A commercial lease contained a standard integration provision stating that all prior representations and negotiations were merged into the Lease and that any figures given to the Tenant for common area maintenance (CAM) and other building expenses were only “estimates.” The Court of Appeal held that the tenant could still claim fraud and intentional misrepresentation when the landlord knew or should have known that the estimates of the tenant’s probable pro-rata share of property taxes, insurance and CAM expenses were grossly inaccurate.
Thrifty Payless Inc. vs. Americana at Brand LLC (2013) 218 CA 4th 1230