Furthermore, on cross examination, the Respondent admitted into evidence
Respondent's Exhibit "A" which are the Petitioner's calculations based on using Table
24C. This document was admitted into evidence with no objection. As the witness
previously testified, he was asked to create Respondent's Exhibit "A" based on Table
24C which reflects the chained CPI. The calculations are from January 1, 2005 through
September 25, 2013.
One of the important issues that was raised by Respondent's attorney on
cross-examination, was why did the C.P.A. use a fixed rent to calculate all future rent
increases that has not been paid by Fred Brenner as the tenant. In his example, the
Respondent was paying $225,000.00 yearly or $18,750.00 monthly which could have
been the fixed rent. Instead, the C.P.A. calculated the annual fixed rent with the CPI
increase to establish a fixed rent prior to the cutoff date that the rent was going to be
collected from the Respondent. Once again, the witness was directed to the provision of
the lease which deals with a determination of the fixed rent. The witness relied on the
literal interpretation of the lease which specifically states in provision 3.1 that "on each
anniversary of the commencement date during the term of the annual fixed rent shall be
increased, which increase shall be equal to the percentage increase in the U.S. Bureau of
Labor Statistics Consumer Price Index, all urban consumers, all items indexed, for the
preceding 12 months". Notwithstanding the Respondent's disagreement with the C.P.A.'s
[*6]interpretation, Mr. Bandini was consistent that his
calculations in Petitioner's Exhibit "7 were accurate and reflected the lease language.
Specifically with regards to the interpretation of the fixed rent, the