BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2272
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          Date of Hearing:   April 24, 2012

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                    AB 2272 (Wagner) - As Amended: April 19, 2012

                                  PROPOSED CONSENT
           
          SUBJECT  :   Mobilehomes: Injunctions

           KEY ISSUE  :  Should the management of a mobilehome park be 
          permitted to enjoin a violation of park rules or regulations by 
          seeking an injunction as a "limited" civil case?

           FISCAL EFFECT  :   As currently in print this bill is keyed 
          non-fiscal.

                                      SYNOPSIS

          Existing law permits the management of a mobilehome park to seek 
          a court order to enjoin a resident's continuing and recurring 
          violation of a park rule or regulation.  However, existing law 
          requires that injunctive relief be sought as an "unlimited" 
          civil case, which has higher filing fees and is generally seen 
          as less convenient than filing a "limited" civil case.  Existing 
          law also permits management to terminate the tenancy of a 
          resident who violates a rule or regulation that is part of the 
          rental agreement.  This bill, by permitting management to bring 
          an injunction as a limited civil case, seeks to encourage 
          managers to seek injunctions instead of seeking the more severe 
          remedy of eviction.  It will also, of course, save managers 
          filing costs when they opt for an injunction over eviction.  
          Because this bill seeks an exemption to a general Legislative 
          determination disfavoring injunctive relief as a remedy in 
          limited civil actions, the author recently amended the bill to 
          impose a three-year sunset provision so as to evaluate the 
          effect of this exemption to a general rule.  The bill is 
          sponsored by the Western Manufactured Housing Communities 
          Association.  There is no registered opposition to the bill. 

           SUMMARY  :  Provides that, until January 1, 2016, the management 
          of a mobilehome park may seek an order enjoining a violation of 
          a park rule or regulation as a limited civil case.  
          Specifically,  this bill :  









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          1)Allows management to seek a petition for an order enjoining a 
            continuing or recurring violation of any reasonable rule or 
            regulation of a mobilehome park within the limited 
            jurisdiction of the superior court of the county in which the 
            mobilehome park is located. 

          2)Specifies that an injunction sought pursuant to the above 
            provision shall be considered a limited civil case. 

           EXISTING LAW  : 

          1)Permits management of a mobilehome park to petition the court 
            for an order enjoining a continuing or recurring violation of 
            any reasonable rule or regulation of a mobilehome park.  
            (Civil Code Section 798.88.)

          2)Permits management to terminate the tenancy if a resident 
            fails to comply with a reasonable rule or regulation of the 
            park that is part of the rental agreement or any amendment 
            thereof.  However, no act or omission of the resident shall 
            constitute a failure to comply with a reasonable rule or 
            regulation unless management has given the resident written 
            notice of the alleged rule or regulation violation and the 
            resident has failed to respond, as specified.  (Civil Code 
            Section 798.56 (d).)

          3)Provides that an action or special proceeding shall be treated 
            as a limited civil case if the following conditions are 
            satisfied:
           
             a)   The amount in controversy, as defined, does not exceed 
               $25,000. 
             b)   The relief sought is a type that may be granted in a 
               limited civil case.
             c)   The relief sought, whether in the complaint, a 
               cross-complaint, or otherwise, is exclusively of the type 
               described in one or more statutes that classify an action 
               or special proceeding as a limited civil case or that 
               provides that an action or special proceeding is within the 
               original jurisdiction of the municipal court.  (Code of 
               Civil Procedure Section 85.)

          4)Provides that the following types of relief may  not  be granted 
            in a limited civil case:









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             a)   Relief exceeding the maximum amount in controversy for a 
               limited civil case.
             b)   A permanent injunction, except as otherwise authorized 
               by statute.
             c)   A determination of title to real property.
             d)   Declaratory relief, except specified. 

           COMMENTS  :  Under existing law, when a resident of a mobilehome 
          park violates one of the rules or regulations of the park, 
          management can either terminate the tenancy after giving the 
          resident 30-day notice to correct the violation, or, if the 
          violation is continuing or recurring, management may seek an 
          injunction ordering the resident to cease or otherwise correct 
          the violation.  According to the author, this bill would 
          encourage the owner or management to seek the "lesser remedy" of 
          an injunction instead of the relatively more severe remedy of 
          eviction.  While existing law already permits management to seek 
          injunctive relief instead of an eviction when there is a 
          violation, the author and sponsor believe that managers would be 
          more likely to do so (and avoid an eviction) if the injunction 
          could be sought as a "limited" as opposed to an "unlimited" 
          action in the superior court.  According to the author and 
          sponsor, the "unlimited" jurisdiction of the superior court is a 
          more expensive and less convenient than a simple eviction filed 
          in limited jurisdiction of the superior court.  In short, 
          because an injunction is currently more expensive than pursuing 
          an unlawful detainer, park management often opts for eviction 
          even though an injunction would be less disruptive for all 
          concerned. 

           "Limited" vs. "Unlimited" Civil Actions  :  Prior to their 
          unification in 1998, California had both county superior courts 
          and municipal courts.  Among other distinctions, the municipal 
          court had jurisdiction over cases where the amount in 
          controversy was $25,000 or less and the superior court had 
          jurisdiction over cases above $25,000.  In 1998 the California 
          Constitution was amended to permit unification of the municipal 
          and superior courts into a single superior court system. 
          (California Constitution, Article VI, Section 5.)  Although the 
          municipal courts ceased to exist, civil cases that would have 
          formerly been within the jurisdiction of the municipal courts 
          are now classified as "limited" civil cases, while matters 
          formerly within the jurisdiction of the superior courts are 
          classified as "unlimited" civil actions. (See Code of Civil 
          Procedure Sections 85 and 88.)  The "amount in controversy" 








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          distinction, however, remains the same: where the amount in 
          controversy is $25,000 or less, the action is classified as a 
          "limited" civil case; where the amount is more than $25,000, it 
          is classified as an "unlimited" civil case.

          The classification of a case as either a limited or unlimited 
          action has implications that go beyond the amount of money that 
          the court may award.  Most importantly for purposes of this 
          bill, a plaintiff in a limited civil action may not obtain a 
          permanent injunction and both parties have more limited 
          discovery than litigants in an unlimited case.  According to the 
          author and sponsor, this means that it is sometimes cheaper and 
          easier for management to evict a resident who refuses to comply 
          with park rules and regulations than it is seek an injunction 
          ordering the resident to cease the violation.  If, however, 
          management could file an injunction as a limited civil case, the 
          author contends, it would be cheaper to file for an injunction 
          than to file for a UD.  For example, a survey by the Committee 
          found that in most superior courts the fee for filing a limited 
          civil case is $225 while the fee for filing an unlimited case is 
          $395.  The fee for filing a UD action is typically $240.  
          Existing law creates a financial incentive to evict rather than 
          enjoin ($240 vs. $395), while this bill would create a slight 
          financial incentive to enjoin rather than evict ($225 vs.  
          $240).  No doubt many other factors influence management's 
          decision to choose between enjoining and evicting, including the 
          nature of the violation.  For example, a violation can only be 
          enjoined if it is continuing or recurring, whereas in order to 
          evict the violation must be a violation of the rental agreement 
          and the resident must have failed to respond when given a 30-day 
          notice to correct the violation.  All other things being equal, 
          however, this bill would tilt the balances in favor of 
          enjoining, and this would presumably be best for both management 
          and the resident.  One likely effect of the bill, however, will 
          be to save management $170 if and when they make the decision to 
          enjoin, even though the decision to enjoin instead of evict 
          might be based on other factors than filing costs.

           Sunset Provision  :  Whatever the economic calculations and it's 
          probable effect on management choices, this bill raises another 
          issue of concern to the Judiciary Committee.  As noted above, 
          existing law prohibits the granting of injunctive relief in a 
          limited civil case except as otherwise authorized by statute.  
          While existing law permits and anticipates bills of this sort - 
          this bill is providing that authorizing statute - existing law 








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          also suggests that at one time the Legislature made a conscious 
          determination that injunctive relief was not generally 
          appropriate in limited civil cases.  Why this is so is not 
          entirely clear; it may simply be a byproduct of the fact that 
          limited civil cases inherited the jurisdiction of the old 
          municipal courts and those courts did not provide equitable 
          relief.   If that is so, then it may be time to reconsider the 
          rationale for the general prohibition entirely rather than carve 
          out another exception.   However, because this bill does carve 
          out an exception to the general rule, the author has decided to 
          include a sunset provision that will permit the Legislature to 
          revisit the issue and ensure that asking judges in limited civil 
          cases to issue injunctive relief does not create unanticipated 
          problems. 

           ARGUMENTS IN SUPPORT  :  According to the author:

             As a matter of public policy, the availability of 
             injunctive relief promotes quiet enjoyment and reduces 
             disruption in housing. An injunction against a tenant 
             nuisance is a far less drastic remedy than the summary 
             displacement of an eviction. The less intrusive remedy of 
             injunctive relief against violation of mobilehome park 
             rule under Civil Code Section 798.88 is recognition of 
             this policy. Yet, owners are dissuaded because injunctions 
             are filed in the unlimited jurisdiction of the Superior 
             Court, which is a more expensive and less convenient forum 
             for both sides than a simple eviction filed in limited 
             jurisdiction in the judicial district. Parkowners are 
             discouraged from considering a less intrusive remedy. In 
             other words, the injunction is more expensive than 
             pursuing an unlawful detainer, so mobilehome parkowners 
             are more inclined to pursue an unlawful detainer instead. 

             This proposal would make the process to pursue injunctive 
             relief against a mobilehome park rule under Civil Code 
             Section 798.88, no less burdensome and costly than a 
             comparative and more intrusive remedy of eviction.  
             Simply, the legislation would provide that injunctions for 
             violations of rules and regulations be filed in limited 
             jurisdiction courts.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 








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          Western Manufactured Housing Communities Association (sponsor) 

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Thomas Clark / JUD. / (916) 319-2334