**The McConnell Group The McConnell Group
**Home

Developments

Legislation

Court Decisions

The McConnell Report




Court Decisions

Increasingly, owners are using the courts to defend their right to conduct business free of excessive regulatory practices. This page monitors important judicial opinions that may prove useful to individuals and groups who are considering the judicial option.


HUD vs. Rucker / OHA vs. Rucker
In this important decision, the Supreme Court acts to uphold discretionary no fault evictions from federal housing authority projects where the tenant's relatives or guest use drugs on or near the premises.  The Court finds that Congress' concern about the health and safety of tenants prevailed over the hardship that may be faced by "innocent tenants" who may not have known their relatives or guests were engaged in illegal drug activity.  For full text see: HUD vs. Rucker

San Francisco Law Restricting Tenancies In Common Is Illegal
A Superior Court Judge ruled that SF's Law limiting the number of units that could be converted to TIC's was illegal because it conflicted with state law.  See a report on the case in the San Francisco Chronicle: San Francisco Housing Law

Danekas vs. San Francisco Rent Board
In Danekas vs. SF Rent Bd. 12/28/01 CA1/5 the First District Court of Appeals (San Francisco) upheld a SF law that restricts the ability of landlords to enforce no sublet clauses. The court concludes, in part, as follows, 

. . . we conclude the Rent Board regulation challenged in this case does not substantially impair contract rights. It is "moderate and restrained," eliminating contractual prohibitions to sublet only in carefully tailored circumstances: when the landlord had agreed to a rental with multiple tenants, and one of the tenants departs, but only if the replacement tenant meets the lessor's reasonable standards. In addition, revolving tenancies are not permitted; at least one of the original tenants must be in residence. 

For the full text see: 
Danekas vs. San Francisco Rent Board

Ellis Act Victory
Drouet vs. The Superior Court of San Francisco

In a major victory for property owners, the First District Court of Appeals (San Francisco) upheld the right to go out of business under the Ellis Act and declared that in unlawful detainer proceedings properly commenced under the Ellis Act, a tenant may not raise an affirmative defense of retaliatory eviction to prevent displacement, but retains the right to an independent action for damages under the retaliatory eviction statute.

This is very important given the spread of laws that prevent owners from opting to use their properties for personal occupancy or occupancy by family members.

Tenants preserve the right to file a suit claiming retaliatory eviction, but in most cases that is a huge mountain to climb. It is easy to set up a defense and then demand a settlement. It is not easy to file an affirmative lawsuit.

The Law offices of Andrew Zachs of San Francisco (lead attorneys) and Susan Luten of Berkeley (amicus brief) are to be congratulated.

DeZerega vs. Meggs
Like the Cabinda case in southern California, DeZerega vs. Meggs (1st District Court of Appeals in San Francisco) held that owners could set the initial and subsequent rents for tenancies that started after January 1, 1999.

It also stated, however, that under certain circumstances, subtenants and roommates may remain even after the master tenant has departed. And if the original lease began before 1999, this may permanently prevent Costa-Hawkins increases.


 Back to the Top

Developments | Legislation | Court Decisions | The McConnell Report
Home | About Us | Contact Us
© 2004 The McConnell Group, Inc. All rights reserved.