Wasatch Property Management v. Degrate

126 Cal. Rptr. 2d 923, 103 Cal. App. 4th 913
CourtCalifornia Court of Appeal
DecidedJanuary 29, 2003
DocketD039656
StatusPublished

This text of 126 Cal. Rptr. 2d 923 (Wasatch Property Management v. Degrate) 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
Wasatch Property Management v. Degrate, 126 Cal. Rptr. 2d 923, 103 Cal. App. 4th 913 (Cal. Ct. App. 2003).

Opinion

126 Cal.Rptr.2d 923 (2002)
103 Cal.App.4th 913

WASATCH PROPERTY MANAGEMENT, Plaintiff and Respondent,
v.
Syrian DEGRATE, Defendant and Appellant.

No. D039656.

Court of Appeal, Fourth District, Division One.

November 19, 2002.
As Modified December 16, 2002.
Review Granted January 29, 2003.

*924 Legal Aid Society of San Diego, Inc., Bernadette E. Probus for Defendant and Appellant.

Catherine Bishop, Oakland, for National Housing Law Project; R. Mona Tawatao, Pacoima, and Erin Farley for Legal Services of Northern California; David Pallack, Pacoima, for Neighborhood Legal Services of Los Angeles County; Susanne Browne, Long Beach, for Legal Aid Foundation of Los Angeles; Ilene J. Jacobs, Marysville, for California Rural Legal Assistance as Amici Curiae on behalf of Defendant and Appellant.

Kimball, Tirey & St. John, Patricia Tirey and Gary D. Urie, San Diego, for Plaintiff and Respondent.

Heidi Poppe for California Apartment Association as Amicus Curiae on behalf of Plaintiff and Respondent.

O'ROURKE, J.

Syriah Degrate, a "Section 8"[1] tenant, appeals a judgment in an unlawful detainer action in favor of Wasatch Property Management (Wasatch).[2] Degrate contends 1) the 90-day notice provision of Civil Code section 1954.535[3] applies to non-rent control tenancies and 2) the lessor was required to provide notice of good cause in order to terminate the lease. We agree and reverse the judgment of the trial court.

FACTUAL AND PROCEDURAL BACKGROUND

On May 26, 2000, Degrate entered into a six-month lease with Creekside Villa Holdings (Owner) that was to terminate on October 31, 2000, but would thereafter be renewed month to month. The lease provides in part: "[DJuring the term of the lease (the initial term of the lease or any extension term), the owner may only terminate the tenancy [for specified grounds]."

On June 1, 2000, the Owner also entered into a Housing Assistance Payments (HAP) contract with the San Diego Housing Commission. Provision 4(b)(1) of the HAP contract provides: "The HAP contract terminates automatically if the lease is terminated by the owner or the tenant."

On January 31, 2001, Wasatch served notice to Degrate that her tenancy would terminate on March 2, 2001, pursuant to 42 United States Code section 1437f, (d)(l)(B)(ii). On March 5, Wasatch filed an unlawful detainer complaint. On April 11, the court filed its memorandum of decision in favor of Wasatch and on May 1 filed the unlawful detainer judgment. On May 24, the court denied Degrate's motion to vacate the judgment, holding section 1954.535 applies only in a rent control jurisdiction. On August 13, the court filed an order staying execution of the judgment and writ of possession pending appeal.

Degrate appealed the judgment to the appellate division of the superior court. On March 6, 2002, the appellate division of the superior court reversed the trial court's decision because it found Wasatch did not provide Degrate with notice of good cause to terminate the lease, as required by the lease and the HAP contract.

*925 The appellate division affirmed the trial court's holding that section 1954.535 applies only in a rent control jurisdiction. The same day, the appellate division granted Degrate's motion to certify the matter for transfer to this court pursuant to California Rules of Court, rule 63. Transfer of the appeal to this court was ordered on March 21.

DISCUSSION

I. Section 1951535

We agree with Degrate's contention that section 1954.535 applies in all jurisdictions, regardless of whether the jurisdiction has enacted a rent control ordinance. "When interpreting a statute our primary task is to determine the Legislature's intent. [Citation.] In doing so we turn first to the statutory language, since the words the Legislature chose are the best indicators of its intent." (Freedom Newspapers, Inc. v. Orange County Employees Retirement System (1993) 6 Cal.4th 821, 826, 25 Cal.Rptr.2d 148, 863 P.2d 218.)

Section 1954.535 provides as follows: "Where an owner terminates or fails to renew a contract or recorded agreement with a governmental agency that provides for rent limitations to a qualified tenant, the tenant or tenants who were the beneficiaries of the contract or recorded agreement shall be given at least 90 days' written notice of the effective date of the termination and shall not be obligated to pay more than the tenant's portion of the rent, as calculated under the contract or recorded agreement to be terminated, for 90 days following receipt of the notice of termination of nonrenewal of the contract."

Because section 1954.535 is placed under the Civil Code chapter entitled "Residential Rent Control," Wasatch and its amicus curiae, California Apartment Association (CAA), contend section 1954.535 is applicable only to rent control jurisdictions. We reject this contention because it is well settled that "[t]itle or chapter headings are unofficial and do not alter the explicit scope, meaning, or intent of a statute." (DaFonte v. Up-Right, Inc. (1992) 2 Cal.4th 593, 602, 7 Cal.Rptr.2d 238, 828 P.2d 140; In re Halcomb (1942) 21 Cal.2d 126, 130,130 P.2d 384.)

We also reject Wasatch's contention that the placement of section 1954.535 within the Costa-Hawkins Rental Housing Act (Costa-Hawkins) (§ 1954.50 et.seq.) limits its applicability to rent control jurisdictions. Wasatch and CAA rely on legislative history to support their conclusion that Costa-Hawkins, as enacted, was designed to deal with issues arising in rent control jurisdictions. However, section 1954.535 was not enacted as part of Costa-Hawkins, but was enacted four years later as part of Senate Bill No. 1098 (SB 1098).

SB 1098 addresses various, unrelated issues in landlord tenant law. It contains six parts: SB 1098 section 1 allows tenants to invite others into their homes to participate in a tenant's association or to discuss tenants rights. (§ 1942.6.) SB 1098 section 2 amended section 1954.53, a portion of Costa-Hawkins, to reduce the ability of an owner in a rent control jurisdiction to increase rents by opting out of the Section 8 program. SB 1098 section 3 added section 1954.535. SB 1098 sections 4, 5, and 6 amended the California Fair Housing and Employment Act (§ 12900 et seq.) to prevent discrimination on the basis of income. (Stats. 1999, ch. 590, § 2, No. 9 West's Cal. Legis. Service, pp. 3387-3399.) Although section 1954.535 and the amendment of section 1954.535 are the two portions of SB 1098 that are codified within Costa-Hawkins, the Legislature clearly distinguished the applicability of these two sections. *926 Unlike the language of section 1945.535, which makes no mention of rent control, the language of section 1954.53, subdivision (a)(1)(A), a section added by SB 1098, limits its applicability to rent control jurisdictions.[4] Therefore, the Legislature did not rely upon the placement of these statutes but instead used the language of the statutes to specify which sections of SB 1098 concern rent control. For this reason, we find section 1954.535's placement within the Costa-Hawkins Act "too slender a reed to support ... an inference" that the Legislature intended the section to apply only in rent control jurisdictions. (

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Related

DaFonte v. Up-Right, Inc.
828 P.2d 140 (California Supreme Court, 1992)
People v. Garfield
707 P.2d 258 (California Supreme Court, 1985)
In Re Halcomb
130 P.2d 384 (California Supreme Court, 1942)

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Bluebook (online)
126 Cal. Rptr. 2d 923, 103 Cal. App. 4th 913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wasatch-property-management-v-degrate-calctapp-2003.