Nateghi v. Beauford Props. LLC

The evidence was legally insufficient for the defendant to recover lost profits as an element of damages caused by the plaintiff-tenant's wrongful occupancy of the property, as the defendant failed to present evidence demonstrating that its business had a proven record of profitability and failed to show anticipated revenues and expenses for the business it had intended to operate on the property.

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This appeal arises out a declaratory judgment action by lessee Mehdi Nateghi, who sought to affirm the validity of an alleged agreement to extend the term of his lease for the premises located at 887 Marietta Street in Atlanta the Property. The jury found for defendants Beauford Properties, LLC Beauford, the original owner and lessor of the Property, and 887 Marietta, LLC Marietta, the subsequent purchaser of the Property, on the issue of whether there was an agreement between Nateghi and Beauford to extend the terms of the lease. The jury, in a special verdict, also found for Beauford and Marietta on their counterclaims, and awarded Marietta, as pertinent to this appeal, $312,286.25 in damages for lost profits caused by Nateghi’s wrongful occupancy of the Property, and $97,319.64 in attorney fees. On appeal, Nateghi contends that the trial court erred in denying his motions in limine, for a directed verdict, and for a judgment notwithstanding the verdict. He also contends the court erred in awarding attorney fees. For the reasons set forth below, we find that the trial court erred in denying Nateghi’s motions for a directed verdict and for a judgment notwithstanding the verdict on the issue of Marietta’s damages for lost profits, and we direct that such damages be stricken from the judgment. However, we affirm the award of attorney fees. Accordingly, we reverse in part, affirm in part, and remand the case with direction.

Construed to uphold the jury’s verdict,1 the evidence shows that Beauford leased the Property to Nateghi under a Commercial Lease Agreement the Lease for a term which, as renewed, extended from October 10, 2007, through September 30, 2011. Nateghi negotiated the Lease with Howard Perling, a real estate broker. On September 30, 2010, Nateghi sent an e-mail to Perling asking that the rent be reduced to $1,800 per month. Perling, who was then managing the Property for Beauford, forwarded the e-mail to Beauford, which instructed Perling to stay on Nateghi and try to get the money.

Nateghi v. Beauford Props. LLC

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