Legal Question in Landlord & Tenant Law in California

I signed a lease and paid part of the deposit in the amount of $2,600.-. The full deposit was $5,900.-. The agreement with the landlord was that he would take the property off the market once the full deposit would be paid. After 9 days I gave written notice of the cancellation of the lease.

The landlord first said I would be given the full paid deposit back, then said I would get part of it back, then said I would not get anything back. I went to small claims court. The landlord counter sued based on damage due to breach of contract. Since the amount the landlord sued me for is higher than $7,500.-, the case was not decided in the small claims court but assigned to another court. A court date is not set yet nor have I been served with the claim of the landlord yet.

Paragraph 2 of the lease says:

"The term of this lease shall commence ten (10) days following written notice from landlord to tenant that the Premises are ready for occupancy or sooner by mutual agreement and shall be for a term of one (1) year from the commencement date."

such a written notice was never issued. The contract was cancelled by written notice 9 days after signing of the contract.

Regarding damage due to breach of contract: Before signing the contract, the Studio had been empty for months. 2 weeks after having given written notice of the cancellation, the landlord forwarded a text from a prospective tenant in which the interested party said that they wouldn't take the studio since they had decided to move closer to her moms into a different area.

I am looking for a legal feedback on the case and a lawyer to talk to the landlord in order to settle.

Thanks a lot!!

Caroline (323) 872 9333


Asked on 5/24/11, 7:59 pm

1 Answer from Attorneys

George Shers Law Offices of Georges H. Shers

The landlord can not have his cake and eat it too. He can not sue for damages caused by the breach of contract and at the same time keep your deposit for the breach of contract. He is trying to collect the same damages twice. If the contract has a provision for keeping your deposit, that can only be done because it represents the damages caused by the breach. The law does not allow the keeping of another person's money unless it is as compensation for the economic loss occasioned by the breach of contract. Some contract breaches do not result in any damages.

An attorney would have to seen the entire contract and any e-mails between the two of you, plus the complaint you filed and his counter-claim. The counter-claim is his complaint in Superior Court and you should file an answer to it. He will have the burden of proving his damages; basically what he will show is that you would have paid $X and that he has made a reasonable effort to mitigate damages by trying to rent it out to someone else but has not found anyone. You can argue that the premises would never be ready for occupancy within the year so there would be no rent due as the lease would not begin until ten days after he gave you such notice [that clause does not give you ten days to cancel -- but he may have said something else giving you the right to cancel without having to pay].

I would be willing to review all the paper work, give you a more detailed analysis of your legal position, try to reach a settlement with the landlord, prepare you for trial or appear for you if you want, etc. I charge $100 per hour. Contact me if you wish to further discuss the matter.

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Answered on 5/24/11, 8:55 pm


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