Cedillos v. Masumoto.

363 P.3d 278, 136 Haw. 430, 2015 Haw. LEXIS 326
Hawaii Supreme Court·Decided December 4, 2015·No. SCWC-13-0000107·Published·Cited by 3 cases

Opinion

Opinion of the Court by

McKENNA, J.

I. Introduction

This case is a landlord-tenant dispute between Petitioner/Plaintiff/Counterclaim Defendant-Appellant Philip Cedillos (“Ced-illos”), pro se, and Respondent/Defen-danVCounterclaim Plaintiff-Appellee Patricia Masumoto (“Masumoto”). Cedillos timely applied for writ of certiorari on August 31, 2015 from a July 2, 2015 Judgment entered by the Intermediate Court of Appeals (“ICA”) pursuant to its May 27, 2015 Summary Disposition Order (“SDO”). The ICA affirmed the District Court of the Second Circuit’s (“district court[’s]”) “January 17, 2013 Judgment for Possession and Writ of Possession” in favor of Masu-moto.

In his Application for Writ of Certiorari (“Application”), Cedillos presents three questions:

A. Did the ICA commit grave error of law and fact by determining that despite the harmless error, the grant of summary possession was still correct because Petitioner did not set forth any evidence or establish retaliatory eviction in accordance with the provisions and restrictions of HRS 521-74, HRS 521-21 and HRS 521-71?
B. Did the ICA commit grave error of fact and is its summary decision inconsistent with Hawai'i case and statutory law by finding — in direct contradiction to the district court’s determination of bifurcation and record of proceedings — that the district court afforded Petitioner the opportunity to present affirmative defenses pursuant to HRS 521-42 and HRS 521-64, as they concerned repairs made and/or reported, that went unresolved and unpaid?
C. Did the ICA commit grave error of fact by wrongfully affirming the denial of a rent trust fund and incorrectly asserting that Petitioner’s request for establishment of a rental trust fund was improper?

For the reasons discussed herein, the ICA erred in affirming the district court’s Judgment for Possession and Writ of Possession based on an October 6, 2012 45-day notice to vacate. Furthermore, there were no grounds to remove Cedillos based on a failure to pay rent for November 2012.

II. Background

A. Factual Background

Cedillos and Masumoto entered into an agreement for the rental of “271 Makaena Place, back unit” (“property”) on November 1, 2011 for a period of six months. The written rental agreement and two addenda did not include an attorney’s fee provision. Rent was $800 per month with Cedillos performing yard service worth $150 per month. The lease ended on May 31, 2012, and automatically converted to month-to-month terms thereafter.

During the initial lease period, Masumoto e-mailed Cedillos on February 19, 2012 stating: (1) a prior tenant had issues with the legality of the rental units at 271 Makaena Place; (2) to Masumoto’s knowledge, she had “brought all building construction and risk hazards up to code,” and (3) the only “remaining illegality” was the stove in Cedillos’s rental unit. She asked Cedillos to remove the stove by the end of February.

After the lease converted to month-to-month terms, on August 2, 2012, Masumoto e-mailed Cedillos: “Beginning September 1, 2012, there will be a rent increase of $25/ month.” By letter dated August 6, 2012, Cedillos asserted to Masumoto that:

Hawaii Revised Statute[s] chapter 521-74 prohibits you from raising the rent or evicting me from my particular unit until you have brought the unit into compliance with applicable building and rental housing law.
On February 12, 2012 you informed me via email that the unit you rented to me was not a legal rental unit under Hawaii landlord-tenant law.
*433 Even if you were able to legally raise the rent at my unit, your notice is defective and unenforceable under Hawaii Revised Statute 521-21
Additionally, I have submitted, with this correspondence, an itemized invoice billing you, in part, for the mandated firewall installation between the separate dwellings at this address. Please refer to the applicable provision in Hawaii Revised Statute 521-64 if you have questions about this billed item.

(Emphasis added). Masumoto replied by email dated August 7, 2012 stating that the unit’s illegality was due to a stove that was left in Cedillos’s unit “to accommodate [him] and [despite] knowing it was an illegal stove, [Cedillos] chose to use it anyway.” Thus, the e-mail served to give Cedillos “1 month’s notice that [Masumoto was] going to change the lease to mention, ‘No stove included.’” Masumoto then intended to remove the stove after the notice period, and thereafter raise the rent by “$25/ per month, or 85 cents per day, prorated.” Masumoto also took issue with Cedillos’s invoice for erecting a firewall in another tenant’s unit, as she was unaware Cedillos took such action until she received Cedillos’s invoice. Masumoto noted that “[Cedillos’s] having done such a thing constitutes reasons for an eviction.”

Masumoto e-mailed Cedillos on August 28, 2012, stating that she would “respond to each [of Cedillos’s invoices] soon,” and asking for “September rent, without deductions [for Cedillos’s invoices], and add the $25.” Cedil-los paid $825 to Masumoto by checks dated September 1, 2012 and October 1, 2012. According to the stamps on the checks, the first check was deposited on or around September 12, 2012, and the second check was cashed on October 1, 2012.

By letter dated September 1, 2012, among other things, Cedillos (1) identified that Ma-sumoto’s notice of the $25 rent increase did not comply with HRS § 521-21 (2006), because it did not provide forty-five consecutive days of notice, and (2) asserted that after numerous notices to Masumoto of safety deficiencies in the rental units, he repaired the firewall in his unit and the upstairs unit pursuant to HRS § 521-64(c) (2006), and submitted receipts for the repair.

The first time Masumoto informed Cedillos that she wished him to leave the premises was on October 1, 2012. She gave him 30-days’ notice. Cedillos responded by e-mail dated October 1, 2012, stating that the eviction notice violated HRS § 521-71 (2006) and was retaliatory under HRS § 521-74, and that he planned to initiate legal proceedings to protect himself. Cedillos filed a complaint in district court on October 5, 2012, It was served on Masumoto the same day. See infra Part II.B.

On October 6, 2012, Masumoto served a 45-day eviction notice on Cedillos, which stated the lease would be terminated November 20, 2012.

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Cedillos v. Masumoto., 363 P.3d 278, 136 Haw. 430, 2015 Haw. LEXIS 326 (haw 2015).

363 P.3d 278 (Cedillos v. Masumoto.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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