Is Back Rent Owed if There Are Code Violations by the Landlord?
Full Question:
Answer:
A landlord is generally obligated to supply possession of the premises as agreed in the lease. The premises must meet minimum standards of habitability including compliance with applicable building codes. Weatherizing, locks, running water, working plumbing, heating and cooling, pest control, and other basics must be in place. In California, if the property is not livable (through no fault of your own), you may be able to move out. You may not have to pay rent after you move, even though you have a lease. By law, for a place to be unlivable or "untenantable," the problem must be substantial and may include problems with waterproofing and weatherproofing; plumbing; running water; heat; electrical lighting; unclean grounds and building; roaches and rodents; garbage; or floors, stairs and railings that are in disrepair. A tenant who has made repairs after giving notice to the landlord may be able to deduct amounts due for rent for the cost of the repairs.
Any claim you may have relating to these will likely be governed by contract law. It will be a matter of subjective determination for the court, based on all the facts and circumstances involved. Some of the factors that may be considered, among others, whether you had a written lease, the terms in such lease for termination, and whether the landlord promised to waive any terms in the lease regarding written notice. If you wish to use the legal system to resolve your dispute, you may want to review the following general information regarding contract law and breach of contract actions:
Contracts are agreements that are legally enforceable. A contract is an agreement between two parties that creates an obligation to do or refrain from doing a particular thing. The purpose of a contract is to establish the terms of the agreement by which the parties have fixed their rights and duties. An oral contract is an agreement made with spoken words and either no writing or only partially written. An oral contract may generally be enforced the same as a written agreement. However, it is much more difficult with an oral contract to prove its existence or the terms. Oral contracts also usually have a shorter time period within which a person seeking to enforce their contract right must sue. A written contract generally provides a longer time to sue than for breach of an oral contract. Contracts are mainly governed by state statutory and common (judge-made) law and private law. Private law generally refers to the terms of the agreement between the parties, as parties have freedom to override many state law requirements regarding formalities of contracts. Each state has developed its own common law of contracts, which consists of a body of jurisprudence developed over time by trial and appellate courts on a case-by-case basis.
An unjustifiable failure to perform all or some part of a contractual duty is a breach of contract. A legal action for breach of contract arises when at least one party's performance does not live up to the terms of the contract and causes the other party to suffer economic damage or other types of measurable injury. A lawsuit for breach of contract is a civil action and the remedies awarded are designed to place the injured party in the position they would be in if not for the breach. Remedies for contractual breaches are not designed to punish the breaching party. The five basic remedies for breach of contract include the following: money damages, restitution, rescission, reformation, and specific performance. A money damage award includes a sum of money that is given as compensation for financial losses caused by a breach of contract. Parties injured by a breach are entitled to the benefit of the bargain they entered, or the net gain that would have accrued but for the breach. The type of breach governs the extent of damages that may be recovered.
Restitution is a remedy designed to restore the injured party to the position occupied prior to the formation of the contract. Parties seeking restitution may not request to be compensated for lost profits or other earnings caused by a breach. Instead, restitution aims at returning to the plaintiff any money or property given to the defendant under the contract. Plaintiffs typically seek restitution when contracts they have entered are voided by courts due to a defendant's incompetence or incapacity.
Rescission is the name for the remedy that terminates the contractual duties of both parties, while reformation is the name for the remedy that allows courts to change the substance of a contract to correct inequities that were suffered. In order to have a rescission, both parties to the contract must be placed in the position they occupied before the contract was made. Courts have held that a party may rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds.
Specific performance is an equitable remedy that compels one party to perform, as nearly as practicable, his or her duties specified by the contract. Specific performance is available only when money damages are inadequate to compensate the plaintiff for the breach.
Promissory estoppel is a term used in contract law that applies where, although there may not otherwise be an enforceable contract, because one party has relied on the promise of the other, it would be unfair not to enforce the agreement. Promissory estoppel arises from a promise which the promisor should reasonably expect to induce action or forebearance of a definite and substantial character on the part of the promisee and which does induce such action or forebearance in binding if injustice can be avoided only by enforcement of the promise. Detrimental reliance is a term commonly used to force another to perform their obligations under a contract, using the theory of promissory estoppel. Promissory estoppel may apply when a promise was made; reliance on the promise was reasonable or foreseeable; there was actual and reasonable reliance on the promise; the reliance was detrimental; and injustice can only be prevented by enforcing the promise. Detrimental reliance must be shown to involve reliance that is reasonable, which is a determination made on an individual case-by-case basis, taking all factors into consideration. Detrimental means that some type of harm is suffered.
Reasonable reliance is usually referred to as a theory of recovery in contract law. It was what a prudent person might believe and act upon based on something told by another. Sometimes a person acts in reliance on the promise of a profit or other benefit, only to learn that the statements or promises were either incorrect or were exaggerated. The one who acted to their detriment in reasonable reliance may recover damages for the costs of his/her actions or demand performance. Reasonable reliance connotes the use of the standard of an ordinary and average person.
The following are California statutes:
§ 1941 Civ.
Section Nineteen Hundred and Forty-one. The lessor of a
building intended for the occupation of human beings must, in the
absence of an agreement to the contrary, put it into a condition fit
for such occupation, and repair all subsequent dilapidations thereof,
which render it untenantable, except such as are mentioned in
section nineteen hundred and twenty-nine.
§ 1941.1 Civ.
A dwelling shall be deemed untenantable for purposes of Section 1941 if
it substantially lacks any of the following affirmative standard
characteristics or is a residential unit described in Section 17920.3 or
17920.10 of the Health and Safety Code:
(a) Effective waterproofing and weather protection of roof and exterior
walls, including unbroken windows and doors.
(b) Plumbing or gas facilities that conformed to applicable law in
effect at the time of installation, maintained in good working order.
(c) A water supply approved under applicable law that is under the
control of the tenant, capable of producing hot and cold running water,
or a system that is under the control of the landlord, that produces hot
and cold running water, furnished to appropriate fixtures, and connected
to a sewage disposal system approved under applicable law.
(d) Heating facilities that conformed with applicable law at the time
of installation, maintained in good working order.
(e) Electrical lighting, with wiring and electrical equipment that
conformed with applicable law at the time of installation, maintained in
good working order.
(f) Building, grounds, and appurtenances at the time of the
commencement of the lease or rental agreement, and all areas under
control of the landlord, kept in every part clean, sanitary, and free
from all accumulations of debris, filth, rubbish, garbage, rodents, and
vermin.
(g) An adequate number of appropriate receptacles for garbage and
rubbish, in clean condition and good repair at the time of the
commencement of the lease or rental agreement, with the landlord
providing appropriate serviceable receptacles thereafter and being
responsible for the clean condition and good repair of the receptacles
under his or her control.
(h) Floors, stairways, and railings maintained in good repair.
(i) A locking mail receptacle for each residential unit in a
residential hotel, as required by Section 17958.3 of the Health and
Safety Code. This subdivision shall become operative on July 1, 2008
§ 1942 Civ.
(a) If within a reasonable time after written or oral notice to the
landlord or his agent, as defined in subdivision (a) of Section 1962,
of dilapidations rendering the premises untenantable which the landlord
ought to repair, the landlord neglects to do so, the tenant may repair
the same himself where the cost of such repairs does not require an
expenditure more than one month's rent of the premises and deduct the
expenses of such repairs from the rent when due, or the tenant may vacate
the premises, in which case the tenant shall be discharged from further
payment of rent, or performance of other conditions as of the date
of vacating the premises. This remedy shall not be available to the tenant
more than twice in any 12-month period.
(b) For the purposes of this section, if a tenant acts to repair and
deduct after the 30th day following notice, he is presumed to have acted
after a reasonable time. The presumption established by this
subdivision is a rebuttable presumption affecting the burden of producing evidence
and shall not be construed to prevent a tenant from repairing and
deducting after a shorter notice if all the circumstances require shorter
notice.
(c) The tenant's remedy under subdivision (a) shall not be available if
the condition was caused by the violation of Section 1929 or
1941.2
(d) The remedy provided by this section is in addition to any other
remedy provided by this chapter, the rental agreement, or other
applicable statutory or common law.
§ 1942.1 Civ.
Any agreement by a lessee of a dwelling waiving or modifying his rights
under Section 1941 or 1942 shall be void as contrary to public
policy with respect to any condition which renders the premises
untenantable, except that the lessor and the lessee may agree that the
lessee shall undertake to improve, repair or maintain all or stipulated
portions of the dwelling as part of the consideration for rental.
The lessor and lessee may, if an agreement is in writing, set forth the
provisions of Sections 1941 to 1942.1, inclusive, and provide that any
controversy relating to a condition of the premises claimed to make them
untenantable may by application of either party be submitted to
arbitration, pursuant to the provisions of Title 9 (commencing with
Section 1280), Part 3 of the Code of Civil
Procedure, and that the costs of such arbitration shall be apportioned
by the arbitrator between the parties.
§ 1942.4 Civ.
(a) A landlord of a dwelling may not demand rent, collect rent, issue a
notice of a rent increase, or issue a three-day notice to pay rent
or quit pursuant to subdivision (2) of Section 1161 of the
Code of Civil Procedure, if all of the following conditions exist prior to the
landlord's demand or notice:
(1) The dwelling substantially lacks any of the affirmative standard
characteristics listed in Section 1941.1 or violates
Section 17920.10 of the Health and Safety Code, or is deemed
and declared substandard as set forth in
Section 17920.3 of the Health and Safety Code because
conditions listed in that section exist to an extent that endangers the
life, limb, health, property, safety, or welfare of the public or the
occupants of the dwelling.
(2) A public officer or employee who is responsible for the enforcement
of any housing law, after inspecting the premises, has notified the
landlord or the landlord's agent in writing of his or her obligations to
abate the nuisance or repair the substandard conditions.
(3) The conditions have existed and have not been abated 35 days beyond
the date of service of the notice specified in paragraph (2) and the
delay is without good cause. For purposes of this subdivision, service
shall be complete at the time of deposit in the United States mail.
(4) The conditions were not caused by an act or omission of the tenant
or lessee in violation of Section 1929 or 1941.2.
(b)
(1) A landlord who violates this section is liable to the tenant
or lessee for the actual damages sustained by the tenant or lessee and
special damages of not less than one hundred dollars ($100) and not more
than five thousand dollars ($5,000).
(2) The prevailing party shall be entitled to recovery of reasonable
attorney's fees and costs of the suit in an amount fixed by the court.
(c) Any court that awards damages under this section may also order the
landlord to abate any nuisance at the rental dwelling and to repair any
substandard conditions of the rental dwelling, as defined in
Section 1941.1, which significantly or materially affect the health or safety
of the occupants of the rental dwelling and are uncorrected. If the court
orders repairs or corrections, or both, the court's jurisdiction
continues over the matter for the purpose of ensuring compliance.
(d) The tenant or lessee shall be under no obligation to undertake any
other remedy prior to exercising his or her rights under this section.
(e) Any action under this section may be maintained in small claims
court if the claim does not exceed the jurisdictional limit of that
court.
(f) The remedy provided by this section may be utilized in addition to
any other remedy provided by this chapter, the rental agreement, lease,
or other applicable statutory or common law. Nothing in this
section shall require any landlord to comply with this section if he or she
pursues his or her rights pursuant to Chapter 12.75 (commencing with
Section 7060) of Division 7 of Title 1 of the Government Code.
§ 1942.5 Civ.
(a) If the lessor retaliates against the lessee because of the exercise
by the lessee of his rights under this chapter or because of his
complaint to an appropriate agency as to tenantability of a dwelling, and
if the lessee of a dwelling is not in default as to the payment of his
rent, the lessor may not recover possession of a dwelling in any action
or proceeding, cause the lessee to quit involuntarily, increase the
rent, or decrease any services within 180 days of any of the following:
(1) After the date upon which the lessee, in good faith, has given
notice pursuant to Section 1942, or has made an oral complaint to the
lessor regarding tenantability.
(2) After the date upon which the lessee, in good faith, has filed a
written complaint, or an oral complaint which is registered or otherwise
recorded in writing, with an appropriate agency, of which the lessor has
notice, for the purpose of obtaining correction of a condition relating
to tenantability.
(3) After the date of an inspection or issuance of a citation,
resulting from a complaint described in paragraph (2) of which the lessor
did not have notice.
(4) After the filing of appropriate documents commencing a judicial
or arbitration proceeding involving the issue of tenantability.
(5) After entry of judgment or the signing of an arbitration award, if
any, when in the judicial proceeding or arbitration the issue
of tenantability is determined adversely to the lessor.
In each instance, the 180-day period shall run from the latest
applicable date referred to in paragraphs (1) to (5), inclusive.
(b) A lessee may not invoke subdivision (a) more than once in any
12-month period.
(c) It is unlawful for a lessor to increase rent, decrease services,
cause a lessee to quit involuntarily, bring an action to recover
possession, or threaten to do any of those acts, for the purpose
of retaliating against the lessee because he or she has lawfully organized
or participated in a lessees' association or an organization advocating
lessees' rights or has lawfully and peaceably exercised any rights under
the law. In an action brought by or against the lessee pursuant to this
subdivision, the lessee shall bear the burden of producing evidence that
the lessor's conduct was, in fact, retaliatory.
(d) Nothing in this section shall be construed as limiting in any way
the exercise by the lessor of his or her rights under any lease
or agreement or any law pertaining to the hiring of property or his or her
right to do any of the acts described in subdivision (a) or (c) for any
lawful cause. Any waiver by a lessee of his or her rights under this
section is void as contrary to public policy.
(e) Notwithstanding subdivisions (a) to (d), inclusive, a lessor may
recover possession of a dwelling and do any of the other acts described
in subdivision (a) within the period or periods prescribed therein,
or within subdivision (c), if the notice of termination, rent increase,
or other act, and any pleading or statement of issues in an arbitration, if
any, states the ground upon which the lessor, in good faith, seeks to
recover possession, increase rent, or do any of the other acts described
in subdivision (a) or (c). If the statement is controverted, the lessor
shall establish its truth at the trial or other hearing.
(f) Any lessor or agent of a lessor who violates this section shall be
liable to the lessee in a civil action for all of the following:
(1) The actual damages sustained by the lessee.
(2) Punitive damages in an amount of not less than one hundred dollars
($100) nor more than two thousand dollars ($2,000) for each retaliatory
act where the lessor or agent has been guilty of fraud, oppression,
or malice with respect to that act.
(g) In any action brought for damages for retaliatory eviction, the
court shall award reasonable attorney's fees to the prevailing party if
either party requests attorney's fee. upon the initiation of the action
.
(h) The remedies provided by this section shall be in addition to any
other remedies provided by statutory or decisional law.
§ 1950.5 Civ.
(a) This section applies to security for a rental agreement for
residential property that is used as the dwelling of the tenant.
(b) As used in this section, "security" means any payment, fee, deposit
or charge, including, but not limited to, any payment, fee, deposit,
or charge, except as provided in Section 1950.6, that is imposed at the
beginning of the tenancy to be used to reimburse the landlord for costs
associated with processing a new tenant or that is imposed as an advance
payment of rent, used or to be used for any purpose, including, but not
limited to, any of the following:
(1) The compensation of a landlord for a tenant's default in the
payment of rent.
(2) The repair of damages to the premises, exclusive of ordinary wear
and tear, caused by the tenant or by a guest or licensee of the tenant.
(3) The cleaning of the premises upon termination of the tenancy
necessary to return the unit to the same level of cleanliness it was in
at the inception of the tenancy. The amendments to this paragraph enacted
by the act adding this sentence shall apply only to tenancies for which
the tenant's right to occupy begins after January 1, 2003.
(4) To remedy future defaults by the tenant in any obligation under the
rental agreement to restore, replace, or return personal property
or appurtenances, exclusive of ordinary wear and tear, if the security
deposit is authorized to be applied thereto by the rental agreement.
(c) A landlord may not demand or receive security, however
denominated, in an amount or value in excess of an amount equal to two
months' rent, in the case of unfurnished residential property, and an
amount equal to three months' rent, in the case of furnished residential
property, in addition to any rent for the first month paid on or before
initial occupancy.
This subdivision does not prohibit an advance payment of not less than
six months' rent if the term of the lease is six months or longer.
This subdivision does not preclude a landlord and a tenant from
entering into a mutual agreement for the landlord, at the request of the
tenant and for a specified fee or charge, to make structural,
decorative, furnishing, or other similar alterations, if the alterations
are other than cleaning or repairing for which the landlord may charge
the previous tenant as provided by subdivision (e).
(d) Any security shall be held by the landlord for the tenant who is
party to the lease or agreement. The claim of a tenant to the security
shall be prior to the claim of any creditor of the landlord.
(e) The landlord may claim of the security only those amounts as are
reasonably necessary for the purposes specified in subdivision (b). The
landlord may not assert a claim against the tenant or the security for
damages to the premises or any defective conditions that preexisted the
tenancy, for ordinary wear and tear or the effects thereof, whether the
wear and tear preexisted the tenancy or occurred during the tenancy,
or for the cumulative effects of ordinary wear and tear occurring during any
one or more tenancies.
(f)
(1) Within a reasonable time after notification of either party's
intention to terminate the tenancy, or before the end of the lease term,
the landlord shall notify the tenant in writing of his or her option to
request an initial inspection and of his or her right to be present at
the inspection. The requirements of this subdivision do not apply when
the tenancy is terminated pursuant to subdivision (2), (3), or (4)
of Section 1161 of the Code of Civil Procedure. At a reasonable time, but no
earlier than two weeks before the termination or the end of lease date,
the landlord, or an agent of the landlord, shall, upon the request of the
tenant, make an initial inspection of the premises prior to any final
inspection the landlord makes after the tenant has vacated the premises.
The purpose of the initial inspection shall be to allow the tenant an
opportunity to remedy identified deficiencies, in a manner consistent with
the rights and obligations of the parties under the rental agreement, in
order to avoid deductions from the security. If a tenant chooses not to
request an initial inspection, the duties of the landlord under this
subdivision are discharged. If an inspection is requested, the parties
shall attempt to schedule the inspection at a mutually acceptable date
and time. The landlord shall give at least 48 hours' prior written notice
of the date and time of the inspection if either a mutual time is agreed
upon, or if a mutually agreed time cannot be scheduled but the tenant
still wishes an inspection. The tenant and landlord may agree to forgo
the 48-hour prior written notice by both signing a written waiver. The
landlord shall proceed with the inspection whether the tenant is present
or not, unless the tenant previously withdrew his or her request for the
inspection.
(2) Based on the inspection, the landlord shall give the tenant an
itemized statement specifying repairs or cleaning that are proposed to be
the basis of any deductions from the security the landlord intends to
make pursuant to paragraphs (1) to (4), inclusive of subdivision (b).
This statement shall also include the texts of paragraphs (1) to (4),
inclusive, of subdivision (b). The statement shall be given to the
tenant, if the tenant is present for the inspection, or shall be left
inside the premises.
(3) The tenant shall have the opportunity during the period following
the initial inspection until termination of the tenancy to remedy
identified deficiencies, in a manner consistent with the rights and
obligations of the parties under the rental agreement, in order to avoid
deductions from the security.
(4) Nothing in this subdivision shall prevent a landlord from using the
security for deductions itemized in the statement provided for in
paragraph (2) that were not cured by the tenant so long as the deductions
are for damages authorized by this section.
(5) Nothing in this subdivision shall prevent a landlord from using the
security for any purpose specified in paragraphs (1) to (4), inclusive,
of subdivision (b) that occurs between completion of the initial
inspection and termination of the tenancy or was not identified during
the initial inspection due to the presence of a tenant's possessions.
(g)
(1) No later than 21 calendar days after the tenant has vacated the
premises, but not earlier than the time that either the landlord or the
tenant provides a notice to terminate the tenancy under Section 1946 or
1946.1, Section 1161 of the Code of Civil Procedure, or not earlier than
60 calendar days prior to the expiration of a fixed-term lease, the
landlord shall furnish the tenant, by personal delivery or by first-class
mail, postage prepaid, a copy of an itemized statement indicating the
basis for, and the amount of, any security received and the disposition
of the security and shall return any remaining portion of the security to
the tenant.
(2) Along with the itemized statement, the landlord shall also include
copies of documents showing charges incurred and deducted by the landlord
to repair or clean the premises, as follows:
(A) If the landlord or landlord's employee did the work, the itemized
statement shall reasonably describe the work performed. The itemized
statement shall include the time spent and the reasonable hourly rate
charged.
(B) If the landlord or landlord's employee did not do the work, the
landlord shall provide the tenant a copy of the bill, invoice, or receipt
supplied by the person or entity performing the work. The itemized
statement shall provide the tenant with the name, address, and telephone
number of the person or entity, if the bill, invoice, or receipt does not
include that information.
(C) If a deduction is made for materials or supplies, the landlord
shall provide a copy of the bill, invoice, or receipt. If a particular
material or supply item is purchased by the landlord on an ongoing
basis, the landlord may document the cost of the item by providing a copy
of a bill, invoice, receipt, vendor price list, or other vendor document
that reasonably documents the cost of the item used in the repair
or cleaning of the unit.
(3) If a repair to be done by the landlord or the landlord's employee
cannot reasonably be completed within 21 calendar days after the tenant
has vacated the premises, or if the documents from a person or entity
providing services, materials, or supplies are not in the landlord's
possession within 21 calendar days after the tenant has vacated the
premises, the landlord may deduct the amount of a good faith estimate
of the charges that will be incurred and provide that estimate with the
itemized statement. If the reason for the estimate is because the
documents from a person or entity providing services, materials,
or supplies are not in the landlord's possession, the itemized statement
shall include the name, address, and telephone number of the person
or entity. Within 14 calendar days of completing the repair or receiving the
documentation, the landlord shall complete the requirements in
paragraphs (1) and (2) in the manner specified.
(4) The landlord need not comply with paragraph (2) or (3) if either
of the following apply:
(A) The deductions for repairs and cleaning together do not exceed one
hundred twenty-five dollars ($125).
(B) The tenant waived the rights specified in paragraphs (2) and (3).
The waiver shall only be effective if it is signed by the tenant at the
same time or after a notice to terminate a tenancy under Section 1946 or
1946.1 has been given, a notice under Section 1161 of the Code of Civil
Procedure has been given, or no earlier than 60 calendar days prior to
the expiration of a fixed-term lease. The waiver shall substantially
include the text of paragraph (2).
(5) Notwithstanding paragraph (4), the landlord shall comply with
paragraphs (2) and (3) when a tenant makes a request for documentation
within 14 calendar days after receiving the itemized statement specified
in paragraph (1). The landlord shall comply within 14 calendar days after
receiving the request from the tenant.
(6) Any mailings to the tenant pursuant to this subdivision shall be
sent to the address provided by the tenant. If the tenant does not
provide an address, mailings pursuant to this subdivision shall be sent to
the unit that has been vacated.
(h) Upon termination of the landlord's interest in the premises,
whether by sale, assignment, death, appointment of receiver
or otherwise, the landlord or the landlord's agent shall, within a
reasonable time, do one of the following acts, either of which shall
relieve the landlord of further liability with respect to the security
held:
(1) Transfer the portion of the security remaining after any lawful
deductions made under subdivision (e) to the landlord's successor in
interest. The landlord shall thereafter notify the tenant by personal
delivery or by first-class mail, postage prepaid, of the transfer, of any
claims made against the security, of the amount of the security
deposited, and of the names of the successors in interest, their
address, and their telephone number. If the notice to the tenant is made
by personal delivery, the tenant shall acknowledge receipt of the notice
and sign his or her name on the landlord's copy of the notice.
(2) Return the portion of the security remaining after any lawful
deductions made under subdivision (e) to the tenant, together with an
accounting as provided in subdivision (g).
(i) Prior to the voluntary transfer of a landlord's interest in the
premises, the landlord shall deliver to the landlord's successor in
interest a written statement indicating the following:
(1) The security remaining after any lawful deductions are made.
(2) An itemization of any lawful deductions from any security
received.
(3) His or her election under paragraph (1) or (2) of subdivision (h).
This subdivision does not affect the validity of title to the real
property transferred in violation of this subdivision.
(j) In the event of noncompliance with subdivision (h), the landlord's
successors in interest shall be jointly and severally liable with the
landlord for repayment of the security, or that portion thereof to which
the tenant is entitled, when and as provided in subdivisions (e) and
(g). A successor in interest of a landlord may not require the tenant to
post any security to replace that amount not transferred to the tenant
or successors in interest as provided in subdivision (h), unless and until
the successor in interest first makes restitution of the initial security
as provided in paragraph (2) of subdivision (h) or provides the tenant
with an accounting as provided in subdivision (g).
This subdivision does not preclude a successor in interest from
recovering from the tenant compensatory damages that are in excess of the
security received from the landlord previously paid by the tenant to the
landlord.
Notwithstanding this subdivision, if, upon inquiry and reasonable
investigation, a landlord's successor in interest has a good faith belief
that the lawfully remaining security deposit is transferred to him or her
or returned to the tenant pursuant to subdivision (h), he or she is not
liable for damages as provided in subdivision (l), or any security not
transferred pursuant to subdivision (h).
(k) Upon receipt of any portion of the security under paragraph (1)
of subdivision (h), the landlord's successors in interest shall have all
of the rights and obligations of a landlord holding the security with
respect to the security.
(l) The bad faith claim or retention by a landlord or the landlord's
successors in interest of the security or any portion thereof in
violation of this section, or the bad faith demand of replacement
security in violation of subdivision (j), may subject the landlord or the
landlord's successors in interest to statutory damages of up to twice the
amount of the security, in addition to actual damages. The court may
award damages for bad faith whenever the facts warrant that award,
regardless of whether the injured party has specifically requested
relief. In any action under this section, the landlord or the landlord's
successors in interest shall have the burden of proof as to the
reasonableness of the amounts claimed or the authority pursuant to this
section to demand additional security deposits.
(m) No lease or rental agreement may contain any provision
characterizing any security as "nonrefundable."
(n) Any action under this section may be maintained in small claims
court if the damages claimed, whether actual or statutory or both, are
within the jurisdictional amount allowed by Section 116.220 or 116.221
of the Code of Civil Procedure.
(o) Proof of the existence of and the amount of a security deposit may
be established by any credible evidence, including, but not limited to, a
canceled check, a receipt, a lease indicating the requirement of a
deposit as well as the amount, prior consistent statements or actions
of the landlord or tenant, or a statement under penalty of perjury that
satisfies the credibility requirements set forth in Section 780 of the
Evidence Code.
(p) The amendments to this section made during the 1985 portion of the
1985-86 Regular Session of the Legislature that are set forth in
subdivision (e) are declaratory of existing law.
(q) The amendments to this section made during the 2003 portion of the
2003-04 Regular Session of the Legislature that are set forth in
paragraph (1) of subdivision (f) are declaratory of existing law.
