Articles Posted in California Courts of Appeal

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After a shopping center tenant defaulted on a secured loan, the lender took possession of the premises through foreclosure and transferred its interest to a third party. The third party then surrendered the premises and the landord filed suit against the lender to enforce the lease obligations. The Court of Appeal reversed the grant of summary adjudication for the landlord, holding that the purchase of the leasehold estate in this case—identified in the deed of trust by reference to the lease—did not constitute an express agreement to assume the obligations of the lease. In this case, the record showed that the lender did not expressly assume the lease. View "BRE DDR BR Whittwood CA, LLC v. Farmers & Merchants Bank" on Justia Law

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Duarte's Oakland property was occupied by Bowers. Bowers’s daughter, Pleasants, moved into the property and remained after Bowers died. In February 2012, Duarte gave Pleasants a 45-day notice to quit, but she did not leave. On April 19, Duarte obtained landlord-tenant insurance coverage for the property with Pacific, including “Owners, Landlords & Tenants Liability Coverage,” effective April 19, 2012. In June 2012, Pleasants sued Duarte, alleging that habitability defects had allegedly existed throughout the tenancy. Duarte tendered defense of the suit to Pacific, which denied coverage. Duarte sought a declaration that the policy required Pacific to defend the tenant suit and sought damages for breach of contract. Pacific alleged material misrepresentations by Duarte on the application; he represented that there were no disputes concerning the property although he knew that the tenant had complained to the city and that there was no business conducted on the property although he knew the tenant was running a business. The court of appeal ruled in favor of Duarte. Pacific’s question about the existence of pending claims, property disputes, or lawsuits concerning the property was “utterly ambiguous.” Pacific did not show that Duarte knew a “business” was conducted on the property at the time he submitted his application. View "Duarte v. Pacific Specialty Insurance Co." on Justia Law

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The landlord filed a unlawful detainer action against Nancy, her adult son Donn, and Donn‘s wife Olga, alleging that they refused to vacate a unit in a building that was withdrawn from residential rental use pursuant the Ellis Act. (Gov. Code 7060). The trial court granted a motion to quash the complaint, finding that the landlord failed to tender a relocation payment to Donn and Olga‘s minor son David, as required by section 37.9A(e) of the San Francisco Residential Rent Stabilization and Arbitration Ordinance. The landlord had paid each of the adults $2,632.55 and had given Nancy another $1,755.03, as payment of the first half of additional relocation payment due to her senior status. The appellate division of the superior court affirmed the trial court‘s order. The court of appeal reversed, holding that a minor displaced by an Ellis Act eviction is not a “tenant” under the Ordinance. The court distinguished between “lawful occupants” and “tenants.” View "Danger Panda, LLC v. Launiu" on Justia Law