Colonial Manor, Inc. v. Reyes

Summary

The California Appellate Division affirmed an unlawful detainer judgment in favor of Vilma Reyes. The court held that Reyes became an implied at-will tenant after the death of the original tenant, and that Santa Monica rent-control protections applied to her. The court further held that the Santa Monica Rent Control Charter Amendment was not preempted by Civil Code section 1954.53 and that the landlord’s rent increase overstated the amount due, rendering the three-day notice fatally defective.

Holdings

1. Reyes was not a sublessee or assignee because the stipulated facts showed no transfer of any portion or all of Milton Reyes's leasehold interest and no rent payments from Reyes to Milton. She became an implied tenant in her own right.
2. The Santa Monica Rent Control Charter Amendment was not preempted by Civil Code section 1954.53. Colonial Manor failed to establish that the local protections were inimical to state law.
3. The 425 percent rent increase exceeded the lawful rent ceiling under the Santa Monica Rent Control Charter Amendment. Because the three-day notice demanded more rent than was lawfully due, it was fatally defective and could not support the unlawful detainer action.

Questions Presented

1. Whether Milton Reyes's tenancy terminated by operation of law after his death and whether Vilma Reyes was merely a sublessee or assignee.
2. Whether the Santa Monica Rent Control Charter Amendment was preempted by Civil Code section 1954.53 of the Costa-Hawkins Rental Housing Act.
3. Whether Civil Code section 1954.53, subdivision (d)(2), authorized Colonial Manor to impose an unlimited rent increase on Reyes after Milton's death.
4. Whether the Santa Monica Rent Control Charter Amendment protected Reyes as a surviving spouse and tenant despite the landlord's contention that she was not an authorized occupant.
5. Whether the three-day notice was fatally defective because it demanded rent exceeding the lawful rent ceiling.

Disposition

affirmed