Legal Question in Business Law in California

Dear Mr. Natoli and Mr. McCormick

Thank you both so much for your help. I understand the diminished value of our unit (about $200 per month which isn't much) and that is something I hope to pursue. Maybe I'm obtuse, but I always thought per diem (per day) also meant per person (at least Wiki and the IRS say so!)

"Carefree" has been awful to us seniors - even telling us to move back when construction continued ( I guess so as not to pay that damn per diem).

We are on a fixed income but this makes me so mad that my husband and I want to do something (if not for us, then for those who have given up!)

Please let us know what fees might be involved in at least sending a letter to the owners.

Again, thank you for taking the time to answer...it means a lot.

Jill and Paul McMahon


Asked on 11/25/13, 2:49 pm

1 Answer from Attorneys

It would be a waste of your money to have a lawyer write a letter when the landlords have done nothing legally wrong. in fact, if they are paying you $35/day for a $200/mo diminished value, they are paying more than they owe you, unless your lease calls for $35/day in the event of construction or repairs.

As for the meaning of per diem, as I told you, it literally means nothing but "per day." Its most common usage is in the employment context, hence some of the questions I mentioned in response to your first question. In that context it has a very specific meaning - which is a fixed amount paid per day to an employee who is required to work away from home, in lieu of paying actual out of pocket expenses. The Labor Department and the IRS maintain annually updated tables of the per diem rates for various metropolitan areas. Many state agencies maintain their own tables too. Initially these were developed for government employees as a cost saving measure when government employees had to travel. The idea being the employee should only be compensated for the difference between the cost of being home and the cost of being on th road, not the full out of pocket expense. These quickly caught on both as agencies that used a lot of contractors started requiring reimbursement by per diem instead of out of pocket for expense billing under their contracts, and as private employers with large travel budgets saw the cost savings. That is the usage of "per diem" that you are turning up on your web searches. It has nothing to do with your context. In your context, per diem means the per-day loss of value to you of having your unit, and being put in another unit instead. That is not a per-person per-diem, like when an employer sends two employees on the road, it is a per-unit per-diem.

Read more
Answered on 11/25/13, 3:10 pm


Related Questions & Answers

More Business Law questions and answers in California