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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Erlach v. Sierra Asset Servicing, LLC, 226 Cal. App. 4th 1281 (2014)

Citation
Erlach v. Sierra Asset Servicing, LLC, 226 Cal. App. 4th 1281 (2014)
Parent Document
Erlach v. Sierra Asset Servicing, LLC, 226 Cal. App. 4th 1281 (2014)
Jurisdiction
California (state)
Effective Date
2014-06-10

Other Sections in This Document (35)

Full Text

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                                         Discussion
       The determination whether the court erred in sustaining Sierra's demurrer without
leave to amend and dismissing the case rests squarely on whether the court was correct in
holding that the red-tagging of Schwann's property automatically terminated appellant's
lease with Schwann; and that any lease between Sierra and appellant was void as against
public policy.
       In support of the argument that a red tag placed on a property terminates a lease,
Sierra cites Health and Safety Code section 17910 et seq. Sierra argues that despite
appellant's contention that the property was red-tagged due to the lack of utilities, the
provisions of the Health and Safety Code "make it clear that the property could only be
red-tagged due to extensive building code violations [that] endanger the health and safety
of residents." This argument does not advance Sierra's position.
       We are not persuaded by Sierra's argument for the simple reason that Health and
Safety Code section 17920.3 provides, "Any building or portion thereof including any
dwelling unit, guestroom or suite of rooms, or the premises on which the same is located,
in which there exists any of the following listed conditions to an extent that endangers the
life, limb, health, property, safety, or welfare of the public or the occupants thereof shall
be deemed and hereby is declared to be a substandard building." (Italics added.)
Included in the listed conditions are the lack of, or improper water closet, lavatory, or
bathtub or shower in a dwelling unit, lack of hot and cold running water to plumbing
fixtures in a dwelling unit, lack of adequate heating, and lack of required electric lighting
(Health & Saf. Code, § 17920.3, subds. (a)(1), (5), (6) & (10)—all of which would have
been present after Schwann had the utilities turned off.5 Furthermore, we can find