Kendall v. Ernest Pestana, Inc

In Kendall v. Ernest Pestana, Inc. (1985) 40 Cal.3d 488, the California Supreme Court discussed the historical development of the law concerning a plaintiff's right to refuse consent to an assignment or sublease of a commercial lease without a good faith reasonable objection. (Id. at pp. 492-502 & fn.2.) Our Supreme Court explained that, while the law generally favors free alienability of property including leasehold interests, California does permit contractual restrictions on the alienability of such interests. (Id. at p. 494.) Our Supreme Court concluded that a lessor of a commercial lease with a provision requiring consent to an assignment or a sublease cannot unreasonably withhold the consent. (Id. at pp. 496-497.)