City and County of San Francisco, The People of the State of California, by and through Dennis J. Herrera, City Attorney for the City and County of San Francisco v. Melvin Lee, Teresa Wong, Van Ness Care Center Inc., San Francisco Care Center L.P., Mel Lee Management Inc., and Doe One through Doe Fifty, inclusive
Published: Sep. 15, 2023 | Result Date: May 9, 2023 | Filing Date: Mar. 23, 2018 |Case number: CGC-18-565184 Settlement – $825,000
Court
San Francisco County Superior Court
Attorneys
Plaintiff
Jennifer E. Choi
(Office of the San Francisco City Attorney)
Megan Elizabeth Ryan
(Office of the San Francisco City Attorney)
Defendant
Michelle L. Landry
(Vedder Price LLP)
Mindy M. Wong
(Vedder Price LLP)
Facts
The City and County of San Francisco brought this action against defendants, who won a bid to purchase and develop a property into a senior assisted living facility and set aside a certain number of units for low-income seniors for 50 years. The City contended that despite the building's completion in 2004, defendants failed their obligation to rent out units to low-income seniors and also removed units without the requisite permits to create luxury apartments for non-seniors. The Complaint sought both declaratory and injunctive relief, alleging causes of action for unlawful business practices, public nuisance, non-compliance with San Francisco Building Code, and breach of contract. After a bench trial, the Court found that defendants had illegally removed units in violation of the San Francisco Building Code, public nuisance laws, and the Unfair Competition Law and imposed $355,201 in civil penalties against defendants. The Court found the contract's affordability requirement void for vagueness.
Result
Following the court's finding, the parties negotiated a settlement of $825,000 to resolve outstanding attorney's fees.
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