Reynolds v. LauAnnotate this Case
Tenants alleged that their former landlord, Lau, violated the owner move-in provisions of the San Francisco Residential Rent Stabilization and Arbitration Ordinance when he instigated eviction procedures against them. Tenants were awarded more than $600,000 in damages. The trial court entered judgment notwithstanding the verdict, finding no substantial evidence to support the jury’s verdict. The court of appeal affirmed. The “good faith,” “without ulterior reason,” and “honest intent” requirements do not trigger a wide-ranging inquiry into the general conduct and motivations of an owner who seeks to recover possession of a unit. These terms serve a specific function: to determine whether the owner harbors a good-faith desire to occupy the apartment as his primary residence on a long-term basis. Lau was under no legal obligation to evict another instead of the Tenants and may not be barred from enjoying the benefits of an apartment he owns and wishes to occupy as his primary residence simply because it had rented more cheaply than another, noncomparable unit in his building.