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INTERNAL PROTOTYPE — NOT LEGAL ADVICE — DO NOT SEND

Section 1950

Citation
Section 1950
Parent Document
Granberry v. Islay Investments, 889 P.2d 970 (1995)
Jurisdiction
California (state)
Effective Date
1995-03-06

Other Sections in This Document (169)

Full Text

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The majority hinges its conclusion that a landlord does not lose the right of setoff after the statutory period expires on the following reasoning. It first contends that to deny a continuing right of setoff to the landlord who fails to *757assert claims within the statutory period would impose a “penalty” on the landlord. It then contends that, because section 1950.5, subdivision (k) (hereafter section 1950.5(k)) authorizes $600 in statutory damages to be awarded against a landlord who in bad faith unlawfully retains security, the Legislature did not intend to “penalize” landlords who without bad faith unlawfully retain security by denying them the right of setoff.2 I disagree both with the majority’s characterization of the limitations period of the landlord’s setoff right as a “penalty” and with its conclusion that the bad-faith-damages provision of section 1950.5(k) demonstrates an implicit intention by the Legislature not to terminate the landlord’s right of setoff after the landlord has failed to assert any claims within the statutory period.