*If T finds out L had also rented to 3P for same time period as T, T cannot stop paying rent unless 3P is interfering. T’s remedy is to terminate the lease.Sublease and AssignmentFormalistic: A = T transfers entire interestunder the lease; S = T retains reverison; often if T retains RofE as well.Intent of Parties: what do parties call the interests created? Not always useful.Privity of K: LTT1Privity of estate: assign LT1;Sublet stays LTRight to be Arbitrary: could be restraint on alienation; CL allowed unless lease specific.Ernst v. Conditt: L can go after T or T1 under PE and PKFunk v. Funk: minority view accepted; L cannot be unreasonable in refusing T1. Dissent: live by K; won’t read in reasonableness requirement.Kendall v. Ernest Pestana: If lease contains an approval clause, L cannot be arbitrary. Applies to commercial!10
Tenant’s Duties1. Pay Rent2. Don’t commit waste3. Repair and maintenance (handyman T)4. Don’t interfere w/ other T’s enjoyment5. No illegal acts*Look to relevant statutes/caselaw§ 1941: standard of inhabitabilityCL: if building burned, T still had to pay rent. Modern: interest in soil not relevant. (failure to perform one of these could equate to permissive waste)Landlord’s Duties1. Legal title/deliver possession2. ICQE3. IWH (generally residential only)4. Make repairs/maintain premises*Now most covenants thought to be dependent; always rent and ICQE are dependent.HoldoverL treats as new lease:1) term or periodic?2) duration?P451T remains in possession after lease. L can:1) evict/treat as trespasser; can recover FRV as damages OR2) agree to new tenancy; full term; max 1yr; same T&C = pay same rentonly have one chance to decide option*Leaving some personal belongings is not holding over; also if not moving b/c ill.*Most presume creates a periodic tenancy*Harsh for T who only needs to holdover briefly.*CA statute: only extends for one month if rent paid monthly*If L wants to raise rent and T stays: if term and T objects, likelynot liable. If periodic, still likely not liable if don’t object. L must give notice and offer new tenancyat increased rent.Crechale v. Smith: 5yr comm lease; T wants extension; L refuses; T sends check and L cashes it. Heldfor T; by cashing check L gave implied consent for new m2m tenancy.RemediesAbandonment1) do nothing (only if don’t have to mitigate)2) treat lease as terminated and resume possession + damages3)retake poss on T’s account (? of intent: does T have notice?)Abandonment = intentionally relinquish the balance of the lease.Self-Help: can encourage physical altercations; Cal statute 789 limits L’s ability to “encourage” T to leaveSummary Proceedings: quickie courtMitigation: must L take efforts to re-rent? CL: no; Modern: usually. Check statutes.