“Plain meaning” requires narrow definition of who qualifies for enhanced relocation benefits

City of Los Angeles v. Superior Court of Los Angeles County, (2nd Dist. Ct. of App.) 2015 DJDAR 1724, (February 10, 2015).

The Los Angeles Municipal Code, as part of its rent stabilization ordinance, guaranteed certain displaced tenants relocation assistance. Any head of household who is “handicapped” as defined by the Calif. Health & Safety Code Section 50072 is deemed a “qualified tenant” under the code section and received an enhanced payment.

The real party in interest in the case, Mr. Wade, was evicted by his landlord after his rental unit was deemed an illegal rental by the city. Mr. Wade argued he was entitled to the enhanced payment due to his disability, but his request was denied at the administrative level because he was a single person, and according to the city not the head of a household. He filed a petition for writ of administrative mandamus pursuant to Calif. Code of Civ. Proc. Section 1094.5. Finding that the term “head of household” can be an individual who is the head of a household of one, the Superior Court held the application for the writ in abeyance and directed the city to conduct an additional administrative hearing. The city appealed.

While the Court of Appeal found that the lower court had not actually issued the writ and its decision was therefore not a final judgment, it treated the appeal as a petition for writ of mandate and, applying the plain language principle of statutory construction, held that since Calif. Health & Safety Code Section 50072 specifically defined “handicapped” as including a “family in which the head of household is suffering from an orthopedic disability impairing personal mobility…”, a single person, like Mr. Wade, could not be a “qualified tenant” and he was consequently not entitled to the enhanced relocation assistance payment.

Court of Appeal upholds rent control protections for lawful occupants

Mosser Companies v. San Francisco Rent Stabilization and Arbitration Board, (1st Dist. Ct. of App.) 2015 DJDAR 878, (January 21, 2015).

Upholding the trial court’s denial of a landlord’s petition for writ of mandate, the Court of Appeal held that San Francisco’s rent control ordinance limiting rent increases for “original occupants” of a unit under a rental agreement protects any lawful original occupants, including minors.

The case involves a landlord’s attempt to nearly double the rent on a unit when the original signatories to the lease vacated the unit, but their son remained. The son was 13 years old when the family took possession of the unit ten years before and had lived in the unit continuously since his parents entered into the rental agreement. The case hinges on the definition of “occupant” under both the rent control ordinance and the 1995 Costa-Hawkins Act, which prohibited vacancy control ordinances that limited a landlord’s ability to set rental rates for new tenancies. The court found that in both laws, occupant meant lawful occupant and the son was a lawful, original occupant of the unit and entitled to protection under the ordinance. The court was careful to note that its ruling did not establish a right to inherit a parent’s tenancy, rather the son in this case had his own personal right to occupancy as he had been a continuous, lawful occupant since the family moved into the unit.

Memo to resident managers in rental-control apartments: Read the fine print

1300 N. Curson Investors, LLC v. Drumea, 225 Cal.App.4th 325 (2014)

Rents were much lower twenty years ago, as the defendant in 1300 N. Carson Investors LLC v. Drumea learned abruptly when her employment as resident manager at her apartment complex ended in 2011. She had not paid any rent during the nearly eighteen years she managed the complex. During those years the annual rent increases at the complex, which were implemented in accordance with the city’s rent control ordinance, had nearly doubled the rent for her unit. When new owners terminated her employment in 2011, they began charging the current rate for her unit – more than $700 more than she paid in 1993 – which she refused to pay.

The new owners sued, arguing that the ordinance permitted landlords to charge the original rent plus annual adjustments authorized by the ordinance. The parties stipulated to judgment for the defendant at the trial court in order to facilitate appeal. The Court of Appeal found that although the defendant had not been notified annually of the rent increases on her unit, as would ordinarily be required under the ordinance, the provision for terminated resident managers that permitted original rent plus lawful accumulated increases and not specifically requiring annual notices made the increase valid.

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