tool Co.
(1954)
The exculpatory clause of paragraph 8.8 contains two provisions that concern us. The first provision shields Chimney Sweep from liability for property damage or personal injury. This provision does not specifically
mention negligence. Accordingly, this provision would ordinarily be construed as shielding Chimney Sweep from liability “only for passive negligence, not for active negligence.”
(Salton Bay Marina, Inc. v. Imperial Irrigation Dist., supra,
“Whether conduct constitutes active or passive negligence depends upon the circumstances of a given case and is ordinarily a question for the trier of fact; active negligence may be determined as a matter of law, however, when the evidence is so clear and undisputed that reasonable persons could not disagree. [Citations.]”
(Rossmoor Sanitation, Inc. v. Pylon, Inc., supra,
The
Butt
v.
Bertola
court concluded that an exculpatory clause in the lease did not shield the landlords from liability for their active negligence. The clause, which did not specifically mention negligence, was similar to the first provision of the exculpatory clause in paragraph 8.8 of appellants’ lease. The clause provided: “ ‘It is agreed by the parties hereto, that said Lessor shall not be liable for damages to any goods, property, or effects in or upon said demised premises, caused by gas, water, or other fluid from any source whatsoever.’ ”
(Butt v. Bertola, supra,
Based on the allegations in appellants’ complaint, Chimney Sweep was actively negligent in refusing to remediate the problems caused by the excessive moisture and mold infestation on the premises. Chimney Sweep contends that it had no duty to take remedial action. It relies on paragraph 7.1(a) of the lease, which imposed on appellants the duty to “keep the
Premises and every part thereof in good order, condition and repair . . . ,”
4
The excessive moisture, however, might have been due to a leak from an area of the hotel under Chimney Sweep’s control, such as the roof, a hotel room, or a common area. Furthermore, the mold might have migrated to the premises from an area under Chimney Sweep’s control. These are factual issues that cannot be resolved on a motion for judgment on the pleadings. In these circumstances, it cannot be said as a matter of law that the exculpatory clause shields Chimney Sweep from liability.
(Butt v. Bertola, supra,
The scope of the exculpatory clause is not affected by paragraph 8.4 of the lease, which required appellants to maintain insurance coverage on their personal property. Nothing in the lease suggests that, if Chimney Sweep’s active negligence caused damage to appellants’ personal property, their sole recourse would be to file a claim with their insurance company.
Chimney Sweep argues that, irrespective of the exculpatory clause, the trial court properly granted judgment on the pleadings as to the cause of action for intentional infliction of emotional distress. The elements of this cause of action are: “(1) extreme and outrageous conduct by the defendant with the intention of causing, or reckless disregard of the probability
Chimney Sweep contends that the complaint’s allegations do not meet the standard of extreme and outrageous conduct required to state a claim.
5
The contention is without merit. In
Stoiber
v.
Honeychuck
(1980)
The trial court, therefore, erroneously granted Chimney Sweep’s motion for judgment on the pleadings.
C. Courtland-Dane
Appellants contend that the trial court erred in applying the exculpatory clause of paragraph 8.8 to Courtland-Dane because it was neither a party to the lease nor a third party beneficiary. Courtland-Dane argues that, based on the allegations in the complaint, appellants are precluded from denying that it was a party to the lease. Appellants alleged: “[Appellants] entered into a written lease agreement and addendum thereto . . ., under the terms of which CHIMNEY SWEEP and COURTLAND-DANE, and each of them, rented the Property to [appellants] . . . .” This allegation was incorporated in each of the seven causes of action against Courtland-Dane.
But the signed and completed copy of the lease, provided to the trial court by Courtland-Dane, shows that it was not a party to the lease. The lease never mentions Courtland-Dane. It designates “Chimney Sweep Inn LLC” as sole lessor of the premises. The actual lease takes precedence over appellants’ allegations as to its contents. (See
Byrne
v.
Harvey
(1962)
Thus, the exculpatory clause could not be applied to Courtland-Dane as a party to the lease. Nor could it be applied on the ground that Courtland-Dane was a third party beneficiary. Civil Code section 1559 governs third party beneficiary law. It provides: “A contract, made expressly for the benefit of a
third person, may be enforced by him at any time before the parties thereto rescind it.”
(Ibid.)
“This section excludes enforcement of a contract by persons who are only incidentally or remotely benefited by it. [Citation.]”
(Martinez
v.
Socoma Companies, Inc.
(1974)
The parties to the lease clearly did not intend that the exculpatory clause would benefit the lessor’s property manager. The clause is entitled, “Exemption of Lessor from Liability.” It does not mention any third parties. In contrast, the indemnification clause of paragraph 8.7 expressly applies to “Lessor and its agents.”
The exculpatory clause, therefore, cannot prevent appellants from stating a cause of action against Courtland-Dane. Even if the exculpatory clause had applied to Courtland-Dane, there still would have been a question whether Courtland-Dane had been actively negligent.
The allegations of appellants’ tort claims against Courtland-Dane are sufficient to survive a motion for judgment on the pleadings. (See Stoiber v. Honeychuck, supra, 101 Cal.App.3d at pp. 928-931 [causes of action in tort may be stated against landlord’s property manager for failure to correct defective conditions].) Appellants alleged: (1) Courtland-Dane was “in the business of leasing and managing the Property” and was acting as Chimney Sweep’s agent; (2) as manager, Courtland-Dane “had a duty to repair and remedy any defective and/or dangerous, uninhabitable, and unsafe condition on the Property”; (3) despite Courtland-Dane’s “knowledge and awareness of the dangerous condition of the Property, [it] unreasonably failed, refused, and breached [its] duty to repair the dangerous conditions or remove the existence of excessive moisture and the growth of mildew and mold in the Property and to maintain the Property in a reasonably safe condition”; and (4) as a result of Courtland-Dane ’ s refusal to take remedial action, appellants suffered damages.
On the other hand, Courtland-Dane is entitled to judgment on the pleadings as to the cause of action for breach of contract because it was not a party to the lease.
Disposition
The judgment on the pleadings and orders awarding attorney fees are reversed. The trial court is directed to enter a new and different order denying the motions for judgment on the pleadings, except that it shall grant Courtland-Dane’s motion as to the third cause of action for breach of contract. Appellants shall recover their costs on appeal.
Gilbert, P. J., and Perren, J., concurred.
Notes
The orders awarding attorney fees are not included in the record on appeal. Pursuant to Evidence Code sections 452, subdivision (d), and 459, subdivision (a), we take judicial notice of the following documents in the trial court’s file, case No. 1088878: (1) the order filed June 4, 2003, awarding attorney fees of $101,600 to Chimney Sweep; and (2) the order filed December 26, 2003, awarding attorney fees of $38,020 to Courtland-Dane.
All statutory references are to the Code of Civil Procedure unless otherwise stated.
Rossmoor Sanitation, Inc. v. Pylon, Inc., supra,
Paragraph 7.1(a) of the lease provides: “(a) . . . Lessee shall, at Lessee’s sole cost and expense and at all times, keep the Premises and every part thereof in good order, condition and repair (whether or not such portion of the Premises requiring repair, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee’s use, any prior use, the elements or the age of such portion of the Premises), including, without limiting the generality of the foregoing, all equipment or facilities specifically serving the Premises, such as plumbing, heating, air conditioning, ventilating, electrical, lighting facilities, boilers, fired or unfired pressure vessels, fire hose connections if within the premises, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, and skylights, but excluding any items which are the responsibility of Lessor pursuant to Paragraph 7.2 below. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices. Lessee’s obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair.”
Paragraph 7.2 provides in part: “Lessor’s Obligations. . . . Lessor . . . shall keep in good order, condition and repair the foundations, exterior walls, structural condition of interior bearing walls, exterior roof, fire sprinkler and/or standpipe and hose (if located in the Common Areas) or other automatic fire extinguishing system including fire alarm and/or smoke detection systems and equipment, fire hydrants, parking lots, walkways, parkways, driveways, landscaping, fences, signs and utility systems serving the Common Areas and all parts thereof . . . .”
Courtland-Dane makes the same contention.
