In Boston LLC v. Juarez, (2016) 245 Cal.App.4th 75, the court held that it was not proper for a landlord to terminate a residential tenancy and evict a tenant under a three-day notice based on the fact that the tenant failed to obtain renter’s personal injury and property damage insurance, as required by the lease. The court further held that in order to enforce a forfeiture provision in a lease, the tenant’s breach must be “material”, i.e., substantial, even if the forfeiture provision does not require a breach to be material. In this case, the court reasoned that the breach was not material because the insurance requirement only protected the tenant’s interests, not the landlord’s, and because the landlord otherwise failed to prove how it was harmed by the tenant not obtaining renter’s insurance after having lived at the premises for 15 years without this term being enforced.
CASE UPDATE: Court Affirms Statutory Residential Tenant Protections Even After Premises Is Foreclosed On.
In Nativi v. Deutsche Bank National Trust Company (6TH Dist. 2014), 2014 WL 255587, the tenants were evicted from their rented garage by the foreclosing bank, even though the tenants had several more months remaining on their one-year lease. The trial court held that the foreclosure sale extinguished the lease pursuant to California state law generally providing that the nonjudicial foreclosure of a dominant deed of trust extinguishes subordinate interests, including leases.