Hong Sang Market, Inc. v. Peng

Tenant leased a two-unit San Francisco commercial building and sublet one unit to Peng. Peng later secured a $46.545 judgment against Tenant with an award of attorney fees of $47,800. Peng collected $46,500 in partial satisfaction. While trying to collect the judgment, Peng learned that the owner and Tenant had terminated the master lease. In 2009, a new tenant continued the same business that had been conducted by Tenant. Peng claimed the change was a fraudulent conveyance to prevent her from collecting the judgment through a setoff of rent. Peng remained in possession of the premises without paying rent and, by operation of law, became a tenant at the rental rate of $4,725 per month. The owner served Peng with a notice of change in terms of tenancy. Peng paid rent in March and April 2011 then became delinquent. The owner was awarded summary judgment, directing Peng to pay $4,725 in back-due rent plus attorney fees. The owner then filed a breach of contract suit, seeking back-due rent for 2009-2011. Peng filed a cross-complaint and counterclaim. The court of appeal held the owner was not precluded from pursuing a separate civil action for back-due rent that accrued in months other than the month for which damages were awarded in the unlawful detainer action and modified the attorney fee award. View "Hong Sang Market, Inc. v. Peng" on Justia Law