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19SMCV00211

Case 19-10573-KG Doc 31-14


Electronically FILED by Superior Court of California, County of Los Angeles on 02/01/2019 Filed 05/06/19 Page 2 of 138
01:17 PM Sherri R. Carter, Executive Officer/Clerk of Court, by M. Mariscal,Deputy Clerk
Assigned for all purposes to: Santa Monica Courthouse, Judicial Officer: Craig Karlan

1 David M. Cohen, Esq. (SBN: 160535)


david@davidcohen-law.com
2 DAVID M. COHEN, A Professional Law Corporation
5950 Canoga Ave., Suite 605
3 Woodland Hills, California 91367
Telephone: (818) 855-5905
4 Facsimile: (818) 855-5915

5 Attorneys for Plaintiff


Snap Inc., a Delaware corporation
6

8 SUPERIOR COURT OF THE STATE OF CALIFORNIA

9 COUNTY OF LOS ANGELES – WEST DISTRICT

10

11 Snap Inc., a Delaware corporation, ) Case No.


)
12 Plaintiff, ) COMPLAINT FOR BREACH OF
) SUBLEASE (Civil Code § 1951.4)
13 vs. )
) [Unlimited Jurisdiction]
14 Communiclique, Inc., a Delaware corporation; )
and DOES 1 through 10, inclusive, )
15 )
Defendant. )
16 )

17

18 Snap Inc., a Delaware corporation (“Plaintiff”) alleges as follows:

19 I.

20 PRELIMINARY ALLEGATIONS

21 A. The Parties.

22 1. At all times mentioned herein, Plaintiff was and now is a Delaware corporation,

23 lawfully doing business in the State of California, County of Los Angeles.

24 2. Plaintiff is informed and believes that, at all times mentioned herein, defendant

25 Communiclique, Inc. (collectively with the below described DOE defendants, “Defendants”) is and

26 was a Delaware corporation doing business in the State of California, County of Los Angeles.

27 3. The true names and capacities, whether individual, corporate, associate or otherwise,

28 of Defendants named herein as Does 1 through 10, inclusive, are unknown to Plaintiff, who

Case No.
COMPLAINT
6169.003
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1 therefore sues such Defendants by such fictitious names. Plaintiff alleges, on information and

2 belief, that defendants Does 1 through 10, inclusive, were in some manner in possession of the

3 Premises set forth herein and/or responsible and/or liable for the damages and/or action alleged

4 herein. Plaintiff will amend this Complaint to show and/or add the true names and capacities of

5 such fictitiously named defendants when the same has been ascertained.

6 4. Plaintiff alleges on information and belief that at all times mentioned herein, each of

7 the Defendants was and now is the agent, servant, employee, representative and/or alter ego of each

8 of the other Defendants, and in doing the things hereinafter mentioned, was acting within the scope

9 of his/her authority as such agent, servant, employee, representative and/or alter ego, with the

10 permission and consent of the remaining defendants.

11 B. The Sublease.

12 5. On or about August 22, 2018, Plaintiff, as Sublandlord, and Defendants, as

13 Subtenant, entered into a written Sublease Agreement (the “Sublease”) whereby Defendants leased

14 a portion of the premises located at 701 Ocean Front Walk, Los Angeles, CA 90291 (the

15 “Premises”) from Plaintiff . A true and correct copy of the Sublease is attached hereto as Exhibit

16 “A” and is incorporated herein by this reference.

17 6. Plaintiff is the Tenant under a written Lease dated December 9, 2014, as amended in

18 writing on March 6, 2015 by a written First Amendment to Lease and as amended in writing on

19 May 19, 2015 by a written Second Amendment to Lease (collectively, the “Master Lease”). In

20 connection with the Sublease, Plaintiff sought and obtained the consent of the “Master Landlord”

21 under the Master Lease. A true and correct copy of the written Consent to Sublease dated

22 September 26, 2018 is attached hereto as Exhibit “B” and is incorporated herein by this reference.

23 7. Plaintiff currently is the tenant of the Premises and holds all of the right, title and

24 interest of the Sublandlord under the Sublease.

25 8. The Sublease at Section 17 provides that the prevailing party in any litigation under

26 the Sublease shall be entitled to recover its attorneys' fees and court costs from the losing party.

27 9. Plaintiff has retained the firm of David M. Cohen, A Professional Law Corporation

28 to protect its rights under the Sublease, and has incurred and will continue to incur an unascertained

2 Case No.
COMPLAINT
6169.003
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1 amount of reasonable attorneys' fees and costs. Plaintiff will seek those amounts at the time of

2 trial.

3 C. Default by Defendants / Non-Termination of Sublease.

4 10. As more fully set forth in the Sublease, Defendants are required during the term of

5 the Sublease to pay monthly Rent. The total monthly Rent at the current time is $59,384.40.

6 Further, the Sublease provides for additional, non-recurring, sums that are deemed Rent.

7 11. Notwithstanding the requirements of the Sublease, Tenants failed and refused to

8 make all the payments of Rent due under the Sublease, failed to provide the Security Deposit

9 required by the Sublease, failed to provide other required items such as proof of insurance and,

10 thereafter, refused possession of the Premises. Plaintiff sent formal notice of default to Defendants

11 according to the terms of the Sublease and informed Defendants that it would subsequently

12 determine whether it would proceed under Civil Code § 1951.2 or 1951.4. By way of service of

13 this complaint, Plaintiff notifies Defendants that it elects to proceed under Civil Code § 1951.4.

14 The Sublease incorporates certain portions of the Master Lease, including its remedies, which

15 provide that Plaintiff has all of the rights and remedies set forth in of Civil Code § 1951.4.

16 II.

17 FIRST CAUSE OF ACTION

18 (For Breach of Sublease Against Defendants)

19 12. Plaintiff realleges and reincorporates by reference herein each and every allegation

20 contained in paragraphs 1 though 11, inclusive, as if set forth fully hereat.

21 13. Defendants breached the Sublease, by, among other things, failing to pay the full

22 amount of Rent owing.

23 14. Under the terms of the Sublease, Defendants are liable for Rent and damages for the

24 months of August 2018 (partial) through February 2019, in the total amount of $373,547.03.

25 Further service of this complaint shall be deemed to be the notice pursuant to section 4(c) of the

26 Sublease that a 5% late fee will be incurred on the foregoing sum if it is not paid in full within five

27 (5) days of service of the complaint. Plaintiff reserves the right to amend this complaint to add

28 each month’s Rent as it comes due under the Sublease.

3 Case No.
COMPLAINT
6169.003
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1 15. Plaintiff has performed all of its obligations under the Sublease, except those

2 obligations prevented or excused by acts of the Defendants and/or third parties.

3 16. By reason of the foregoing, Plaintiff is entitled to recover from Defendants damages

4 in an amount of $373,547.03, plus interest, attorneys' fees, costs of suit and any other consequential

5 damages permitted under the Sublease, according to proof at time of trial, all within the jurisdiction

6 of this Court.

7 17. Further, to the extent that Defendants wish to cure their default, they must also pay

8 the Security Deposit of $276,012.00 owing under the Sublease and cure all outstanding non-

9 monetary defaults as well.

10

11 WHEREFORE, Plaintiff prays for judgment against the Defendants as follows:

12 1. For damages according to proof, but in no event less than $373,547.03;

13 2. For interest according to law;

14 3. For reasonable attorneys’ fees;

15 4. For costs of suit incurred herein; and

16 5. For such other and further relief as the Court deems just and proper.

17

18 Dated: February 1, 2019 DAVID M. COHEN, A Professional Law Corporation


19

20 By:
David M. Cohen
21 Attorneys for Plaintiff
Snap Inc., a Delaware corporation
22

23

24

25

26

27

28

4 Case No.
COMPLAINT
6169.003
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EXHIBIT A
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FIRST AMENDMENT TO LEASE

This FIRST AMENDMENT TO LEASE (this "First Amendment") is made and entered
into effective as of March 6, 2015, by and between THORNTON VENICE OWNER, LLC, a
Delaware limited liability company ("Landlord") and SNAPCHAT, INC., a Delaware
corporation ("Tenant").

RECITALS:

A. Landlord and Tenant entered into that certain Lease dated as of December 9, 2014
(the "Lease"), pursuant to which Landlord leases to Tenant and Tenant leases from Landlord
certain premises containing approximately 44,887 rentable square feet of space comprising the
entirety of (i) that certain building located at 701 Ocean Front Walk, Los Angeles, California
90291 (the "Initial Premises"), and (ii) that certain building located at 619 Ocean Front Walk,
Los Angeles, California 90291 (the "Must-Take Space").

B. Landlord and Tenant entered into that certain Short Term Lease dated as of
January 8, 2015 (the "Short Lease"), pursuant to which Landlord leases to Tenant and Tenant
leases from Landlord certain space comprising a portion of the Initial Premises commonly
known as "Unit 6" and containing approximately 3,353 rentable square feet of space for a term
which commenced on January 9, 2015.

C. Except as otherwise set forth herein, all capitalized terms used in this First
Amendment shall have the same meaning as such terms have in the Lease.

D. Landlord and Tenant desire to amend the Lease to confirm the Lease
Commencement Date and Lease Expiration Date and certain other matters, as hereinafter
provided.

NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual


covenants contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Confirmation of Dates. The parties hereby confirm that: (i) the Initial Premises
have been delivered to Tenant; (ii) the Lease Term commenced as of February 15, 2015 (the
"Lease Commencement Date") for a term ending on February 28, 2022 (the "Lease Expiration
Date"), unless sooner terminated as provided in the Lease or extended pursuant to the Extension
Option Rider attached to the Lease; and (iii) the Short Term Lease expired at 11:59 p.m. on
February 14, 2015.

2. Confirmation of Brokerage Commissions. The parties hereby confirm that the


brokerage commissions that have been paid (or will be paid) by Landlord for the Initial Premises
in connection with the Lease equals $677,616.05.

3. No Further Modification. Except as set forth in this First Amendment, all of the
terms and provisions of the Lease shall remain unmodified and in full force and effect.

1009626.01/LA THORNTON VENICE OWNER, LLC


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IN WITNESS WHEREOF, this First Amendment has been executed as of the day and
year first above written.

"Landlord":

THORNTON VENICE OWNER, LLC,


a Delaware limited liability company

By:
Name:
Its:

"Tenant":

SNAPCHAT, INC.,
a Delaware corporation

By:
Name:
Its:

By:
Name:
Its:

1009626.01/LA THORNTON VENICE OWNER, LLC


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EXHIBIT B
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CONSENT TO SUBLEASE

THIS CONSENT TO SUBLEASE (this "Agreement") is made as of September 26, 2018,


by and among THORNTON VENICE OWNER, LLC, a Delaware limited liability company
("Landlord"), SNAP INC., a Delaware corporation (f/k/a Snapchat, Inc., a Delaware corporation)
("Tenant"), and COMMUNICLIQUE, INC., a Delaware corporation ("Subtenant").

RECITALS:

A. Landlord and Tenant entered into that certain Lease dated as of December 9, 2014
(the "Original Lease"), as amended by that certain (i) First Amendment to Lease dated as of
March 6, 2015 (the "First Amendment"), and (ii) Second Amendment to Lease dated as of May 19,
2015 (the "Second Amendment", and together with the Original Lease and the First Amendment,
collectively referred to herein as, the "Lease"), pursuant to which Landlord currently leases to
Tenant, and Tenant currently leases from Landlord, certain "Premises", as more fully described in
the Lease, consisting of (i) that certain building located at 701 Ocean Front Walk, Los Angeles,
California 90291, and (ii) that certain building located at 619 Ocean Front Walk, Los Angeles,
California 90291.

B. Pursuant to the terms of Article 14 of the Lease, Tenant delivered a letter to


Landlord dated August 22, 2018 (the "Consent Request Letter") requesting Landlord's consent to
that certain Sublease Agreement, dated as of August 22, 2018, between Tenant and Subtenant (the
"Sublease"), with respect to a subletting by Subtenant of a portion of the Premises, as more
particularly described in the Sublease (the "Sublet Premises"). A copy of the Sublease is attached
hereto as Exhibit A. Landlord is willing to consent to the Sublease on the terms and conditions
contained herein.

C. All defined terms not otherwise expressly defined herein shall have the respective
meanings given in the Lease.

AGREEMENT:

1. Landlord's Consent. Landlord hereby consents to the Sublease; provided however,


notwithstanding anything contained in the Sublease to the contrary, such consent is granted by
Landlord only upon the terms and conditions set forth in this Agreement (and to the extent the
Sublease is inconsistent with the terms and conditions of this Agreement, the Sublease shall be
deemed to be modified to incorporate such inconsistent terms and conditions). Without limiting
the foregoing, none of the terms, conditions or requests set forth in the Consent Request Letter
(including, without limitation, the matters set forth in the penultimate paragraph of the Consent
Request Letter) shall be applicable, and accordingly, such terms, conditions and requests set forth
in the Consent Request Letter shall have no force or effect, and the terms and conditions of this
Agreement shall control and govern. The Sublease is subject and subordinate to the Lease. Unless
and to the extent Landlord makes the election set forth in Section 3(b) below, Landlord shall not
be bound by any of the terms, covenants, conditions, provisions or agreements of the Sublease,
except as otherwise expressly set forth in this Agreement.

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2. Non-Release of Tenant; Further Transfers. Neither the Sublease nor this


Agreement shall release or discharge Tenant from any liability, whether past, present or future,
under the Lease or alter the primary liability of Tenant to pay the rent and perform and comply
with all of the obligations of Tenant to be performed under the Lease (including the payment of
all bills rendered by Landlord for charges incurred by Subtenant for services and materials supplied
to the Sublet Premises). Neither the Sublease nor this Agreement shall be construed as a waiver
of Landlord's right to consent to any further subletting either by Tenant or by Subtenant or to any
assignment by Tenant of the Lease or assignment by Subtenant of the Sublease, or as a consent to
any portion of the Sublet Premises being used or occupied by any other party.

3. Relationship With Landlord. Tenant hereby assigns and transfers to Landlord


Tenant's interest in the Sublease and all rentals and income arising therefrom, subject to the terms
of this Section 3. Landlord, by consenting to the Sublease agrees that until a default shall occur in
the performance of Tenant's obligations under the Lease which continues beyond all applicable
notice and cure periods, Tenant may receive, collect and enjoy the rents accruing under the
Sublease. In the event of the voluntary or involuntary termination of the Lease for any reason,
including, without limitation, termination due to (a) Tenant's default in the performance of its
obligations to Landlord under the Lease beyond the expiration of all applicable notice and cure
periods, or (b) the voluntary agreement between Landlord and Tenant to terminate the Lease prior
to the scheduled expiration date thereof (Subtenant hereby expressly acknowledging and agreeing
that Landlord and Tenant shall have the right to so voluntarily terminate the Lease prior to the
scheduled expiration date if Landlord and Tenant mutually agree in writing to do so, in each of
their respective sole and absolute discretion), Landlord may, at its option by notice to Tenant,
either (1) terminate the Sublease, or (2) elect to succeed to Tenant's interest in the Sublease and
cause Subtenant to attorn to Landlord, as further set forth in Section 3(b) below. In addition to,
and without limiting any of Landlord's other rights under the Lease or this Agreement, in the event
Tenant shall default in the performance of its obligations to Landlord under the Lease beyond the
expiration of all applicable notice and cure periods (and Landlord elects not to terminate the
Lease), Landlord may, at its option by notice to Tenant, elect to receive and collect, directly from
Subtenant, all rent and any other sums owing and to be owed under the Sublease, as further set
forth in, and subject to the provisions of, Section 3(a) below.

a. Landlord's Election to Receive Rents. Landlord shall not, by reason of the


Sublease, nor by reason of the collection of rents or any other sums from Subtenant pursuant to
the last sentence of Section 3 above, be deemed liable to Subtenant for any failure of Tenant to
perform and comply with any obligation of Tenant, and Tenant hereby irrevocably authorizes and
directs Subtenant, upon receipt of any written notice from Landlord stating that a default exists in
the performance of Tenant's obligations under the Lease which continues beyond all applicable
notice and cure periods, to pay to Landlord the rents and any other sums due and to become due
under the Sublease. Tenant agrees that Subtenant shall have the right to rely upon any such
statement and request from Landlord, and that Subtenant shall pay any such rents and any other
sums to Landlord without any obligation or right to inquire as to whether such default exists and
notwithstanding any notice from or claim from Tenant to the contrary. Tenant shall not have any
right or claim against Subtenant for any such rents or any other sums so paid by Subtenant to
Landlord. Landlord shall credit Tenant with any rent received by Landlord under such assignment
but the acceptance of any payment on account of rent from Subtenant as the result of any such
default shall in no manner whatsoever be deemed an attornment by Landlord to Subtenant or by

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Subtenant to Landlord, be deemed a waiver by Landlord of any provision of the Lease or serve to
release Tenant from any liability under the terms, covenants, conditions, provisions or agreements
under the Lease. Notwithstanding the foregoing, any other payment of rent from Subtenant
directly to Landlord, regardless of the circumstances or reasons therefor, shall in no manner
whatsoever be deemed an attornment by Subtenant to Landlord in the absence of a specific written
agreement signed by Landlord to such an effect.

b. Landlord's Election of Tenant's Attornment. In the event Landlord elects,


at its option, to cause Subtenant to attorn to Landlord pursuant to Section 3(iii) and/or 3(2) above,
Landlord shall undertake the obligations of Tenant under the Sublease from the time of the exercise
of the option, but Landlord shall not (i) be liable for any prepayment of more than one month's
rent or any security deposit paid by Subtenant (unless Landlord shall have actually and knowingly
received and expressly accepted some other sum of money from Tenant and/or Subtenant), (ii) be
liable for any previous act or omission of Tenant under the Lease or for any other defaults of
Tenant under the Sublease, (iii) be subject to any defenses or offsets previously accrued which
Subtenant may have against Tenant, or (iv) be bound by any changes or modifications made to the
Sublease without the written consent of Landlord, which consent may be withheld or granted in
accordance with the provisions of Article 14 of the Lease. The foregoing shall not affect any
obligations of Tenant and Subtenant vis-à-vis each other under the Sublease.

4. Subtenant Spaces. Without limiting Tenant's and Landlord's respective rights under
the Lease (including Section 12(a) of the Sublease and Article 23 of the Lease), Tenant and
Subtenant hereby acknowledge and agree that the Sublease is hereby amended to clarify and
confirm that (i) the Subtenant Spaces are unreserved parking spaces in the Parking Area,
(ii) Tenant (or Landlord, as the case may be) shall have the right to cause such Subtenant Spaces
to be located in any portion and in any configuration in the Parking Area that Tenant (or Landlord,
as the case may be) may determine, in its sole and absolute discretion, and (iii) if Tenant (or
Landlord, as the case may be) elects to institute a valet parking program for some or all of the
Parking Area, then Subtenant shall agrees that the Subtenant Spaces shall be subject to such valet
parking program, and Subtenant shall comply with such valet parking program.

5. General Provisions.

a. Consideration for Sublease. Tenant and Subtenant represent and warrant


that there are no additional payments of rent or any other consideration of any type payable by
Subtenant to Tenant with regard to the Sublet Premises other than as disclosed in the Sublease.

b. Broker. Tenant and Subtenant covenant and agree that under no


circumstances shall Landlord be liable for any brokerage commission or other charge or expense
in connection with the Sublease and Tenant and Subtenant agree to protect, defend, indemnify and
hold Landlord harmless from the same and from any cost or expense (including but not limited to
attorneys' fees) incurred by Landlord in resisting any claim for any such brokerage commission.

c. Controlling Law. The terms and provisions of this Agreement shall be


construed in accordance with and governed by the laws of the State of California.

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d. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto, their heirs, successors and permitted assigns. As used herein, the
singular number includes the plural and the masculine gender includes the feminine and neuter.

e. Captions. The paragraph captions utilized herein are in no way intended to


interpret or limit the terms and conditions hereof; rather, they are intended for purposes of
convenience only.

f. Partial Invalidity. If any term, provision or condition contained in this


Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or
the application of such term, provision or condition to persons or circumstances other than those
with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and
every other term, provision and condition of this Agreement shall be valid and enforceable to the
fullest extent possible permitted by law.

g. Attorneys' Fees. If either party commences litigation against the other for
the specific performance of this Agreement, for damages for the breach hereof or otherwise for
enforcement of any remedy hereunder, the parties hereto agree to and hereby do waive (to the
maximum extent permitted by applicable law) any right to a trial by jury and, in the event of any
such commencement of litigation, the prevailing party shall be entitled to recover from the other
party such costs and reasonable attorneys' fees as may have been incurred.

h. Reimbursement by Tenant. Concurrently upon execution of this Agreement


and in satisfaction of Tenant's obligation to reimburse Landlord for Landlord's review and
processing fees and legal fees incurred by Landlord in connection with this Agreement under
Section 14.1 of the Original Lease, Tenant shall pay to Landlord the amount of $2,807.50 as
reimbursement to Landlord for Landlord's attorneys' fees and other costs incurred by Landlord in
connection with the execution of this Agreement.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year
first above written.

"Landlord"

THORNTON VENICE OWNER, LLC,


a Delaware limited liability company

By:
Name:
Title:

"Tenant"
SNAP INC.,
a Delaware corporation
(f/k/a Snapchat, Inc., a Delaware corporation)

By:
Name:
Title:

By:
Name:
Title:

"Subtenant"
COMMUNICLIQUE, INC.,
a Delaware corporation

By:
Name: Andrew Powers
Title: Founder, CEO

By:
Name:
Title:

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EXHIBIT A

THE SUBLEASE

(Attached as Following Pages)

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