Jenny Craig Loses Case Over Broken Lease

Jenny Craig Inc. was ordered to pay $8.1 million in damages for breaking its lease on the building that had served as its headquarters.

A San Diego County Superior Court jury awarded $2.2 million in compensatory damages and $5.9 million in punitive damages to JLRB Associates, a family partnership that leased Jenny Craig a building along Interstate 5 in Del Mar.

Jenny Craig leased the building from 1988 to 1996. Problems began in 1994, when new management at Jenny Craig claimed the Lewis family was overcharging the company. The company gave less than two months’ notice when it moved out about 18 months before the lease expired.

After a monthlong trial, the jury found Tuesday that Jenny Craig had breached its contract and committed fraud.

William Dix, vice president and general counsel of Jenny Craig Inc., said the company will appeal.

Jenny Craig Inc. has a net worth of more than $59 million and had a net income of $2.9 million this year, according to evidence at trial.

La Jolla-based Jenny Craig’s stock fell 25 cents Thursday to close at $3.25 on the New York Stock Exchange.