Roman v. MSL Capital, LLC

• Decision Date: 05 November 2018
• Docket Number: Case No. EDCV 17-2066 JGB (SPx)
• Court: United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Central District of California
• Parties: William Roman, et al. v. MSL Capital, LLC, et al.

William Roman, et al. v. MSL Capital, LLC, et al.

Case No. EDCV 17-2066 JGB (SPx)

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

November 5, 2018

CIVIL MINUTES—GENERAL

Present: The Honorable JESUS G. BERNAL, UNITED STATES DISTRICT JUDGE

MAYNOR GALVEZ

Deputy Clerk

Adele C. Frazier

Court Reporter

Attorney(s) Present for Plaintiff(s):

Stuart E. Fagan

Attorney(s) Present for Defendant(s):

Rachel A. Mihai

JaVon Aubrey Payton

Proceedings: Order GRANTING in Part and DENYING in Part Plaintiffs' Motion for Partial Summary Judgment

Before the Court is Plaintiffs' motion for partial summary judgment or summary adjudication. ("Motion," Dkt. No. 34.) On November 5, 2018, the Court held a hearing on this Motion. After considering argument and papers filed in support of, and in opposition to, the Motion, the Court GRANTS the Motion in part and DENIES it in part.

I. BACKGROUND

On October 7, 2017, Plaintiffs filed a complaint against defendants MSL Capital, LLC and Li Ritchey. ("Complaint," Dkt. No. 1.) The Complaint alleges five causes of action: (1) discriminatory housing practices in violation of the Fair Housing Act, 42 U.S.C. § 3601, et seq.; (2) discriminatory housing practices under the California Fair Employment and Housing Act, California Government Code §§ 12927 and 12955, et seq.; (3) discrimination on the basis of familial status in violation of the California Unruh Civil Rights Act; (4) unfair business practices under the California Business & Professions Code § 17204; and (5) negligence.

On October 2, 2018, Plaintiffs filed this Motion, with the following documents attached in its support:

• Statement of Undisputed Facts ("SUF," Dkt. No. 34-2); • Grant deed to 24271 and 24356 Webster Avenue, Moreno Valley, California, Riverside County, Recorder's Doc. # 2016-0447503, October 5, 2016 (Dkt. No. 34-4);

• Letter from Li Ritchey to tenants, October 13, 2016 (Dkt. No. 34-5);

• Lease agreement re: Renee Sandoval and Diego Sandoval, October 24, 2016 (Dkt. No. 34-6);

• Letter prepared by Li Ritchey for Renee Sandoval, October 24, 2016 (Dkt. No. 34-7);

• 60-day notice to terminate tenancy of Renee Sandoval and Diego Sandoval, October 24, 2016 (Dkt. No. 34-8);

• Lease agreement re: Catherine Perez and Jorge Arias, October 23, 2016 (Dkt. No. 34-9);

• 60-day notice to terminate tenancy of Catherine Perez and Jorge Arias, January 20, 2017 (Dkt. No. 34-10);

• Lease agreement re: William Roman and Desiree Acosta, October 23, 2016 (Dkt. No. 34-11);

• 60-day notice to terminate tenancy of William Roman and Desiree Acosta, January 20, 2017 (Dkt. No. 34-12);

• Letter from Li Ritchey to tenants, February 1, 2017 (Dkt. No. 34-13);

• Letter from Li Ritchey to tenants, October 24, 2016 (Dkt. No. 34-14);

• Defendant MSL Capital's responses to Plaintiff's interrogatories (Dkt. No. 34-15);

• Excerpts from the June 13, 2018 deposition of Li Ritchey (Dkt. No. 34-22);

• Declaration of Stuart E. Fagan (Dkt. No. 34-23);

• Declaration of Catherine Michelle Perez (Dkt. No. 34-24);

• Declaration of William Roman (Dkt. No. 34-25);

• Declaration of Renee Sandoval (Dkt. No. 34-26).

On October 15, 2018, Defendants filed their opposition to the Motion. ("Opposition," Dkt. No. 38.) Defendants submitted the following documents in support of their Opposition:

• Statement of Disputed Facts ("SUF Reply," Dkt. No. 39);

• Defendant's Separate Statement of Undisputed Facts ("DSUF," Dkt. No. 40);

• Evidentiary objections to Plaintiff's Statement of Undisputed Facts (Dkt. No. 41);

• Request for judicial notice of Plaintiffs' Complaint and Defendants' Answer in this case (Dkt. No. 42);

• Declaration of Robert Kehiayan (Dkt. No. 43);

• Declaration of Li Ritchey ("Ritchey Decl.," Dkt. No. 44);

• Declaration of Sarah Krousey (Dkt. No. 45);

• Declaration ofJaVon A. Payton (Dkt. No. 46);

• Notice of Lodgment (Dkt. No. 47), with the following attached exhibits:

? Letter to tenants re: new management, October 13, 2016 (Dkt. No. 48, Exh. 1);

? Letter to tenants re: management authorization, October 24, 2016 (Dkt. No. 48, Exh. 2);

? Lease agreement re: William Roman and Desiree Acosta (Dkt. No. 48, Exh. 3);

? Lease agreement re: Catherine Perez and Jorge Arias (Dkt. No. 48, Exh. 4);

? Lease agreement re: Renee Sandoval and Diego Sandoval (Dkt. No. 48, Exh. 5);? Excerpts of deposition transcript of Desiree Acosta (Dkt. No. 49, Exh. 6);

? Excerpts of deposition transcript of Catherine Perez (Dkt. No. 49, Exh. 7);

? Excerpts of deposition transcript of Renee Sandoval (Dkt. No. 49, Exh. 8);

? Excerpts of deposition transcript of Li Ritchey (Dkt. No. 49, Exh. 9);

? Three day notice to pay rent or quit issued to William Roman and Desiree Acosta, December 5, 2016 (Dkt. No. 50, Exh. 10);

? Three day notice to pay rent or quit issued to William Roman and Desiree Acosta, November 4, 2016 (Dkt. No. 50, Exh. 11);

? Three day notice to pay rent or quit issued to Catherine Perez, December 5, 2016 (Dkt. No. 50, Exh. 12);

? Letter to William Roman and Desiree Acosta regarding noise, December 26, 2016 (Dkt. No. 51, Exh. 13);

? 60-day notice to terminate tenancy of William Roman and Desiree Acosta, January 20, 2017 (Dkt. No. 51, Exh. 14);

? 60-day notice to terminate tenancy of Catherine Perez, January 20, 2017 (Dkt. No. 51, Exh. 15);

? 30-day notice of intent to vacate issued to Catherine Perez, January 25, 2017 (Dkt. No. 51, Exh. 16);

? 60-day notice to terminate tenancy of Renee Sandoval and Diego Sandoval, January 20, 2017 (Dkt. No. 52, Exh. 17);

? Letter to all tenants regarding adult supervision rule, February 1, 2017 (Dkt. No. 52, Exh. 18);

? Letter from Christine Mayes, April 4, 2017 (Dkt. No. 52, Exh. 19);

? Letter from Sarah Krousey and Yaser Jabbar, March 16, 2017 (Dkt. No. 52, Exh. 20);

? Defendants' responses to Plaintiffs' interrogatories (Dkt. No. 52, Exh. 21);

? Case history of Robert Kehiayan (Dkt. No. 52, Exh. 22);

? Curriculum vitae of Robert Kehiayan (Dkt. No. 52, Exh. 23).

On October 22, Plaintiffs replied. ("Reply," Dkt. No. 55.) In support of their Reply, Plaintiffs submitted the following documents:

• Response to DSUF ("DSUF Reply," Dkt. No. 55-1);

• Evidentiary objections (Dkt. No. 55-2);

• Notice of lodgment (Dkt. No. 55-3);

• Excerpts from the deposition of Li Ritchey (Dkt. No. 55-4)

II. FACTS

A. Undisputed Facts

Except where noted, the following material facts are sufficiently supported by admissible evidence and are uncontroverted. They are "admitted to exist without controversy" for purposes of the Motion. See Fed. R. Civ. P. 56(e)(2); L.R. 56-3.

1. Change of Ownership of the Casa Buena and Casa Lynnda Apartments

In early-October 2016, Defendant MSL Capital, LLC ("MSL") acquired ownership of the Casa Buena and Casa Lynnda apartment buildings, located at 24271 and 24356 Webster Avenue, Moreno Valley, California ("Apartment Complex" or "Complex"). (SUF ¶ 1; DSUF ¶ 1.)¹ MSL owns the Complex and has no other assets and no employees. (SUF Reply ¶ 11; SUF ¶¶ 12-13.) Defendant Li Ritchey manages MSL and was the property manager of the Complex from at least October 13, 2016 until the present.² (SUF Reply ¶ 15). Ritchey is the only person authorized to manage the Complex, which does not have an on-site manager or on-site office. (DSUF ¶¶ 6-7.) As manager, Ritchey would visit the Complex two to three times per week to address maintenance requests and other tenant needs or show the property to rental applicants. (DSUF ¶¶ 8-9.)

On or about October 13, 2016, Ritchey sent a letter to all Complex tenants notifying them that that she had become the new property manager of the Complex. (SUF ¶ 16; DSUF ¶ 13.) The letter also informed them that they would be provided with a new lease ("Lease"), which would neither increase their rent nor extend the duration of their leases.³ (DSUF ¶¶ 14-15.) The Lease, which was drafted by Ritchey, included the provision that "Tenant acknowledges receipt of, and has read a copy of, Landlord's rules and regulations...Tenant understands that serious or repeated violations of the rules may be grounds for termination. Landlord may change the rules and regulations without notice." (DSUF ¶¶ 16-17.)

The Tenant Rules and Regulations were attached to the Leases and contained, inter alia, the following rule: "Supervision: All children under age 14 must be supervised by adults 18 years or older while on the premises. Residents who fail to supervise their children are subject to eviction. Premises include, but are not limited to common areas, grounds, etc." ("Adult Supervision Rule," SUF ¶ 22; DSUF ¶ 18.) In February 2017, Ritchey issued formal notice to all plaintiffs that the Adult Supervision Rule was removed from the Tenant Rules and Regulations. (DSUF Reply ¶ 28.) No written warning or default notices were issued to Plaintiffs or other tenants for violation of this rule while the rule was in effect. (DSUF Reply ¶ 26.)

On October 24, 2016, Renee Sandoval ceased to work as the Complex's onsite manager. (SUF Reply ¶ 17.)⁴ On the same day, Ritchey posted a written notice on all tenants' doors that she was the "only person authorized to manage the properties at Casa Buena and Casa Lynnda." (SUF ¶ 18.) Also on October 24, 2016, Ritchey served a notice on all tenants that informed them that bicycles, among other things, could not be stored in front of their apartments. (SUF ¶ 61.) Since acquiring the Complex, Defendants have posted a banner that advertises it as a "quiet" complex. (SUF ¶ 62.) Defendants did not post a Fair Housing poster at the Complex until after Plaintiffs had vacated the Complex. (SUF ¶ 61.)

2. Plaintiffs' Tenancy at Casa Buena and Casa Lynnda Apartment Buildings

Renee Sandoval moved into the Complex in 2000, when she was 16 years old. (SUF ¶ 3.) Her daughter, A.G., was born in 2006 and lived with Sandoval for the remainder of her tenancy in the complex. (SUF ¶ 5.) Ms. Sandoval was the onsite manager of the Complex until October 24, 2016. (SUF Reply ¶ 17.) On October 26, 2016, Ritchey executed a new lease with Sandoval which took effect on November 1, 2016 and terminated on December 31,...