Zigas v. Superior Court

120 Cal.App.3d 827, 174 Cal. Rptr. 806 (1981), cert. denied, 455 U.S. 943 (1982)

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Nature of the Case

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Facts

Zigas (P) are tenants to an apartment building on 2000 Broadway in San Francisco. The building was financed by a federally insured mortgage under 12 U.S.C. Sections 1701 and the regulations promulgated thereunder 24 C.F.R. Sections 207. P sought damages in that the landlord charged rents in violation of the federal laws under the mentioned act. The law required that D could charge no more in rent than that of HUD-approved schedules. P contends that D was required under HUD to file a maximum rental schedule and to refrain from charging more without prior HUD approval. The complaint avers that D collected excessive rents and fees exceeding $2 million. The trial court sustained demurrers without leave to amend on 5 of the 15 alleged causes of action; there was no right for the tenants to enforce the federal provisions. In addition to sustaining the demurrers as to the third party causes of action, the trial court granted D’s motion to strike all references to the Act and the terms of the agreement between D and HUD. P filed a petition for a writ of mandate.