Post-Riverisland World: Estimates Can Support A Claim For Fraud.

After a tenant moved into a shopping center, its share of expenses for property taxes, insurance and common maintenance substantially exceeded the landlord’s pre-lease-signing estimates. The tenant sued for fraud, rescission based on mutual mistake, mistake of fact, breach of lease and breach of the implied covenant of good faith and fair dealing. The trial court sustained the landlord’s demurrer without leave to amend, finding the negotiations constituted estimates and could not be statements of fact upon which a claim of fraud could be based, and the tenant failed to allege facts establishing innocent misrepresentation, mistake, breach of lease, and breach of the implied covenant. In reversing, the appellate court stated “estimates can support a claim for fraud.” Thrifty Payless, Inc. v. The Americana at Brand, LLC. (Cal. App. Second, Div. 1; August 14, 2013) 218 Cal.App.4th 1230, [160 Cal.Rptr.3d 718].