Olivares v. Pineda

CourtCalifornia Court of Appeal
DecidedSeptember 25, 2019
DocketA154205
StatusPublished

This text of Olivares v. Pineda (Olivares v. Pineda) 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
Olivares v. Pineda, (Cal. Ct. App. 2019).

Opinion

Filed 8/29/19; Certified for Publication 9/25/19 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

CINTHYA OLIVARES et al., Plaintiffs and Respondents, A154205 v. ROLANDO PINEDA et al., (Contra Costa County Super. Ct. No. CIVMSC 17-02059) Defendants and Appellants.

Eric Meyers and Westpro Realty, Inc. (the attorney defendants) appeal from an order denying their special motion to strike under the anti-SLAPP law. (Code Civ. Proc., § 425.16.)1 They contend the claims asserted against them for wrongful eviction, misuse of a security deposit (Civ. Code, § 1950.5, subd. (b)(1)), breach of the covenant of quiet enjoyment, and malicious prosecution all arose out of protected activity because they were based on acts relating to the prosecution of an unlawful detainer action. The attorney defendants further contend the plaintiffs failed to demonstrate a probability of prevailing on the merits on any of these claims. We conclude the trial court properly denied the motion. The attorney defendants did not satisfy the first prong of the anti-SLAPP statute for the claim under Civil Code section 1950.5, subdivision (b)(1), because the allegation that they misused plaintiffs’ security deposit did not arise out of protected activity. Additionally, the plaintiffs

1 All further statutory references are to this code unless otherwise indicated.

1 satisfied their burden on the second prong of the anti-SLAPP statute by showing minimal merit on their remaining claims. Accordingly, we affirm. FACTUAL AND PROCEDURAL BACKGROUND We take the following facts from the operative first amended complaint and the parties’ evidence on the anti-SLAPP motion. In December 2015, Cinthya Olivares, Martin Rizo, and Allen, Jonathan and Fabian Sanchez (collectively plaintiffs) entered into an oral agreement with Rolando Pineda to lease a home that he owned. The tenancy was month-to-month, and the monthly rent was $2,000. At the start of the tenancy, plaintiffs paid Pineda a $2,000 security deposit. A. The Unlawful Detainer Action The following events all occurred in 2017. In July, Pineda retained the attorney defendants to begin eviction proceedings against plaintiffs. On July 24, plaintiffs were served with a three-day notice to pay rent or quit, claiming $2,750 in rent was due ($750 for June 2017 and $2,000 for July 2017), and threatening legal action if plaintiffs did not timely pay or give up possession of the premises (the July notice). According to plaintiffs, however, there was no rent past due, as Pineda had overcharged them $3,350 during their tenancy. Nevertheless, in order to avoid eviction, Olivares tendered a cashier’s check on July 27, in the amount of $2,000, but the tender was rejected as insufficient. On July 28, Pineda and the attorney defendants (collectively, defendants) filed an unlawful detainer action against Olivares. During the course of discovery, Pineda produced a rent ledger showing that as of July 1, the amount of rent past due was actually $1,750, not $2,750.2 The rent ledger also showed that on July 1, plaintiffs’ $2,000 security deposit had been applied to their payment of rent without their knowledge or consent.

2 Pineda testified that the rent ledger was created during the unlawful detainer litigation by him and the attorney defendants.

2 During his deposition in August, Pineda authenticated the rent ledger and testified that every entry was true and correct. Plaintiffs’ counsel, Nick Reckas, then introduced into evidence five checks totaling $6,800 that appeared to have been excluded from the rent ledger. Pineda acknowledged that the five payments had been deposited to his bank account. Pineda was also questioned about his efforts to sell the leased premises. He testified that he put the property up for sale in June or July and entered into a written contract with a third party who wanted the building to be delivered vacant. The contract was eventually cancelled, however, because the buyer “wanted a date when the eviction was going to be over for vacating the house,” but Pineda “couldn’t give them that date.” Defendants continued to prosecute the unlawful detainer for approximately two more months until October 2, when they voluntarily dismissed the action without prejudice. That same day, defendants served plaintiffs with a new three-day notice demanding $9,2503 in unpaid rent and threatening legal action if plaintiffs did not timely pay or quit possession (the October notice). The October notice attached a revised rent ledger and copies of checks for the payments that had been made. On October 5, Reckas wrote to Meyers and offered to “accept service of the summons and complaint” on his clients’ behalf. Meyers responded the next day, saying “No suit has yet been filed,” and asking if plaintiffs disputed the revised amount demanded in the October notice. Meyers requested that Reckas send “any additional payments they have made and we can adjust the balance and perhaps settle this amicably, without the need to evict your clients.” B. Plaintiffs’ Action On October 25, plaintiffs filed the instant action against defendants. Reckas then wrote to Meyers and asked if he would accept service of the complaint on Pineda’s behalf even though Reckas assumed Meyers would not be representing Pineda because of “the inherent conflict of interest” due to the attorney defendants’ inclusion in the action. In

3 According to the October notice, $3,250 was due for the period of June 18 to July 17, and $2,000 was due for each of three month-long rental periods thereafter.

3 response, Meyers wrote, “I was waiting for a response to my last email to you of Oct. 6, concerning the latest 3 day notice and payment ledger, hoping to agree upon the amount of back rent your clients owe. . . . [¶] . . . [¶] Again we ask that you negotiate or mediate the rent owing and pay my client, then dismiss your action. If you persist in suing us, you will create a conflict of interest between my client and myself/firm as you point out.” A few days later, Meyers wrote to Reckas again, making further factual and legal contentions and stating, “If I do not hear from you by 12:00 noon, tomorrow 11/13/2017, we will assume that you do not wish to reasonably settle these matters now, and shall proceed accordingly.” The matter did not settle. Nor did defendants file an unlawful detainer based on the October notice. In late December, plaintiffs filed the operative first amended complaint, which asserts six causes of action, four of which are at issue here and described below. In the first cause of action for wrongful eviction, plaintiffs allege that defendants violated a city rent ordinance by serving the October notice and demanding rent in excess of the maximum amount allowable. Plaintiffs allege the notice was designed to trick them into either paying an excessive amount of rent or vacating the premises, and there was “no good faith contemplation of litigation, and, in fact, Defendants never filed an unlawful detainer based upon the October 2 Notice prior to it being superseded” by a subsequent three-day notice. In the fourth cause of action for violation of Civil Code section 1950.5, subdivision (b)(1),4 plaintiffs allege that “defendants” violated this statute by applying plaintiffs’ security deposit towards the payment of rent when they were not actually in default on rent payments.

4 This statute defines a “security” as any payment, fee, deposit or charge imposed at the beginning of the tenancy to be used for any purpose, including “[t]he compensation of a landlord for a tenant’s default in the payment of rent.” (Civ. Code, § 1950.5, subd. (b)(1).)

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Olivares v. Pineda, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olivares-v-pineda-calctapp-2019.