Peviani v. Arbors at California Oaks Property Owner, LLC CA4/2

California Court of Appeal·Decided March 9, 2021·No. E073950·Unpublished

Opinion

Filed 3/9/21 Peviani v. Arbors at California Oaks Property Owner, LLC CA4/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FOURTH APPELLATE DISTRICT DIVISION TWO

KELLEY PEVIANI et al., Plaintiffs and Appellants, E073950 v. (Super.Ct.No. RIC1704192)

ARBORS AT CALIFORNIA OAKS OPINION PROPERTY OWNER, LLC. et al.,

Defendants and Respondents.

APPEAL from the Superior Court of Riverside County. Kira L. Klatchko, Judge.

Reversed.

The Weston Firm and Gregory S. Weston for Plaintiffs and Appellants.

Lester & Cantrell, Mark S. Lester, and Colin A. Northcutt for Defendants and Respondents.

In a fifth amended class action complaint, Kelly Peviani, Judy Rudolph, and Zachary Rudolph (collectively, plaintiffs), on behalf of themselves and others similarly situated, sued Arbors at California Oaks Property Owner, LLC and JRK Residential

Group, Inc. (collectively, defendants). The lawsuit included eight causes of action: (1) false advertising (Bus. & Prof. Code, § 17500); (2) breach of the implied warranty of habitability; (3) nuisance; (4) breach of the implied covenant of good faith and fair dealing; (5) bad faith retention of security deposits; and (6) three causes of action for unfair competition (Bus. & Prof. Code, § 17200). Plaintiffs moved for certification of two classes. The trial court denied the motion. Plaintiffs contend the trial court erred by denying their class certification motion. We reverse.

PROCEDURAL HISTORY

A. FIFTH AMENDED COMPLAINT Defendants owned and operated an apartment complex in Murrieta known as The Arbors at California Oaks Luxury Apartments (the property). Kelly Peviani rented an apartment at the property from September 2016 to March 2017. Judy1 and Zachary rented an apartment at the property from February 2014 to May 6, 2017.

Plaintiffs alleged the following facts: “Defendants advertise with colorful brochures and promising language that the Property is a safe, habitable, and luxurious place to live, with numerous amenities including a playground, cabanas and lounges, tennis and basketball courts, a rock climbing wall, gym, and pools and heated spas. [¶] But the Property is nothing of the kind. Instead, the Property is littered with used condoms, drug use, broken security gates, violence, is devoid of security patrols, and police are called to the complex on a regular basis. The pools are dirty, and the fitness

1 Two of the plaintiffs have the last name of Rudolph. We use their first names for the sake of clarity. No disrespect is intended.

equipment is broken. The complex is unsafe for tenants, especially children, and does not deliver on its material promises.”

The first cause of action was for false advertising. (Bus. & Prof. Code, § 17500.)

Plaintiffs alleged that defendants’ brochure showed renovated interiors, “quality plush carpeting,” “sparkling swimming pools,” heated spas, cabanas and lounges, a tennis/basketball court, a fitness center, a rock climbing wall, a community game room, a Wi-Fi café, barbeque grills, a picnic area, a dog park, a playground, a garden, a carwash area, and central heating and air conditioning.

Plaintiffs alleged that defendants’ website showed pictures of “glistening pools, and manicured gardens.” The website discussed assigned covered parking and a 48- hour maintenance commitment. Defendants also advertised the property on other websites, such as apartments.com and forrent.com. On those websites, the advertisements for the property described granite countertops, hardwood floors, full size washers and dryers in the apartments, controlled access to the property, and a smoke- free property.

Plaintiffs alleged the foregoing advertisements were false. They alleged the apartments were not newly renovated and carpeting was not plush. For example, “[t]he Rudolphs had mushrooms growing out of their carpet.” They alleged the fitness equipment was dirty and broken; the swimming pools were dirty and diseased; the hot tubs were green with algae; the assigned parking rules were not enforced; the 48-hour maintenance promise was not kept; there was violence, crime, and drug use in the area

of the barbecues, playground, and dog park; the property was not smoke-free; and the water connection in the carwash area was non-functioning.

The second cause of action was for breach of the implied warranty of habitability. Plaintiffs alleged the property lacked an adequate amount of trash receptacles, which caused trash to overflow, and the trash emitted a foul odor. In the common areas of the property, there were dog feces, used condoms, garbage, and rodents. The third cause of action was for nuisance. The fourth cause of action was for breach of the implied covenant of good faith and fair dealing. For the third and fourth causes of action, plaintiffs cited the same facts as those alleged in the second cause of action.

The fifth cause of action was for bad faith retention of security deposits. Kelly Peviani paid a security deposit of $1,175 when she moved into the property. When Peviani moved out of the property, she “thoroughly cleaned the apartment and left the apartment with no damage.” Defendants retained $586.52 of Peviani’s security deposit. Defendants deducted the following from the security deposit: $165.17 for “prorated paint”; $95 for housekeeping; $66.26 for industrial cleaning; $70 for carpet cleaning; $60 for reglazing the bathroom vanity; $111.51 for the February 2017 “UBill”2; and $18.58 for the final “UBill” that pertained to March 1 through March 5, 2017.

When the Rudolphs moved into the property in February 2014, they paid a security deposit of $225. When the Rudolphs moved out of the property in May 2017,

2 We presume that a “UBill” refers to a utility bill.

defendants retained the entire security deposit and billed the Rudolphs an additional $178.69, for a total amount of $403.69. The charges consisted of $116.99 for “prorated paint”; $60 for housekeeping; $66.26 for industrial cleaning; $60 for carpet cleaning; $79.30 for the April 2017 “UBill”; and $21.14 for the final “UBill” that pertained to May 1 through May 8, 2017. After plaintiffs’ counsel became involved, defendants canceled the $178.69 bill and returned the Rudolphs’ security deposit to them.

Plaintiffs alleged that defendants had a pattern and practice of improperly retaining security deposits by charging for normal wear and tear, adding frivolous charges, charging for repairs that were never performed, charging for unrepaired damage caused by previous tenants, and charging for utility bills that were already paid.

The sixth cause of action was for unfair business practices. (Bus. & Prof. Code, § 17200.) Plaintiffs alleged defendants’ conduct was unfair because (1) they falsely advertised the property, as described in the first cause of action; (2) the property was untenantable, as described in the second cause of action; and (3) when residents wanted to terminate their leases early, they must pay the current month’s rent in full, two more months of rent in full, and a buyout fee in an amount greater than one month’s rent— plaintiffs alleged the fees were an unlawful “liquidated damages clause” because the fees exceeded defendants’ damages from an early-lease termination.

The seventh cause of action was for unlawful business practices. (Bus. & Prof.

Code, § 17200.) Plaintiffs alleged defendants’ conduct was unlawful because of the facts alleged in the first, second, and fifth causes of action. The eighth cause of action concerned fraudulent business practices. (Bus. & Prof. Code, § 17200.) Plaintiffs

alleged defendants engaged in fraudulent business acts by utilizing false advertising as described in the first case of action.

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