Bevis v. Terrace View Partners, LP

Sixty-nine current and former residents of mobilehome park Terrace View Mobile Home Estates filed a lawsuit against the park's owners, Terrace View Partners, LP, Thomas Tatum, Jeffrey Kaplan, and management company, Mobile Community Management Company (collectively, defendants). The operative first amended complaint, styled as a class action, included 12 causes of action based on allegations that defendants' failure to maintain the park in "good working order and condition" created a nuisance that, along with unreasonably high space rent increases, made it difficult or impossible for park residents to sell their mobilehomes. After the court denied plaintiffs' motion for class certification, the parties and the court agreed to try the case in phases, with the first phase involving 16 residents living in 10 spaces in Terrace View. A first-phase jury returned a special verdict finding defendants liable and awarded the individual plaintiffs economic and noneconomic damages for: intentional interference with property rights, breach of the covenant of good faith and fair dealing, nuisance (based on substantially failing to enforce the park's rules and regulations), breach of contract/breach of the covenant of quiet enjoyment, and negligence/negligence per se. The jury found defendants were not liable for nuisance based on failing to provide and maintain the park's common facilities and physical improvements in good working order and condition, and were not liable for elder financial abuse against five plaintiffs. After the jury was discharged, the court issued an order on plaintiffs' cause of action alleging defendants violated Business and Professions Code section 17200 et seq., the "unfair competition law" (UCL). The court ruled that a "catch-up" provision in defendants' long-term leases that could greatly increase rent at the end of a lease term was unfair in violation of the UCL. The judgment also reflected the court's rulings at the beginning of trial that certain other provisions in the parties' lease agreements violated California's Mobilehome Residency Law or were otherwise unlawful. Defendants appealed. The Court of Appeal concluded the jury's award of compensatory damages and punitive damages had to be reversed. Although the jury's award of economic damages may have included unspecified amounts that could be upheld on appeal if the special verdict form had segregated them, "it is clear from the record that the vast majority of the economic damages awarded represented reimbursement for overpayment of rent and diminution in value of homes caused by high rent. Because the award of such damages cannot be sustained under any of the theories of liability presented to the jury and it is impossible to sever any properly awarded damages from improperly awarded damages." The Court therefore reversed the entire award of compensatory damages and the attendant awards of punitive damages and attorney fees and costs to plaintiffs. View "Bevis v. Terrace View Partners, LP" on Justia Law