Colonial Manor, Inc. v. Reyes

California Court of Appeal·Decided May 19, 2026·No. JAD2602M·Published

Opinion

Filed 5/19/26 (unmodified opinion attached)

APPELLATE DIVISION OF THE SUPERIOR COURT STATE OF CALIFORNIA, COUNTY OF LOS ANGELES

COLONIAL MANOR, INC., ) No. 24APLC00316 ) Plaintiff and Appellant, ) Santa Monica Trial Court ) v. ) No. 24SMUD00651 ) VILMA REYES, ) ) Defendant and Respondent. ) ORDER )

It is ordered that the opinion filed on April 23, 2026, be modified as follows: 1. On page 4, line 1, the word “argument” is changed to “arguments”. 2. On page 4, line 3, a comma is to be inserted between the words “Reyes” and “who”. 3. On page 5, the last sentence of the first full paragraph, starting on line 15 and ending on line 17, including the citation and footnote 6, is deleted, and the numbering of the subsequent footnotes shall be readjusted. 4. On page 6, the last sentence of the first full paragraph, starting on line 11 and ending on line 13, including the citation, is deleted, and the following is inserted in its place: It is the lessor’s burden to allege and prove compliance with section 1806 of the SMRCCA (SMRCCA, art. XVIII, § 1806, subd. (e)); however, a lessor’s failure to comply with any requirement of this section may be asserted by the lessee as an affirmative defense (id., subd. (f)).

5. On page 13, line 1, the word “affirmative” is deleted.

jl 6. On page 13, the citation starting on line 1 and ending on line 2 is deleted, and the following is inserted in its place: (SMRCCA, art. XVIII, § 1806, subd. (f)). There is no change in the judgment. (Cal. Rules of Court, rule 8.888(b)(2).) Defendant’s May 8, 2026 petition for rehearing and application to certify the case for transfer to the Court of Appeal, and plaintiff’s May 8, 2026 application to certify the case for transfer to the Court of Appeal, are denied. (Code Civ. Proc., § 911; Cal. Rules of Court, rules 8.889, 8.1005(a)(1).)

___________________ ____________________ ____________________ P. McKay, P. J. Ricciardulli, J. Guillemet, J.

2 Filed 4/23/26 (unmodified opinion)

CERTIFIED FOR PUBLICATION

APPELLATE DIVISION OF THE SUPERIOR COURT STATE OF CALIFORNIA, COUNTY OF LOS ANGELES

COLONIAL MANOR, INC., ) 24APLC00316 ) Plaintiff and Appellant, ) Santa Monica Trial Court ) v. ) No. 24SMUD00651 ) VILMA REYES, ) ) OPINION Defendant and Respondent. ) ) APPEAL from a judgment of the Superior Court of Los Angeles County, Mark A. Young, Judge. Affirmed. Dennis P. Block, for Plaintiff and Appellant. Munger, Tolles & Olson and Michael E. Soloff, for Defendant and Respondent.

* * *

1 Plaintiff Colonial Manor, Inc.1 appeals an unlawful detainer judgment entered in favor of defendant Vilma Reyes, following a court trial adjudicated on stipulated facts. It is plaintiff’s contention the trial court erred in its determination that the Santa Monica Rent Control Charter Amendment (“SMRCCA”) was not preempted by Civil Code section 1954.53 (part of the Costa-Hawkins Rental Housing Act (“Costa-Hawkins”)), and that following the death of defendant’s spouse—the original tenant—the rent increase was unlawful under the SMRCCA.2 Affirming the judgment, we conclude that defendant was an at-will tenant pursuant to an implied tenancy, and that defendant was protected by the SMRCCA which was not preempted. BACKGROUND On March 14, 2024, plaintiff filed a complaint against defendant alleging a cause of action for unlawful detainer, seeking possession of a rental property located in the City of Santa Monica (“City”). The complaint alleged that on January 3, 2017, defendant agreed to rent the premises under an oral month-to-month tenancy, for rent of $3,500 per month;3 on March 5, 2024, plaintiff caused to be served upon defendant a three-day notice to pay past due rent of $3,500 for the month of March 2024 or quit the premises; and, as of March 8, 2024, defendant failed to pay the rent due or quit the premises. Defendant’s answer denied certain provisions of the complaint and alleged affirmative defenses, including violations of the SMRCCA.4

1 The complaint was filed by “Colonial Manor Inc.” and judgment was entered against this entity. The notice of appeal, however, identifies plaintiff as “Colonial Manner, Inc.” 2 All further statutory references are to the Civil Code unless otherwise indicated. 3 The wording of the complaint conflicts with plaintiff’s position that there was no tenancy relationship with defendant, and it is undisputed that defendant did not agree to pay rent of $3,500. 4 The trial court, on defendant’s request and over plaintiff’s objection, found this case was related to a tenant harassment action filed by the City against plaintiff, involving the same attempted eviction of defendant. (Cal. Rules of Court, rule 3.300(a).) The tenant harassment action was deemed to be the lead case. Some trial court documentation refers to the City as the plaintiff and Colonial Manor, Inc. as the defendant; however, we use the party designations from the unlawful detainer action.

2 The parties filed a joint statement of stipulated facts for the nonjury trial.5 The stipulation provided as follows: plaintiff owned the property; Milton Reyes was the original tenant whose rent was $666 per month; defendant had lived in the unit with Milton Reyes for at least one year before they married on February 26, 2022; Milton Reyes died on September 8, 2023; defendant never paid rent to Milton Reyes, and they never entered into a written, verbal or implied agreement for Milton Reyes to transfer his leasehold interest to defendant; defendant continued to occupy the premises after Milton Reyes’s death; the City determined that the maximum allowable rent for the unit permitted under the SMRCCA was $669 per month; on November 15, 2023, plaintiff served defendant with a Notice of Change of Tenancy increasing the rent to $3,500 per month; on March 5, 2024, defendant was served with the three-day notice to pay rent or quit, and defendant did not tender payment after service of the notice. Both parties filed trial briefs. Plaintiff argued that following the death of Milton Reyes, the month-to-month tenancy terminated upon notice of his death, or 30 days after the date of his last rent payment he made while alive. (§ 1934; Miller & Desatnik Management Co. v. Bullock (1990) 221 Cal.App.3d Supp. 13, 17-18 (Miller).) Plaintiff further posited that pursuant to section 1954.53, subdivision (d)(2),6 it was authorized to impose any rent increase upon defendant as a subtenant, and that to the extent defendant was arguably protected under the SMRCCA, the latter was preempted by the former. Defendant argued that because she resided in the unit as a lawful occupant and then as a surviving spouse of Milton Reyes, she was a tenant and not a subtenant, the SMRCCA prohibited the 425% rent increase and was not preempted by section 1954.53, and the three-day notice to pay rent or quit was defective.

5 The stipulation, which was drafted for the tenant harassment action, does not address when defendant moved into the premises or when plaintiff became aware of her occupation. 6 “If the original occupant or occupants who took possession of the dwelling or unit pursuant to the rental agreement with the owner no longer permanently reside there, an owner may increase the rent by any amount allowed by this section to a lawful sublessee or assignee who did not reside at the dwelling or unit prior to January 1, 1996.” (§ 1954.53, subd. (d)(2).)

3 At trial, both parties offered argument that reinforced their trial briefs. Plaintiff’s counsel represented that since 2021, plaintiff was aware of defendant’s residency status in the unit as a caregiver to Milton Reyes who had severe dementia, and that plaintiff was not aware of the marriage until October 2023. There may have been a written lease, but plaintiff’s records were incomplete after a recent ownership transfer that occurred following a death.

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