BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2272
                                                                  Page  1

          Date of Hearing:   May 9, 2012

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                    AB 2272 (Wagner) - As Amended:  April 19, 2012
          
          SUBJECT  :   Mobilehomes: injunctions

           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  :  

          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. 

          3)Includes a sunset date of January 1, 2016, for the above 
            provisions.

           EXISTING LAW  

          1)Permits the 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:








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             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; and

             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:

             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. 

           FISCAL EFFECT  :   None

           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 a 
          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 








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          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 
          more expensive and less convenient than a simple eviction filed 
          in the 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. The "amount in 
          controversy" 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 an unlawful detainer (UD).  For example, a 
          survey by the Assembly Judiciary Committee found that in most 








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          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).  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 its 
          probable effect on management decisions, this bill raises 
          another issue.  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 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 








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             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.

           Double referred  :  The bill passed on consent the Committee on 
          Judiciary on April 24, 2012, by a vote of 10 to 0. 
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Western Manufactured Housing Communities Association

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
          319-2085