Often times, Tenants, when facing an eviction action, seek relief from forfeiture pursuant to C.C.P. § 1179. This requested relief usually comes up in Bankruptcy proceedings where a landlord seeks relief from the automatic stay, and if the Lease has any value, a trustee will likely oppose the stay relief so as to assume and assign the lease.
Section 1179, which a Tenant can avail itself of, is clear: “In no case shall the application or motion be granted except on condition that full payment of rent due, or full performance of conditions or covenants stipulated, so far as the same is practicable, be made. Id; see also Gill Petrolium, Inc. v. Hayer, (2006) 137 Cal. App. 4th 826, 833 (“So long as the court imposes the statutory conditions, the full payment of rent due or full performance of conditions or covenants so far as practicable, the court has broad equitable discretion to determine the conditions upon which relief will be granted”) (Emphasis added.)
Cal. Civ. Code § 3275 carries the same condition of forfeiture. See Cal. Civ. Code § 3275 (“Whenever, by the terms of an obligation, a party thereto incurs a forfeiture, or a loss in the nature of a forfeiture, by reason of his failure to comply with its provisions, he may be relieved therefrom, upon making full compensation to the other party, except in case of a grossly negligent, willful, or fraudulent breach of duty.”); see also Kelley v. Olympic Pharmacy, 144 Cal. App. 2d 43, 54 (Refusal of trial court to grant lessees relief against forfeiture was not an abuse of discretion, where there were many violations of the lease, and absence of an unequivocal and positive tender of all rents due.); see also Cambridge v. Webb, (1952) 109 Cal. App. 2d Supp. 936, 938 (Affirming trial court’s exercise of discretion denying tenant relief from forfeiture under Section 1179 where tenant failed to pay rent for five months.)
If you are a commercial landlord and are dealing with a tenant seeking relief from forfeiture, contact one of our commercial lease attorneys for a free consultation and case evaluation.