Justia Landlord - Tenant Opinion Summaries

Rogaciano and Raquel Cabrera bought a house in Pasco, Washington, in 2007. In 2011, they obtained a license from the city to rent the house as a single residential unit. Contrary to the license, the Cabreras rented the upstairs and the basement as separate apartments. The Cabreras leased the basement to Jose Segura and Tabetha Gonzalez (collectively Segura) for a year. Segura paid $600 for the first month's rent, $600 for a rental security deposit, and $150 as a deposit for electric utility service. Five days later, the city of Pasco Code Enforcement Office inspected the property and found that the Cabreras had converted the single family dwelling into a duplex without a permit and that the basement unit was uninhabitable. Accordingly, the city ordered Segura to vacate the premises within 20 days. Segura sought compensation from the Cabreras. The Cabreras did not respond to the letter. On July 19, the Cabreras gave Segura a notice to vacate by August 7, 2011. Segura claimed that after sending the demand letter but before this move-out deadline, Mr. Cabrera entered the unit without notice, changed the locks, removed some of Segura's personal property, and tried to have Segura's car towed from the property. Segura sued the Cabreras on July 26 for damages under the Residential Landlord-Tenant Act (RLTA). The Cabreras answered, alleging, as the only affirmative defense, that"[ d]efendant had no knowledge it was illegal." Segura moved for summary judgment, seeking money for rent, security deposit, utility deposit, relocation assistance and other expenses related to moving into a new home, plus $1,000.00 in emotional distress damages, and $5,209.55 in attorney fees. The trial court granted Segura's motion for summary judgment but rejected the request for emotional distress damages, concluding they were not recoverable under RCW 59.18.085(3). The Court of Appeals affirmed the denial of emotional distress damages in a published, split decision. The Supreme Court affirmed, holding that the plain language of RCW 59.18.085 does not allow recovery for emotional distress. View "Segura v. Cabrera" on Justia Law

The issue this case presented for the Supreme Court's review centered on whether the lessors properly terminated a lease. After review, the Court found the district court was correct in finding the lease was terminated, and the court of appeal erred in disturbing the district court’s judgment. View "Lobell v. Rosenberg" on Justia Law

Kara and Kent Poppe appealed a district court summary judgment dismissing their conversion claim. The Poppes rented a house from Pamela Hillis for five years, until February 4, 2013 when Hillis served them with an eviction notice for unpaid rent. The district court ordered the Poppes to vacate the property, and entered a money judgment against them for $1,544 for past due rent. The Poppes requested and received permission from Hillis to remain on the property an additional five hours to remove their belongings with the assistance of a moving truck. The Poppes vacated but left some personal property in the house. Hillis arranged for Community Blessings, owned by Theresa Stockert, to pack, remove and store the remaining property. When the Poppes requested to retrieve their remaining property, Hillis referred them to Stockert. Stockert demanded the Poppes pay $4,600 for packing, moving and storage expenses before the property would be returned. The Poppes did not pay Stockert and did not retrieve their property from Community Blessings. The Poppes' washer and dryer remained in the home until sold by Hillis to new renters. The Poppes sued Stockert for conversion and the parties stipulated the Poppes could retrieve undisputed property from Community Blessings. The Poppes were unable to retrieve all of their property from Community Blessings and litigation continued. The Poppes ultimately joined Hillis as a party to the proceedings and moved to amend the complaint to include an exemplary damages claim alleging Hillis' and Stockert's conduct was oppressive or malicious. Hillis filed a cross-motion for summary judgment alleging a statutory right to dispose of the property, which Stockert joined. The district court entered an order denying the Poppes' motion to amend the complaint and granting summary judgment in favor of Hillis and Stockert. The Poppes argued the district court erred in granting summary judgment because it misinterpreted Hillis' right to remove their personal property from the rental property. Hillis argued she had a right to remove the property under N.D.C.C. 47-16-30.1 and was therefore entitled to judgment as a matter of law. After review, the Supreme Court concluded Hillis and Stockert did not have a right under N.D.C.C. 47-16-30.1 to dispose of the Poppes' personal property. Because the district court erred in interpreting Hillis' statutory right to dispose of the property, on remand the Poppes could renew their motion to amend the complaint to include exemplary damages. The Court reversed the judgment of the district court and remanded for further proceedings. View "Poppe v. Stockert" on Justia Law

Plaintiff Anna Mae Cashin owned a parcel of land in Hoboken. Two separate structures were located on that property: a six-unit apartment building, and a two-story single-family home built in a converted garage. Plaintiff has rented out five units of the apartment building and used the sixth for storage. Plaintiff lived in the single-family home with her late husband for four years until 1971, when they began renting it out. In 1973, defendant Marisela Bello moved into that unit. Defendant occupied the space with her son. Defendant's rent was $345 per month, five dollars more than the rent she initially paid in 1973. Plaintiff tried to regain possession of the house several times. She first asked defendant to leave in the 1980s so that plaintiff's daughter could live there. In June 2009, plaintiff again asked defendant to leave so that plaintiff's son could live there to be closer to his parents during his father's illness. At that time, plaintiff sent defendant a notice to quit, giving her sixty days to vacate the house. In response, defendant's attorney sent a letter indicating that defendant refused to leave. Plaintiff took no further action to evict defendant at that time. On January 4, 2012, plaintiff, through her attorney, sent defendant another notice to quit. Plaintiff demanded possession of the house under N.J.S.A.2A:18-61.1(l)(3), asserting that the unit was a single-family home and that she, the owner, wished to reside there. Defendant refused to leave, and plaintiff filed a complaint for possession of the house on April 2, 2012. In this appeal, the New Jersey Supreme Court considered whether the Anti-Eviction Act, which permits the owner of a building of three residential units or less to oust a tenant if the owner intends to personally occupy a unit, could be applied to remove a tenant (defendant) from the two-story single-family house built in a converted garage. To that end, the Court had to determine whether "building" denotes a single, unattached physical structure or whether it includes all structures owned by an individual located on the same parcel of land. The Supreme Court found that the Legislature's use of the word "building," in its singular form, was both deliberate and dispositive. "Building" designates a discreet physical structure, not a number of such structures connected only by the ownership of the land on which they sit. By the plain language of N.J.S.A.2A:18-61.1(l)(3), the converted garage constituted its own building for purposes of the Act, and plaintiff could evict defendants. View "Cashin v. Bello" on Justia Law

In 2000 the Port Authority signed a 30-year lease for the largest marine terminal at Port Elizabeth (445 acres including structures and berthing) with Maher, which handles cargo. The Lease requires “Basic Rental,” (in 2012, $50,413 per acre, totaling $22,433,612) plus “Container Throughput Rental,” based on the type and volume of cargo at Maher’s terminal. For eight years, Maher was exempted from Throughput Rental. Since 2008 the first 356,000 containers are exempted; for containers 356,001 to 980,000, Maher paid $19.00 per container in 2012; and for each additional container, Maher paid $14.25. Maher must handle a minimum amount of cargo to maintain the Lease and pay an annual guaranteed minimum Throughput Rental. Maher paid $12.5 million in Throughput Rental in 2010, and expected the 2012 amount to be $14 million. Maher claims the Port Authority profits from the Lease and uses the revenue to fund harbor improvements and projects unrelated to services provided to Maher or vessels. In 2012 Maher sued, alleging violations of the Constitution’s Tonnage Clause; the Rivers and Harbors Appropriation Act, 33 U.S.C. 5(b); and the Water Resources Development Act, 33 U.S.C. 2236. The Third Circuit affirmed dismissal, agreeing that Maher lacked standing to bring its Tonnage Clause and RHA claims because it was not a protected vessel and did not adequately plead that fees imposed on vessels were not for services rendered. Maher’s WRDA claim failed because Maher had not shown that the Authority imposed fees on vessels or cargo and because the WRDA did not prohibit use of Lease revenue to finance harbor improvements. View "Maher Terminals LLC v. Port Auth. of NY" on Justia Law

Revel opened an Atlantic City resort-casino, costing $2.4 billion. Revel entered into a 10-year lease with IDEA to run two nightclubs and a beach club. IDEA contributed $16 million of the projected cost of construction in addition to monthly rental payments. The Casino did not turn a profit. Revel filed a “Chapter 22” bankruptcy, seeking permission to sell its assets free of all liens and interests (including leases). The Bankruptcy Court approved and set an auction date. IDEA, concerned that the proposed sale would eliminate the value of its lease notwithstanding its $16 million investment, filed objections. No qualified buyer appeared. The court postponed the auction. A month later, Revel closed the Casino’s doors and barred tenants, IDEA gave notice that it intended to continue operating its beach club and nightclub and expected Revel to honor its obligations to provide uninterrupted utility service. In the meantime Polo agreed to buy the Casino for $90 million. Days before the sale hearing, Revel replied to IDEA’s objections. IDEA appealed an unfavorable order and sought a stay pending appeal, noting that, if the decision were not stayed, its appeal would be moot under 11 U.S.C. 363(m) once the sale closed. The district court denied the motion. The Third Circuit reversed, staying that part of the order that allowed Revel to sell the Casino free of IDEA’s lease. View "In re: Revel AC Inc" on Justia Law

In 2010, Yan Chen, who had a business interest in a restaurant, entered into a 10-year lease agreement with Russell Realty, LLC, and MRT, LLC. The property to be leased was located in Greenville. The lease agreement was drafted by Russell Realty and contained an arbitration clause. In 2012, Russell Realty and MRT sued Chen along with Qiaoyun He, Joe Zou, and Yami Buffet, Inc., alleging breach of contract. Chen filed a response to the motion, alleging that she had been in China for a few months, and that she had not been personally served with notice of the lawsuit. She subsequently filed a motion to dismiss the complaint, asserting that the lease agreement contained an arbitration clause and that "said complaint[] fails to state any measures that have been taken in lieu of the fulfillment of such agreed Arbitration Clause." The trial court denied both Russell Realty and MRT's motion for a default judgment and Chen's motion to dismiss. About a month after this, Chen filed a motion to compel arbitration, asserting that, as "part of Plaintiffs['] lease agreement, plaintiff[s] agreed to binding arbitration. In 2013, Chen filed a second motion to dismiss, alleging that Russell Realty and MRT had refused to mediate and had refused to arbitrate. Russell Realty and MRT filed an objection to Chen's second motion to dismiss, asserting that "time of the stay set by the court has almost expired and Defendant Yan Chen has not made any movement, act, or effort to seek Arbitration to resolve the issues." Russell Realty and MRT again sought a default judgment against the defendants, including Chen. She asserted that counsel for Russell Realty and MRT had failed to respond to her attempts to seek a settlement before the hiring of a mediator or arbitrator and that, subsequently, she had contacted a mediator/arbitrator and Russell Realty and MRT had not responded to her choice of mediator/arbitrator. The trial court then entered an order stating that the Chen's appeal was moot as the court had not yet entered a final order. In early 2015, the trial court entered an order awarding Russell Realty and MRT $682,050.10 against all the defendants, including Chen, jointly and severally. Chen appealed. Based on its review of the facts in the circuit court record, the Supreme Court reversed with regard to Chen and remanded the case for the trial court to enter an order requiring arbitration in accordance with the terms of the lease agreement. View "Chen v. Russell Realty, LLC" on Justia Law

Defendants Charles and Stella Ohaeri leased space for a thrift store in a shopping center owned by plaintiff AP-Colton LLC. The thrift store was not a success, and the Ohaeris stopped paying rent. According to the Ohaeris, AP-Colton had fraudulently induced them to enter into the lease by stating that a church was going to move into the space next to theirs, but a competing store moved in instead. AP-Colton originally filed this case as a limited civil action, in which damages were limited to $25,000. The Ohaeris filed a cross-complaint seeking more than $25,000, but they did not pay the $140 fee required to reclassify the case as an unlimited civil action. Thereafter, AP-Colton filed an amended complaint seeking more than $25,000, because the Ohaeris should already have paid the reclassification fee, so AP-Colton did not pay it. After a bench trial, the trial court rejected the Ohaeris' fraud claims and awarded AP-Colton $126,437.25. The Ohaeris argued on appeal of that judgment that among other things, the case remained a limited civil action, and thus, the trial court erred by awarding damages of more than $25,000. The Court of Appeal agreed that the case should have remained a limited civil action. The Ohaeris, however, took the position below that the case had become an unlimited civil action, and the trial court accepted this position by awarding AP-Colton damages in excess of $25,000. The Court of Appeal held that as a result, the Ohaeris were judicially estopped to deny that the case was an unlimited civil action. Accordingly, on condition that it pays the $140 reclassification fee, AP-Colton can recover the full award. View "AP-Colton v. Ohaeri" on Justia Law

A lease agreement included a five-year renewal provision but failed to specify the rent to be paid during the renewal period. The circuit judge granted a judgment on the pleadings, finding the renewal provision unenforceable. Finding no reversible error in that decision, the Supreme Court affirmed. View "Intrepid, Inc. v. Bennett" on Justia Law

Mak owns a Berkeley rental property with four apartments. In 2012 Mak served on Burns, a tenant for 28 years, a 60-day eviction notice, asserting that Mak intended to occupy the apartment. Two months later, Mak and Burns entered a written agreement under which Burns agreed to vacate the apartment, stating that Burns was not doing so pursuant to the 60-day notice, and that such notice “shall upon occupant vacating, be conclusively deemed withdrawn.” Burns vacated the apartment and months later the Maks rented the unit to new tenants (Ziems), at more than double the rent that Burns had paid. In response to Ziems’s application to the Rent Stabilization Board to lower the permissible rent to that paid by Burns, Mak contended that Burns had voluntarily vacated, so that under the Costa-Hawkins Rental Housing Act, Civil Code 1954.50, the Board was prohibited from limiting the rent at the commencement of the new tenancy. The Board and the trial and appeals courts rejected the “landlord’s transparent attempt to circumvent” rent control. The Act creates a rebuttable presumption that a tenant who moves out within one year of service of an owner move-in eviction notice has moved out pursuant to that notice. Mak failed to present evidence overcoming the presumption. View "Mak v. City of Berkeley Rent Stabilization Bd." on Justia Law