Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)

Citation: Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)
Parent Document: Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)
Jurisdiction: California (state)
Effective Date: 1997-08-26
Original Source: https://www.courtlistener.com/opinion/5607899/kavanau-v-santa-monica-rent-con... ↗

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We question some of the Court of Appeal’s reasoning in Kavanau I. For example, that court implied that the state and federal Constitutions require application of the “fair return on investment” formula for setting rent ceilings. (Kavanau I, supra, 19 Cal.App.4th at pp. 733, 735; for a discussion of the fair return on investment formula, see Guidelines, supra, 35 Rutgers L.Rev. at pp. 790-796.) Though we have used the phrase “just and reasonable return” (Birkenfeld, supra, 17 Cal.3d at p. 165), we have never held that either the state or federal Constitution requires application of the fair return on investment formula or any other specific formula. (Fisher, supra, 37 *778Cal.3d at p. 681 [rejecting argument that Constitution requires application of the circular “fair return on market value” formula]; Carson, supra, 35 Cal.3d at p. 191.)

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