Sleep E-Z LLC., v. Lopez
Facts: A tenant and landlord enter into a lease agreement for occupancy of a residential property. The monthly rent includes a surcharge for an additional unnamed adult occupant to also reside in the property. Later, the tenant temporarily leaves to take care of a family member, leaving all their personal belongings. The unnamed occupant remains in possession and makes multiple rental payments then becomes delinquent. When collecting the delinquent rent the landlord discovers the tenant is absent from the property. The landlord serves the tenant with a three-day notice to quit due to an assignment of their leasehold interest without permission. The tenant does not vacate the property and the landlord files an unlawful detainer (UD) action to evict the tenant and occupant.
Claim: The landlord claims the tenant breached the lease agreement by assigning their leasehold interest in the property to the unnamed occupant since the tenant vacated the residence leaving the occupant solely in possession without the consent of the landlord.
Counterclaim: The tenant claims their temporary leave was not an assignment of their leasehold interest to the unnamed occupant since the tenant did not remove their possessions and did not set up another permanent residence.
Holding: A California appeals court holds the landlord may not maintain a UD action based on a notice to quit for reason of an assignment of their leasehold interest since the tenant did not remove their personal possessions, did not set up another residence and the unnamed occupant’s possession and payment of rent did not constitute an assignment of the lease. [Sleep E-Z LLC. v. Lopez (2023) 88 CA5th 18]
Related Reading:
Real Estate Principles: Chapter 80: Three-day notices to quit – Notice to quit; no alternatives
Property Management: Chapter 49: Lease assignments and subleases
Related Forms:
Three-Day Notice to Quit – Residential and Commercial — RPI Form 577
Three-Day Notice to Quit for Properties Subject to Just Cause Eviction Requirements – RPI Form 577-1
