Fitness International v. KB Salt Lake III: California Court Rejects Tenant’s Covid Defense as an Excuse for Unpaid Rent

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In a September 2023 decision, the California Court of Appeals affirmed a judgment in favor of a commercial landlord who prevailed on summary judgment in an unlawful detainer action against a tenant fitness center that stopped paying rent during COVID-19 closure orders. The Second Appellate District ruled in Fitness International, LLC v. KB Salt Lake III, LLC that the tenant could not establish defenses based on doctrines like force majeure, frustration of purpose, and impossibility. 

The court underscored that the closure orders did not prohibit commercial construction or prevent the tenant from paying rent. Further, the tenant remained in possession of the premises. The Fitness International decision demonstrates the courts’ reluctance to accept COVID-19 as broadly excusing a commercial tenant’s obligation to pay rent.

Background

The dispute arose from a 2016 amended lease between KB Salt Lake III, LLC (“KB Salt Lake”), the landlord, and Fitness International, LLC (“Fitness International”), which operated an indoor gym and fitness center in Chatsworth, California. The lease required Fitness International to renovate and expand the existing gym. In November 2019, Fitness International commenced renovations that were estimated to take approximately eight months to complete.

In March 2020, COVID-19 closure orders issued by the City and County of Los Angeles shut down indoor gyms and fitness centers but allowed commercial construction to continue. Fitness International nevertheless ceased construction at the Chatsworth location, invoked the lease’s force majeure clause, and stopped paying rent starting in April 2020. The former gym space remained unfinished and could not reopen.

In October 2021, after Fitness International failed to pay over $200,000 in back rent, KB Salt Lake brought an unlawful detainer action. Fitness International asserted defenses based on the closure orders. The trial court rejected Fitness International’s defenses and granted KB Salt Lake’s summary judgment motion.

On appeal, the Court of Appeal affirmed. The court explained that the plain language of the closure orders unambiguously exempted commercial construction. Though Fitness International claimed it reasonably believed “retail” construction was prohibited, the court reiterated that interpreting ordinances and regulations is strictly a legal question. The court then methodically rejected each of Fitness International’s defenses stemming from its flawed premise.

Regarding the lease’s force majeure clause, the court held it only excused an obligation where the triggering event hindered or prevented the performance of a specific required act. Though COVID-19 qualified as a force majeure event, Fitness International failed to show it hindered or prevented Fitness International from paying rent.

The court also concluded the doctrine of frustration of purpose did not apply because Fitness International did not attempt to terminate the lease and remained in possession of the premises. Further, temporary impossibility or impracticability requires an obligation to be rendered highly impractical due to excessive, unreasonable cost. Fitness International failed to produce evidence that paying rent during closure orders met this demanding standard.

By upholding summary judgment for the landlord, the Fitness International decision underscores that courts will narrowly construe doctrines like force majeure and will require significant evidence before relieving a commercial tenant of its rent obligations based on circumstances like temporary COVID-19 restrictions. The court made clear that closure orders neither prohibited construction nor prevented entities with the ability to pay from doing so. 

Key Takeaways

  • This case provides guidance on defenses for nonpayment of rent during COVID-19, limiting the applicability of various legal doctrines. It underscores tenant obligations to pay rent if the ability exists and possession continues.
  • The case involves a commercial landlord’s unlawful detainer action against a tenant fitness center for nonpayment of rent during COVID-19 closure orders.
  • The court held that COVID-19 closure orders did not prevent commercial construction, so they did not excuse the tenant’s failure to pay rent under force majeure, frustration of purpose, and impossibility/impracticability doctrines.
  • The closure orders exempted commercial construction, and the tenant admitted it had funds to pay rent, so it was not delayed, hindered, or prevented from paying rent by closure orders.
  • Doctrines like the frustration of purpose end a contract, but the tenant remained in possession, so they still had to pay rent. Impossibility requires performance to be impossible or highly impractical, which was not shown.
  • COVID-19 did not broadly excuse commercial tenants from paying rent under various legal doctrines where tenants had the ability to pay, and occupancy continued. Force majeure clauses are interpreted narrowly.

Summary

The Fitness International decision makes clear that COVID-19 closure orders did not provide commercial tenants with a broad excuse for nonpayment of rent under legal doctrines like force majeure and impossibility. The court underscored that public health restrictions neither prohibited commercial construction nor prevented financially capable tenants from paying rent. Further, by remaining in possession, the tenant could not assert frustration of purpose. The ruling puts tenants on notice that they face a heavy burden when invoking COVID-19 to avoid clear rent obligations and that courts will narrowly construe such virus-related defenses absent evidence of a tangible impact on the duty to pay.

Beebe v. Wonderful Pistachios: California Court Lowers Causation Bar in Bird Droppings Lawsuit

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Background

In June 2023, the California Court of Appeal examined the proof needed to establish causation in toxic exposure cases, reversing a defense summary judgment in Beebe v. Wonderful Pistachios & Almonds LLC. The court held that the plaintiff had raised a triable issue of material fact through circumstantial evidence connecting his exposure to contaminated bird droppings in his workplace with his subsequent fungal infection.

The plaintiff, Dale Beebe, was an electrical foreman for Braaten Electric, Inc., a subcontractor hired by Potential Design, Inc. and its owner James Tjerrild (collectively “Potential Design”) for construction projects at a pistachio facility in Firebaugh, California owned by Wonderful Pistachios and Almonds LLC (“Wonderful”). For almost two years between 2012-2014, Beebe worked at Wonderful’s Firebaugh facility.

The Firebaugh facility was plagued by migrating flocks of swallows that nested under a pole barn-like structure and created extreme accumulations of bird droppings. Wonderful would periodically dry sweep or blow the droppings into the surrounding dirt using leaf blowers. In late 2015, over a year after completing work at the facility, Beebe was diagnosed with histoplasmosis, a fungal infection caused by inhalation of spores from the fungus Histoplasma capsulatum, which thrives in bird feces.

Beebe sued Wonderful and Potential Design for negligence, alleging their conduct regarding the bird droppings caused his illness. The defendants moved for summary judgment, arguing there was no proof the droppings caused Beebe’s histoplasmosis. The trial court agreed, excluding Beebe’s expert declarations as speculative and granting summary judgment for the defendants.

The Court of Appeal reversed, finding Beebe had raised a triable issue of causation under California’s “substantial factor” test, which only requires a defendant’s conduct to be more than a negligible or theoretical cause. Though no soil testing definitively proved the droppings were contaminated, Beebe’s physician expert testified the San Joaquin Valley has a relatively high incidence of histoplasmosis. Other evidence showed the birds roosted at the site for years and Wonderful’s practices would disperse contaminated dust that Beebe inhaled while living and working onsite.

The court found Beebe’s circumstantial evidence analogous to the restaurant patron in Sarti v. Salt Creek who contracted food poisoning after eating raw tuna at a restaurant with unsanitary conditions likely causing cross-contamination. Though no testing proved the restaurant’s chicken carried the bacteria, the conditions permitted an inference of causation. Here, though testing did not confirm the droppings were contaminated, ample evidence supported causation under the substantial factor test.

The court underscored that property owners like Wonderful must handle toxic substances appropriately. By reversing summary judgment, the court opened the door for Beebe to prove at trial that Wonderful’s negligent handling of contaminated bird droppings caused his life-altering illness. 

Key Takeaways

  • The case involves a lawsuit brought by an employee who contracted a fungal infection, histoplasmosis, allegedly due to exposure to accumulated bird droppings at his workplace.
  • A key issue examined by the court was whether the plaintiff provided sufficient evidence of causation between his illness and the defendants’ conduct regarding the bird droppings.
  • The court held there was a triable issue of material fact as to causation based on the plaintiff’s expert testimony and circumstantial evidence connecting his exposure to contaminated bird droppings at his workplace to his subsequent infection.
  • Even without definitive scientific proof like soil testing, the court found the circumstantial evidence created a reasonable inference of causation under the “substantial factor” test.
  • The case illustrates the type of showing needed to establish causation in a toxic exposure case, including through expert testimony and circumstantial evidence.
  • A property owner or employer may be liable where sufficient evidence connects negligence in handling toxic substances like contaminated bird droppings to a plaintiff’s illness. 

Summary

In reversing summary judgment, the Beebe decision eased the causation burden for plaintiffs in toxic exposure cases, confirming that circumstantial evidence may be used to establish causation under California’s “substantial factor” test without definitive scientific proof. The court also found ample evidence to support a reasonable inference that the defendant’s negligent handling of contaminated bird droppings caused the plaintiff’s illness. This decision illustrates that property owners and employers must handle toxic substances appropriately or risk liability if their negligent actions are connected to resultant illnesses.

What Is a Zoning Variance and When Do You Need One?

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Zoning refers to legally designating different kinds of properties that can be built in a specific neighborhood or area. Municipalities and counties enact zoning ordinances for dictating and shaping a particular community. It also prevents illegal, inappropriate, or disputed real estate properties from cropping up. Choose an experienced real estate litigation attorney who can help you obtain a zoning variance.

What is Zoning Variance?

Normal zoning laws are put in place to match the classification of a certain property with predefined zones. For instance, every city has a predefined residential, commercial, and industrial area. Industries are usually not allowed anywhere near residential areas. A zoning variance is an exception to these area laws. These are granted on an individual case basis by the local government.

For instance, if you have a non-polluting business, like a seamstress shop, you may be able to get a zoning variance and set up your business in a residential district. Zoning variances help in bypassing zoning restrictions. A single-family residence is of more value when situated beside other single-family residences.

The residential value will drop if the single-family house is situated next to a public library. While getting a variance application accepted is difficult, you may be able to obtain one by working with a tenacious and knowledgeable real estate attorney. This is someone who’s been around the legal corners before and knows what dangers could present themselves.

Common Types of Zoning Variances

There are two main types of zoning variances in California:

Area Variance

Property owners can use an area variance to construct a property that is against the physical requirements of a particular zoning ordinance. For instance, the zoning variance may allow you to construct a building larger than the permissible square-footage restriction put in place by the zoning board.

Property owners are allowed to make changes to their property through area variances. Based on this, property owners should prove that any changes made should not impact the neighborhood in a negative manner. Construction of a detached garage and other additions to the home are a few examples of projects requiring zoning approval.

Use Variance

Use variance allows for the use of land or property in a manner restricted by zoning laws. You would theoretically be able to run a business in a housing district by obtaining a use variance. Moreover, this variance is not as easy to acquire as an area variance. Property owners get the right to use their land in a manner normally restricted under existing municipality zoning regulations.

Owners can use their property contrary to existing regulations. This means there is an added burden of proving that current zoning conditions have created an undue hardship.

Need for a Zoning Variance in California

There are several situations in which you may require a zoning variance. This includes:

  • If you want to build a property on a vacant piece of land.
  • If you are altering or constructing a building in a manner that directly changes its classification.
  • If you want to change the existing use of a building.
  • If you want a piece of land to be used in a manner different from its purpose defined in the zoning classification.

Make Sure You Have a Skilled Real Estate Lawyer on Your Side to Obtain a Zoning Variance

Zoning laws are created by municipalities to protect and safeguard the rights of individual property owners. Land usage sets restrictions for what a property or building can be used for in different areas. Governments use zoning restrictions to protect the quality of life, usage, planning, growth, and environmental implications.

Land use or zoning variance allows for these rules to be set aside. With that said, getting a zoning variance can be challenging. You need to convince the board to accept your application. You will need to prove that without the variance you will suffer undue hardship. A proven real estate attorney can help you get the waiver you need for undertaking the proposed activities.

Your attorney will help you show the following to be considered for a variance:

  • The request won’t harm the neighborhood.
  • Strict enforcement of the land use code will result in severe hardships without the variance.
  • The application and demand are consistent with the spirit and purpose of the Land Use Code.
  • You are not asking for favoritism by comparing with nearby properties.
  • You are asking for the minimum relief.

You need to have an in-depth knowledge and understanding of the California Land Use Code and other relevant laws. The growth and development of an area is regulated by the Land Use Code. Your attorney can help you in effectively proving that you need a zoning variance.

Get Strong Legal Representation from Our Leading Real Estate Litigation Lawyers. Call Now.

At Peterson, Martin & Reynolds LLP, our experienced northern California real estate attorneys have extensive knowledge of zoning and land use variances. Our attorneys have assisted a large number of property owners over the years get successful outcomes by presenting strong evidence and making convincing arguments in their favor. To schedule a consultation, call us at (415) 399-2900 or fill out this online contact form.

 

Legal Challenges in Mixed-Use Commercial Developments

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Mixed-use commercial developments have become increasingly popular in California due to their ability to combine residential, commercial, and recreational spaces in a single project. These developments aim to create vibrant, sustainable, and walkable neighborhoods. Moreover, this innovative approach to urban planning presents unique legal challenges for developers, businesses, and residents alike.

With a knowledgeable commercial real estate lawyer on your side, you can successfully navigate the legal complexities associated with any claim related to mixed-use commercial developments in California.

Zoning and Land Use Regulations

One of the primary legal challenges in mixed-use commercial developments is navigating complex zoning and land use regulations. Local jurisdictions often have strict zoning laws that govern the use and density of properties within specific areas.

Developers must adhere to these regulations while designing a project that seamlessly integrates residential and commercial spaces. Variance requests and rezoning efforts may be required to align the development with the local zoning requirements, and this can involve extensive negotiations with government authorities and community stakeholders.

Contractual Arrangements and Agreements

Mixed-use commercial developments involve multiple stakeholders, including developers, commercial tenants, residential occupants, and investors. Drafting clear and comprehensive contractual agreements is crucial to address potential conflicts and responsibilities among these parties.

Agreements should cover matters such as shared infrastructure costs, maintenance responsibilities, revenue sharing, and dispute resolution mechanisms. An experienced attorney can help ensure that all agreements are carefully drafted, protecting the interests of all involved parties.

Construction and Defect Claims

The complexity of mixed-use developments may lead to construction disputes and defect claims. With various elements, such as residential units, retail spaces, and common areas, constructed by different contractors, coordinating and ensuring the quality of work becomes challenging.

If defects or construction delays occur, it can lead to costly litigation. Hiring the services of a lawyer well-versed in California construction law is essential in addressing these claims efficiently and minimizing financial and reputational risks.

Environmental Compliance

Mixed-use developments often undergo rigorous environmental impact assessments to ensure compliance with California’s environmental laws. These projects must adhere to regulations concerning water usage, waste disposal, air quality, and preservation of natural habitats.

Failure to comply with these environmental standards can lead to costly fines and delays in project completion. Having experienced legal counsel with a thorough understanding of environmental regulations is crucial to avoiding potential legal hurdles.

Access and Easement Disputes

Mixed-use developments may involve shared access points, parking areas, and easements between residential and commercial entities. Disputes over access rights and easements can arise between tenants, developers, or neighboring properties. Addressing these disputes promptly and effectively is vital to maintain the functionality and harmony of the development. Legal guidance can assist in negotiating and resolving access-related conflicts.

Compliance with Disability Laws

California has strict disability laws, such as the Americans with Disabilities Act (ADA) that require mixed-use developments to be accessible to individuals with disabilities. Ensuring compliance with these laws is essential to avoid costly lawsuits and penalties. Legal counsel can guide developers in adhering to accessibility requirements and mitigating potential ADA-related risks.

Taxation and Financial Considerations

Mixed-use commercial developments involve various tax implications, including property taxes, sales taxes, and business taxes for commercial tenants. Navigating the complex tax landscape is crucial to avoid potential liabilities and maximize financial benefits for all parties involved. Consulting with tax experts and legal professionals is essential in understanding and complying with California’s taxation laws.

Community Relations and Public Perception

Mixed-use developments often face opposition from community members who may be concerned about issues like increased traffic, density, and changes in neighborhood character. Engaging with the community early on and addressing their concerns transparently can help mitigate opposition and public perception challenges. Legal representation can play a vital role in facilitating community outreach efforts and navigating any legal challenges arising from community opposition.

Why Litigation May Become Necessary to Protect Your Rights in a Mixed-Use Commercial Development Dispute in California

Litigation may become necessary to protect your rights in a mixed-use commercial development dispute in California due to the complexity and severity of the legal challenges that can arise in such cases. Despite best efforts, parties involved in a mixed-use development dispute may sometimes not be able to reach a mutually acceptable resolution through negotiation or ADR.

When communication breaks down, or parties are unable to find common ground, litigation may be the only way to seek a legally binding resolution. With the guidance of experienced legal counsel, parties can pursue litigation strategically to seek a fair and just resolution, thereby safeguarding their interests and the success of the mixed-use development.

Don’t Let Legal Hurdles Hold You Back – Book a Consultation with Our Seasoned Real Estate Lawyers Today

Mixed-use commercial developments in California offer exciting opportunities for vibrant and integrated urban living. But they also present complex legal challenges that require careful navigation. With our experienced real estate attorneys on your side, it gets easier to anticipate and address these challenges effectively, ensuring that your goals are achieved in the best possible way. Give us a call at (415) 399-2900 or fill out this online contact form to schedule a consultation with our legal team today.

 

Navigating Real Estate Litigation in Cohousing Communities

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Co-housing communities have gained popularity in California as an alternative living arrangement that emphasizes cooperation, shared resources, and a sense of community. These communities are characterized by individuals or families living in separate units while sharing common areas and responsibilities. As with any communal living arrangement, however, conflicts may arise, leading to real estate litigation. A real estate attorney with a focus on litigation in co-housing communities can provide you with strong legal representation and successfully fight for your rights.

Understanding Co-housing Communities in California

Co-housing communities are intentional living arrangements designed to foster a sense of community and promote social interaction. Typically, they consist of private living spaces for each household and shared spaces such as kitchens, dining areas, and recreational facilities. Co-housing communities are guided by principles of cooperation, shared decision-making, and a commitment to sustainability.

Common Real Estate Disputes in Co-housing Communities

  • Property Ownership and Rights: Disputes may arise regarding ownership rights and boundaries of individual units within the community or ownership and maintenance responsibilities for shared spaces.
  • Community Rules and Bylaws: Disagreements over community rules and bylaws, such as pet policies, quiet hours, or use of common facilities, can lead to legal disputes.
  • Maintenance and Repairs: Disputes might arise concerning the responsibility for repairs and maintenance of shared facilities, including determining how the costs should be distributed.
  • Nuisance and Noise Complaints: Conflicts may emerge when one resident’s activities cause disturbances or inconveniences to others within the co-housing community.
  • Financial Disputes: Disagreements about financial matters, such as community budgeting, dues, or assessments, may lead to litigation.

Reviewing the Community’s Governing Documents

Every co-housing community should have governing documents that outline the rules, regulations, and decision-making processes within the community. These documents might include the community’s bylaws, covenants, conditions, restrictions (CC&Rs), and operating agreements. Understanding and adhering to these documents is essential for maintaining harmony within the community and resolving disputes.

Choose an Attorney Familiar with Co-housing Laws

When facing real estate litigation in a co-housing community, it is vital to engage an attorney experienced in co-housing law and California real estate laws. A knowledgeable attorney can help navigate the complexities of these unique living arrangements and provide guidance customized to the community’s specific circumstances.

The Importance of Open Communication

Open communication is the backbone of successful co-housing communities. Encouraging dialogue and active listening can prevent disputes from escalating. Residents should be encouraged to voice concerns and work together to find amicable solutions to potential issues.

Arbitration Clauses and Dispute Resolution Procedures

Many co-housing communities include arbitration clauses in their governing documents. Arbitration provides a more informal and private alternative to traditional litigation. Taking this into account, it’s critical to carefully review these clauses and procedures, ensuring they are fair and impartial for all parties involved.

Preserving the Sense of Community

During real estate litigation, tensions can run high, and the sense of community might be jeopardized. It is essential to strike a balance between resolving disputes and preserving the communal spirit. Community members should be reminded of the long-term benefits of maintaining a cohesive living environment.

 

How Our Attorneys Will Protect Your Rights During Real Estate Litigation in Co-housing Communities in California

At Peterson, Martin, and Reynolds LLP, our team of experienced attorneys is dedicated to safeguarding your rights and interests during real estate litigation in co-housing communities in California. We understand the complexities of co-housing living arrangements and the potential disputes that can arise in these unique communities. When you choose our firm, you can expect the following measures to ensure your rights are protected throughout the legal process:

  • In-Depth Knowledge of Co-housing Laws: Our attorneys have a comprehensive understanding of co-housing laws and regulations specific to California. We stay up-to-date with the latest developments in real estate and community living laws to provide you with accurate and relevant legal advice.
  • Thorough Case Analysis: We begin by conducting a detailed analysis of your case, reviewing all relevant governing documents, community bylaws, and any existing agreements. This comprehensive review allows us to gain a deep understanding of the issues at hand and strategize the best approach to resolve the dispute effectively.
  • Strong Advocacy in Court: Should it become necessary, we are prepared to represent your interests vigorously in court. Our attorneys are seasoned litigators with a successful track record in real estate and community living disputes. We will assertively advocate for your rights and work to achieve the best possible outcome.
  • Attention to Community Dynamics: We understand that real estate litigation in co-housing communities can be sensitive, as it involves disputes among neighbors and close-knit groups. Our attorneys approach each case with empathy and respect for community dynamics. We strive to find solutions that not only protect your rights but also preserve the sense of community within the co-housing environment.
  • Timely Communication and Updates: At Peterson, Martin, and Reynolds LLP, we value clear and open communication with our clients. Our team will keep you informed about the progress of your case, answer any questions you may have, and provide timely updates on developments.
  • Customized Legal Strategies: Every co-housing community is unique, with its specific challenges and dynamics. Our attorneys will tailor legal strategies that align with the individual needs and goals of your community. We believe in personalized approaches that address your concerns effectively.

Get Our Dedicated Real Estate Lawyers on Your Side to Uphold Your Rights

Are you facing complex real estate disputes in California that require seasoned litigation-focused attorneys to fight for your rights? Look no further than Peterson, Martin, and Reynolds LLP. Our legal team has in-depth experience with real estate litigation, and we are here to advocate for your interests, provide strong legal representation, and navigate the complexities of your case with skill and dedication. To request a consultation, call us at (415) 399-2900 or complete this online form.

 

Understanding The Complexities of Litigation Related to Timeshares and Fractional Ownership

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Timeshares allow families and individuals to split ownership of their property, usually a vacation home. These can appear enticing at face value, but almost always come attached with strings and hidden red flags. Fractional ownership models can be tempting too. You are allowed the use of a second home for a certain period every year.

Whether you enter a timeshare agreement or fractional ownership, these come with their own restraints in the form of maintenance fees, falling value, and lack of true home ownership.

Common Legal Issues Surrounding Timeshare and Fractional Ownership

Litigation issues involve a combination of contract, property, timeshare, and business laws (for commercial properties.) These are a few common timeshare and fractional ownership legal issues in connection with a property:

  • Transfer of property rights: Legal issues can crop up where the transfer of property rights through gifting, giving away, giving up, or donating is concerned. The owner may seek to transfer rights to another person.
  • Fraud schemes: There are always fraud schemes and scams that may impact your ownership rights. You should speak with a real estate attorney as soon as possible if you find something suspicious in the contract or at the property.
  • Owner disputes: The most common legal issues arise from disputes among timeshare owners. For instance, the parties may accidentally schedule their trip for the same time period which leads to a falling out and a decision to dissolve the timeshare agreement. Issues may also involve failure to pay the amount of timeshare or fractional ownership.
  • Foreclosure: Financial issues or default in payment can lead to a foreclosure of the timeshare property.
  • Conflicts: Conflicts may arise because of local or state laws. This usually involves properties located outside the US. Stemming from this, owners may also need the help of an experienced attorney if there are conflicts related to state laws.
  • Unforeseen circumstances: Owners may not be able to use the timeshare property because of an unforeseen circumstance, such as the destruction of property or inability to pay financial dues.

There are several other issues that can necessitate a knowledgeable attorney. Parties considering timeshare or fractional ownership should consult with a real estate attorney before signing the contract.

There are certain legal issues that may attract criminal consequences. For instance, a timeshare owner that knows their guests are indulging in criminal activities on the premises and does nothing to stop them can be charged with a criminal offense and penalized.

Resolving Legal Issues Related to Timeshare and Fractional Ownership

Most legal issues involving timeshare properties or fractional ownership can be resolved by reviewing the most recent contract between different parties. If the issue cannot be resolved through this, you may need to file a claim in court. Lawsuits are helpful for obtaining monetary damages for the party that prevails in the claim.

You should consult with an experienced timeshare property attorney to prove your claim. Your attorney will gather the necessary evidence for strengthening and proving your claim to the property. Without solid legal representation, you increase the likelihood of having your case dismissed without obtaining any monetary damages.

The court may award other remedies besides monetary damages, such as an injunction. These are also known as equitable remedies. Pertaining to this, legal remedies are usually in the form of monetary damages. A timeshare owner that hires a maintenance business to take care of their property when not around can sue the business for not following the terms listed within the employment contract.

Depending on the unique circumstances of the claim, a judge may order the cancellation or amendment of the employment contract to avoid a lengthy court battle.

Hiring an Attorney to Assist with Your Legal Matters

Timeshare and fractional ownership are ideally suited for people that want a separate vacation home without investing a lot. Unfortunately, these properties come with their own sets of legal complexities that require the experience of a capable attorney. Unfortunately, legal issues only increase where timeshare properties and fractional ownership are concerned.

If you are involved in a legal dispute, you may want to consult with a qualified real estate attorney as soon as possible. Your attorney will provide you with solid legal advice regarding the local and state laws affecting your property and specific complications. They will also help understand your needs and devise a strategy to efficiently resolve the legal dispute without compromising too much.

A reputable real estate attorney will be able to help whether you want to file a lawsuit against another co-owner or you are being sued. They will help you file the claim and represent you in court if necessary. Your attorney can also negotiate on your behalf during a settlement conference if you decide not to go to trial.

Discuss a Winning Legal Strategy with our Real Estate Attorneys Today

The experienced real estate attorneys at Peterson, Martin & Reynolds LLP have decades of experience helping clients. Our attorneys have a deep understanding of timeshare law, including the various pitfalls and legal complexities. To schedule your consultation, call us at (415) 399-2900 or fill out this online contact form.

 

Empty Commercial Space: Protecting Your Commercial Building During a Temporary Vacancy

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For commercial real estate landlords and business owners, there are several reasons why a commercial property may remain closed for extended periods of time. Your storefront may be lying vacant for a new renter. Shutters can remain down for weeks or months when large-scale renovations are going on. Vacant commercial properties plagued the United States even before the pandemic.

As an owner, you don’t just endure a loss of income when your property is lying vacant, but also an increased risk of garbage dumping, illegal squatting, and metal theft. Landlords should take a proactive approach to protect their property by employing different measures. An experienced real estate attorney can help you better assess the various risks and take the right steps toward protecting your vacant commercial property.

Stay on Top of Insurance and Mortgage Obligations

When a property is let out, the tenant usually remains responsible for maintaining the occupied areas. The rent received is usually used towards paying for the insurance and repairing any parts not included within the lease. All of these costs fall on the landlords in the absence of a tenant.

There is a real danger that the building may deteriorate unless you take active steps to keep the building secure and in good shape. You should check the terms of your insurance policy. Don’t forget to go through the mortgage agreement to keep on top of things. A seasoned real estate attorney may be able to help you identify specific exclusions and conditions that apply if the property is unoccupied.

Changes in Business Rates

The financial impact becomes worse if a commercial property is allowed to remain empty for more than three months. You may become liable for empty property taxes. In 2022, the City Council approved the Santa Cruz Empty Home Tax to ease the pressure on the housing market. Homes lying vacant for more than 8 months are now taxed.

While this rule doesn’t apply to commercial properties, you should still speak with a seasoned real estate attorney in your area to understand the costs you will be liable for. Many commercial property owners resort to letting out their property to companies to avoid empty rates from becoming due.

There are specific benefits and drawbacks to the different strategies for avoiding empty property rates. You should speak with a skilled real estate attorney to learn more about all available alternatives.

Illegal Use of Premises and Squatters

Empty commercial property is highly attractive to squatters since the government has made it illegal to squat in a residential building. As an owner, you will need to employ formal legal proceedings to get the squatters out. This can be a time-consuming and costly affair.

Another main risk of allowing a commercial property to remain vacant is that it may be used for illegal purposes. This can be by squatters or on a more casual basis. Owners can become liable even if no crimes are being committed. For instance, if neighbors report the property as a nuisance, you may need to hire an experienced real estate attorney to take the necessary steps for avoiding liability.

Alternative Options to Leaving Your Commercial Property Lying Vacant

Typically, commercial property is used for business purposes in offices, industrial, retail, amusement, and lodging. The expected vacancy rates for commercial offices in the United States are between 15 – 20%. You need to take the necessary steps for protecting your unoccupied and vacant building spaces. There are several possibilities for putting an empty building to good use.

There is a trend for pop-up events and businesses. This means that there are several companies and individuals out there looking for short-term occupancies. These are known as ‘meanwhile’ leases. You can reach out to local organizations, including charities for leasing out the building for short-term exhibitions and events. You can also turn the empty and neglected space into a vibrant community area.

Every short-term occupation should be properly documented. This way you can get the property back when a long-term tenant shows interest. Your real estate attorney will walk you through the necessary paperwork that needs to be completed.

Vulnerable properties should also carry adequate property insurance. A knowledgeable real estate attorney can help you determine the right amount of insurance for your property. The tiniest mistake in maintaining or securing a commercial property can result in costly lawsuits and damages. This can be harmful to your reputation. Vacant properties, even if they remain empty for a short period, are especially vulnerable.

You need to obtain adequate insurance for your peace of mind and protection. Make sure you speak with a qualified real estate attorney to get the insurance coverage you require.

Request a Consultation from Our Seasoned Real Estate Litigation Attorneys

The knowledgeable real estate litigation attorneys at Peterson, Martin & Reynolds, LLP are determined to protect your commercial property during a vacancy period and will do everything possible to resolve any legal disputes in the most effective manner. If litigation is necessary, we are seasoned professionals who know how to win inside the courtroom.

To set up your confidential consultation with a member of our legal team, call (415) 399-2900 or reach us online.

 

Real Estate Law and Boundary Disputes: Tips for Resolving Conflicts with Neighboring Property Owners

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Conflicting boundaries leading to land disputes are a common occurrence in California. These conflicts usually occur when there is a change in property ownership. You should get professional help to identify and formalize exact boundary lines. Boundary disputes are best resolved through legal representation. An experienced real estate attorney familiar with California laws and boundary disputes can evaluate your current situation and create the right strategy for resolving any issues you may be facing.

Here are a few useful tips when you are seeking a resolution of boundary disputes with neighboring property owners:

  1. Request for a Property Survey

Typically, boundary disputes arise when one party thinks that the other one is encroaching on their land. You should have a surveyor mark the official boundary line during a general property survey. The surveyor can plot various features, such as fences, trees, elevations, and other physical markers.

In fact, calling a surveyor is a great idea if you are looking to make changes to your property, such as planting trees or putting up a fence. In some cases, surveys won’t be possible. This is because the wording of the deed or neighbors may make it too difficult for determining the actual boundary. Consult with an experienced real estate attorney in these situations.

The attorney may be able to use a quiet title lawsuit for getting a judge to determine the boundary line. However, a quiet title lawsuit is more expensive than a regular property survey. A competent attorney will usually keep this as the last option after exploring other inexpensive ways of allocating boundary lines.

  1. Sign a Written Agreement with Your Neighbor

Sometimes, open communication and productive discussions with your neighbors can help you solve complicated disputes. You should always sign a written agreement with your neighbor outlining who owns what. Speak to a qualified real estate attorney to ensure the agreement is worded properly. This document should also include contingencies for boundary line modifications, encroachments, and other situations.

  1. Consider Mediation and Alternative Dispute Resolution

If you and your neighbors cannot arrive at an agreement on your own, an experienced attorney can act as a mediator. Your attorney can also file for alternative dispute resolution (ADR.) This is an impartial and inexpensive way of coming to a satisfactory solution. Mediators usually help in resolving boundary conflicts and any other disputes that may arise in a timely manner.

You can attend the mediation meetings on your own or ask an attorney to remain present with you. It is best to attend mediation sessions with all necessary evidence and documents that help in supporting your claim. Two main benefits of mediation over litigation are that they are less expensive and any decision made is non-imposable. This means that if you don’t approve of the decision, you can take the matter to court. You don’t have to accept a decision until you know for a fact that it is your best alternative.

  1. File a Lawsuit

Real estate litigation may become necessary for resolving a boundary dispute. This can be a time-consuming and expensive course of action. However, a skilled attorney may be able to strategize and take the necessary steps for obtaining a favorable outcome quickly. You can improve the likelihood of getting a favorable outcome by gathering relevant evidence that supports your claim, such as a map, photos, and witness testimonies.

The judge will hear both sides and look at the original deeds, land survey, and other evidence for determining the property line. Having an attorney on your side can help you protect your legal rights and make sure that you get the best possible outcome.

Consult with an Experienced Boundary Disputes Attorney

If you are involved in a boundary dispute with your neighbor, you should speak with an experienced real estate litigation attorney. Your attorney may be able to prevent lengthy arguments and expensive court battles by negotiating with your neighbors. Your attorney will also argue on your behalf to persuade the other party. In boundary disputes, having an attorney is usually the best shot at getting the outcome you desire.

Boundary disputes are complicated. You can resolve yours amicably and quickly with foresight and patience. You need to understand that your neighbors may have a valid claim depending on the circumstances. It always pays off to invest in creative solutions that become a win-win for everyone involved. Real estate attorneys have the necessary knowledge and experience needed to prepare a solid lawsuit that works in their client’s favor.

Our Reputable Northern California Real Estate Lawyers can Protect Your Property Rights

If you are currently dealing with a real estate boundary dispute, you should speak to the experienced attorneys at Peterson, Martin & Reynolds LLP. Our attorneys have substantial experience in all types of real estate disputes and will offer the best legal solutions to resolve the issues while protecting your property rights at all times. Schedule a consultation with our lawyers today. Call us at (415) 399-2900 or contact us online.

 

What Is a Zoning Variance and When Do You Need One?

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Zoning refers to legally designating different kinds of properties that can be built in a specific neighborhood or area. Municipalities and counties enact zoning ordinances for dictating and shaping a particular community. It also prevents illegal, inappropriate, or disputed real estate properties from cropping up. Choose an experienced real estate litigation attorney who can help you obtain a zoning variance.

What is Zoning Variance?

Normal zoning laws are put in place to match the classification of a certain property with predefined zones. For instance, every city has a predefined residential, commercial, and industrial area. Industries are usually not allowed anywhere near residential areas. A zoning variance is an exception to these area laws. These are granted on an individual case basis by the local government.

For instance, if you have a non-polluting business, like a seamstress shop, you may be able to get a zoning variance and set up your business in a residential district. Zoning variances help in bypassing zoning restrictions. A single-family residence is of more value when situated beside other single-family residences.

The residential value will drop if the single-family house is situated next to a public library. While getting a variance application accepted is difficult, you may be able to obtain one by working with a tenacious and knowledgeable real estate attorney. This is someone who’s been around the legal corners before and knows what dangers could present themselves.

Common Types of Zoning Variances

There are two main types of zoning variances in California:

Area Variance

Property owners can use an area variance to construct a property that is against the physical requirements of a particular zoning ordinance. For instance, the zoning variance may allow you to construct a building larger than the permissible square-footage restriction put in place by the zoning board.

Property owners are allowed to make changes to their property through area variances. Based on this, property owners should prove that any changes made should not impact the neighborhood in a negative manner. Construction of a detached garage and other additions to the home are a few examples of projects requiring zoning approval.

Use Variance

Use variance allows for the use of land or property in a manner restricted by zoning laws. You would theoretically be able to run a business in a housing district by obtaining a use variance. Moreover, this variance is not as easy to acquire as an area variance. Property owners get the right to use their land in a manner normally restricted under existing municipality zoning regulations.

Owners can use their property contrary to existing regulations. This means there is an added burden of proving that current zoning conditions have created an undue hardship.

Need for a Zoning Variance in California

There are several situations in which you may require a zoning variance. This includes:

  • If you want to build a property on a vacant piece of land.
  • If you are altering or constructing a building in a manner that directly changes its classification.
  • If you want to change the existing use of a building.
  • If you want a piece of land to be used in a manner different from its purpose defined in the zoning classification.

Make Sure You Have a Skilled Real Estate Lawyer on Your Side to Obtain a Zoning Variance

Zoning laws are created by municipalities to protect and safeguard the rights of individual property owners. Land usage sets restrictions for what a property or building can be used for in different areas. Governments use zoning restrictions to protect the quality of life, usage, planning, growth, and environmental implications.

Land use or zoning variance allows for these rules to be set aside. With that said, getting a zoning variance can be challenging. You need to convince the board to accept your application. You will need to prove that without the variance you will suffer undue hardship. A proven real estate attorney can help you get the waiver you need for undertaking the proposed activities.

Your attorney will help you show the following to be considered for a variance:

  • The request won’t harm the neighborhood.
  • Strict enforcement of the land use code will result in severe hardships without the variance.
  • The application and demand are consistent with the spirit and purpose of the Land Use Code.
  • You are not asking for favoritism by comparing with nearby properties.
  • You are asking for the minimum relief.

You need to have an in-depth knowledge and understanding of the California Land Use Code and other relevant laws. The growth and development of an area is regulated by the Land Use Code. Your attorney can help you in effectively proving that you need a zoning variance.

Get Strong Legal Representation from Our Leading Real Estate Litigation Lawyers. Call Now.

At Peterson, Martin & Reynolds LLP, our experienced northern California real estate attorneys have extensive knowledge of zoning and land use variances. Our attorneys have assisted a large number of property owners over the years get successful outcomes by presenting strong evidence and making convincing arguments in their favor. To schedule a consultation, call us at (415) 399-2900 or fill out this online contact form.

 

Real Estate Law and Construction Defects: How To Protect Your Rights As A Homeowner

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Your home is probably the most valuable asset and investment you have. But sometimes for first-time homebuyers, the dream of owning a house can quickly turn into a nightmare because of construction defects. In extreme cases, defects can be serious enough for a family to abandon the property altogether. There is a shocking rise in construction defects as developers hurry through things in order to meet the growing housing demand.

You should speak with a dedicated construction defects attorney to recover financial compensation for any hardships related to construction defects, whether in a new property or renovation of an existing house.

Types of Construction Defects in California

Construction defects laws are in place for protecting homeowners. They cover a wide range of issues, such as code violations, faulty designs, cracked foundations, and unsafe structures. These are a few common types of construction defects:

Design deficiencies

These result from the work of engineering and design professionals, such as architects and structural engineers. Design deficiencies arise when professionals end up making errors or fail to respect applicable professional standards and building codes. For instance, if a roof is not designed as per applicable engineering standards and building codes, it can lead to inadequate support and water intrusion.

Material deficiencies

This includes the use of improper and defective building materials. For instance, the construction plan may be based on using a particular grade of wood for providing strength to the structure. Based on this, the contractors substitute it for a different grade when it’s time to build the element. Certain materials required for the structure may get damaged during transit, which is overlooked by the building contractor. A malfunction may occur in this situation because of the defective material.

Construction deficiencies

These are the result of poor workmanship during the construction of a building. Deficiencies in construction can lead to dry rot, cracked foundations, plumbing problems, electrical problems, and pest infestation.

Subsurface deficiencies

Deficiencies may occur in the preparation of the subsurface. This happens when soil conditions are not suitable for the structure, causing it to become unstable. Building on unstable subsurface can result in the development of cracks in walls, floors, and the foundation of a structure.

Most construction defects occur because the construction industry is highly competitive with many companies trying to offer the lowest bids for contracts. They salvage profits by employing unqualified workers, cutting corners, and poorly supervising subcontractors. If you are an unsuspecting homeowner that is left to foot the bill for these practices, get in touch with an experienced construction accident attorney today.

File a Builder’s Warranty Claim to Recover Costs

If the damaged or defective item in your house is covered under the builder’s warranty, you may be able to recover costs by filing a claim. Many warranties need homeowners to send a written notification to the builder. Sending your request in writing is always a good idea since it leaves you with the available evidence.

Make sure to keep notes of every conversation you have with the builder along with relevant dates. Your attorney may use this to prove that the builder failed in taking any remedial action. It’s essential that you act quickly. In some cases, all it takes is to alert the builder of problems within the warranty period.

You may want to consult an attorney since some warranties can be cleverly written to allow the builder to string a house owner along and delay making repairs. Never bring in outside contractors to take care of the issue. This may result in you losing the warranty benefits.

Causes of Action in a Construction Defect

You can file legal action if your house has a construction defect and you have suffered damages because of it. Besides, the legal claims you can bring against the property developer depend on a number of things, including the type and extent of damages. There are several different types of legal actions for construction defects. These are:

  • Negligence
  • Breach of contract
  • Implied and expressed warranty issues
  • Professional negligence against a design professional
  • Breach of a homeowner association’s declaration or covenants, conditions, and restrictions (CC&Rs)

An experienced construction litigation attorney will be able to help you determine the right type of legal action to take for your particular construction defect.

Remedies for Construction Defects in California

There are different types of costs you can recover by winning a lawsuit for construction defects. These depend a lot on your circumstances. The remedies for construction defects are usually limited to the following categories:

  • Diminution of the value of property
  • Cost to repair the defects
  • Loss of the use of property
  • Legal fees
  • Recovery for litigation expenses
  • Inconvenience losses if you have to move out for repairs

Our Trusted Construction Defects Lawyers Can Provide Strong Legal Advice and Support

At Peterson, Martin & Reynolds LLP, we will thoroughly investigate your construction defect claim, hire engineering or construction experts as necessary, and prove the liability of the builder or contractor. Our attorneys are skilled in handling the most challenging construction or renovation defect cases. To schedule a consultation, call us at (415) 399-2900 or fill out this online contact form.