West Casitas v. Swing House Stages CA2/5

CourtCalifornia Court of Appeal
DecidedNovember 3, 2023
DocketB320621
StatusUnpublished

This text of West Casitas v. Swing House Stages CA2/5 (West Casitas v. Swing House Stages CA2/5) 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
West Casitas v. Swing House Stages CA2/5, (Cal. Ct. App. 2023).

Opinion

Filed 11/3/23 West Casitas v. Swing House Stages CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SECOND APPELLATE DISTRICT

DIVISION FIVE

WEST CASITAS, LLC, B320621

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. 21STCV37974) v.

SWING HOUSE STAGES, INC.,

Defendant and Appellant.

APPEAL from an order of the Superior Court of Los Angeles County, James C. Chalfant, Judge. Affirmed. Weinberg Gonser Frost, Christopher L. Frost and Ashley R. Morris; Rosen Saba and Michael J. Peng for Defendant and Appellant. Shumener, Odson & Oh, Robert J. Odson and Daniel E. French for Plaintiff and Respondent.

_____________________ Tenant Swing House Stages, Inc. appeals from an order granting landlord West Casitas, LLC’s application for a writ of attachment to secure $608,173.12 in alleged unpaid rent.1 The sole issue on appeal is whether tenant may apply an offset to the attachment for civil penalties it claims landlord must pay to tenant for violating COVID 19-related government emergency orders. Tenant alleges landlord illegally charged it interest and late fees on the unpaid rent. Because civil penalties may not lawfully be offset from attached funds in these circumstances, we affirm the order. FACTUAL AND PROCEDURAL BACKGROUND In 2014, tenant and landlord entered into a commercial lease for property located on Casitas Avenue in the City of Los Angeles. The 10-year lease covered the period from February 18, 2014, to February 17, 2024, with an option to renew. The lease specified annual increases in the monthly rent and by February 18, 2020, rent was $28,500 per month with a ten percent late fee if payment was not made within five days of the due date. 1. COVID-related Legislation On March 4, 2020, Governor Gavin Newsom declared a state of emergency in California arising from the COVID-19 pandemic. By executive order, Governor Newsom authorized local governments to limit residential and commercial evictions

1 Attachment is a prejudgment remedy that grants a plaintiff creditor a lien on the defendant debtor’s assets until final adjudication of a claim brought by the plaintiff. (Code of Civ. Proc., § 482.010 et seq; Royals v. Lu (2022) 81 Cal.App.5th 328, 345.)

2 for nonpayment of rent and other fees due to the impact of COVID-19 restrictions on a tenant’s income. At the same time, the County Health Officer issued safer-at-home orders that compelled the temporary closure of nonessential retail businesses, of which tenant was one.2 a. The County Resolution In response to the Governor’s executive order, the Los Angeles County Board of Supervisors placed a temporary moratorium on evictions of residential and commercial tenants via successive emergency orders or resolutions, each of which “supersede[d] all previously issued resolutions and executive orders concerning the Protections within the County.”3 The Resolution did not forgive a tenant’s obligation to pay rent but allowed tenants additional time to repay any amounts due and encouraged the parties to agree to a payment plan. Relevant to this appeal, the Resolution prohibited landlords from charging late fees and interest on the unpaid rent during the moratorium period, which was extended to 2022 for commercial tenants. It also granted tenants civil remedies against landlords for violation of its provisions. The parties do not challenge the validity of the Resolution.

2 The record indicates tenant was able to reopen its business sometime after the safer-at-home orders were allowed to expire.

3 The trial court took judicial notice of the various County resolutions. We do not describe each iteration but identify relevant parts when the terms and provisions material to this appeal were implemented. Unless specifically identified by the date of enactment, we will refer to the resolutions collectively as the “Resolution” since only the most recent one applies.

3 On March 19, 2020, the Chair of the Los Angeles County Board of Supervisors issued an executive order that prohibited a landlord from evicting a tenant for nonpayment of rent, late charges or other fees, “if the Tenant demonstrates an inability to pay” and “has provided notice to the Landlord within seven (7) days after the date that rent was due . . . .” The executive order did not specify how a tenant could demonstrate an inability to pay. The executive order was ratified by the Board of Supervisors on March 31, 2020, via Resolution and the Board included a ban on rent increases in the Resolution. On September 1, 2020, the Board of Supervisors revised the Resolution to prohibit “interest or late fees on unpaid rent or other amounts otherwise owed, during the Moratorium Period. Landlords are prohibited from retroactively imposing or collecting any such amounts following the termination of the Moratorium.” A landlord who violated this prohibition “shall be punishable as set forth in Chapter 2.68 of the County Code.” Chapter 2.68.320 specifies that any violation of an emergency rule, regulation, order or directive “is a misdemeanor, punishable by a fine not to exceed $1,000 or by imprisonment for a period not to exceed six months, or both . . . .” On February 23, 2021, the Board of Supervisors increased the amount of administrative fines and civil penalties against landlords under the Resolution as follows: “The maximum administrative fine for violations of Paragraph VIII of this Resolution [prohibiting charging late fees or interest on unpaid rent] is temporarily increased for the duration of this Moratorium from $1,000 to up to $5,000 per violation for each day the violation continues . . . .”

4 For the first time, commercial tenants employing between 10 and 100 people were required to “provide written documentation demonstrating financial hardship, along with notice of inability to pay rent,” to the Landlord within seven days after the date that rent was due.4 On July 20, 2021, the County Department of Consumer and Business Affairs (DCBA) issued revised guidelines to aid in the implementation of the Resolution. The DCBA suggested the written documentation of financial hardship could include bank statements, gross sales receipts, and evidence of expenses, all demonstrating a change from before the pandemic and after, as well as any applicable federal, state, and local health officer orders which demonstrated restrictions on business activity relevant to a tenant. The DCBA further stated that any tenant protections identified in the County Resolution would constitute affirmative defenses in any unlawful detainer or civil action for repayment of rental debt. It is undisputed that tenant never provided bank statements, sales receipts, or evidence of expenses to landlord to demonstrate financial hardship. In the January 25, 2022 Resolution, the Board of Supervisors stated the eviction moratorium (now termed tenant protections) for commercial tenants would end on January 31, 2022. This is the Resolution upon which the parties relied in their briefing in the trial court. It contained the provisions described above, including the prohibition against charging late fees and interest, civil remedies for tenants, and civil penalties for violation of its provisions.

4 It is undisputed that tenant employed between 10 and 100 people during the relevant time.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Retired Employees Ass'n of Orange County, Inc. v. County of Orange
266 P.3d 287 (California Supreme Court, 2011)
Los Angeles Drug Co. v. Superior Court
63 P.2d 1124 (California Supreme Court, 1936)
Ghirardo v. Antonioli
924 P.2d 996 (California Supreme Court, 1996)
Hill v. Superior Court
106 P.2d 876 (California Supreme Court, 1940)
Kizer v. County of San Mateo
806 P.2d 1353 (California Supreme Court, 1991)
People Ex Rel. Younger v. Allstate Leasing Corp.
24 Cal. App. 3d 973 (California Court of Appeal, 1972)
Pintor v. Ong
211 Cal. App. 3d 837 (California Court of Appeal, 1989)
Bank of America v. Salinas Nissan, Inc.
207 Cal. App. 3d 260 (California Court of Appeal, 1989)
Arcturus Manufacturing Corp. v. Rork
198 Cal. App. 2d 208 (California Court of Appeal, 1961)
Klein v. Benaron
247 Cal. App. 2d 607 (California Court of Appeal, 1967)
Goldstein v. Barak Construction
164 Cal. App. 4th 845 (California Court of Appeal, 2008)
Ajaxo Inc. v. E Trade Group, Inc.
37 Cal. Rptr. 3d 221 (California Court of Appeal, 2005)
Kemp Bros. Construction v. Titan Electric Corp.
53 Cal. Rptr. 3d 673 (California Court of Appeal, 2007)
Pos-A-Traction, Inc. v. Kelly-Springfield Tire Co.
112 F. Supp. 2d 1178 (C.D. California, 2000)
O'CONNELL v. City of Stockton
162 P.3d 583 (California Supreme Court, 2007)
McCall v. Superior Court
36 P.2d 642 (California Supreme Court, 1934)
Philpott v. Superior Court
36 P.2d 635 (California Supreme Court, 1934)
Lydig Construction, Inc. v. Martinez Steel Corp.
234 Cal. App. 4th 937 (California Court of Appeal, 2015)
Unilab Corp. v. Angeles-IPA CA2/4
244 Cal. App. 4th 622 (California Court of Appeal, 2016)
De Leonis v. Etchepare
52 P. 718 (California Supreme Court, 1898)

Cite This Page — Counsel Stack

Bluebook (online)
West Casitas v. Swing House Stages CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-casitas-v-swing-house-stages-ca25-calctapp-2023.