RECENT CALIFORNIA DECISIONS

June 2006

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First District Finds No Basis for a Kavanau Adjustment where Landlord Received a Fair Return under City Rent Control Ordinance
Hillsboro Properties v. City of Rohnert Park, ___ Cal. App.4th___

On April 6, 2006, the First District Court of Appeal held that Hillsboro Properties (Hillsboro) was not entitled to recover rents in excess of an unconstitutional rent control ceiling because the unconstitutional rent control ordinance had not denied Hillsboro a fair return on its investment. The court further concluded that the trial court properly sustained the city’s demurrer and was justified in denying Hillsboro leave to amend.