Motion for Leave to Amend Pleadings in TALKDESK, INC., A DELAWARE CORPORATION VS. BXP MISSION 335 LP,A DELWARE LIMITED PARTNERSHIP ET AL| Trellis.Law

On April 15, 2020 a Complaint,Petition was filed involving a dispute between Talkdesk, Inc., A Delaware Corporation, and Bxp Mission 335 Lp, Bxp Mission 335 Lp,A Delware Limited Partnership, Does 1 Through 100, Inclusive, for CONTRACT/WARRANTY in the District Court of San Francisco County.

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1 AYSE KENT (SBN 251114)
2 AK EMPLOYMENT LAW OFFICE
100 Pine Street, Suite 1250 ELECTRONICALLY
3 San Francisco, CA 94111 F I L E D
Tel: (415) 638-9471 Superior Court of California,
County of San Francisco
4 E-mail: ayse@aklaw.co
05/14/2020
5 Attorney for Plaintiff Clerk of the Court
BY: MADONNA CARANTO
Deputy Clerk
6

7 SUPERIOR COURT OF THE STATE OF CALIFORNIA

8 COUNTY OF SAN FRANCISCO – UNLIMITED CIVIL DIVISION
9

10 Talkdesk, Inc., a Delaware Corporation, Case. No. CGC-20-584152

11 Plaintiff, PLAINTIFF TALKDESK, INC.’S FIRST
AMENDED COMPLAINTF FOR
12 v. DECLARATORY, AND INJUNCTIVE
RELIEF, AND DAMAGES AND DEMAND
13
BXP Mission 335 LP, a Delaware Limited FOR JURY TRIAL
14 Partnership; and DOES 1 through 100,
inclusive, , 1. Breach of Contract;
15 2. Breach of Covenant of Good Faith and
Defendants. Fair Dealing;
16 3. Conversion;
4. Declaratory Relief.
17

19
20

FIRST AMENDED COMPLAINT
1 INTRODUCTION
2 Plaintiff Talkdesk, Inc. (“Plaintiff” or “Talkdesk”), by and through its attorney, hereby
3 complains against Defendant BXP Mission 335 LP (“BPX Mission” or “Defendant”) as follows:
4 JURISDICTION AND VENUE
5 1. Subject matter in this action is properly heard in this Court, as the action
6 incorporates an amount in controversy, as set forth in this Complaint, that exceeds $25,000.
7 2. Venue is proper in this judicial district, pursuant to California Code of Civil
8 Procedure § 395(a). Plaintiff and Defendant entered into an Office Lease in San Francisco,
9 California. Therefore, Defendant is within the jurisdiction of this Court for purposes of service
10 of process.
11 THE PARTIES
12 3. Plaintiff Talkdesk, Inc. is, and at all times mentioned in this Complaint was, a
13 corporation, incorporated under the laws of the State of Delaware, with its principal place of
14 business in San Francisco, California
15 4. Plaintiff is informed and believes, and thereon alleges that, at all relevant times,
16 Defendant BXP Mission 335 LP is a Delaware Limited Partnership renting office space in San
17 Francisco, California.
18 5. Defendants Does 1 to 100, inclusive, are sued under fictitious names pursuant to
19 Code of Civil Procedure section 474. Plaintiff is informed and believes, and on that basis
20 alleges, that each of the Defendants sued under fictitious names is in some manner responsible
21 for the wrongs and damages alleged below. All Defendants compelled, coerced, aided, and/or
22 abetted the defamation and other unlawful conduct alleged in this Complaint. All Defendants
23 were responsible for the events and damages alleged herein, including on the following bases: (a)
24 Defendants committed the acts alleged; (b) at all relevant times, one or more of the Defendants
25 were the agent or employee, and/or acted under the control or supervision, of one or more of the
26 remaining Defendants and, in committing the acts alleged, acted within the course and scope of
27 such agency and employment and/or is or are otherwise liable for Plaintiff’s damages; (c) at all
28 relevant times, there existed a unity of ownership and interest between or among two or more of

FIRST AMENDED COMPLAINT 1
1 the Defendants such that any individuality or separateness between or among those Defendants
2 has ceased, and Defendants are the alter egos of one another. Defendants exercised domination
3 and control over one another to such an extent that any individuality or separateness of
4 Defendants does not, and at all times herein mentioned did not, exist. Adherence to the fiction of
5 the separate existence of Defendants would permit abuse of the corporate privilege and would
6 sanction fraud and promote injustice. All actions of all Defendants were taken by employees,
7 supervisors, executives, officers, and directors during employment with all Defendants, were
8 taken on behalf of all Defendants, and were engaged in, authorized, ratified, and approved of by
9 all other Defendants. Plaintiff will seek leave of court to amend this Complaint to show the true
10 names and capacities when the same have been ascertained. The named Defendants and Doe
11 Defendants are sometimes hereafter referred to, collectively and/or individually, as
12 “Defendants.”
13 FACTUAL ALLEGATIONS
14 6. Plaintiff Talkdesk is a cloud-based contact center and artificial intelligence
15 software provider, headquartered in San Francisco, California.
16 7. Defendant is the owner of the property located at 535 Mission Street, San
17 Francisco, 94111.
18 8. On March 23, 2015, Plaintiff and Defendant entered into an Office Lease
19 (“Lease”), whereby Plaintiff agreed to lease the 12th floor of the building owned by the
20 Defendant and located at 535 Mission Street, San Francisco, 94111, more fully described in the
21 Lease (“Premises”). A true and correct copy of the Office Lease is attached hereto as Exhibit
22 “A” and incorporated herein by reference.
23 9. On March 27, 2018, Plaintiff and Defendant signed a First Amendment to Office
24 Lease, extending the expiration date of the Lease from April 30, 2018 to April 30, 2020. A true
25 and correct copy of the First Amendment to Office Lease is attached hereto as Exhibit “B” and
26 incorporated herein by reference.
27 10. Due to Novel Coronavirus 2019 Disease (“COVID-19”), on March 16, 2020, “the
28 City and County of San Francisco, along with a group of five other Bay Area counties and the

FIRST AMENDED COMPLAINT 2
1 City of Berkeley, issued parallel health officer orders imposing shelter in place limitations across
2 the Bay Area, requiring everyone to stay safe at home except for certain essential needs.” A true
3 and correct copy of the Order of the Health Officer No. C19-07b is attached hereto as Exhibit
4 “C.”
5 11. On March 31, 2020, the City and County of San Francisco issued a new order
6 directing all businesses to cease non-essential operations. See Exhibit C.
7 12. On March 19, 2020, California Governor Gavin Newsom issued Executive Order
8 N33-20, ordering “all individuals living in the State of California to stay home or at their place of
9 residence except as needed to maintain continuity of operations of the federal critical
10 infrastructure sectors.” A true and correct copy of the Order of the Executive Order N33-20 is
11 attached hereto as Exhibit “D.”
12 13. The Order of the Health Officer No. C19-07b and the Executive Order N33-20 are
13 collectively referred to herein as the “Orders.”
14 14. Due to the Orders, Plaintiff has been unable to access or use the Premises on or
15 after March 16, 2020, and as such, could no longer operate its business at the Premises.
16 15. On March 31, 2020, Plaintiff gave notice to Defendant by mail and e-mail that,
17 due to the shelter in place pursuant to the Orders, it has not been able to use the Premises, and
18 therefore, is no longer responsible for payment of rent or any other amounts due under the Lease.
19 A true and correct copy of Plaintiff’s March 31, 2020 Notice to Defendant is attached hereto as
20 Exhibit “E.”
21 16. On March 31, 2020, Defendant responded to Plaintiff’s Notice claiming that
22 Force Majure does not excuse Plaintiff’s duty to pay rent.
23 17. On April 2, 2020, Plaintiff further notified Defendant that it is excused from
24 performance under the Lease under California Civil Code Section 1511 and requested return of
25 the rent paid from March 16, 2020 through March 31, 2020.
26 18. Thereafter, on or about April 9, 2020, without providing any notice to the
27 Plaintiff, Defendant drew upon the Letter of Credit pursuant to Section 21.3 of the Lease, falsely
28 alleging that Defendant breached its duty to pay rent under the Lease. Specifically, Defendant

FIRST AMENDED COMPLAINT 3
1 withdrew $99,152.89 from the Letter of Credit (“Letter of Credit Funds”) without proper
2 justification despite notice from the Plaintiff that performance was excused.
3 19. Defendant also refused to return $47,977.20 of rent for March 16, 2020 through
4 March 31, 2020.
5 20. As a direct result of the unlawful actions of the Defendant in drawing upon the
6 Letter of Credit in breach of the Lease Agreement, Plaintiff has suffered damages in the amount
7 of $147,130.09. Defendant’s conduct caused Plaintiff significant harm as Plaintiff critically
8 needed the Letter of Credit Funds to survive in this time of economic crisis during which its
9 business has been severely impacted.
10 FIRST CAUSE OF ACTION
11 [Breach of Contract]
21. Plaintiff incorporates by reference the allegations contained in paragraphs 1
12
through 19, and each and every part thereof with the same force and effect as though fully set
13
forth herein.
14
22. Plaintiff has fully performed all of its obligations under the Lease and paid its rent
15
fully until the Orders prevented it from being able to use the Premises. Due to Force Majeure,
16
the Act of God and/or governmental Orders, Plaintiff was excused from paying rent under the
17
Lease on or after March 16, 2020.
18
23. Plaintiff was also excused from payment of rent under California Civil Code
19
Section 1511, which in relevant part provides that: The want of performance of an obligation, or
20
of an offer of performance, in whole or in part, or any delay therein, is excused by the following
21
causes, to the extent to which they operate:
22
23 1. When such performance or offer is prevented or delayed by the act of the
creditor, or by the operation of law, even though there may have been a stipulation
24 that this shall not be an excuse; however, the parties may expressly require in a
contract that the party relying on the provisions of this paragraph give written notice
25 to the other party or parties, within a reasonable time after the occurrence of the event
26 excusing performance, of an intention to claim an extension of time or of an intention
to bring suit or of any other similar or related intent, provided the requirement of such
27 notice is reasonable and just;

FIRST AMENDED COMPLAINT 4
1 2. When it is prevented or delayed by an irresistible, superhuman cause, or by the
2 act of public enemies of this state or of the United States, unless the parties have
expressly agreed to the contrary.
3
California Civil Code Section 1511.
4
24. Plaintiff was further excused from payment of rent under the frustration of
5
purpose doctrine because Plaintiff has been completely prohibited from using the Premises and
6
there is a total destruction of the purpose for which the Lease was entered into.
7
25. Defendant breached the Lease by drawing upon the Letter of Credit pursuant to
8
Section 21.3 of the Lease after falsely accusing Plaintiff of breach. Defendant also acted in bad
9
faith by requiring Plaintiff to pay rent and failing to return the rent for March 16, 2020 through
10
March 31, 2020 despite the fact that Plaintiff’s duty to pay rent was excused by law.
11
26. As a direct result of the Defendants’ material breach of the Lease, Plaintiff
12
sustained $147,130.09 in damages.
13
27. Plaintiff respectfully requests this Court to enter judgment in its favor, and against
14
Defendants, jointly and severally, in the amount of $147,130.09 plus interest, attorneys’ fees and
15
costs.
16
SECOND CAUSE OF ACTION
17 (Breach of Implied Covenant of Good Faith And Dealing)
18 28. Plaintiff incorporates by reference the allegations contained in paragraphs 1

19 through 26, and each and every part thereof with the same force and effect as though fully set

20 forth herein.

21 29. There is implied in the Lease a covenant of good faith and fair dealing in which

22 each party agrees that it will not attempt to deprive the other party of the benefits of the

23 agreement.

24 30. In undertaking the acts or omissions herein alleged, Defendant acted to deprive

25 Plaintiff of its Letter of Credit Funds and thereby breached their implied covenant of good faith

26 and fair dealing.

27 31. As a proximate result of Defendant's actions, Plaintiff has sustained general and

28 special damages, including loss of the Letter of Credit Funds, in an amount to be proven at trial.

FIRST AMENDED COMPLAINT 5
1 THIRD CAUSE OF ACTION
[Conversion]
2
32. Plaintiff incorporates by reference the allegations contained in paragraphs 1
3
through 30, and each and every part thereof with the same force and effect as though fully set
4
forth herein.
5
33. The Letter of Credit Funds Defendant transferred to its possession under a false
6
claim of breach were and are the property of Plaintiff. Until there was an inexcusable breach by
7
the Plaintiff or satisfaction of one of the conditions set forth in Section 21.3 of the Lease, the
8
Letter of Credit Funds remained the property of Plaintiff.
9
34. Defendant intentionally and substantially interfered with the Letter of Credit
10
Funds by taking the funds and misappropriating the funds for its own personal use and
11
enjoyment.
12
35. Defendant has not returned the Letter of Credit funds to Plaintiff.
13
36. Plaintiff has been damaged in an amount to be proven at trial as a result of
14
Defendant’s actions in converting and misappropriating the Letter of Credit Funds.
15
FOURTH CAUSE OF ACTION
16 (Declaratory Relief)
17 37. Plaintiff incorporates by reference the allegations contained in paragraphs 1
18 through 35, and each and every part thereof with the same force and effect as though fully set
19 forth herein.
20 38. An actual controversy exists relating to the rights and duties of the parties.
21 39. Plaintiff desires a declaration with regard to it rights and interests under its Lease
22 with Defendant. Specifically, Defendant seeks a declaration as to (1) whether its obligation to
23 pay rent under the Lease for April 2020 is excused; and (2) whether Defendant breached the
24 Lease by unlawfully drawing the Letter of Credit Funds under the circumstance of this case.
25 DEMAND FOR JURY TRIAL
26 Plaintiff hereby formally demands a trial by jury.
27 PRAYER FOR RELIEF
28 WHEREFORE, Plaintiff prays for relief and judgment against Defendant as follows:

FIRST AMENDED COMPLAINT 6
1 1. For compensatory damages, including but not limited to the amount of the Letter of
2 Credit Funds unlawfully drawn;
3 2. For applicable penalties in the amount as may be established according to proof at trial;
4 3. For punitive damages allowed by law;
5 4. For restitution and/or disgorgement;
6 5. For applicable preliminary and permanent injunction, including prohibiting Defendant
7 from seeking to enforce payment of April rent under the Lease;
8 6. For an award to Plaintiff of costs of suit incurred herein and reasonable attorneys’ fees;
9 7. For an award of prejudgment and post-judgment interest; and
10 8. For an award to Plaintiff of such other and further legal and equitable relief as the Court
11 deems just and proper.
12

13 Dated: May 13, 2020 AK EMPLOYMENT LAW OFFICE

14
By:
15 AYSE KENT
16 Attorney for Plaintiff
17

19
20

FIRST AMENDED COMPLAINT 7
EXHIBIT A
OFFICE LEASE

535 MISSION STREET

BXP MISSION 535 LP,
a Delaware limited partnership

as Landlord,

and

TALKDESK, INC.,
a Delaware corporation,

as Tenant.

735667.03/WLA 535 MISSION STREET
372933-000 l 0/3-23-15/mem/mem (Talkdesk, Inc.]
TABLE OF CONTENTS

ARTICLE 1 PREMISES, BUILDING, PROJECT, AND COMMON AREAS ................. 3
ARTICLE2 LEASE TERM ................................................................................................ 4
ARTICLE3 BASERENT ................................................................................................... 5
ARTICLE4 ADDITIONAL RENT .................................................................................... 6
ARTICLES USE OF PREMISES ..................................................................................... 15
ARTICLE6 SERVICES AND UTILITIES ...................................................................... 16
ARTICLE 7 REPAIRS ...................................................................................................... 19
ARTICLES ADDITIONS AND ALTERATIONS ........................................................... 20
ARTICLE9 COVENANT AGAINST LIENS .................................................................. 23
ARTICLE 10 TENANT'S INDEMNITY AND INSURANCE .......................................... 24
ARTICLE 11 DAMAGE AND DESTRUCTION ............................................................... 30
ARTICLE 12 NONWAIVER .............................................................................................. 32
ARTICLE 13 CONDEMNATION ...................................................................................... 33
ARTICLE 14 ASSIGNMENT AND SUBLETTING ......................................................... 33
ARTICLE 15 SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL
OF TRADE FIXTURES ............................................................................... 38
ARTICLE 16 HOLDING OVER ........................................................................................ 39
ARTICLE 17 ESTOPPEL CERTIFICATES ...................................................................... 39
ARTICLE 18 MORTGAGE OR GROUND LEASE ......................................................... .40
ARTICLE 19 EVENTS OF DEFAULT; REMEDIES ........................................................ 42
ARTICLE20 COVENANT OF QUIET ENJOYMENT .................................................... 45
ARTICLE 21 LETTER OF CREDIT .................................................................................. 45
ARTICLE22 SUBSTITUTION OF OTHER PREMISES ................................................. 51
ARTICLE23 SIGNS ........................................................................................................... 51
ARTICLE24 COMPLIANCE WITH LAW ....................................................................... 52
ARTICLE25 LATE CHARGES ......................................................................................... 53
ARTICLE26 LANDLORD'S RIGHT TO CURE DEFAULT; PAYMENTS BY
TENANT ....................................................................................................... 54
ARTICLE27 ENTRY BY LANDLORD ............................................................................ 54
ARTICLE28 NOTICES ...................................................................................................... 55
ART!CLE29 MISCELLANEOUS PROVISIONS ............................................................. 56

LIST OF EXHIBITS

A OUTLINE OF PREMISES
B TENANT WORK LETTER
C FORM OF NOTICE OF LEASE TERM DATES
D RULES AND REGULATIONS
E FORM OF TENANT'S ESTOPPEL CERTIFICATE
F ACCEPTABLE FORMS OF INSURANCE CERTIFICATE
G FORM OF LETTER OF CREDIT

735667.03/WLA 535 MISSION STREET
372933-000 I0/J. 23-15/mem/mem (i) {Talkde5k, Inc.]
INDEX OF MAJOR DEFINED TERMS

100 First Street ............................................................................................................................ 62
545 Mission Street ...................................................................................................................... 62
Additional Rent ............................................................................................................................. 6
Alterations ................................................................................................................................... 19
Applicable Laws ......................................................................................................................... 51
Bank ............................................................................................................................................ 45
Bank Credit Threat. .................................................................................................................... .46
Bank Prime Loan ........................................................................................................................ 53
Bankruptcy Code ........................................................................................................................ 47
Base Building .............................................................................................................................. 20
Base Rent ...................................................................................................................................... 5
Brokers ........................................................................................................................................ 59
Building ......................................................................................................................................... 3
Building Common Areas ............................................................................................................. .4
Building Hours ............................................................................................................................ 15
Building Structure ....................................................................................................................... 18
Building Systems ........................................................................................................................ 18
Capital Expenses ......................................................................................................................... I I
City .............................................................................................................................................. 62
Code Provisions .......................................................................................................................... 62
Common Areas ............................................................................................................................. 3
Cost Pools ................................................................................................................................... 1 l
Credit Rating Threshold ............................................................................................................. .45
Deposit Period ............................................................................................................................. 49
Direct Expenses ............................................................................................................................ 6
Early Access Period ..................................................................................................................... .4
Estimate ....................................................................................................................................... 12
Estimate Statement. ..................................................................................................................... 12
Event ofDefault ......................................................................................................................... .42
Events of Default ....................................................................................................................... .42
Expense Year ................................................................................................................................ 6
Force Majeure ............................................................................................................................. 58
Hazardous Substance .................................................................................................................. I 5
Holidays ...................................................................................................................................... 15
HVAC ......................................................................................................................................... 15
Interim Cash Deposit ................................................................................................................. .49
Landlord ........................................................................................................................................ I
Landlord Repair Notice ............................................................................................................... 29
L-C .............................................................................................................................................. 45
L-C Amount ................................................................................................................................ 45
LC Expiration Date .................................................................................................................... .46
LC Replacement Notice ............................................................................................................. .48
Lease ............................................................................................................................................. 1
Lease Commencement Date ........................................................................................................ .4

735667.03/WLA 535 MISSTON STREET
372933-00010/3-23-15/mem/mem (ii) [Talkdesk, Inc.]
INDEX OF MAJOR DEFINED TERMS

Lease Expiration Date ................................................................................................................... 4
Lease Term .................................................................................................................................... 4
Lease Year .................................................................................................................................... 4
Lines ............................................................................................................................................ 61
Local Equivalency Request.. ....................................................................................................... 62
Mail ............................................................................................................................................. 54
Mortgagee ................................................................................................................................... 41
Notices ........................................................................................................................................ 54
OFAC .......................................................................................................................................... 62
Operating Expenses ...................................................................................................................... 6
Original Improvements ............................................................................................................... 25
Other Improvements ................................................................................................................... 60
Premises ........................................................................................................................................ 3
Prohibited Person ........................................................................................................................ 62
Project ........................................................................................................................................... 3
Project Common Areas ................................................................................................................. 3
Proposition I 3 ............................................................................................................................. I 0
Quoted Rent ................................................................................................................................ 34
Receivership ................................................................................................................................ 48
Relocation Space ......................................................................................................................... 50
Renovations ................................................................................................................................. 61
Rent ............................................................................................................................................... 6
rentable square feet ...................................................................................................................... .4
Security Deposit Laws ................................................................................................................ 48
SNDAA ....................................................................................................................................... 40
Statement. .................................................................................................................................... 12
Subject Space .............................................................................................................................. 32
Summary ....................................................................................................................................... 1
Superior Holders ......................................................................................................................... 40
Tax Expenses .............................................................................................................................. 1O
Tenant ........................................................................................................................................... 1
Tenant Work Letter ....................................................................................................................... 3
Tenant's Share ............................................................................................................................. 11
Tenant's Subleasing Costs ........................................................................................................... 35
Transfer ....................................................................................................................................... 32
Transfer Agreement .................................................................................................................... 36
Transfer Notice ........................................................................................................................... 32
Transfer Premium ....................................................................................................................... 34
Transferee ................................................................................................................................... 32
Transferee's Rent. ........................................................................................................................ 34
Transfers ..................................................................................................................................... 32
Unused L-C Proceeds ................................................................................................................. 48

735667.03/WLA 535 MISSION STREET
372933-00010/3-23-15/mem/mem (iii) [Talkdesk, Inc.J
535 MISSION STREET

OFFICE LEASE

This Office Lease (the "Lease"), dated as of the date set forth in Section I of the Summary
of Basic Lease Information (the "Summary"), below, is made by and between BXP MISSION
535 LP, a Delaware limited partnership ("Landlord"), and TALKDESK, INC., a Delaware
corporation ("Tenant").

SUMMARY OF BASIC LEASE INFORMATION

TERMS OF LEASE DESCRIPTION

I. Date: March 23, 2015

2. Premises (Article 1).

2.1 Building: That certain twenty-seven (27) story office
building located at 535 Mission Street, San
Francisco, California, containing
approximately 307,235 rentable square feet of
space.

2.2 Premises: 13,245 rentable square feet of space located on
and consisting of the entire twelfth ( 12th)floor
of the Building and commonly known as Suite
1200, as further set forth in Exhibit A to the
Office Lease.

3. Lease Term (Article 2).

3.1 Lease Term: Three (3) years.

3.2 Lease Commencement Date: May I, 2015.

3.3 Lease Expiration Date: April 30, 2018.

4. Base Rent (Article 3):

Monthly Approximate Annual
Period During Annual Installment Base Rental Rate Per
Lease Tenn Base Rent of Base Rent Rentable Square Foot*

Lease Year I $582,780.00 $48,565.00 $44.00

Lease Year 2 $600,263.40 $50,021.95 $45.32

735667.03/WLA 535 MISSION STREET
372933-000 l 0/3-23- l 5/mem/mem {Talkdesk, Inc.]
Lease Year 3 $618,271.32 $51,522.61 $46.68

* The Annual Base Rental Rate Per Rentable Square Foot for Lease Year l was agreed

Case Info

Judge

Samuel K. Feng Track Judge’s New Case

Case No.

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Document Filed Date

May 14, 2020

Case Filing Date

April 15, 2020

County

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Complaint,Petition: TALKDESK, INC., A DELAWARE CORPORATION VS. BXP MISSION 335 LP,A DELWARE LIMITED PARTNERSHIP ET AL

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