CRE Alert: California Case Law Changes Requirements for Three-Day Notices
The recent California appellate court decision Eshagian v. Cepeda has added a new requirement to the already detailed rules surrounding Three-Day Notices—documents landlords must serve before initiating eviction proceedings.
In order to obtain a judgment evicting a tenant, California laws must be strictly followed. This new requirement adds another procedural trap for the unwary that may hinder a landlord’s ability to take back its space if it is not adequately addressed.
Background
California’s unlawful detainer statutes contain a comprehensive list of information that needs to be included within a Three-Day Notice. Among the requirements is that a Three-Day Notice must demand payment of a specific amount (which can be estimated for commercial tenancies) within a three-day period, which excludes Saturdays, Sundays and judicial holidays, and must provide the name, telephone number and address of the person to whom payment must be made as well as the hours the person will be available to receive payment or other instructions for payment.
The notice also needs to specify that the tenant must pay the rent or surrender possession of the leased property and that if the tenant fails to pay the delinquent rent, the property owner will exercise its right to regain possession of the property.
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In Eshagian v. Cepeda, the court held that a Three-Day Notice is deficient and will not support an eviction judgment if the notice does not state when the notice period commenced or ended. The Court reasoned that, “[a]bsent this information, an ordinary tenant would not have reasonably understood the deadline by which the tenant needed to pay the rent due to avoid forfeiture of the premises.” Although the Eshagian case pertains to a residential tenancy, the holding of the case is not limited to residential tenants.
Why does this matter?
Given the holding in Eshagian v. Cepeda, default notices now also need to clearly advise tenants how to calculate the applicable notice period. If a Three-Day Notice or other notice upon which a tenancy will be terminated does not strictly comply with all applicable legal requirements, or if a notice is not properly served, a tenant cannot be evicted.
What should landlords and property managers do?
- Property owners and managers in California should utilize experienced counsel who are familiar with all aspects of landlord-tenant law prior to taking steps to terminate a tenancy.
- Those who independently prepare and serve notices of default upon tenants should consult with an attorney to confirm that the content within their Three-Day Notice form strictly complies with applicable laws.
- Avoid using outdated templates or relying solely on past practices, as even minor omissions can have significant consequences.
Source: JD Supra by Alison Geddes
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