Facts

From 2003-2004, Fumie Goldwater and Michael Goldwater rented the lower unit of defendants' property. The Goldwaters paid their rent on time and fulfilled the terms of their tenancy. They did not cause damage to the subject unit beyond normal wear and tear. In 2015, the Goldwaters signed a new rental agreement with defendants. The rental agreement referred the subject unit as the "apartment." Unknown to the Goldwaters, defendants constructed the subject unit without proper permits and did not obtain any legal permission to use the unit for human occupation. The Goldwaters brought an action against defendants alleging negligence, constructive eviction, violation of San Francisco Administrative Code Section 37.9, violation of Administrative Code Section 37.10B, and violation of Business and Professions Code Section 17200.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that defendants failed to provide a habitable premises in the subject unit and failed to comply with state and local building and housing codes. Plaintiffs contended defendants interfered with their use and enjoyment. Plaintiffs contended they were constructively evicted when the subject unit was found unfit for human occupation. Plaintiffs contended defendants forced them to quit the subject unit. Plaintiffs also contended defendants engaged in unlawful business practices when defendants failed to disclose the subject units' lack of proper permits or certificates.

DEFENDANTS' CONTENTIONS: Defendants denied all of the contentions.

Settlement Discussions

The plaintiffs suffered emotional distress.

Result

The case settled for $450,000.