Case Background

BAFFS, a California general partnership, leased commercial property at 3301 E. 14th Street, Los Angeles, to Appliance Outlet, Inc. The lease began on July 15, 2020, and was to run until September 14, 2025. Agasi Davtyan signed as guarantor of the lease. The leased premises were intended for lawful commercial use. Over time, the property reportedly suffered damage and neglect, prompting legal action.

Cause

The dispute arose from Appliance Outlet, Inc.’s alleged violations of the lease terms. The company stopped paying rent and abandoned the premises before the lease expired. It reportedly misused the property and caused damage, creating nuisances. BAFFS also accused the tenant of failing to maintain the building, making unauthorized changes, and neglecting to pay utilities. According to the complaint, Davtyan, the guarantor, failed to cover the losses after the tenant’s default. Misrepresentations about city inspections and repairs further strained the relationship.

Injury

BAFFS claimed it suffered severe financial and structural harm. The damage allegedly left the property in poor condition. The landlord faced unanticipated repair costs and lost expected rental income. Unauthorized work reportedly violated building codes, compounding liabilities. BAFFS also contended that communications about code compliance were misleading, leading to delays and regulatory scrutiny. These breaches disrupted business plans and strained the partnership’s finances.

Damages

BAFFS sought over $933,628.02 in damages as of the filing date. This included unpaid rent, repair costs, and losses from unauthorized construction. The plaintiff also asked for pre- and post-judgment interest, attorneys’ fees, and all litigation-related costs. The total damages were expected to increase through the course of the lawsuit.

Key Arguments and Proceedings

Legal Representation

• Plaintiff(s): BAFFS

• Counsel for Plaintiff: Daniella Mikhael-Fard

• Defendant(s): Appliance Outlet Inc. | Davtyan Agasi aka Agasi Davtryan

• Counsel for Defendants: Jonathan Gerber

Claims

BAFFS asserted four causes of action against Appliance Outlet, Inc., Agasi Davtyan, and unnamed defendants:

1. Breach of Contract

2. Breach of Guaranty

3. Breach of the Covenant of Good Faith and Fair Dealing

4. Negligence

Defense

In response to the complaint, Defendants Appliance Outlet, Inc. and Agasi Davtyan generally and specifically denied all allegations and asserted that the plaintiff, BAFFS, suffered no damages due to any act on their part. They raised over thirty affirmative defenses, including failure to state a claim, unclean hands, estoppel, waiver, lack of consideration, mutual and unilateral mistake, and that any alleged breach was excused by plaintiff’s own misconduct. They also claimed that plaintiff approved, ratified, or consented to the conduct in question, failed to mitigate damages, and lacked standing or capacity to sue.

Additionally, Defendants alleged that any agreement was void, illegal, or voidable because plaintiff knowingly leased the premises for the intended use and later used that as grounds for the lawsuit. They further argued comparative negligence, third-party fault, and that plaintiff’s claims were barred by doctrines such as unjust enrichment, laches, and spoliation of evidence. Finally, they reserved the right to assert additional defenses upon discovery.

Judgement

In BAFFS v. Appliance Outlet, Inc., et al., the Los Angeles Superior Court entered a judgment on January 13, 2025, following a bench trial held from December 3 to 9, 2024. Judge Daniel S. Murphy awarded Plaintiff BAFFS a total of $402,035.75 against Defendants Appliance Outlet, Inc. and Agasi Davtyan—comprising $310,107.88 in damages and $91,927.87 in prejudgment interest, with costs and attorney’s fees to be determined later. The court found in favor of BAFFS on claims for breach of contract, breach of guaranty, and breach of the implied covenant of good faith and fair dealing, while ruling in favor of Defendants on the negligence claim.

Court Documents

Court documents are available for purchase upon request at Jurimatic@exlitem.com