Campbell v. FPI Management, Inc.

Facts: A residential landlord rents a unit in a federally subsidized housing project to a tenant on a month-to-month tenancy. As part of the subsidy program, the landlord agrees to give the tenant at least 30 days’ notice prior to termination of the tenancy. The tenant fails to pay rent and the landlord serves the tenant a three-day notice to pay rent or quit. The tenant does not pay the rent or vacate within three days. The tenant remains in possession for more than 30 days. The tenant makes a demand on the landlord for money losses.

Claim: The tenant claims the landlord violated the low-income housing program since the landlord gave the tenant a three-day notice to pay rent or quit when the landlord was required to give 30 days’ notice, depriving the tenant of property rights and putting the tenant in legal peril.

Counterclaim: The landlord claims the tenant suffered no injury and thus no loss since the tenant maintained possession of the housing for more than 30 days after receiving the three-day notice to pay or quit.

Holding: A California appeals court holds the tenant is entitled to money losses since the landlord gave the tenant a three-day notice to pay rent or quit when the landlord was required to give the tenant 30 days’ notice under the low-income housing program which caused a loss of property rights and placed the tenant in legal peril. [Campbell v. FPI Management, Inc. (2024) 98 CA5th 1151]

 

Campbell v. FPI Management, Inc.

 

 

Related RCD: May a HUD rental agreement require a California landlord to provide a breaching tenant with a 30-day notice to quit when the state’s minimum requirement calls for a three-day notice?

 

Related Reading: Property Management Ch. 30: Notices to vacate