Cameron v. Las Orchidias Properties, LLC

Facts: A residential landlord evicts the tenant with the intent to renovate the unit and sell the apartment complex to a buyer. Within five years, the landlord fails to renovate the unit or sell the apartment complex and puts the unit back on the rental market. The tenant is notified the unit is available for rent. The tenant informs the landlord they will re-rent the unit. The landlord denies the tenant’s request, intending to rent the unit to short-term tenants. The landlord pays the tenant an amount equal to six months’ rent, which the tenant rejects. The tenant seeks money losses incurred by the lost opportunity to re-rent and occupy the unit.

Claim:  The tenant claims the landlord violated the Ellis Act since the landlord failed to re-rent the unit to the tenant when returning the unit to the rental market within five years.

Counterclaim: The landlord claims the tenant is not entitled to money losses since the landlord offered to compensate the tenant with six months’ rent and needs to rent the unit to a short-term tenant to appeal to potential buyers of the property.

Holding: A California appeals court holds the tenant is entitled to money losses since the landlord violated the Ellis Act by denying the tenant the right to re-rent their unit when it was returned to the rental market within five years of the tenant’s eviction. [Cameron v. Las Orchidias Properties, LLC (2022) 82 CA5th 481]

Read Cameron v. Las Orchidias Properties, LLC

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