2710 Sutter Ventures, LLC v. Millis
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In November 2019, Landlords served Tenants with a 120-Day Notice of Termination of Tenancy and half of the relocation assistance due under the San Francisco Rent Ordinance. Both Tenants then claimed disability status; Landlord provided one-half of the additional relocation assistance payment for disabled tenants. Landlords filed a Notice of Intent to Withdraw Residential Units from the Rental Market with the Residential Rent Stabilization and Arbitration Board and served Tenants with Notice to Tenant of Filing of Notice of Intent to Withdraw Residential Units from the Rental Market. Tenants exercised their right under the Act to a one-year extension of the withdrawal date based on their claimed disabilities; they did not vacate the premises by November 15, 2020. Landlords filed an unlawful detainer suit, Ellis Act, Gov. Code 7060. Tenants argued that the termination notice was defective in quoting a superseded version of the ordinance as the ground for eviction and therefore not properly advising them concerning relocation assistance payments.
The court of appeal affirmed judgment in favor of Tenants, rejecting arguments that the Act preempts the ordinance, that Tenants cannot assert a defense under the Act for purported failure to comply with the ordinance, that the trial court improperly found that the notice of termination had to strictly comply with the ordinance, and that Landlords should be allowed to amend their complaint to state a claim for ejectment.
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