Court Orders HomeBase to Pay Its Rent

HomeBase Inc. must pay back rent and attorney fees totaling more than $150,000 in a case stemming from its lease at a now-abandoned store in a Fullerton shopping mall, according to an Orange County court ruling.

The Irvine home center warehouse chain, faced with increased competition, pulled out of the Orangefair Marketplace Shopping Center earlier this year and failed to pay $109,380 in rent over October and November.

Superior Court Judge Frederick P. Horn ruled last week that HomeBase owed that amount plus $26,825 in rent for part of December and must pay attorney fees to shopping center owner Orangefair Co. LLC in Beverly Hills.

A HomeBase spokeswoman said the company doesn’t comment on pending litigation but added it does not consider the matter closed.

Orangefair claimed HomeBase had not paid $54,690 of its $59,690 monthly rent in each of the two months. Though HomeBase had left what was once its main store and executive offices, the landlord said the retailer retained rights to the property until July 2002, preventing the owner from leasing the building to another tenant.

So Orangefair also asked the court to break the lease as well as order HomeBase to pay it daily rent of $1,989.67 and court costs.

After a brief trial earlier this month, Horn ordered HomeBase to pay more than $136,000 in rent as well as attorney’s fees and costs. Gregg A. Martin, Orangefair’s attorney, said the fees and costs will amount to more than $15,000.

He said Orangefair now will file a breach-of-lease claim and try to recover money it is losing while the property is vacant and expenses it will incur to sign a new tenant. That claim could top $3 million, Martin said.