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
Original Source: https://www.courtlistener.com/opinion/2677838/erlach-v-sierra-asset-servicing-llc/ ↗

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receiver for a substandard building. The petition for appointment of a receiver must
include proof that notice of the petition was served not less than three days before filing
the petition to all persons with a recorded interest in the real property on which the
substandard building exists. (Health & Saf. Code, § 17980.7, subd. (c), italics added.)
If a receiver is appointed, the owner of the substandard building and his or her
agent will be enjoined from collecting rents from the tenants, from interfering with the
receiver in operating the substandard building, and from encumbering or transferring the
substandard building or real property on which the building is situated. (Health & Saf.
Code, § 17980.7, subd. (c)(3).) If the conditions of the premises or the repairs or
rehabilitation significantly affects the safe and sanitary use of the substandard building by
any tenant so that the tenant cannot safely reside in his or her unit, then the receiver must
provide relocation benefits as specified by statute or local ordinance. (Health & Saf.
Code, § 17980.7, subds. (c)(5) & (6), italics added.)
Throughout this statutory scheme there are references to tenants or lessees, not
former tenants or former lessees. When we examine the words of a statute, we "giv[e]
them their ordinary and usual meaning and view[] them in their statutory context, because
the statutory language is usually the most reliable indicator of legislative intent."
(Gattuso v. Harte–Hanks Shoppers, Inc. (2007) 42 Cal.4th 554, 567.) We may infer from
the Legislature's use of the word tenant in all of the aforementioned statutes that set out a
tenant's rights and remedies after a building has been red-tagged that the Legislature
contemplated that, although the tenant might not be able to occupy a building because of
a red-tag, the tenant still had rights and remedies. Giving the word tenant its ordinary
and usual meaning, the aforementioned statutes plainly contemplate that a tenancy
continues after a building is red-tagged. A tenant is, by definition, in possession of the

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