65283 Two Bunch Palms Building LLC v. Coastal Harvest II, LLC
Facts: A landlord and a commercial tenant enter into an oral month-to-month occupancy agreement while attempting to negotiate a written lease agreement for use of a commercial property. The commercial tenant takes possession of the property to operate a business selling agricultural produce grown in above-ground pots. Unable to agree to a written lease agreement and with rent paid current, the landlord serves the tenant with a 30-day notice to quit. The tenant refuses to vacate. The landlord files an unlawful detainer (UD) action to recover possession.
Claim: The tenant claims the landlord may not maintain a UD action on a notice to quit since the tenant operates an agricultural business which bars a UD action due to a one-year holdover exemption.
Counterclaim: The landlord claims the tenant is not protected by holdover exemptions for agricultural businesses since the tenant was not in default on their payment of rent.
Holding: A California appeals court holds the landlord may maintain a UD action against the tenant for failure to vacate prior to expiration of a notice to quit since the tenant occupied the property under a month-to-month rental agreement and does not qualify for the agricultural business one-year holdover exemption as the tenant was not in default on their rent. [65283 Two Bunch Palms Building LLC v. Coastal Harvest II, LLC (2023) 91 CA5th 162]
Real Estate Principles: Chapter 34: The tenancies in real estate
Real Estate Principles: Chapter 81: Notices to vacate — Holdover tenancy
Legal Aspects of Real Estate: Chapter 39: Attorney fees reimbursed