Judge: James C. Chalfant, Case: 23STCP00605, Date: 2024-05-09 Tentative Ruling
Case Number: 23STCP00605 Hearing Date: May 9, 2024 Dept: 85
Ouyang v. Younan, et al.,
23STCP00605
Tentative
decision on (1) motion to correct/augment administrative record: partly granted; (2) petition for writ of
mandate: denied
Petitioner Lin Ouyang (“Ouyang”) seeks a writ of administrative
mandamus compelling Respondents Osama Younan, General Manager, Los Angeles
Department of Building and Safety, City of Los Angeles (“LADBS”), and Ann
Sewill, General Manager, Department Housing, City of Angeles (“LAHD”) to set
aside the LAHD General Manager’s decision approving a Tenant Habitability Plan
(“THP”). Petitioner Ouyang separately
moves to correct/augment the administrative record.
The court has read and considered the moving papers,
oppositions, and replies, and renders the following tentative decision.
A. Statement of
the Case
1. First Amended Petition
Petitioner Ouyang commenced this proceeding on February 27,
2023. The operative pleading is the First Amended Petition (“FAP”), filed on
December 13, 2023, which alleges a cause of action for administrative mandamus.
The FAP alleges in pertinent part as
follows.
Ouyang is a tenant of a rental property located at 1124 West
Adams Blvd., Los Angeles, CA 90007 (“Property”).
Real Party-in-Interest, 2621 South Hoover Street Holdings,
LLC (“Landlord”) is the owner of the Property.
On or around September 15, 2022, LADBS issued to Landlord a
permit (No. 21016-20000-48357) to do Primary Renovation Work on the Property. LAHD approved the Landlord’s application (No.
THPP002584) to move Ouyang to temporary housing during the construction.
Respondents violated Los Angeles County Covid-19 Tenant
Protection Resolution (“Resolution” or (“Eviction Moratorium”) section VI.A.2 (No
Fault Termination of Tenancy or Occupancy) by issuing the permit for substantial
remodeling that requires termination of occupancy.
Landlord entered into a written agreement to provide living and
recreation areas for Ouyang to use. Landlord
will remove access to those areas through construction causing Ouyang to suffer
irreparable injury if not enjoined. Ouyang
is a person with disabilities relying on those areas and removing the areas
constitutes an eviction that is protected by Los Angeles Municipal Code
(“LAMC”) section 151.09 of the Rent Stabilization Ordinance (“RSO”) of the City
of Los Angeles (“City”), for failure to provide reasonable accommodations.
Ouyang timely appealed the decision of LADBS and LAHD. However, the General Manager’s hearing
officer found that Landlord obtained the permit appropriately. The City denied
Ouyang a fair hearing because the hearing officer erroneously failed to
consider Ouyang’s entire written evidence in making his decision and instructed
Ouyang not to send private documents in the exhibits. The City and Landlord did
not notify Ouyang of her right under the Resolution when they notified her to
vacate her rental unit.
2. Course of Proceedings
Ouyang served Respondents by personal service on June 28,
2023 and July 11, 2023.
On August 4, 2023, Respondents filed their Answer.
On December 11, 2023, the parties filed a stipulation and
order allowing for leave to file amended pleadings.
On December 13, 2023, Ouyang filed the FAP and Respondents
filed their Answer to the FAP.
B. Standard of
Review
CCP section 1094.5 is the administrative mandamus provision
which structures the procedure for judicial review of adjudicatory decisions
rendered by administrative agencies. Topanga
Ass’n for a Scenic Community v. County of Los Angeles, (“Topanga”)
(1974) 11 Cal.3d 506, 514-15.
CCP section 1094.5 does not in its face specify which cases
are subject to independent review, leaving that issue to the courts. Fukuda v. City of Angels, (1999)20
Cal.4th 805, 811. In cases reviewing
decisions which affect a vested, fundamental right the trial court exercises
independent judgment on the evidence. Bixby v. Pierno, (1971) 4 Cal.3d
130, 143. See CCP §1094.5(c). In other cases, the substantial evidence test
applies. Mann v. Department of Motor
Vehicles, (1999) 76 Cal.App.4th 312, 320; Clerici v. Department of Motor
Vehicles, (1990) 224 Cal.App.3d 1016, 1023. Ouyang argues that the standard of review for
the THP’s compliance is independent review (Reply at 10), but she is
wrong. There is no vested property right
in temporary relocation assistance and the standard of review is substantial
evidence. See Smith v. County of Los Angeles, (1989) 211 Cal.App.3d
188, 197 (discretionary determinations involving purely economic interests do
not implicate a fundamental vested right).
“Substantial evidence” is relevant evidence that a
reasonable mind might accept as adequate to support a conclusion (California
Youth Authority v. State Personnel Board, (“California You Authority”)
(2002) 104 Cal.App.4th 575, 585) or evidence of ponderable legal significance,
which is reasonable in nature, credible and of solid value. Mohilef v. Janovici, (1996) 51
Cal.App.4th 267, 305, n.28. The
petitioner has the burden of demonstrating that the agency’s findings are not
supported by substantial evidence in light of the whole record. Young v. Gannon, (2002) 97 Cal.App.4th
209, 225. The trial court considers all
evidence in the administrative record, including evidence that detracts from
evidence supporting the agency’s decision.
California Youth Authority, supra, 104 Cal.App.4th at 585.
The agency’s decision must be based on the evidence
presented at the hearing. Board of
Medical Quality Assurance v. Superior Court, (1977) 73 Cal.App.3d 860,
862. The hearing officer is only
required to issue findings that give enough explanation so that parties may
determine whether, and upon what basis, to review the decision. Topanga, supra, 11 Cal.3d at
514-15. Implicit in section 1094.5 is a
requirement that the agency set forth findings to bridge the analytic gap
between the raw evidence and ultimate decision or order. Topanga, 11 Cal.3d at 515.
An agency is presumed to have regularly performed its
official duties (Evid. Code §664), and the petitioner therefore has the burden
of proof. Steele v. Los Angeles
County Civil Service Commission, (1958) 166 Cal.App.2d 129, 137. “[T]he burden of proof falls upon the party
attacking the administrative decision to demonstrate wherein the proceedings
were unfair, in excess of jurisdiction or showed prejudicial abuse of
discretion. Afford v. Pierno,
(1972) 27 Cal.App.3d 682, 691.
C. Tenant
Habitability Program[1]
The Tenant Habitability Program is an administrative program
established by the City to balance the need to facilitate and encourage
property owners’ reinvestment in their properties through the performance of
Primary Renovation Work, which work typically involves replacement or
substantial modification of major building systems and/or the abatement of
hazardous materials, while simultaneously ensuring that tenants at the
properties are not subjected to either untenantable conditions during the
renovation work or forced permanent displacement. Accordingly, the program requires landlords
to either safeguard tenants so that they can safely remain at the property
while renovations occur or that temporary relocation be made available to
tenants whose tenantability at the property will be affected. LAMC §152.01.
Pursuant to LAMC section
152.03(A)(1), “[n]o landlord shall undertake Primary Renovation Work without
first obtaining a permit, pursuant to Sections 91.106, 92.0129, 92.0132,
93.0201, 94.103, or 95.112.2 of this Code.” LAMC § 152.02(A)(1). “[LAHD] shall clear a landlord's application for a permit for Primary Renovation
Work if both of the following conditions have been met: a. The landlord has
submitted a Tenant Habitability Plan which, in accordance with Subsection C of
this section, [LAHD] finds to
adequately mitigate the impact of Primary Renovation Work and any Related Work
upon affected tenants; and b. The
landlord has submitted a declaration documenting service to affected tenants of
both a Notice of Primary Renovation Work and a copy of the non-confidential
portions of the Tenant Habitability Plan.” LAMC §152.03(A)(2); RAC Regulation §713.01.4.
At a minimum, the THP must: (1) identify the landlord, the
general contractor responsible for the Primary Renovation Work, and any
specialized contractor responsible for hazardous material abatement; (2)
identify all affected tenants, including the current rent and the last rent
increase for each such tenant; (3) describe the scope of work covering the
Primary Renovation Work and any Related Work, including the specific work to be
undertaken on all affected units and common areas, an estimate of the total project
cost and time, and an estimate of the cost and time of renovation of each
affected unit; (4) identify the impact of the Primary Renovation Work and
Related Work on the habitability of each affected unit, including the impact
severity and duration as it relates to noise, utility interruption, exposure to
hazardous materials, interruption of fire safety systems, inaccessibility of
all/portions of an affected unit, and disruption of tenant services; (5)
identify all mitigation measures to be implemented to ensure that the tenants
are not required to occupy an untenantable dwelling as defined by Civil Code
section 1941.1 outside of the hours of 8:00 a.m. to 5:00 p.m., Monday through
Friday, and are not exposed to hazardous materials; (6) identify the impact of
the Primary Renovation Work and any Related Work on the personal property of
all tenants of affected units; and (7) identify the mitigation measures to be
implemented to secure and protect tenant property from foreseeable damage
and/or loss. LAMC §152.03(B); RAC Regulations
§713.02.
LAHD shall make a determination regarding the adequacy of
the proposed THP within five days of submission. LAHD is required to accept any THP that meets
the requirements under LAMC section 152.03(B) and which it determines, with
reference to the standards set forth under Civil Code section 1941.1, will
adequately mitigate the impacts of the Primary Renovation Work upon the
tenants. While an accepted THP may allow
for the temporary disruption of major systems during the hours of 8:00 a.m. to
5:00 p.m., Monday through Friday, without requiring the relocation of affected
tenants, the tenants should not be exposed at any time to toxic or hazardous
materials. LAMC §152.03(C); RAC Regulations
§713.03.l.
If the Primary Renovation Work will impact the tenantability
of a rental unit for 30 days or more, any affected tenant will have the right
to voluntarily terminate the tenancy in exchange for permanent relocation
assistance pursuant to LAMC section 151.09(G).
Further, if the Primary Renovation Work continues for 30 days longer
than the projected completion date set forth under the THP, an affected
tenant’s option to accept permanent relocation assistance shall be renewed. LAMC §152.05(A); RAC Regulations §715.00.
The owner shall indicate in the THP whether the temporary
relocation of any affected tenant is necessary.
LAHD may also, independently and in connection with its review of the
THP, determine that temporary relocation assistance is necessary. Further, LAHD
may also require, at any time, that temporary relocation assistance be provided
to an affected tenant if it is determined that such is necessary to ensure the
health and safety of the tenant. LAMC
§152.06(A); RAC Regulations §716.00.
Either an affected tenant or the landlord may appeal LAHD’s
THP determination to a hearing officer.
The appeal shall be filed within 15 days of service of the LAHD’s
determination. The requested hearing
shall then be held within 30 days of the filing of the appeal pursuant to the
procedures set forth under LAMC section 151.07(A)(3) (for example, the hearing
shall address any alleged error or abuse of discretion on the part of the LAHD
and the parties may present documents, testimony, written declarations, or
other pertinent evidence at the hearing).
The hearing officer shall then issue a written decision within ten days
of the hearing on the appeal. LAMC
§152.03(C)(4); RAC Regulations §713.03.4.
D. Motion to Correct/Augment the Administrative
Record
Petitioner Ouyang moves to correct/augment the
administrative record by (1) removing Exhibit 23 (SAR 1-26), (2) adding
supporting letters from Ouyang’s medical provider, and (3) adding evidence to
countervail the factual allegation raised in Landlord’s answer.[2]
CCP section 1094.5 states in pertinent part, “[w]here the
court finds that there is relevant evidence that, in the exercise of reasonable
diligence, could not have been produced or that was improperly excluded at the
hearing before respondent, it may enter judgment as provided in subdivision (f)
remanding the case to be reconsidered in the light of that evidence; or, in
cases in which the court is authorized by law to exercise its independent
judgment on the evidence, the court may admit the evidence at the hearing on
the writ without remanding the case.” CCP §1094.5(e).
Ouyang argues that Exhibit 23 (SAR 1-26) should be removed from
the record because she filed it as an objection to Landlord’s evidence on
November 1, 2022, after the October 27, 2022 deadline for evidence to be
submitted. Mot. at 6. The LAHD clerk informed Ouyang that the
submission was untimely, that it would be up to the Hearing Officer whether to
consider it, and subsequently that the objections were rebuttal evidence that
should be presented at the hearing.
Ouyang Decl., ¶3, Ex. 2. The Hearing Officer noted receipt of the
objections totaling 26 pages, stating that “I’ll take the testimony and the
documentary evidence into consideration.”
AR 165-66. He also referred to
the 26-page objections in his decision.
AR 116. But he did not include
the objections in his evidence log. AR 114.
Mot. at 6-7.
This argument is frivolous.
Ouyang submitted documents to the Hearing Officer. Whether or not they were considered does not
affect whether they should be in the record.
Additionally, the Hearing Officer stated that he did consider them. AR 116, 165-66. The motion is denied for Exhibit 23.
Ouyang argues that supporting letters from her medical
provider should be added to the record because they are relevant to her claim
of denial of reasonable accommodations due to her disability. Mot. at 11.
Ouyang fails to meet the CCP section 1094.5(e) test that the evidence
must be relevant and could not have been produced at the hearing in the
exercise of reasonable diligence or was improperly excluded at the hearing. Assuming they are relevant to a material
issue (see Opp. at 6-7), Ouyang fails to show that the letters, which
are dated after the November 3, 2022 hearing, could not have been presented in
the exercise of due diligence. Her
arguments concerning her need for confidentiality and difficulty making medical
appointments do not suffice. Ouyang
Decl., ¶7. The motion is denied for the
medical provider letters.
Finally, Ouyang seeks to present facts concerning her coerced
relocation to rebut Real Party’s claim of mootness. Ouyang Decl., ¶¶ 10-13. These facts are relevant and arose after the
November 3 hearing and could not have been presented in the exercise of due
diligence. The motion is granted for
this evidence.
In sum, the motion to correct/augment is granted for facts
concerning Ouyang’s coerced relocation to rebut Real Party’s claim of mootness
(Ouyang Decl., ¶¶ 10-13) and otherwise is denied.
E. Statement of Facts
1. The THP
On or about September 14, 2022,
Landlord filed a THP with LAHD. AR 1-8. The THP stated that Landlord would convert the
Property, a 14,820 sq. ft., 26-unit dormitory, into a 31-unit and two guest
room apartment building. AR 1. The THP stated that construction would start
November 22, 2022, and it would require current tenants to move to temporary
housing. AR 2.
On September 14, 2022, LAHD approved
the THP. AR 23. Landlord served the THP
on affected tenants.
2. Ouyang’s Appeal
On September 28, 2022,
Ouyang, tenant in unit 30, filed an appeal of the THP pursuant to LAMC section
152.03.D.6. AR 24-45. Ouyang raised the following issues: (1) Landlord is breaching her lease
by removing the majority of the common areas she is entitled to use; (2) Landlord is increasing her rent per square
foot (“sq. ft.”) by significantly reducing her living space; (3) Landlord is
making her housing untenable by eliminating common areas where she conducts her
daily activities; (4) the THP fails to describe any measures to protect her
belongings from damage and mail from loss; (5) Landlord failed to provide
temporary housing with comparable service and failed to compensate the loss of
the service; and (6) Landlord failed to make a reasonable accommodation for her
disabilities. AR 25.
On October 5, 2022, the City issued a
notice of a General Manager’s hearing. AR 46-93. In the notice, LAHD
consolidated Ouyang’s first three claims into two claims: (1) Landlord’s removal
of access to common areas that Ouyang is entitled to use per her lease and (2) Landlord
is increasing her rent per sq. ft. and decreasing her living space in violation
of the RSO. AR 46. The notice consolidated claims four and five into
one claim: (3) Landlord is failing to provide temporary housing and any
accommodation for Ouyang’s disabilities.
AR 46. The last claim (4) was the
THP’s failure to protect Ouyang’s belongings from damage and/or theft. AR 46.
On October 6, 2022, LADBS issued a
permit to Landlord to convert the Property into a 29- unit and five guest room
apartment building. AR 94-95. LAHD did
not issue a THP clearance to LADBS for the construction permit. See AR 187-89; see also AR
331 (LAHD’s log shows no issuance of clearance to LADBS).
3. The Appeal Hearing
On October 27, 2022, both Ouyang and
Landlord submitted documentary evidence for consideration at the appeal hearing.
AR 236-300 (Ouyang), 301-28 (Landlord). LAHD’s clerk, Pablo Tiburcio (“Tiburcio”)
forwarded this to Hearing Officer Andre Brown (“Hearing Officer”). AR 329-30. LAHD senior housing inspector
Michael Soto (“Soto”) submitted a case summary. AR 234-35.
Ouyang
submitted a 26-page “Objection” to Landlord’s evidence. SAR 1–26. The LAHD clerk informed Ouyang that
the submission was untimely, that it would be up to the hearing officer whether
to consider it, and subsequently that the objections were rebuttal evidence
that should be presented at the hearing.
Ouyang Decl., ¶3, Ex. 2.
The
Hearing Officer noted receipt of the Objections totaling 26 pages, stating that
“I’ll take the testimony and the documentary evidence into consideration.” AR 165-66.
He also referred to the 26-page Objections in his decision. AR 116.
He did not include the Objections in his evidence log. AR 114.
On November
3, 2022, the Hearing Officer held the General Manager hearing telephonically. AR
113. The witnesses were Soto,
Ouyang,[3] Landlord’s representatives
Steve Furst (“Furst”) and Michael Nigosian (“Nigosian”), tenant in Unit 35
Xiaoli Yu (“Yu”) AR 113.
a. Soto
LAHD Inspector Soto summarized his case summary’s scope of
work and the accepted THP. AR 131. He described the basis for Ouyang’s appeal as
removal of access to common areas, increase of rent by square footage, concerns
over protection of personal belongings, and failure to provide comparable
temporary housing. AR 132. The subject of the hearing is to determine if
the THP is adequate and reasonable under LAMC section 152.03B. The THP ordinance provides assurance that the
tenant will have access to a tenantable unit.
AR 132. Removal of common areas
and square footage rent increase is addressed by RAC Regulations section 413.2,
which permits a rent reduction for a specific tenant based on evidence
submitted. AR 132. The THP process is
not an appropriate venue for those concerns.
AR 132. The THP provides that
Landlord will cover all expenses to safeguard and pack and unpack tenant
personal belongings. AR 133. The proposed temporary housing unit meets all
requirements in the THP ordinance. It is
within the required distance from the existing unit and LAHD’s inspection of
the comparable unit verified that it is comparable or better than Ouyang’s
unit. AR 133. Inspector Soto recommended that the approval
of the THP be upheld. AR 133.
b. Ouyang
Ouyang testified that Soto did not address her requests for
reasonable accommodation for disability, even though the Landlord knew of her
disability, and she needed additional time to move out because of her
disability. AR 134, 136-38.[4] She explained that she had doctor’s documents
available but did not know how to submit them confidentially. AR 139.
The Hearing Officer responded that she simply could redact personal
identifying information. AR 139. Ouyang added that the last time she talked to
her doctor was in October and she had not had the time to get an attorney
involved and the paperwork done. AR
139-40.
Ouyang testified: “I think the most important thing is that
the THP unit or the owner of the property only limited their consideration to
my room” and failed to take into account the storage assigned to her for her
exclusive use, and storage rooms at the Property shared among the tenants.” AR 140–41. Landlord’s renovation would change the
configuration of the building (affecting the size of the common areas, parking,
and storage areas), impacting the storage assigned to her for exclusive use and
storage rooms shared among the tenants.
Her unit at the Property also was more secure than the proposed
temporary unit as a USC security guard operates nearby the Property. AR 135, 138.
c. Furst
Furst, on behalf of the Landlord, testified that the
Landlord is completely renovating the building and it is unreasonable for
tenants to stay during the process. AR
143. Landlord had worked with LAHD to
ensure the THP covered the cost of tenants packing, move out, repacking, and
moving back in. AR 144, 148. Ouyang’s lease does not entitle her to any
storage in common spaces or the janitor’s closet she refers to in her rebuttal. AR 144.
It does not include kitchen, bathroom parking or anything except her
unit. AR 144.
Ouyang had not made, prior to her testimony at the hearing, any
reference to her disability. AR
145. Landlord remained willing to
consider specific disability concerns, but there had been no request by Ouyang
for a reasonable accommodation request with any specificity. AR 145.
Although she was now requesting an extra 30 days, Landlord felt the
THP’s 60 days was sufficient. AR 145.
Furst understood that Ouyang’s contention about a RSO
violation and rent increase cannot be presented in this forum. AR 146.
He nonetheless responded that her unit at the Property is 100 sq. ft. AR 145.
While some of the common areas of the Property would be eliminated by
the renovation so new units can be constructed, Ouyang’s contention that she
leased “1/26” of the building (e.g., common areas and storage) is
incorrect because she is not entitled to common spaces. AR 146.
The temporary unit would be
provided to Ouyang with much larger square footage than her unit at the
Property and it also provides storage space that her unit does not. AR 155-56.
Landlord agreed to pay the tenants’ entire rent at the temporary
relocation unit even though it did not have to do so. AR 147.
It was not clear to Furst that USC’s crossing guard service operates at
the temporary unit location, but that is a service not offered by Landlord and
is not part of the lease. AR 150.
d. Yu
Yu, a tenant in unit 35 of the Property, testified about the
importance of the security provided by USC security guards who operate in the
vicinity of the Property. AR 152.
e. Nigosian
Nigosian confirmed, on behalf of the Landlord, that the
temporary unit identified in the THP was within an area that USC security
guards patrolled. AR 156–57.[5]
4. The Decision
On November 30, 2022, the Hearing
Officer issued his General Manager’s decision.
AR 115-21. The Hearing Officer
set forth the facts concerning Landlord’s submission of the THP and LAHD’s
acceptance of it. AR 115. Ouyang’s appeal was based in part on (1) Landlord’s
removal of access to common areas that Ouyang is entitled to use, which has increased
the rent of her unit, (2) Landlord’s failure to provide temporary housing comparable
to her unit, and (3) the THP’s failure to protect Ouyang’s belongings from
damage and/or theft. AR 116.
The Hearing Officer summarized the
testimony and evidence presented. AR
116-17. In doing so, the Hearing Officer
stated: “Ouyang emphasized that she had submitted a written summary of
objections to the THP for consideration by the Hearing Officer and pointed out
there are many contradictions and ambiguities in the THP application.” AR 116.
The Hearing Officer accepted the
THP. AR 119. He reiterated that Ouyang had emphasized that
she had submitted a written summary of objections to the THP and pointed out its
many contradictions and ambiguities. AR
116. Ouyang further contended that the
Landlord’s assertion was wrong that she never made them aware of her disability
and that she is not entitled to storage space under her lease. AR 119.
“Although her testimony was credible,
[Ouyang] failed to show by a preponderance of the evidence that [LAHD]
committed an error or abuse of discretion in approving the THP. In consideration of the aforementioned facts,
there is no legal justification delaying the start of this project. The
evidence shows that the required permits were properly obtained and the
temporary unit is comparable pursuant to RAC Regulation 716.0 et seq.” AR 120.
Thus, Landlord may commence with the Primary Renovation work as described
in the accepted THP. AR 120.
F. Analysis
Petitioner Ouyang seeks a writ of administrative mandamus
compelling Respondents (hereinafter, the “City”) to set aside its decision
affirming the Hearing Officer’s decision approving the THP. Ouyang raises three issues: (a) the Hearing
Officer’s decision is void as a violation of the County’s COVID Resolution; (b)
the permit issued by LADBS is invalid without a clearance from LAHD; and (c)
she was denied a fair hearing.[6]
1. Mootness
“Although a case may originally present an existing
controversy, if before decision it has, through the acts of the parties or
other cause, occurring after commencement of the action, lost that essential
character, it becomes a moot case or question which will not be considered by
the court.” Wilson v. Los Angeles
County Civil Service Commission, (1952) 112 Cal.App.2d 450, 453; Colony Cove Props., LLC v. City of Carson,
(2010) 187 Cal.App.4th 1487, 1509.
"The pivotal question in determining if a case is moot is []
whether the court can grant the plaintiff any effectual relief." Giles
v. Horn, (2002) 100 Cal.App.4th 206, 227 (claim that county failed to make
required findings to approve contracts rendered moot by contract extensions
which were the operative agreements); Eye Dog Foundation v. State Bd. of Guide Dogs
for the Blind, (“Eye Dog Foundation”) (1967) 67 Cal. 2d 536,
541.
A court should not dismiss a case as moot if a substantial issue
remains. Terry v. Civil Serv. Comm’n, (1952)
108 Cal. App. 2d 861. A case is
not moot where, despite the happening of a subsequent event, there remain
material questions for the court’s determination that impact a party’s future
and contingent legal rights. Eye Dog
Foundation, supra, 67 Cal.3d at 541.
In other words, a case is moot only where the disposition of the case is
“a matter of indifference to the parties” -- where disposition of the case will
neither benefit the plaintiff nor harm the defendant. Turner v. Markham, (1909) 156 Cal.
68, 69.
Ouyang
presents extra-record evidence as follows.
On January 12, 2023, Ouyang’s representative sent a letter informing
Landlord that the permit was issued illegally in violation of the
Resolution. Ouyang Decl. ¶9, Ex.
10. The next day, Landlord
started the construction and pulled down the walls, which created an
untenantable condition and harmed Ouyang. AR 4; Ouyang Decl. ¶¶ 10, 11,
Ex. 11, 12. Ouyang got panic attacks, felt dizzy with
blurred vision, and had chest pain. Ouyang
Decl. ¶11. Under these circumstances,
she signed paperwork agreeing to temporarily relocate and move back to her
current unit upon completion of the remodeling work. Ouyang Decl. ¶¶ 10-12, Ex. 11
(pictures of construction), Ex. 12 (emails with Landlord), Ex. 13 (temporary
relocation agreement).
The temporary
unit proved to be 100 square feet short of the 600 square foot size of Ouyang’s
current unit. Ouyang Decl. ¶12. After staying in the inadequate unit
for about three months, Ouyang developed reflux and ended up in Urgent
Care. Ouyang Decl. ¶13, Ex. 14
(Urgent Care visit summary).
Housing Right Center helped Ouyang get the rest of the required 100 square feet
of space from Landlord. Ouyang
Decl. ¶14.[7]
Ouyang contends that her agreement to relocate was induced under duress by physical
compulsion and is void. Restatement of
Contract (2nd) §74. It also
is void also for lack of mutuality of obligations and consideration as her
occupancy was protected under the Resolution and the agreement waiving the
right under the Resolution is illegal in violation of Section XVII of the
Resolution as contrary to public policy.
Yoo v. Jho, (2007) 147 Cal. App. 4th 1249. Pet. Op. Br. at 10-11.
The City argues that Ouyang admits that she has moved out of
her unit and cannot not move back in until it is habitable again. There would be no point reversing or
remanding the Hearing Officer’s decision when Ouyang would not be able to move
back into her unit until construction is completed – the very point at which
the THP expires. As such, there is no
effective relief available. Opp. at 8-9.
Ouyang replies that the case is not moot. Landlord is removing majority of the existing
housing accommodations of the Property through Primary Renovation Work, and she, facing forced permanent
displacement from her unit, has a continuing interest in the relief of vacating
the permit, setting aside the decision, a rehearing to determine the issue of her right to reoccupy her
unit under the existing terms of tenancy upon completion of the Primary
Renovation Work, and ultimately that Landlord rectify its construction. Reply at 1.
Ouyang argues that she did not voluntarily
elect to temporarily vacate her unit but rather was forced to do so. Reply at 3.
Even though the Landlord has started construction, the walls,
kitchens, bathrooms, and other housing accommodations that were removed can be
restored. In other words, even
if the construction work is completed, the challenge to the permit and the decision
is not mooted. Woodward Park
Homeowners Ass'n v. Garreks, Inc., (2000) 77 Cal.App.4th 880, 888-89
(challenge to construction of car wash without EIR not mooted by completion of
the project because court could modify the project to mitigate adverse impacts
or even order car wash torn down). Landlord
has been aware at all stages after
Ouyang’s appeal that she has questioned its right to remove the existing
housing accommodations and has proceeded at its own risk when its actions was
questioned. Reply at 2.
The purpose of the THP is to adequately mitigate the impact of Primary
Renovation Work and any Related Work upon affected tenants. LAMC §152.03(A)(2); RAC Regulation §713.01.4. Ouyang’s
claims on appeal were: (1) Landord is removing her access to common areas that she
is entitled to use per her lease; (2) Landlord is effectively increasing her rent
per sq. ft. and decreasing her living space in violation of the RSO; (3)
Landlord is failing to provide comparable temporary housing and any
accommodation for Ouyang’s disabilities; and (4) the THP fails to protect
Ouyang’s belongings from damage and/or theft.
AR 46.
The case is not moot if there is any
aspect of the THP still in effect.
Plainly, Ouyang’s claim concerning Landlord’s failure to provide
temporary housing and a reasonable accommodation for her disabilities by
extending the time for her to temporarily relocate an additional 30 days is
moot. Ouyang has temporarily relocated
and, at least now, her temporary accommodations comply with the THP. Her argument that she was compelled by
physical circumstances to relocate does not affect this point.
Soto testified that the THP ordinance provides assurance
that the tenant will have access to a tenantable unit. AR 132.
Removal of common areas and square footage rent increase is addressed by
RAC Regulation 413.2, which permits a rent reduction for a specific tenant
based on evidence submitted, and the THP process is not an appropriate venue
for those concerns. AR 132. This undisputed testimony means that Ouyang’s
claim concerning loss of common area use and increased effective rent for her
unit upon return is not within the scope of Ouyang’s appeal, but it does not
make the claims moot.
Last,
Ouyang’s claim that the THP fails to protect her belongings from damage and/or
theft is not mooted until her return to her unit at the Property.
In sum,
Ouyang’s appeal is partly mooted but not entirely.
2. The County Resolution
Ouyang
challenges the Hearing Officer’s decision as barred by the County’s
Resolution. This is an issue of law
reviewed by the court de novo.
Ouyang notes
that, on March 4, 2020, in an effort to protect tenants in response to the
serious health and economic impacts of the COVID-19 pandemic, the County’s
Board of Supervisors proclaimed the Resolution.
Pet. RJN Ex. 1, p. 1. Pursuant to
the Resolution, LAHD’s authority to temporarily relocate tenants due to
substantial remodeling was suspended by the Resolution: “A Tenant shall not be
evicted where grounds for terminating the tenancy or occupancy is not based on
any alleged fault by the Tenant…No-Fault termination of tenancy or occupancy
also includes the intent to demolish or to substantially remodel the real
property”. Ex. 1, p. 11. The City, which is an incorporated city
within the County, is required to comply with the Resolution. Ex. 1, pp. 9-10. Pursuant to Section XVII of the Resolution,
“Any waiver of rights under this Resolution shall be void as contrary to public
policy”. Ex. 1, p. 23.
Ouyang argues
that the language of the Eviction Moratorium is clear, there is no need for
interpretation, and thus the effect must be given to its plain meaning. O'Brien v. Dudenhoeffer, (1993) 16
Cal.App.4th 327, 332. The use of word “shall” indicates that the prohibition on
eviction is mandatory. RSL Funding,
LLC v. Alford, (2015) 239 Cal. App. 4th 741, 745 (“settled
principles of statutory construction direct that “we ‘ordinarily’ construe …the
word ‘shall’ as mandatory”). The Hearing
Officer’s decision upholding approval of the THP that terminated Ouyang’s occupancy
for substantial remodeling of the Property violated her tenant rights under section
VI.A.2 of the Resolution. As a result, the
Hearing Officer’s decision is void as contrary to public policy under section
XVII of the Resolution. Pet. Op. Br. at
7.
Respondents correctly note (Opp. at 10) that Ouyang failed
to raise this argument at the appeal hearing and thus it is waived. As a general rule, a court will not issue a
writ of mandate unless a petitioner has first exhausted its available
administrative remedies. See, e.g.,
Alta Loma School Dist. v. San Bernardino County Com. On School Dist.
Reorganization, (1981) 124 Cal.App.3d 542, 554. Under this rule, an administrative remedy is
exhausted only upon termination of all available, non-duplicative
administrative review procedures. Coachella
Valley Mosquito & Vector Control Dist. v. California Public Employment
Relations Bd., (2005) 35 Cal.4th 1072, 1080. The exhaustion doctrine has been described as
“a jurisdictional prerequisite to resort to the courts.” Abelleira v. District Court of Appeal,
(1941) 17 Cal.2d 280, 291-93.
The exhaustion doctrine includes issue
exhaustion as well as exhaustion of administrative remedies. The agency must be given the opportunity to
reach a reasoned and final conclusion on each and every issue upon which it has
jurisdiction to act before it is raised in a judicial forum. Hill RHF Housing Partners, L.P. v. City of
Los Angeles, (2021), 12 Cal.5th 458, 479 (citation omitted). “Exhaustion requires ‘a full presentation to
the administrative agency upon all issues of the case and at all prescribed
stages of the administrative proceedings.’”
City of San Jose v. Operating Engineeers Local Union No. 3,
(2010) 49 Cal.4th 597, 609 (citations omitted). “The exhaustion doctrine contemplates
that the real issues in controversy be presented to the administrative body,
which must be given the opportunity to apply its special expertise to correct
any errors and reach a final decision, thereby saving the already overworked
courts from intervening into an administrative dispute unless absolutely
necessary.” Farmers Ins. Exchange v.
Superior Court, (1992) 2 Cal.4th 377, 391. The exact issue raised in the lawsuit must
have been presented to the administrative agency. Tahoe Vista Concerned Citizens v. County
of Placer, (2000) 81 Cal.App.4th 577, 594. Otherwise, a litigant could present narrow
arguments or even omit them before the final administrative authority in hopes
of obtaining a more favorable decision from a trial court. Id.
Ouyang replies that she has not waived the Eviction
Moratorium issue because “[w]aiver is the intentional relinquishment of a known
right with knowledge of the facts” (McDermott v. Superior Court, (1972) 6
Cal.3d 693, 698, n. 3), and nothing in the record shows that she knew about the
Resolution’s grant of her right not to be temporarily relocated during the
pandemic. A finding of waiver would violate
the no waiver clause in the Resolution and be against public policy. Moreover,
an objection that an administrative agency has proceeded without or in excess
of its jurisdiction may be made at any time; the failure to object at the
administrative hearing does not constitute a waiver. Gilliland v Medical Bd., (2001) 89 Cal.
App. 4th 208, 219. Reply at 2-3.
Ouyang is incorrect. The failure
to exhaust an issue at the administrative level is a waiver as a matter of law;
no presentation of evidence that the petitioner knew about the issue is
required. Ouyang’s waiver is not a
waiver of her non-eviction right under Resolution section XVII but rather a waiver for
failing to raise that issue. The waivers
are not the same. The former is a
substantive rule and the latter is procedural in nature. Although procedural, the failure to exhaust doctrine
is important and considered jurisdictional.
Finally, there is nothing
jurisdictional about the Resolution. It was
a temporary measure imposed by the County Board of Supervisors. See Marquez v. Medical Board,
(2010) 182 CalApp.4th 548, 557-58 (discussing the nature of a resolution). It imposes requirements but does not confer
or withdraw jurisdiction.
Additionally, Ouyang is wrong on the merits of her Eviction Moratorium
argument. The parties debate whether the
Eviction Moratorium governed temporary relocations that did not result
in the termination of a tenancy in addition to evictions that resulted in
terminations of tenancy.[8] They also debate Ouyang’s voluntarily election
to temporarily vacate her unit at the Property. Opp. at 10; Reply at 3-4.
But the simple fact is that
the Hearing Officer’s decision did not evict Ouyang. It merely approved a THP providing for
temporary relocation of tenants. Ouyang
points to nothing in the Resolution preventing public agencies from performing
their jobs, which for LAHD was approving the THP and for the Hearing Officer
was hearing the THP appeal. In
particular, Ouyang does not show that the Hearing Officer’s decision violated
the Resolution simply because it was a step in favor of temporarily relocating
the Property’s tenants. Ouyang’s real
complaint about a violation of the Eviction Moratorium lies in LADBS’ issuance
of a construction permit, which she agrees is a matter that was not within the
Hearing Officer’s authority. See post. This led to her agreement to be temporarily
relocated, which she contends was coerced by the construction. Those issues are not significant for the
Hearing Officer’s decision.
Ouyang makes
three arguments that the permit issued by LADBS is illegal.
First, she contends
that the authority of LADBS to issue a permit for substantial remodeling that
requires moving tenants out also was suspended by the Eviction Moratorium. Permitting LADBS to issue construction permits
during the pandemic would move tenants out, contrary to the Resolution’s intent
in the “No-Fault Termination of Tenancy or Occupancy” provision. It also would be contrary to the Resolution’s
primary purpose, which is “to ensure that tenants stay housed during the
pandemic, thereby minimizing the risk of uncontrolled spread of COVID-19”. Pet. RJN Ex. 1, pp. 5, 11. LADBS’ issuance of the permit violated section
VI.A.2 of the Resolution and is void. See
also LAMC §91.106.4.3.2 (“[A] permit or other document purporting to give
authority to violate any law shall not be valid with respect thereto”). Pet. Op. Br. at 8.
The City responds that LADBS’s issuance of a building permit
for the renovation was not illegal under the Eviction Moratorium. The issuance of a building permit is not a
type of action that can unilaterally terminate a tenancy under the unlawful
detainer laws. See CCP §1161 (termination of tenancy and unlawful
detainer remedy is available in the event of (1) expiration of the lease, (2)
non-payment of rent, (3) breach of lease other than non-payment, (4) committing
nuisance or waste, (5) tenant’s voluntary termination of the lease). Opp. at 10.
The court need not decide this issue because Ouyang cannot address the
permit’s legality in this case, as she admits.
See post.
Second, Ouyang
contends that the permit issued by LADBS was invalid because it was issued
without a clearance from LAHD. When LADBS
determines that “the information on the application and plans is in conformance
with…relevant code and ordinances”, it shall issue a permit. LAMC §91.106.4.1. Prior to issuing a permit for residential
property subject to the THP ordinance, LADBS shall determine whether the work
constitutes Primary Renovation Work. RAC
Regulation §713.01. In making this
determination, LADBS may use a questionnaire and rely on property data supplied
by LAHD that identifies property subject to the ordinance. Id.
Under the
Tenant Habitability Program, no landlord shall undertake Primary Renovation
Work without obtaining a permit pursuant to inter alia, LAMC section
91.106. LAMC §152.03.A. LAHD shall clear a landlord's application for
a permit for Primary Renovation Work if the landlord submits a THP which
adequately mitigates the impact of Primary Renovation Work and any Related Work
upon affected tenants and the tenants are properly notified. Id.
Ouyang
argues that the scope of work described in Landlord’s permit is converting a
dormitory into an apartment building (AR 94), which constitutes Primary
Renovation Work as defined in RAC Regulations section 712.00. Thus, a THP
clearance from LAHD was required before LADBS issued the permit. However, LADBS issued the permit without a
clearance from LAHD. AR 187-89. Accordingly, the permit violates LAMC section 91.106.4.1,
RAC Regulation section 713.01, and LAMC section152.03.A, and is invalid pursuant
to LAMC section 91.106.4.3.2. Pet. Op.
Br. at 8-9.
Third, Ouyang
argues that there is no clearly defined procedure for a tenant to appeal a
building permit issued to a landlord. Ouyang
notes that the Hearing Officer lacked jurisdiction to decide whether “the
required permits were properly obtained [from LADBS]”. AR 120. That is because
LADBS, not LAHD, has the authority to enforce all ordinances and laws relating
to the construction, alteration, or repair of buildings in the City. LAMC §22.20.
Likewise, the Hearing Officer did not have the authority to vacate the permit
even if he found it invalid. LAMC §22.601. LADBS has that sole authority. LAMC
§91.104.2.4. Pet. Op. Br. at 9.
Ouyang filed
a complaint with LADBS alleging that the permit violated the Resolution, the
construction would deprive her of access to living spaces inseparable to her
housing, Landlord started construction while she was in the unit, and the
construction created an unsafe and unhealthy condition that harmed her. Ouyang requested LADBS to vacate the permit
because it was issued without a THP clearance. These efforts were futile. Ouyang Decl. ¶16, Ex. 15.
She contends that LADBS has a clear and present ministerial duty to
ensure that a permit is in compliance with the laws but has failed to do
so. Pet. Op. Br. at 11.
The
City notes (Opp. at 11) that Ouyang failed to exhaust the issue whether LADBS
issued a building permit before LAHD had cleared the THP because she failed to
raise this argument at the hearing. Opp.
at 11.
Ouyang
replies that the City’s argument only establishes the officer’s authority to
decide whether LAHD properly issues clearance for an owner’s application for a
permit, not the issue she has raised that the Hearing Officer lacked authority
to decide whether LADBS issues a permit properly pursuant to LAMC
§91.106.4.1. Reply at 7. She argues that
exhaustion is excused when an administrative remedy is unavailable, is
inadequate, or it would be futile to pursue it. McAllister v. County of
Monterrey, (2007) 147 Cal.App.4th. 253, 275. The rule of exhaustion of administrative
remedies is inapplicable where the agency lacks authority to hear the
complaint. Glendale City Employees’ Assn. v. city of Glendale, 15 Cal.
3d 328, 342-343. In this case, the City points
to no procedure established by an ordinance or a rule for a tenant to appeal a
permit issued to a landlord. Thus, there
is no administrative remedy available for Ouyang to have Landlord’s illegal
permit vacated (LAHD has no authority to vacate a permit obtained from LADBS). Accordingly, Ouyang is
not required to raise the issue of illegally issued permit at the
administrative hearing before seeking judicial review. Reply
at 4-5.
Ouyang is mixing apples and
oranges. The court agrees that the
Hearing Officer had no authority to vacate a permit issued by LADBS. But the fact that Ouyang could not find an
ordinance from which an appeal of that permit could be taken does not aid
her. The FAP contains a single cause of
action for administrative mandamus from the Hearing Officer’s decision. If she wished to challenge the permit, and if
she is correct that there is no exhaustion requirement, then she should have
made a traditional mandamus claim against LADBS pursuant to CCP section 15. LADBS is named as a Respondent, but the FAP
contains no claim against it. The only
claim is for administrative mandamus under CCP section 1094.5.
Ouyang can claim that the Hearing
Officer failed to determine whether LADBS issued a building permit
before LAHD had cleared the THP, but she failed to raise this issue at the hearing
and it is waived.
The
City also argues that the issue of LAHD clearance before LADBS issues a permit lacks
merit. RAC Regulations section 713.01.4
states in part that “[LAHD] shall clear a landlord’s application for a building
permit involving primary renovation work, in accordance with the procedures
established by [LADBS]….” City RJN Ex.
2. Under RAC Regulations section 713.01.4,
a hearing officer can determine whether a landlord obtained the permit in a
manner consistent with THP regulations. LAHD
approved the THP before LADBS issued the permit. The THP was approved by LAHD on September 14,
2022. AR 23 (letter from LAHD’s THP unit
to the owner’s representative stating that Inspector Soto “has accepted the
above referenced Tenant Habitability Plan.”. See also AR 119 (Finding no. 2). LADBS issued the permit on October 6, 2022, after
LAHD’s approval. AR185–86. Landlord submitted a THP to LAHD and notified
the tenants, including Ouyang, of the THP. See AR 118–19 (hearing officer’s
findings 1-5). Consequently, LAHD
approved the THP prior to LADBS’ issuance of the permit. Further, the THP provided a comparable unit
for the tenant. Thus, substantial
evidence supported the Hearing Officer’s findings concerning the permits. Opp. at 11-12.[9]
Ouyang replies that the City does not
dispute that LADBS issued a permit for Primary
Renovation Work without a clearance from LAHD.
Yet, LAMC section 152.03.A.2 requires that,
before LAHD clears a landlord's application for a permit for Primary Renovation
Work, affected tenants must be notified of the THP and the Primary Renovation
Work. The THP ordinance must be read in
the light of that preamble and interpreted to achieve those ends, and it is
clear from the terms of LAMC sections 152.03.A.2 and 152.03.C.4 (which concerns
appeal) that LAHD cannot clear the landlord's application for the permit once a
tenant appeals a THP until the hearing officer issues a written decision. Otherwise, the provision requiring a notice
to affected tenants would direct an idle act. See Gogerty v. Coachella, 57
Cal. 2d 727, 732 (provisions requiring the securing of a specific report would
direct an idle act if the report is not given fair and unbiased consideration).
Therefore, LADBS’ issuance of the permit before the hearing officer issued his
written decision on Ouyang’s appeal violated LAMC section 152.03.A. Reply at 5-6.
LAHD
approved the THP on September 14, 2022. Ouyang appealed on September 28, 2022. AR 24-45.
LADBS issued the permit on October 6, 2022. It is unknown when, if at all, LAHD cleared Landlord’s
permit application because the record does not show it. Ouyang’s argument does not address the
prospect that LAHD cleared the THP between September 14 and 28, 2022. In any event, this is not an issue that
Ouyang relied on for the appeal or even in her moving papers. New
evidence/issues raised for the first time in a reply brief are not properly
presented to a trial court and may be disregarded. Regency Outdoor Advertising v. Carolina
Lances, Inc., (1995) 31 Cal.App.4th 1323, 1333.
In sum, Ouyang cannot claim before the
Hearing Officer or in this administrative mandamus case that LADBS improperly
issued the permit and it must be set aside.
As a result, the court need not decide whether the permit was
illegally issued under the Eviction Moratorium.
Ouyang could have claimed that the
Hearing Officer failed to determine whether LADBS issued a building
permit before LAHD had cleared the THP, but she failed to raise this issue at
the appeal hearing and it is waived.
Ouyang contends that she was denied a
fair hearing. This is an issue of law
reviewed de novo.
Ouyang notes that the California and
United States Constitutions prohibit the State from depriving any person of
“life, liberty, or property, without due process of law …” Cal. Const. art. I,
§7(a); U.S. Const. 14th Amend. California’s due process clause provides more
expansive protection than its federal counterpart as “the claimant need not
establish a property or liberty interest as a prerequisite to invoking due
process protection.” Ryan v. California Interscholastic Fed'n-San Diego
Section, (2001) 94 Cal. App. 4th 1048, 1069. Rather, the claimant must “identify a
statutorily conferred benefit or interest of which he or she has been deprived
to trigger procedural due process under the California Constitution …” Gresher v. Anderson, (2005) 127 Cal.
App. 4th 88, 105
Ouyang argues that the right of
tenants to reoccupy their units under the existing terms of tenancy upon
completion of the Primary Renovation Work qualifies as a statutorily conferred
interest. “The temporary relocation of a
tenant from his/her permanent place of residence shall not constitute the voluntary vacation
of the unit and shall not terminate the status and rights of a tenant,
including the right to reoccupy the same unit, …” LAMC §152.02.
Denial of such a right triggers procedural due process protections
under the California Constitution. The City has adopted certain due
process protections for THP appeals.
LAMC §§ 152.07.G, 152.03.C.4, 151.07A.3. The Hearing Officer acknowledged these due
process requirements at the hearing. AR 133-34 (“[W]e have convened this
hearing here today for the purpose of affording you due process and an
opportunity to provide direct testimony and documentary evidence in support of
your appeal.”). Pet. Op. Br. at 11-13.
At a minimum, due process requires notice and an opportunity
to be heard. Krontz v.
City of San Diego, (2006) 136 Cal.App.4th 1126, 1141. A fair hearing requires that the person or body who decides the case
must know, consider, and appraise the evidence. Vollstedt v. City of
Stockton, (1990) 220 Cal. App. 3d 265, 275.
A due process violation requires a
showing of prejudice. Krontz v. City of San Diego, supra,
136 Cal.App.4th at 1141 (delay in notice and opportunity to be
heard requires prejudice). Prejudice will not be presumed; actual
prejudice must be shown in order to be balanced against a due process
violation. People v. Belton, (1992) 6 Cal.App.4th 1425,
1433 (delay in filing criminal charges requires balancing of prejudice against
justification for delay).
Ouyang argues
that the Hearing Officer failed to consider some of her documentary evidence in
making his decision. Oulang’s
documentary evidence shows that she is entitled to those common areas. She submitted a declaration with supporting
documents and pictures showing that the Property is a 26-unit, 14,820 sq ft
dormitory, except bedrooms, which are about 100 sq. ft. each for exclusive
use. All other living spaces, such as
kitchens, dining rooms, living rooms, bathrooms, study rooms, and recreation
rooms are in common areas shared by tenants.
Ouyang is a tenant entitled to use the common areas, which are
inseparable to her housing. AR 236-39,
243-61. Pet. Op. Br. at 13-14.
When Ouyang
was about to explain her documentary evidence at the hearing (AR 136), she
stated that “the evidence submitted by the – by the tenants contradict the
landlord's statements as well. So I have a copy of (sic.) most recent lease
with me.” AR 136. The Hearing Officer interrupted: “Let me just
interject really quickly and just only to let you know that I do have a copy of
your -- you provided a written statement noting your objections and you
included quite a few Exhibits. I’m just
letting you know that I do have those documents.” AR 136.
This indicated that Ouyang did not need to repeat what was stated in her
documentary evidence. Pet. Op. Br. at
14.
The Hearing
Officer did not expressly find that Ouyang’s evidence (AR 236-300) was
submitted to and reviewed by him. AR 114;
see AR 329-30. The omission is prejudicial because Landlord disputed
that Ouyang was entitled to the common areas under the existing terms of
tenancy. Furst testified: “It's clear
within the lease that the unit that is being rented does not include common
spaces in the building or the janitors closet that the tenant cites in her
rebuttal. It doesn't include kitchens, or bathrooms, or parking, or anything.
It just includes the room that she's renting. And that's explicit within the
first paragraph of the lease agreement.”
AR 144-45; see also AR 146.
Pet. Op. Br. at 13-14.
Ouyang’s
allegation that she was not provided a fair hearing is based solely on speculation
that the Hearing Officer did not receive and consider her initial evidentiary
submission because it was not listed on the Hearing Officer’s sign-in sheet. AR 113–14 (Hearing Officer’s sign-in sheet).
The
THP General Manager’s hearing notice expressly authorizes parties to submit
evidence in advance of the hearing by email.
AR 47. On October 27, 2022, both Ouyang and Landlord submitted documentary
evidence for consideration at the hearing. AR 236-300 (Ouyang), 301-28
(Landlord). LAHD’s clerk, Pablo Tiburcio
(“Tiburcio”) forwarded this to the Hearing Officer. AR 329-30. LAHD Inspector Soto also submitted a case
summary. AR 234-35.
Ouyang
subsequently submitted a 26-page Objection to the Landlord’s evidence. SAR 1–26. The LAHD clerk informed Ouyang that
the submission was untimely, that it would be up to the hearing officer whether
to consider it, and subsequently that the objections were rebuttal evidence
that should be presented at the hearing.
Ouyang Decl., ¶3, Ex. 2.
During
Ouyang’s testimony, the Hearing Officer stated: “[Y]ou provided a written
statement noting your objections … I do have those documents.” AR 136.
After the closing arguments, the Hearing Officer stated: “I have quite a
bit of documentary evidence that has been presented to me prior to the start of
this hearing, up to and including the tenants [sic] objections,
statement that included quite a few exhibits. It’s a total of 26 pages.” AR 165 (emphasis added). The phrase “up to and including the tenants
[sic] objections” means that the Hearing Officer had more written evidence in
his possession than just the 26-page Objection submitted by Petitioner. He
expressly noted: “I’ll take the testimony and the documentary evidence into
consideration.” AR 165-66. The
Hearing Officer referred to the 26-page Objection in his decision. AR 116.
He did not expressly refer to Landlord’s and Ouyang’s initial
documentary submissions. Nor did he include
them or the Objections on his evidence log. AR 114. Only Soto’s staff report was mentioned. AR 114.
Ouyang’s
speculation that the Hearing Officer did not have and consider her documentary
evidence is unsupported. She submitted her
evidence, and the Hearing Officer must be presumed to have regularly performed
his official duties by receiving and considering it. Evid. Code §664. The Hearing Officer’s failure to include
Ouyang’s evidence, or Landlord’s evidence, on his evidence log does not show
otherwise. The log is expressly
designated “Hearing Officer’s Use Only” and clearly is an informal document not
to be relied on by the parties. AR
114. Ouyang cannot rely on this page to
show that the Hearing Officer did not consider her evidence.
Ouyang also fails to show prejudice. She testified at the hearing on the subjects
governed by her documentary evidence, and the Hearing Officer considered her
arguments. She now argues that the lease did not state, as alleged by
Furst, that Ouyang was not entitled to use the common areas of the
Property. AR 303. Ouyang objected at the hearing that
Landlord’s evidence lacked foundation and was contradicted by her documentary
evidence that specifically established the foundation and the truth of the
facts stated. AR 161. Ouyang’s
documentary evidence included an email to her from Furst in which he stated
that there would be a bathroom and a kitchen for her to use. AR 263.
At the hearing, Furst contradicted himself by testifying that those
areas would be eliminated to make way for new units, and there would only be a
room for Ouyang to use. AR 144-46. Pet.
Op. Br. at 15.
According to
Ouyang, this evidence shows that Ouyang was denied a fair hearing and that the
error is prejudicial. The Hearing
Officer could have found in her favor by eliminating these THP provisions that
would significantly change the existing term of her tenancy in violation of
LAMC section 152.07.G, would create an untenantable condition pursuant to Civil
Code section1941.1, would create a substandard unit as described in Health
& Safey Code section 17920.3, or would result in forced permanent
displacement contrary to the Tenant Habitability Program (LAMC §152.01). Accordingly, she was denied a fair
hearing. Pet. Op. Br. at 14-15.
This argument assumes that the lease provisions, common
areas, and reduction in such space after renovation was relevant to the Hearing
Officer’s decision. It was not. Soto testified without contradiction that
they are irrelevant. Removal of common
areas and square footage rent increase is addressed by RAC Regulations section 413.2,
which permits a rent reduction for a tenant based on evidence submitted. The THP process is not an appropriate venue
for those concerns. AR 132. Accordingly, the Hearing Officer had no
discretion to consider common areas in assessing whether LAHD’s approval of the
THP was proper.[10]
Ouyang merely replies that, if the Hearing Officer
considered her documentary evidence,
his decision states nothing about it. AR
115-21. Therefore, the decision should
be set aside for failure to meet the standard set forth in Topanga Ass’n for
a Scenic Community v. County of Los Angeles, (1974) 11 Cal.3d 506, which
requires the hearing officer to issue findings that give enough explanation so
that parties may determine whether, and upon what basis, to review the
decision, and to set forth findings to bridge the analytic gap between the raw
evidence and ultimate decision or order.
Id. at 514-15.
Reply at 7-8.
Aside from the fact
that Topanga does not require a hearing officer to refer to every piece
of evidence before him, this is an issue raised for the first time in reply and
is disregarded. Regency
Outdoor Advertising v. Carolina Lances, Inc., supra, 31 Cal.App.4th
at 1333.[11]
G. Conclusion
The motion to correct/augment is partly granted and the FAP
is denied. The City’s counsel is ordered
to prepare a proposed judgment, serve it on Petitioner Ouyang for approval as
to form, wait ten days after service for any objections, meet and confer if
there are objections, and then submit the proposed judgment along with a
declaration stating the existence/non-existence of any unresolved
objections. An OSC re: judgment is set
for June 20, 2024 at 9:30 a.m.
[1] Respondents request
judicial notice of the following: (1) LAMC section 152.03 (Ex.1); (2) Rent
Adjustment Commission Regulations (“RAC Regulations”) sections 710.00-717.03
(Ex. 2); (3) the County’s Resolution dated January 25, 2022 (Ex. 3); and (4) a County
information bulletin regarding the expiration of eviction protections under the
COVID-19 Tenant Protections Resolution (Ex.4).
Exhibits 1-3 are judicially noticed.
Evid. Code §§ 452 (b). Exhibit 4
is not an official act of the County and the request is denied. See Evid. Code §452(c).
Ouyang requests judicial notice of the following: (a) County
Tenant Protection Resolution issued January 25, 2022 (Ex. 1); LAMC sections 91.106,
152.00, 22.12-20, 22.600-606, 91.104, and 151.07 (Ex. 2); (3) RAC Regulations
710.00-717.03 (Ex. 3); and (4) County Covid-19 Tenant Protection Resolution
issued January 24, 2023 (Ex. 4). The
requests are granted. Evid. Code
§452(b).
[2]
Ouyang also seeks to (a) set aside the decision because portions of her
testimony are not included in the transcript because they were “inaudible”, and
(b) preclude the City from disputing the following statement of fact: the Hearing
Officer did not find that Ouyang’s documentary evidence (AR 236-300) was
submitted to him. Mot. at 7-10. Neither of these arguments is properly part
of a motion to augment or correct the administrative record. They rather are arguments on the FAP’s merits
and have not been considered.
The court has ruled on Respondents’ evidentiary
objections to Ouyang’s declaration. Many
of the objections were overruled because they dispute the evidence as complying
with CCP section 1094.5(e), which is the very matter at issue for the motion. The clerk is directed to scan and
electronically file the court’s rulings.
[3] Four portions of Ouyang’s testimony are not audible on the audio
recording of the hearing. AR 134:18-22,
138:23-24, 141:7-10, 163:16-18.
[4] Four portions of Ouyang’s testimony are not audible on the audio
recording of the hearing. In the
first inaudible portion – this is made plain in the next page of her testimony
(AR 135) -- Ouyang was rebutting Soto’s comments that the General Manager
hearing is not an appropriate venue to decide her removal of common areas and
square footage rent increase concerns.
AR 134.
In the second inaudible portion, Ouyang indicated that she
“was open” to a unit that was in an area covered by USC’s security service and,
after the inaudible portion, referred to the protection of her belongings from
damage or loss. AR 138. The third
inaudible portion occurred as Ouyang was testifying about the common area and
tenants’ belongings in storage. AR
141. The fourth and last inaudible
portion occurred during Ouyang’s closing statement, and again occurred during a
reference to USC’s security guards. AR
163.
[5] The Hearing Officer stated at the end of the hearing that he had
taken copious notes of the testimony and had quite a bit of documentary
evidence that had been presented before the hearing, up to and including
Ouyang’s 26-page objections. AR
165.
[6] Ouyang suggests
in her opening brief’s introduction that the Hearing Officer lacked the
authority to issue the decision because it was issued more than 60 days after
the September 19, 2022 service of the THP, relying on LAMC sections 151.07.A.3.f
and 152.3.C.4. Pet. Op. Br. at 1.
She is
wrong. LAMC sections 151.07.A.3.f is not
part of the Tenant Habitability Program ordinance. IT sets forth a 45-day time limit to issue a
decision for a hearing over a rent adjustment application under the RSO and has
no application to a THP hearing. LAMC section
152.03.C.4 does provide that a hearing officer for a THP hearing shall issue a
decision within ten days of the hearing date.
The THP hearing was held on November 3, 2022, and the Hearing Officer
issued his decision almost two weeks late on November 30, 2022. However, there is no remedy for a late
decision other than to compel the hearing officer to issue one. LAMC section 152.03.C.4 provides no remedy
for a late decision and neither does the Remedies section of the THP article. See LAMC §152.07. See Opp. at 13-14.
[7]
Exhibits 11-14 are not in the Trial Notebook but they are in the court file.
[8] The City
notes that the Eviction Moratorium expired on March 31, 2023. City’s RJN Ex. 4. As such, the City argues that its legal
implications are moot. This is not a
case in which there is a public interest sufficient to disregard the mootness
doctrine. See Morehart v.
County of Santa Barbara, (1994) 7 Cal.4th 725, 746) (a petition that is moot may still be decided if it involves an
issue of public interest that is likely to recur). This case does not involve a situation likely
to recur as a THP is by its nature specific to the tenants. Opp. at 8-9, 11.
Ouyang
replies that the expiration of the Eviction Moratorium does not moot the issue
that the City violated it during the pandemic.
There is a public interest in the issue sufficient to disregard the
mootness doctrine. Morehart v County
of Santa Barbara, (1994) 7 Cal.4th 725, 746. The Resolution was an
emergency regulation that affects the well-being, the rights, health and
finance of the public at large. It also
was a short-term legislation the violation of which generally evades judicial
review and is likely to recur. These
circumstances warrant an exception from mootness. Smith v. Board of Supervisors,
(1989) 216 Cal.App.3d 862, 868. Reply at
2. The court need not address this
mootness issue.
[9] Ouyang contends that the City wrongly
concludes that the Hearing
Officer’s finding that the THP provides a comparable temporary unit is supported by substantial evidence. The decision relies solely on
Landlord’s testimony: “[Landlord] went on to explain that the Appellant’s
current unit is approximately 600 square feet whereas the temporary unit is
approximately 1000 square feet.” AR 119-20. The unit on the THP has only 441
sq. ft., not 1000 square feet. AR 4.
Thus, Landlord’s testimony was false. Even
under the substantial evidence review, the Hearing Officer’s decision finding
of a comparable unit on the THP is not
supported by substantial evidence.
Reply at 6-7. This issue is moot
because Ouyang admits that she now has a 600 sq. ft. temporary unit.
[10] The City adds (Opp. at 13)
that RAC Regulations section 716.07.1 does not require a temporary unit to have
comparable common areas. City RJN Ex. 2.
Ouyang contends that the City is
wrong. RAC Regulations section 716.07.1
requires that the size of a unit be considered in deciding whether a unit is
comparable. This case involves a dormitory unit in which all housing
accommodations are in common areas except bedrooms. The failure to consider common areas will
result in finding an untenantable unit comparable in violation of LAMC section 152.03.C.1 which requires
LAHD to determine whether the THP meet the standards set forth in Civil
Code section 1941.1. Reply at 9-10. The court need not decide the proper
interpretation of RAC Regulations section 16.07.1.
[11] The
parties also debate the prejudice to Ouyang if the Hearing Officer could
consider the common areas issue. The
City argues that Ouyang did not include the lease in her initial evidentiary
submission (AR 236–300) but did so as part of her 26-page Objection, which the
Hearing Officer stated he received. The
lease confirms that the only area for which Ouyang had exclusive possession was
her room. Indeed, she referred to the
other spaces at the Property as common (shared) areas. AR 140.
Ouyang also testified and argued that she considered the common areas to
be part of her tenancy. AR140 (“I think
the most important thing is that the THP unit or the owner of the property only
limited their consideration to my room. As I demonstrate in my evidence,
actually, the tenants have a shared space of common area.”).
Ouyang
replies that the City misunderstands her argument. The lease included in Ouyang’s Objection was
submitted to dispute the terms of storage and parking in the outdated lease
submitted by the Landlord. AR 304; SAR 11, 13, 14. She testified that the existing terms of her
tenancy provided storage. AR
140-41. Reply at 9. She also testified that tenants share the
common areas. AR 140. The Hearing
Officer found her testimony creditable.
AR 120. Nonetheless, her
documentary evidence was key to deciding whether the terms of her tenancy were
breached by remodeling work to convert a 26-unit dormitory into an apartment
building because it shows how the 14,820 sq ft space is distributed among the
existing 26 units and what the existing housing accommodations are. AR 236–300. The lease does not contain such
information. Reply at 8-9. Again, this is an issue the court need not
decide.