LOS ANGELES, June 27 (UPI) -- Sony has lost one of the largest rent arbitrations on record in a dispute with a Culver City landlord.
The building, owned by Transpacific Development Corp., is under a long-term lease in which the rent is reset to market every five years. The problem is getting both the landlord and tenant to agree on what is a fair market rent.
Sony thought the rent should be $390,000 per month but Transpacific wanted $710,000.
Daily Variety reported the matter was decided in what is called a "baseball arbitration," in which an arbitrator must decide to use one of the figures presented by the quarreling parties. Splitting the difference or coming up with a compromise rent is not allowed.
Attorney Tony Natsis, who represented Transpacific in the matter, said the difference between the rents suggested by the two sides amounted to nearly $20 million over five years.
