Judge: David A. Rosen, Case: 23GDCV00376, Date: 2023-05-05 Tentative Ruling

Case Number: 23GDCV00376    Hearing Date: May 5, 2023    Dept: E

Case No: 23GDCV00376
Hearing Date:
  05/05/2023 – 10:00am

Trial Date: Unset

Case Name: SHIN HO KIM and GENA SOON YOON v. ROBERT YEPREMIAN; DOES 1-10

TENTATIVE RULING ON DEMURRER

Moving Party: Defendant, Robert Repremian

Responding Party: Plaintiffs, Shin Ho Kim and Gena Soon Yoon

(Oppo and Reply Submitted)

Proof of Service Timely Filed (CRC Rule 3.1300): Ok
16/21 Court Days Lapsed (CCP 1005(b)): Ok
Proper Address: Ok

Moving Papers: Demurrer/Motion; Request for Judicial Notice

Opposition Papers: Opposition; Request for Judicial Notice

Reply Papers: Reply

RELIEF REQUESTED
Defendant, Robert Yepremian, demurs to the First Amended Complaint (FAC) on the following grounds:

1.      The FAC fails to allege facts sufficient to state a cause of action;

2.      To the extent the FAC contains a cause of action predicated on service of a notice to pay rent or quit, the FAC fails to allege facts sufficient to state a cause of action;

3.      To the extent the FAC contains a cause of action predicated on expiration of a fixed term lease, the FAC fails to allege facts sufficient to state a cause of action.

BACKGROUND
The instant action is an unlawful detainer action. The original Complaint was filed on 02/17/2023. The FAC was filed on 03/03/2023.

The FAC used form complaint UD-100. Plaintiffs allege that on or about July 17, 2017, Defendant agreed to rent the premises as a term lease. Plaintiffs attached Exhibit 1 which is the lease agreement and the assignment and assumption of the lease agreement. Plaintiffs allege the tenancy is not subject tot the Tenant Protection Act of 2019 and is exempt because the this is a commercial tenancy consisting of a single story building, and not a residential building.

Plaintiffs also allege that Defendant was served a 3-day notice to pay rent or quit. Plaintiffs further alleged that on February 7, 2023, the 3-day notice to pay rent or quit expired at the end of the day. The 3-day notice was attached to the FAC as Exhibit 2. The 3-day notice was served by substituted service on February 2, 2023.

Plaintiffs’ FAC demands possession from Defendant for expiration of a fixed term lease in Paragraph 11 of the FAC. Further, ¶12 of the FAC alleges that at the time the 3-day notice to pay rent or quit was served, the amount of rent due was $41,862.00.

In Exhibit 2, the 3-day notice to pay rent stated in relevant part:

PLEASE TAKE NOTICE that in accordance with the agreement under which you held possession of the premises located at 3620 Foothill Blvd., La Crescenta, California, 91214, there is now due unpaid rent in the following amounts for the following specified periods: $2,025 for June 15, 2020; $2,289 for July 15, 2020; $2335 per month from August 15, 2020 to July 15, 2021 for a total of $28,020; and $2,382 per month from August 15, 2021 to November 15, 2021, for a total of $9,528. The total rent demand for the aforesaid periods is $41,862. The above amount of rent has been estimated pursuant to code of Civil Procedure section 1161.1 by the undersigned.

 

(FAC, Ex. 2.)

PROCEDURAL
Meet and Confer
A party filing a demurrer “shall meet and confer in person or by telephone with the party who filed the pleading that is subject to demurrer for the purpose of determining whether an agreement can be reached that would resolve the objections to be raised in the demurrer.”  (Code Civ. Proc., §430.41, subd. (a).)  “The parties shall meet and confer at least five days before the date the responsive pleading is due. If the parties are not able to meet and confer at least five days prior to the date the responsive pleading is due, the demurring party shall be granted an automatic 30-day extension of time within which to file a responsive pleading, by filing and serving, on or before the date on which a demurrer would be due, a declaration stating under penalty of perjury that a good faith attempt to meet and confer was made and explaining the reasons why the parties could not meet and confer.”  (Code Civ. Proc., §430.41, subd. (a)(2).) Failure to sufficiently meet and confer is not grounds to overrule or sustain a demurrer. (Id., §430.41(a)(4).)

Here, moving party’s attorney notes how he did not meet and confer prior to filing the demurrer because the action is an unlawful detainer action which is exempt from the meet and confer requirement. (Hovsepian Decl. ¶3.) “This section does not apply to the following civil actions:(2) A proceeding in forcible entry, forcible detainer, or unlawful detainer.” (CCP §430.41(d)(2).)

LEGAL STANDARDS FOR DEMURRERS
Demurrer – Sufficiency
A demurrer for sufficiency tests whether the complaint states a cause of action.  (Hahn v. Mirda, (2007) 147 Cal.App.4th 740, 747.)  When considering demurrers, courts read the allegations liberally and in context.  (Taylor v. City of Los Angeles Dept. of Water and Power (2006) 144 Cal.App.4th 1216, 1228.)  The court “treat[s] the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law ….”  (Berkley v. Dowds (2007) 152 Cal.App.4th 518, 525.)  In a demurrer proceeding, the defects must be apparent on the face of the pleading or via proper judicial notice.  (Donabedian v. Mercury Ins. Co. (2004) 116 Cal.App.4th 968, 994.)  A demurrer tests the pleadings alone and not the evidence or other extrinsic matters; therefore, it lies only where the defects appear on the face of the pleading or are judicially noticed.  (Code Civ. Proc., §§ 430.30, 430.70.)  The only issue involved in a demurrer hearing is whether the complaint, as it stands, unconnected with extraneous matters, states a cause of action. (Hahn, supra, 147 Cal.App.4th at 747.) 

The general rule is that the plaintiff need only allege ultimate facts, not evidentiary facts.  (Doe v. City of Los Angeles (2007) 42 Cal.4th 531, 550.)  “All that is required of a plaintiff, as a matter of pleading … is that his complaint set forth the essential facts of the case with reasonable precision and with sufficient particularity to acquaint the defendant with the nature, source and extent of his cause of action.”  (Rannard v. Lockheed Aircraft Corp. (1945) 26 Cal.2d 149, 156-157.) 

On demurrer, a trial court has an independent duty to “determine whether or not the … complaint alleges facts sufficient to state a cause of action under any legal theory.”  (Das v. Bank of America, N.A. (2010) 186 Cal.App.4th 727, 734.)  “A demurrer does not lie to a portion of a cause of action.” (PH II, Inc. v. Superior Court (1995) 33 Cal.App.4th 1680, 1682.)  “Generally it is an abuse of discretion to sustain a demurrer without leave to amend if there is any reasonable possibility that the defect can be cured by amendment.”  (Goodman v. Kennedy (1976) 18 Cal.3d 335, 349.)

Demurrer – Uncertainty
A special demurrer for uncertainty, CCP section 430.10(f), is disfavored and will only be sustained where the pleading is so bad that defendant cannot reasonably respond—i.e., cannot reasonably determine what issues must be admitted or denied, or what counts or claims are directed against him/her.  (Khoury v. Maly’s of Calif., Inc. (1993) 14 Cal.App.4th 612, 616.)  Moreover, even if the pleading is somewhat vague, “ambiguities can be clarified under modern discovery procedures.” (Ibid.)

ANALYSIS
CCP § 1161(2) states in pertinent part, “The notice may be served at any time within one year after the rent becomes due…” 

 

“Due to the summary nature of such an action, a three-day notice is valid only if the landlord strictly complies with the provisions of section 1161, subdivision 2 … A notice that seeks rent in excess of the amount due is invalid and will not support an unlawful detainer action.”  (Levitz Furniture Co. of the Pac., Inc. v. Wingtip Communications, Inc. (2001) 86 Cal.App.4th 1035, 1038 (“If the landlord waits over a year to sue for unpaid rent, he or she is limited to collecting such rent in a standard breach of contract action, ‘which results only in a money judgment without restitution of the demised property.’”).) 

 

Defendant argues that to the extent the FAC is predicated on nonpayment of rent, it fails as a matter of law because none of the rent demanded in the notice became due within one year of service of the notice, and therefore, the notice can never be construed as constituting a reasonable estimate of rent.

As to Defendant’s argument that 1161(2) requires that the rent demanded in a 3-day notice to pay rent or quit became due within one year preceding service of the notice, Defendant’s arguments are on point.

The instant notice to pay rent was served on February 2, 2023, and the demand for rent ranges from rent due from June 15, 2020 – November 15 2021. “If a landlord proceeds by way of a three-day notice to ‘pay or quit’ when the tenant is in default in rent payments, the landlord is limited to recovering rent that accrued within one year of the notice.”  (Hong Sang Market, Inc. v. Peng (2018) 20 Cal.App.5th 474, 491.)  Accordingly, a notice that demands rent for more than one year’s rent is defective.  (Bevill v. Zoura (1994) 27 Cal.App.4th 694, 697-98.)  Therefore, here, to the extent the notice demands rent for more than one year’s rent, it is defective under 1161(2).

However, for nonpayment of rent cases involving commercial properties, CCP § 1161.1(a) states:

 

If the amount stated in the notice provided to the tenant pursuant to subdivision (2) of Section 1161 is clearly identified by the notice as an estimate and the amount claimed is not in fact correct, but it is determined upon the trial or other judicial determination that rent was owing, and the amount claimed in the notice was reasonably estimated, the tenant shall be subject to judgment for possession and the actual amount of rent and other sums found to be due…

 

(Emphasis added.)  A notice served under CCP § 1161.1 (as opposed to CCP § 1161(2)) is not invalidated because it includes a demand for rent due for more than a year.  (Levitz Furniture Co. of the Pac., Inc., 86 Cal.App.4th at 1039-40 (CCP § 1161.1 notice not invalidated by fact it included an extra month beyond one-year limit where rent demand otherwise reasonably estimated); compare with Bevill, 27 Cal.App.4th at 697-98 (notice not stated as § 1161.1 estimated rent demand but rather notice served under CCP § 1161(2) and demanded rent owed more than one year before service, which deprived tenant of ‘proper opportunity to cure and prevent’ unlawful detainer action).)

 

Here, the notice was also expressly based on 1161.1, and Plaintiff is a commercial tenant. In the notice, as indicated in the background section of this tentative ruling, Plaintiff expressly set forth the basis for the reasonable estimate of the rent due.

 

Defendant’s citations to Levitz Furniture Co. v. Wingtip Communications Inc. (2001) 86 Cal.App.4th 1035 and WDT-Winchester v. Nilsson (1994) 27 Cal.App.4th 516, 534 do not support Defendant’s argument that the notice can never be construed as constituting a reasonable estimate of rent because none of the rent demanded in the notice became due within one year of service of the notice.

 

In Levitz, the 1161.1 estimate was upheld. In WDT-Winchester, the estimate was found not to be reasonable, but not because the estimate was based on rent due more than a year before the notice. Defendant cites no law to the effect that the reasonable estimate of overdue rent under 1161.1 must be based on rents that were due less than a year before the notice to quit per 1161(2).

 

Since this Court is overruling the demurrer on the basis that the nonpayment of rent was properly noticed and pled, the moratorium does not come into play because, as the demurrer acknowledges, the moratorium has been terminated with respect to commercial nonpayment of rent cases.

 

TENTATIVE RULING

Defendant’s demurrer as to Ground 1 is overruled. Defendant’s demurrer as to Ground 2 is overruled based on CCP 1161.1.

As a result of the rulings on the first two Grounds, the Court does not reach a ruling on Ground 3.

Defendant is to efile and eserve its Answer within 10 days.