The new Tenant Protection Ordinance provides new protections and remedies for displaced tenants in the City of San Diego. You may be entitled to recover tens of thousand of dollars against your former landlord for wrongful eviction, failure to pay relocation assistance, or failure to provide proper notices.
This post is inspired by a recent incident involving a transaction dispute with ShowClix concerning a refund for a rescheduled event. I purchased a ticket to see a musical event in Hillcrest. The venue notified me on the day of the event that the show was moved due to COVID-19 travel restrictions. I promptly requested a refund from ShowClix. Within two weeks, I did not hear back and I submitted a chargeback claim with my credit card company. ShowClix asked me to cancel my dispute and responded that tickets are “non-refundable” per their Terms of Service.
There is a section of the California Business and Professions Code reserved for “Ticket Sellers.” To determine whether or not the law applies in your particular transaction, it is first important to decipher the statutory definition of “Ticket Sellers.”
A ticket seller is any person (e.g., natural person, corporation, llc) who for compensation, commission, or otherwise sells admission tickets to sporting, musical, theatre, or any other entertainment event. (Business and Professions Code, section 22503.) The definition of a ticket seller excludes the following:
Primary contractor (person responsible for event for which tickets are sold).
Seller of tickets for the primary contractor operating under a written agreement. While this second exception is a bit confusing, I believe the law is exempting event promoters.
Agent of air, ocean, or motor coach carrier who sells tickets as a “tour package.” Think about a ticket seller promoting a travel package to Tomorrowland or a Disney Cruise.
Someone who sells six tickets or less to any single event (for example, John Doe who buys a couple of tickets and later decides to resell them).
If you determine that you purchased a ticket from a “Ticket Seller” as defined above and you request a refund, you are entitled to a full refund if the event is (1) canceled, (2) postponed, or (3) rescheduled. (Business and Professions Code, Section 22507.)
Generally, if a contractual provision conflicts with state law, it is unenforceable. If you feel a ticket seller violated state law, please contact our office.
Dear [Ticket Seller]:
I purchased a ticket from you [Stubhub, ShowClix, TicketMaster] to attend [insert event]. I received a notification that the event was [canceled, postponed, rescheduled]. I am requesting a full refund for the event. A full refund is required under California state law. Please see California Business and Professions Code, section 22507.
Thank you,
On March 25, 2020, the City Council adopted an emergency ordinance (O-21177) temporarily freezing evictions due to the nonpayment of rent for residential and commercial tenants. I will discuss the requirements for residential tenants only. In order to be protected, YOU must take affirmative action immediately.
What the ordinance means in plain English: Your landlord cannot take action to evict you for not timely paying rent that was due on or after March 12, 2020, if you are able to show that you were unable to pay rent related to financial impacts of COVID-19.
Who Qualifies? Renters who are unable to pay rent due to financial impacts caused by COVID-19.
The ordinance defines "financial impact" as a substantial decrease in household income due to business closure, loss of hours, wages, layoffs, or hospitalization related to COVID-19. A financial impact is "related to" COVID-19 if it is caused by the pandemic itself or any governmental response. Yes, this includes ordered shutdowns of non-essential businesses such as restaurants, breweries, gyms, etc.
What is a substantial decrease in income? The City Manager is expected to define what a substantial decrease is, however, the City Manager does not have the authority to define the substantial loss of income to exceed a 30% reduction.
Is my Rent Forgiven? Unfortunately, no. You will have six months from the date of the ordinance is effective to repay your landlord or withdrawal of Governor Newsome's executive order on rent freeze, whichever is sooner.
How long is this ordinance in effect? Through May 31, 2020.
How to be Protected:
(1) Notify your landlord/property management by written notice (email, text, letter) on or before the date your rent is due that you are unable to pay because of COVID-19.
This step is extremely important. You need to take affirmative action to notify your landlord/property management by written notice ON OR BEFORE the date your rent is due. April rent will be due for most renters before April 3.
(2) Within one week from sending your notice, you need to provide documentation to your landlord/property manager that you are unable to pay rent because of COVID-19. Such documentation may include a lay off notice or other documentation supporting your loss of income. Perhaps, even your eligibility for unemployment benefits.
If you do not provide proof of financial impact, your landlord will be able to proceed with the eviction.
If you take these steps, the landlord cannot do any of the following:
charge or collect any late fees for rent,
send the statutory notice to begin the eviction process,
file/prosecute unlawful detainer against you.
Final Ordinance:
If you are a residential or commercial tenant concerned about eviction, please contact our office.
On March 4, 2019, Governor Newsom declared a state of emergency in the State of California due to the COVID-19 pandemic. During the past month, panic buying engulfed California as people went out buying unnecessary amounts of canned goods, cleaning supplies, hand sanitizer, and toilet paper. While there are many out there helping those in need, others choose to take this opportunity to profit by engaging in price gouging.
There are lots of different definitions of price gouging floating around on the internet and circulating in news publications. Some people perceive price gouging as merely “high prices for certain goods.”
Price gouging is outlawed and carefully defined in California Penal Code Section 396.
What is Price Gouging?
Price gouging is a price increase of 10% or greater for a particular good or service following a declaration of a state of emergency. For example, if prior to March 4, 2020, a market charged $10.00 for a pack of toilet paper and following the declaration, increased its price to $11.50, the marginal price increase would still constitute price gouging.
What types of Goods and Services are Protected from Price Gouging?
While the list is exhaustive, here is a list as it relates to COVID-19:
Consumer food items or goods (anything used or intended for use for food, drink, confection, or condiment by person or animal) (e.g., canned goods, non-perishables, toilet paper, disinfectants, diapers, baby wipes, dog food)
Emergency supplies (e.g., propane, flashlights, batteries, candles, soaps, diapers, water)
Medical supplies (e.g., hand sanitizer, flu medicine, latex gloves)
Transportation services (e.g., delivery services/ charges)
Who Can be Guilty of Price Gouging?
Price gouging is not limited to only businesses. A single person can be guilty of price gouging.
What are the Exceptions?
There are exceptions. Typically, a price increase is only justified if the seller can prove the increase in price is attributable to the increase of cost needed to provide the good or service. For those businesses impacted by supplier cost increases, customer disclosure is advised.
How Long are Price Gouging Laws in Effect?
Price gouging is illegal for a period of 30 days following the declaration of emergency. State or local governments may extend this period for additional 30 day periods if needed.
Currently, the State of California has made price gouging illegal in the State of California until September 4, 2020.
What are the Penalties?
Price gouging is a misdemeanor punishable by imprisonment for a period not to exceed one year or fine of not more than $10,000 dollars or a combination of both.
How Should I Report Price Gouging?
Locally, you may report it to the Affirmative Civil Enforcement Unit of the City Attorney’s Office at (619) 533-5800. You may also file a complaint online by clicking here.
The State of California asks citizens to report price gouging by going to the Attorney General’s website or by calling (800) 952-5225.
For most involved in the cannabis industry, business is booming and bankruptcy is not on the horizon. Still, an economic recession may loom in the distant future and the cannabis industry in certain areas is experiencing over-saturation. While an argument can be made that cannabis will weather the recession such as alcohol and tobacco industries, those in the cannabis industry should be keeping an eye on the current political climate and recession.
