Boshernitsan v. Bach

CourtCalifornia Court of Appeal
DecidedMarch 12, 2021
DocketA159532
StatusPublished

This text of Boshernitsan v. Bach (Boshernitsan v. Bach) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boshernitsan v. Bach, (Cal. Ct. App. 2021).

Opinion

Filed 3/12/21 CERTIFIED FOR PARTIAL PUBLICATION*

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION ONE

RIMMA BOSHERNITSAN et al., Plaintiffs and Appellants, A159532

v. (San Francisco City and County BELVIA BACH et al., Super. Ct. No. CUD-19-665414) Defendants and Respondents.

Rimma Boshernitsan and Mark Vinokur (appellants) brought this unlawful detainer action against respondents Belvia Bach and four of her children (the tenants) in August 2019. Appellants sought to evict the tenants under a provision of San Francisco’s rent control ordinance1 that allows a “landlord” to evict renters from a unit to make the unit available for a close relative of the landlord (the family move-in provision). (Rent Ord., § 37.9, subd. (a)(8)(ii).) A rule enacted by the San Francisco Rent Stabilization and Arbitration Board (Board) defines “landlord” for purposes of the family move-

Pursuant to California Rules of Court, rules 8.1105(b) and 8.1110, this *

opinion is certified for publication with the exception of part II.D. 1San Francisco Administrative Code, chapter 37, Residential Rent Stabilization and Arbitration Ordinance (Rent Ordinance).

1 in provision as “a natural person, or group of natural persons, . . . who in good faith hold a recorded fee interest in the property.” 2 (Rule 12.14(a).) The tenants demurred to the complaint, arguing that their landlord is not such a natural person or group of natural persons because title to the apartment building is held by appellants’ revocable living trust. The trial court accepted this argument, sustained the demurrer without leave to amend, and entered judgment for the tenants in December 2019. In sustaining the demurrer, the trial court correctly ruled that a trust is not a “natural person.” (See, e.g., Kadison, Pfaelzer, Woodard, Quinn & Rossi v. Wilson (1987) 197 Cal.App.3d 1, 4.) But it was mistaken in assuming that appellants’ trust is the landlord. As a matter of law, only trustees—not trusts—can hold legal title to property. We hold that natural persons who are acting as trustees of a revocable living trust and are also the trust’s settlors and beneficiaries qualify as a “landlord” under the family move-in provision. Accordingly, appellants are not barred from seeking to evict the tenants under that provision, and we reverse and remand for further proceedings.3 I. FACTUAL AND PROCEDURAL BACKGROUND Appellants own a two-unit building in San Francisco. They live in one unit, and the tenants rent the other. In mid-2018, appellants transferred title of the building to the Vinokur and Boshernitsan Living Trust Dated

2 All further rule references are to the Board’s Rules. 3We recognize that evictions are currently restricted because of the COVID-19 pandemic, which began after the trial court ruled. We express no opinion on how such restrictions may affect this suit on remand.

2 April 30, 2018 (the trust).4 About a year later, they served the tenants with a notice of termination of tenancy, claiming an intent to move Vinokur’s mother into the tenants’ unit under the authority of the family move-in provision. After the tenants declined to vacate the premises, appellants brought this unlawful detainer action against them. The complaint alleges that appellants “hold[] 100% of the interest in the property and the title as trustees” of the trust. Appellants also attached the notice of termination as an exhibit to the complaint. The tenants demurred, arguing that (1) the eviction was not being sought by a “landlord” as defined in rule 12.14(a) and (2) the notice of termination “add[ed] requirements more onerous” in various respects than those of the Rent Ordinance. In response, appellants argued that they as trustees, not the trust itself, hold title to the property. Thus, although admitting that a “trust is not a natural person,” they argued that they, a group of natural persons, were the landlord, not the trust. Appellants also responded that the notice of termination was proper. The trial court sustained the demurrer without leave to amend and entered judgment in the tenants’ favor. The court’s written order recited, “The property is owned by a trust and not a ‘natural person.’ For purposes of [Rent Ordinance, § 37.9, subdivision (a)(8),] a landlord is a ‘natural person’ or ‘a group of natural persons.’ The drafters of the [Rent Ordinance] and [the Rules] limited the definition of the landlord as stated above and excluded

4 The tenants filed a request for judicial notice of the recorded grant deed by which appellants transferred the property to themselves as trustees of the trust. Appellants did not oppose the request, and although the trial court did not explicitly rule upon it, we presume it was granted. (See Aaronoff v. Martinez-Senftner (2006) 136 Cal.App.4th 910, 918–919.)

3 non-natural persons thereby.” The court did not rule on the other ground for demurrer the tenants raised. II. DISCUSSION Both below and on appeal, the tenants framed the primary issue as whether the term “landlord” under rule 12.14 includes a revocable trust established by natural persons who are both settlors and trustees of the trust.5 We agree with appellants, however, that title to the building is held by them, not the trust. Accordingly, the relevant question is whether appellants in their capacity as trustees qualify as a landlord for purposes of the family move-in provision, and we conclude that they do. A. Governing Law 1. Standard of review We review an order sustaining a demurrer de novo. (Hacker v. Homeward Residential, Inc. (2018) 26 Cal.App.5th 270, 276.) In doing so, “we accept the truth of material facts properly pleaded in the operative complaint, but not contentions, deductions, or conclusions of fact or law. We may also consider matters subject to judicial notice.” (Yvanova v. New Century Mortgage Corp. (2016) 62 Cal.4th 919, 924.) Regardless of a trial court’s stated reasons for sustaining a demurrer, we must affirm “ ‘if any one of the several grounds of demurrer is well taken.’ ” (Aubry v. Tri-City Hospital Dist. (1992) 2 Cal.4th 962, 967.) “The proper interpretation of a statute is a question of law” that we also review de novo. (People v. Jacobo (2019) 37 Cal.App.5th 32, 42.) This

5“The settlor is the person creating the trust. The trustee holds the property in trust for the beneficiary.” (13 Witkin, Summary of Cal. Law (11th ed. 2017) Trusts, § 31, p. 643; see Rest.3d Trusts, § 3.)

4 rule applies equally to review of local ordinances. (Van Wagner Communications, Inc. v. City of Los Angeles (2000) 84 Cal.App.4th 499, 509, fn. 9; see Danekas v. San Francisco Residential Rent Stabilization & Arbitration Bd. (2001) 95 Cal.App.4th 638, 645.) 2. The Rent Ordinance and rule 12.14 “The San Francisco rent ordinance restricts tenant evictions except upon certain specified grounds.” (Reynolds v. Lau (2019) 39 Cal.App.5th 953, 964.) One such ground is set forth in Rent Ordinance section 37.9, subdivision (a)(8), which allows a landlord to evict a tenant when the “landlord seeks to recover possession [of the rented property] in good faith, without ulterior reasons and with honest intent,” for either the landlord’s own “use or occupancy as his or her principal residence for a period of at least 36 continuous months” (the owner move-in provision) or, under the family move-in provision, “the use or occupancy of the landlord[’]s grandparents, grandchildren, parents, children, brother or sister, or the landlord[’]s spouse or the spouses of such relations, as their principal place of residency for a period of at least 36 months, in the same building in which the landlord resides as his or her principal place of residency.” (Rent Ord., § 37.9, subd.

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