Justia Landlord - Tenant Opinion Summaries

In 2008, appellants Robert and Linda Shivers rented a residential property in La Habra from respondent Wilfred Rivera. Almost seven years later, Rivera filed an unlawful detainer action against the Shivers, alleging they had not paid rent. He later amended his pleading to add causes of action based on the allegation they had damaged the property and taken appliances when they vacated it. The Shivers filed a cross-complaint, alleging Rivera had failed to make repairs to the property and had left it untenantable. The case was originally assigned to limited civil jurisdiction but was later reclassified to unlimited civil. Upon reassignment, the new trial judge ordered counsel to meet and confer regarding the appointment of a referee under Code of Civil Procedure section 638, and a status conference on the subject was scheduled for March 19, 2018. At the status conference, the parties advised the court they could not agree on a referee. The court took the matter under submission, but warned that a referee would be appointed if the parties could not agree on one. Thereafter, in a minute order dated one month later, the trial court, instead of appointing a referee, sua sponte ordered the matter to judicial arbitration. The issue this case presented for the Court of Appeal's review centered on whether the arbitration, originally statutory in nature, morphed into a contractual arbitration as the result of a vague stipulation by counsel for the parties. Neither side ever seemed to have entertained the notion that the completed arbitration was anything but binding, and treated it as such. The trial judge, however, decided on his own that the arbitration was not what the parties intended, a conclusion derived from their actions rather than their explicit words. As a result, the trial court denied the appellants’ petition to confirm, vacated the award, and set a trial date in the case. After review, the Court of Appeal concluded the trial court erred in not confirming the arbitration award and reversed it. View "Rivera v. Shivers" on Justia Law

Plaintiffs filed suit against defendants, the property owners, claiming that the property they rented had bed bugs and other problems. The property owners then moved to compel arbitration based on agreements in plaintiffs' leases.The Court of Appeal affirmed the trial court's denial of the property owners' motion for arbitration, holding that state public policy prohibits arbitration provisions in residential lease agreements. The court held that the arbitration agreements in the leases were void under Civil Code 1953, subdivision (a)(4), and that Jaramillo v. JH Real Estate Partners, Inc. (2003) 111 Cal.App.4th 394, and Harris v. University Village Thousand Oaks, CCRC, LLC. (2020) 49 Cal.App.5th 847, 850, specifically identified the right to have a jury trial as a procedural right that may not be waived or modified under section 1953, subdivision (a)(4). View "Williams v. 3620 W. 102nd Street, Inc." on Justia Law

Since 1986, the GSW NBA basketball team has played their home games at the Authority's Oakland arena. A 1996 License Agreement gave GSW certain obligations to pay the debt incurred in renovating the arena if GSW “terminates” the agreement. In 2012, GSW announced its intention to construct a new arena in San Francisco. GSW did not exercise the renewal option in the Agreement, and, on June 30, 2017, its initial term expired. GSW initiated arbitration proceedings, seeking a declaration that it was no longer obliged to make debt payments if it allowed the License Agreement to expire rather than terminating it.The arbitrator ruled in favor of the Authority and against GSW, awarding the Authority attorney fees. The court of appeal affirmed. Based on extrinsic evidence, the arbitrator found the parties intended to adhere to the terms of a pre-agreement Memorandum of Understanding, which required the team to continue making debt payments after the initial term. The 1996 License Agreement is reasonably susceptible to the parties’ competing interpretations, so parol evidence was admissible to prove what the parties intended. Even assuming that the arbitrator addressed a question of law when she interpreted the Agreement, the parties intended to include a termination of the agreement upon GSW’s failure to exercise the first two options to renew. View "Oakland-Alameda County Coliseum Authority v. Golden State Warriors, LLC" on Justia Law

Defendants-tenants John and Rosa Castro (the tenants) leased a residential property from plaintiff-landlord Fred Graylee. The landlord brought an unlawful detainer action against the tenants, alleging they owed him $27,100 in unpaid rent. The day of trial, the parties entered into a stipulated judgment in which the tenants agreed to vacate the property by a certain date and time. If they failed to do so, the landlord would be entitled to enter a $28,970 judgment against them. The tenants missed their move-out deadline by a few hours and the landlord filed a motion seeking entry of judgment. The trial court granted the motion and entered a $28,970 judgment against the tenants under the terms of the stipulation. The tenants appealed, arguing the judgment constituted an unenforceable penalty because it bore no reasonable relationship to the range of actual damages the parties could have anticipated would flow from a breach of the stipulation. To this, the Court of Appeal agreed, and reversed and remanded this matter for further proceedings. View "Graylee v. Castro" on Justia Law

Landlord's 131,000-square-foot San Francisco building has been leased to Saks for a department store since 1991. The initial 25-year lease period is followed by options to renew at “ ‘Fair Market Rent.” If the parties are unable to agree to the rent amount, they are to submit the issue to arbitration. Saks exercised its option to renew the Lease. The parties were unable to agree on rent and selected arbitrator Kleczewski. Kleczewski reviewed the evidence and briefs. Landlords’s rent determination was $13,917,364; Saks’ determination was $6,250,000. Kleczewski’s own fair market rent determination was approximately $10.9 million. Pursuant to the principles of “baseball” arbitration, he ruled the annual rent would be $13,917,364.The trial court vacated the award, finding that the parties carefully defined the scope of the arbitrator’s authority but Kleczewski violated that agreement by visiting New York properties that influenced his decision. The parties participated in a second arbitration hearing before a different arbitrator who found in favor of Saks. The trial court confirmed the award. The court of appeal affirmed. Code of Civil Procedure section 1286.25 provides that courts “shall vacate” awards that are the product of procedural irregularities. The parties were clear from the outset that Kleczewski was not authorized to perform his own due diligence. View "California Union Square L.P. v. Saks & Co. LLC" on Justia Law

Owens owns and resides in a single-family Oakland house. He rented individual rooms to three unrelated tenants. Tenant Barghout filed a petition under Oakland’s Rent Adjustment Program alleging her housing became unsuitable due to disruptive construction work and hazardous conditions and that Owens failed to provide the required notice of the Rent Adjustment Program and retaliated by terminating her lease when she complained and sought a reduction in rent. Owens filed an unlawful detainer complaint, identifying Barghout as a month-to-month housemate with “sole use of one or more rooms and shared use of common areas.”A hearing officer rejected an argument that Barghout’s rental was not subject to the Ordinance because the rooms she rented were in a single-family home that was “alienable, separate from the title of any other dwelling unit,” exempt under the Costa-Hawkins Act from local rent control. The Rent Board, trial court, and court of appeal affirmed. The term “dwelling unit” has different meanings under building and planning codes and rent control ordinances. Under landlord-tenant law, “a dwelling or a unit” is not the entire property to which an owner holds title; it is any area understood to be committed to the habitation of a given tenant or tenants to the exclusion of others. The relevant dwelling unit is not Owens’s home but each of the rooms he rented to tenants. View "Owens v. City of Oakland Housing, Residential Rent & Relocation Board" on Justia Law

In 2018, Landlord served Tenants with a Notice of Termination of Tenancy “in furtherance of [Landlord’s] withdrawal of the Property from residential rental use.” After the withdrawal date, Landlord filed unlawful detainer (UD) actions against Tenants under the Ellis Act. (Gov. Code, 7060) as unlimited civil cases. Landlord brought summary judgment motions for restitution of the premises based on Tenants’ holdover under the Ellis Act and the San Francisco rent ordinance. Landlord waived damages, estimated at $92-105 per day. After those motions were granted, Tenants moved to reclassify the actions as limited civil cases, arguing Landlord waived all unlawful detainer damages and that it was impossible for Landlord to meet the $25,000 minimum judgment amount for an unlimited civil matter.The trial court denied the motions for reclassification and entered judgments for possession in favor of Landlord. The court of appeal denied Tenants’ petition for a writ of mandate. Under the plain language of Code of Civil Procedure section 403.040(e), a UD action, filed as an unlimited civil case, need not be reclassified as a limited civil case if the landlord waives its claim to damages for the purpose of obtaining a judgment for possession by way of a motion for summary judgment. View "Hiona v. Superior Court" on Justia Law

Schreiber resided in her apartment since the building was built in 1980. She was seriously injured when she fell through a skylight built into the apartment's deck. Lee built and previously owned the three-unit building. At the time of the accident, Lee’s adult children owned the property, which was managed by Golden. Before trial, Schreiber settled with the Lee children for $2.5 million. The trial court denied Lee’s motion for nonsuit on the ground Schreiber’s claims were based on a patent construction defect and barred by the statute of repose.The jury awarded Schreiber damages of over $2.6 million, allocating 12 percent of fault to Schreiber, 54 percent to Lee, 16 percent to Golden, and 18 percent collectively to the Lee children. After reducing the verdict to reflect Schreiber’s percentage of fault, the court offset the entirety of the economic damages by the amount of the settlement attributable to such damages; it denied any credit to Lee and Golden for the noneconomic damages and entered judgment against Lee for $756,000 and against Golden for $224,000. The court of appeal affirmed in all respects except as to the settlement credit, Golden, but not Lee, is entitled to a credit against both economic and noneconomic damages. The court noted the "unusual circumstances," that the Lee children were not only found independently negligent but also bore imputed liability for Golden's negligence. View "Schreiber v. Lee" on Justia Law

This case arose when Constellation filed an unlawful detainer action against World Trading, which Constellation then converted to a damages action against World Trading and World Tech Toys for breach of contract. Constellation sought damages for past-due rent, late fees, interest, failure to maintain and repair, costs incurred by not being able to use the premises, and holdover rent.The Court of Appeal held that the trial court erred by ruling that the commercial holdover provision was an unlawful penalty. Rather, the commercial holdover provision was valid and Constellation was entitled to enforce it against World Trading. The court upheld the trial court's finding that World Tech was not jointly and severally liable as an alter ego of World Trade and remanded Constellation's estoppel and agency arguments for the trial court to decide. The court directed the trial court to include the $1,000 sanctions in the final judgment. The court otherwise affirmed the judgment and dismissed World Trading and World Tech's cross-appeal. View "Constellation-F, LLC v. World Trading 23, Inc." on Justia Law

Hong, the president of ENA, sought to open a restaurant with a license to serve beer and wine in a building owned by 524 Union, which had housed restaurants for many years. After leasing the premises, ENA was unable to open because the San Francisco Planning Department determined that an existing conditional use authorization for the property was no longer effective and a new one could not be granted. ENA sued the lessors, claiming false representations and failure to disclose material facts regarding the problems with the conditional use authorization. A jury awarded ENA compensatory and punitive damages. The court of appeal held that the jury’s verdict on liability, including liability for punitive damages, is supported by substantial evidence. Hong’s testimony was substantial evidence supporting the jury’s verdict. Additional support was provided by evidence of email correspondence around the time Hong entered the lease. The trial court employed an improper procedural mechanism in reducing the amount of the punitive damages award but the jury award was unsupported and Hong effectively stipulated to the reduced amount. View "ENA North Beach, Inc. v. 524 Union Street" on Justia Law