Landlord Fraud/ Action planner 925-957-9797

1542 release

timothymccandless — Mon, 26 Sep 2011 14:12:56 +0000

In California, a release is often the end of a dispute or lawsuit. Commonly, you will see language waving California Civil Code section 1542. California Civil Code section 1542 reads:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

Waiving rights under California Civil Code section 1542 is so routine, many attorneys mistakenly use the pre-2005 version of the section (which added “or her” in three places). Releases are among the most copied documents amongst lawyers. The problem is that some copy verbiage that does not necessarily apply in every situation (for example the Insurance Code verbiage where there is no insurance carrier is involved).

In a case where there was no express California Civil Code section 1542 waiver, the court still found that the release waived all claims:

Plaintiff testified he understood he was releasing claims arising under all statutes the agreement referred to, even those he did not understand. This knowledge is sufficient to withstand the provisions of Civil Code section 1542. Nothing in that statute requires that it be designated in the release or that a party specifically waive its provisions. While it might have been more comprehensive to have a reference to Civil Code section 1542 in the release, “ ‘To be effective, a release need not achieve perfection….’ [Citation.]” (Skrbina v. Fleming Companies, supra, 45 Cal.App.4th at p. 1368, 53 Cal.Rptr.2d 481.) Thus, as to defamation and the overtime claim, the release is enforceable. Perez v. Uline, Inc. (2007) 157 Cal. App. 4th 953, 959,

Even when the release recites a waiver of California Civil Code section 1542, that may not be enough to actually waive the rights and release the tortfeasor:

Furthermore, mere recital, as in the release signed by plaintiffs, that the protection of Civil Code, section 1542 is waived, or that the release covers unknown claims or unknown parties is not controlling. Whether the releaser intended to discharge such claims or parties is ultimately a question of fact. Leaf v. City of San Mateo (1980) 104 Cal. App. 3d 398, 411, 163 Cal. Rptr.

That does not mean that the obligations are not discharged at the time of signing. Some cases find that mistake or fraud require the release’s rescission. Some cases find that the waiver is valid, based on the facts of the situation:

Review of the circumstances confirms our interpretation that the release was designed to extinguish all claims extant among the parties. First, Winet was represented by counsel and was aware at the time he entered into the release of possible malpractice claims against Price relating to certain services Price had rendered to him. With this knowledge and the advice of counsel concerning the language of (and the import of waiving) section 1542, Winet expressly assumed the risk of unknown claims. Second, it is significant that the parties were able to, and did, fashion language memorializing their agreement to preserve identified claims from the operation of the release when such was their intention, specifically, the Canoga Storage Partners, Ltd. malpractice claim exclusion. Finally, Winet was represented by his own counsel, who explained to Winet the import of the release in general and of the waiver of section 1542 in particular. Under these circumstances we may not give credence to a claim that a party did not intend clear and direct language to be effective. (Bodle v. Bodle (1978) 76 Cal.App.3d 758, 764, 143 Cal.Rptr. 115 [“Where a formal contract has been prepared by persons learned in the law, the words should be given their ordinary legal import.”].) Winet v. Price (1992) 4 Cal.App.4th 1159, 1168.

The moral of the story is that claimants and their attorneys should very carefully review any release before signing. If specific causes of action or claims need to be preserved (for example, insurance bad faith), they should be expressly removed from the release. The release should not be boilerplate that does not apply to the situation, and should be narrowly tailored to the facts of the situation. The should be satisfied with the deal before signing the release, because there may be no opportunity to undo the deal after the release is signed.

The information you obtain at this blog is not, nor is it intended to be, legal advice. No attorney-client relationship is established by reading or commenting on this blog. You should consult an attorney for advice regarding your individual situation.

Tenant and consumer protection laws

timothymccandless — Sat, 17 Sep 2011 13:36:38 +0000

ABANDONMENT, ANIMALS – CC 1834.4-1834.7

ADVERTISING (see also Misrepresentation)

Bait and Switch – B&P 17500, CC 1770(a)(9),(a)(10), 16 CFR Part 238

Business Address Disclosure – B&P 17538.5

Charitable Solicitations – B&P 17510 et seq. (includes on the internet)

Comparisons/Substantiation – B&P 17508

Credit Terms – B&P 17538.7

Door-to-Door Sales (see Door-to-Door Sales)

Environmental Claims – B&P 17580 et seq., 16 CFR Part 260

False/Misleading – B&P 17500, 15 USC 45

Limit on Quantity (Unadvertised) – B&P 17500.5, CC 1770(a)(10)

Manufacturer’s Rebate – B&P 17701.5

Multiple Articles – B&P 17504, 17507, 17509 (includes internet)

Ownership/Control (Misrepresentation) – B&P 17505, CC 1770(a)(1)

Repair - CC 1770(a)(15)

Telephonic Solicitations (see Telephone Sales)

Television Picture Tubes (see Television)

Toys (see Toys)

Used/Defective Goods/Seconds – B&P 17531 (includes internet), CC 1770(a)(6), (a)(7)

Worth/Value/Former Price – B&P 17501, CC 1770(a)(13)

APPLIANCES

Labeling – B&P 22410 et seq.

Repair – B&P 9800 et seq.

ART, FINE (Consignment) – CC 1738 et seq.

“AS IS” SALES

Defined – CC 1791.3

Implied Warranty – CC 1792.4, 1792.5, Com. Code 2316

Used Vehicles – 16 CFR 455.2

ATTACHMENT LAW – CCP 481 et seq.

ATTORNEYS

Advertising – B&P 6157 et seq.

General Provisions – B&P 6157.4

Immigration and Naturalization Services– B&P 6157.5

Prohibited Statements – B&P 6157.1, 6157.2, 6158.1

Electronic Media Compliance – B&P 6158 – 6158.4

Complaints/Discipline – B&P 6158.4, 6158.7, 6159

Fee Agreements – B&P 6146 et seq.

Fees – CC 1717, 1717.5

Generally – B&P 6000 et seq., California Rules of Professional Conduct.

Unlawful Practice – B&P 6125 et seq.

AUTOMOBILES

Certification of Nonoperation – VC 4604, 4604.2

Conditional Sale Contracts (see also Automobile Sales Finance Act) – CC 2981 et seq.

Financing, Dealer Assisted – CC 2982.5

Leasing (see also Vehicle Leasing Act) – CC 2985.7 et seq., 15 USC 1667 et seq., 12 CFR Part 213

Parking Lots (see Bailments)

Lemon Law – CC 1793.22-1793.25

Odometer Provisions – VC 11713(n), 28050 et seq., 49 USC 32701-32705, 32709, 32710, 49 CFR Part 580

Repair Act – B&P 9880 et seq.

Smog Certificate Upon Transfer – VC 5751.5, 24007(b)

Rentals – CC 1936 et seq.

Subleasing – CC 3343.5, PC 570 et seq.

Warranties (see Warranties)

Warranty Adjustment Program – CC 1795.90 et seq.

AUTOMOBILE DEALERS

Advertising – VC 11713, 11713.1, 13 CCR 260.00

Consignment Sales – VC 11729 et seq.

Licensing and Responsibilities- VC 11700 et seq.

Salespeople – VC 11800 et seq.

AUTOMOBILE SALES FINANCE ACT Rees-Levering Act) – CC 2981-2984.5

Acceleration – CC 2983.3

Buyer Unable to Obtain Financing – CC 2982.9

Buyer’s Claims and Defenses – CC 2983.7(a)

Buyer’s Remedies – CC 2982.7, 2983, 2983.1, 2984

Change in Contract Terms, Notice Of – CC 2982(h)

Contents of Conditional Sale Contract – CC 2981.9, 2982

“Cooling Off” Period – CC 2982(r)

Deficiency Judgment – CC 2983.8

Prohibited Contractual Provisions – CC 2983.7

Rescission - CC 1689, 2982.9, 2983, 2983.1

Refund of Down payment – CC 2982.5 2982.7, 2982.9

Reinstatement/Redemption – CC 2983.2, 2983.3

Repossession/Disposition – CC 2983.2, 2983.3

“Supervised Financial Organizations” – CC 2982.5

Venue – CC 2984.4

AUTOMATED CHECKOUT SYSTEMS, GROCERY – CC 7100 et seq.

AUTOMATIC DIALING MACHINES (ROBOCALLS) – CC 1770(a)(22), B&P 17363.5, PUC 2871 et seq., 16 CFR Part 3110

B

BAD CHECK LAW – CC 1719, PC 476a

BAILMENTS – CC 1813, 1818, 1822-1828

Parking Lot (Disclaimer of Liability) – CC 1630, 1630.5

BAIT AND SWITCH – B&P 17500 (includes internet), CC 1770(a)(9),(a)(10), 16 CFR Part 238

BILLS (INVOICE), False – CC 1716, 39 USC 3001(d)

BOAT REPAIRS – Harb. & Nav. Code 410 et seq.

BUSINESS

Street Address and Legal Name (Disclosure) – B&P 17538.5

Business Records (Privacy of Client Information) – CC 1799 et seq.

Prohibited Disclosures – CC 1799.1, 1799.1a

Remedies – CC 1799.2

BUYING SERVICE (Discount) – CC 1812.100 et seq.

C

CALIFORNIA FINANCE LENDERS LAW – FC 22000 et seq.

Definitions – FC 22000 et seq.

Exemptions – FC 22050 et seq.

Licensing – FC 22100 et seq.

Regulations – FC 22150 et seq.

Consumer Loans – FC 22200 et seq.

Revocation and Penalties – FC 22700 et seq.

CAMPGROUND MEMBERSHIP CONTRACTS – CC 1812.300 et seq.

Contract Cancellation – CC 1812.303(b), 1812.304, 1812.314(c)

Contract Requirements – CC 1812.303,

Remedies – CC 1812.306

CELLULAR TELEPHONES

Do Not Call List – B&P 17590 et seq., 16 CFR Part 310

Telephone Number Directory – PUC 2891.1

Unsolicited Text Ads – B&P 17538.41

CHAIN LETTERS – PC 327, CC 1689.2

CHARGE CARD DISCLOSURES – CC 1748.20 et seq.

CHARITABLE SOLICITATIONS – B&P 17510 et seq.

CHECK CASHERS – CC 1789.30 et seq.

Limits on Fees – CC 1789.35

Remedies – CC 1789.35(g)

CHECKS

Accord and Satisfaction – Com. Code 3311

Bad Check Law CC 1719, PC 476a

Defenses to Payment – Com. Code 3305

Postdated – B&P 17538.6, Com. Code 4401

Presumption of Payment – Evid. Code 670

Simulated B&P 17539.1(a)(13), 22433

Stop Payment – CC 1719(b), Com. Code 4403

Treble Damages (Insufficient Funds) – CC 1719

Unauthorized Signature – Com. Code 4406

Wrongful Dishonor – Com. Code 4402

CIVIL LIABILITY FOR PETTY THEFT – PC 490.5(b)-(c)

COMPUTER SPYWARE – B&P 22947 et seq.

CONFIDENTIALITY OF MEDICAL INFORMATION ACT – CC 56 et seq.

CONSUMER AFFAIRS ACT – B&P 300 et seq.

Complaints – B&P 325, 326

CONSUMER CONTRACT AWARENESS ACT – CC 1799.200 et seq.

CONSUMER CREDIT

Credit Card Disclosures – CC 1748.10 et seq.

Contracts – CC 1799.90 et seq.

Cosigners – CC 1799.91, 1799.101, 1799.102, 16 CFR 444.1(k), 444.3

Credit Reporting Agencies Act – CC 1785.1 et seq.

Denial – CC 1787.1 et seq.

Investigative Consumer Reporting Agencies – CC 1786 et seq.

Marital Status – CC 1812.30 et seq.

Purchase of Goods and Services (see Automobile Sales Finance Act and Unruh Act)

CONSUMER LEASING ACT – 15 USC 1667 et seq., 12 CFR Part 213

CONSUMER LEGAL REMEDIES ACT – CC 1750 et seq.

CONSUMER LOANS (see Lenders)

CONTEST OPERATIONS – B&P 17539–17539.3

Definitions – B&P 17539.3, 17539.5

Disclosures – B&P 17539.2

Disclosure of Intent to Make a Sales Presentation – B&P 17533.8

Sweepstakes Entries – B&P 17533.15

Unfair Acts – B&P 17539.1

CONSUMER PRIVACY PROTECTION – 1798.91 et seq.

CONSUMER RECORDS – 1798.80 et seq.

Obligation to Dispose of Properly – CC 1798.81

CONTRACTORS’ STATE LICENSE LAW – B&P 7000 et seq.

Arbitration of Complaints – B&P 7085 et seq.

Documents Requiring License Number – B&P 7030.5

Exemptions – B&P 7040 et seq.

Fraud – B&P 7116

Home Improvement Contracts (see Home Improvement Contracts) – B&P 7150 et seq.

License Required – B&P 7028, 7028.16

License required to bring lawsuit – B&P 7031

Swimming Pool Construction Contracts – B&P 7165 et seq.

Unlicensed Activity – B&P 7031, CCP 1029.8

Void/Unenforceable Contract Terms – B&P 7034

CONTRACTS – CC 1549 et seq.

Awareness Act, Consumer Contract – CC 1799.200 et seq.

Cancellation

Home Solicitation Sales – CC 1689.5 et seq.

Cooling Off Period – CC 1689.6, 16 CFR 429.1

Rescission – CC 1689

Telephone Sales – B&P 17511.5(e)

Duress defined - CC 1569

Elements – CC 1565

Fraud – CC 1571-1574

Liquidated Damages – CC 1671

Menace defined – CC 1570

Mistake – CC 1576-1579

Language Translations – CC 1632, 1689.7

Statute of Frauds (written contract required) – CC 1624, Com. Code 2201

Unconscionable – CC 1670.5, 1770(a)(19)

Undue Influence – CC 1575

Unlawful – CC 1667 et seq.

COSMETICS (see Food, Drug and Cosmetic Law)

CO-SIGNORS (Consumer Credit Contracts) – CC 1799.91, 1799.101, 1799.102, 16 CFR 444.1(k), 444.3

COUPONS – B&P 17700 et seq.

CREDIT CARDS\

Address Change – CC 1799.1b(a)

Areias Credit Card Full Disclosure Act – CC 1748.10 et seq.

Billing Error – CC 1747.50, 1747.60, 12 CFR 226.13

Cancellation – CC 1747.85

Cardholder’s Claims and Defenses – CC 1747.90, 12 CFR 226.12(c)

Credit CARD Act of 2009 – Public Law 111-24, 12 CFR 226

Discrimination Prohibitions – CC 1747.80, 1812.30 et seq.

Goods or Services Not Furnished – CC 1748.7

Issuance to Married Women – CC 1747.81

Late Charges – FC 4001

Marketing Information (Use Of) – CC 1748.12

Personal Identification – CC 1747.08

Retail Installment Sales (Unruh Act) – CC 1801 et seq.

Song-Beverly Credit Card Act – CC 1747 et seq.

Surcharges/Cash Discounts – CC 1748, 1748.1

Unauthorized Use – CC 1747.10, 12 CFR 226.12(b)

CREDIT REPAIR AGENCIES (Credit Service Organizations) – CC 1789.10 et seq., 15 USC 1679 et seq.

Contract Cancellation – CC 1789.16(a),(b)

Prohibited Conduct – CC 1789.13, 1789.17, 1789.19(a)

D

DAMAGES – CC 3281 et seq.

Bad Checks (Treble Damages) – CC 1719

Interest as Damages – CC 3287 et seq.

Liquidated Damages – CC 1671

Measure of Damages – CC 3300 et seq.

Punitive Damages – CC 3294 et seq.

Senior Citizens/Disabled Persons (Treble Damages for Fraud) – CC 1780(b), 3345

DANCE STUDIO CONTRACTS – CC 1812.50 et seq.

Contract Cancellation – CC 1812.54(b)

DATING SERVICE CONTRACTS – CC 1694 et seq.

Contract Cancellation – CC 1694.2

Death or Disability of Buyer – CC 1694.3

Relocation of Buyer – CC 1694.3(b)

DEBT COLLECTION PRACTICES – CC 1788 et seq. (Rosenthal Fair Debt Collection Practices Act, 15 USC 1692 et seq. (federal Fair Debt Collection Practices Act)

DECEPTIVE PRACTICES – B&P 17200 et seq., CC 1770

Remedies – CC 1750 et seq.

DEFECTIVE PRODUCT (see Contracts and Warranty)

DEFICIENCY JUDGMENT NOT PERMITTED (Installment Sales) – CC 1812.5, 2983.8

DEPOSITS (Real Estate) – CC 1057.3, 1675 et seq.

DISABLED PERSONS (see Physically Disabled Persons)

DISASTERS

Home Restoration/Repair – CC 1689.6(c), 1689.7(a)(3), 1689.13, 1689.14(a), B&P 7028.16, 7158, 7159.5, 7159.10, 7159.14, 7161

Price Gouging – PC 396

DISCLAIMERS (see Exculpatory Clauses, Warranties)

DISCOUNT BUYING SERVICES – CC 1812.100 et seq.

Contract Cancellation – CC 1812.118

DISCRIMINATION(Unlawful) – CC 51 et seq. (Unruh Civil Rights Act)

DOMESTIC SERVICES – CC 1812.5095

DOOR–TO–DOOR SALES

Charitable Purpose – B&P 17510 et seq.

Right to Cancel – CC 1689.5 et seq., 16 CFR 429.1

Sales Purpose, Disclosure of – B&P 17500.3

DRUGS (see also Food, Drug and Cosmetic Law)

Claimed Effect on Disorders – H&S 110403

Prescription Records – B&P 4333

DRYCLEANERS/LAUNDRIES

Lien – CC 3051

Sale – CC 3066

E

ELECTRONIC AND APPLIANCE REPAIR SERVICES – B&P 9800 et seq.

ELECTRONIC COMMERCE – CC 1789 et seq.

EMAIL ADVERTISEMENTS – B&P 17529 et seq., 15 USC 7701 et seq. (CAN SPAM Act)

EMERGENCY RESPONSE UNIT (Cancellation Right) – CC 1689.6(b), 1689.7(a)(2)

EMPLOYMENT AGENCIES, JOB LISTING SERVICES, & EMPLOYMENT COUNSELORS – CC 1812.500 et seq.

Contract Cancellation

Employment Counseling – CC 1812.511(a)(6)

Job Listing – CC 1812.516(a)(6)

Nurses Registry – CC 1812.526(e)(2)

ENDLESS CHAINS (Pyramids) – PC 327, CC 1689.2

EXEMPLARY DAMAGES – CC 3294 et seq.

EXCULPATORY CLAUSES – CC 1668

EXPRESS WARRANTY (see Warranty)

F

FAIR DEBT COLLECTION PRACTICES ACT – CC 1788 et seq., 15 USC 1692 et seq.

FAIR PACKAGING AND LABELING ACT – B&P 12601 et seq.

FALSE/DECEPTIVE ADVERTISING/STATEMENTS – B&P 17500 et seq.

FAX UNSOLICITED ADVERTISEMENTS – B&P 17538.43, 47 USC 227 (“Junk Fax Prevention Act”)

FICTITIOUS BUSINESS NAMES – B&P 17900 et seq.

FINANCIAL INSTITUTIONS

Fees – FC 4000 et seq.

Financial Record Privacy – GC 7460 et seq., 12 USC 3401 et seq.

Properly Payable Items – Com. Code 4401

FINE ART

Consignment – CC 1738 et seq.

Sale of – CC 1740 et seq.

FLOATING HOME RESIDENCY LAW – CC 800 et seq.

FOOD, DRUG AND COSMETIC LAW (Sherman Law) – H&S 109875 et seq.

False Advertising – H&S 110390 et seq.

Misleading Labeling or Advertising – H&S 110290, 110295

Representation of Effect – H&S 110403

FORCIBLE ENTRY AND DETAINER – CCP 1159 et seq.

FORECLOSURE CONSULTANTS – CC 2945 et seq.

Contract Cancellation – CC 2945.2

FOREIGN MADE GOODS MARKED “MADE IN USA” – B&P 17533.7

FORMER PRICE – B&P 17501, CC 1770(a)(13)

FRANCHISE INVESTMENT LAW – Corp. Code 31000 et seq.

FRAUD – CC 1571 et seq., 1710 et seq.

FTC TRADE REGULATION GUIDES AND RULES

Bait Advertising – 16 CFR Part 238

Cooling Off Period – 16 CFR Part 429

Credit Practices Rule – 16 CFR Part 444

Deceptive Pricing – 16 CFR Part 233

Environmental Marketing Claims – 16 CFR Part 260

Funeral Industry Practices – 16 CFR Part 453

“Holder Rule” (Preservation of Consumer Claims) – 16 CFR Part 433

Mail and Telephone Order Rule – 16 CFR Part 435

Negative Option Plans – 16 CFR Part 425

Pay-Per-Call (“900” number calls) – 16 CFR Part 308

Used Motor Vehicles – 16 CFR Part 455

Unfair Competition – 15 USC 45

FURNITURE AND BEDDING

False Advertising - B&P 19150, 19151; 4 CCR 1300 et seq.

Fire Retardant Mattresses – B&P 19161; 4 CCR 1371

Labeling – B&P 19080 et seq.; 4 CCR 1125 et seq.

License Required - B&P 19049

Limitations on Guarantees – B&P 19152

Sanitization – B&P 19120 et seq.; 4 CCR 1251et seq.

Unassembled – CC 1770(a)(11),(a)(12)

G

GAMBLING CONTROL ACT – B&P 19800 et seq.

GENDER-BASED PRICE DISCRIMINATION – CC 51.6

GIFTS OR PRIZES

Conditional Offers – B&P 17537

Sales Presentation. Notice of – B&P 17533.8, 17537.1

GIFT CERTIFICATES – CC 1749.45 et seq.

GOVERNMENT FILES (see Information Practices Act and Public Record Act)

GREY MARKET GOODS – CC 1797.8 et seq.

GUARANTEES (see Warranties)

GUARANTOR (Waiver of Subrogation/Reimbursement Rights) – CC 2856

H

HEALTH CARE SERVICE PLANS, DUTIES OF – CC 3428

HEALTH STUDIO CONTRACTS – CC 1812.80 et seq.

Contract Cancellation – CC 1812.85(b)

Death or Disability – CC 1812.89(a)

Move/Transferability – CC 1812.89(b)(1)

HIRING OF PERSONAL PROPERTY (see Personal Property)

HOME EQUITY LOAN DISCLOSURES – CC 2970 et seq.

HOME EQUITY SALES CONTRACTS – CC 1695 et seq.

Contract Cancellation – CC 1695.4

HOME IMPROVEMENT CONTRACTS – B&P 7150 et seq.

Arbitrator’s Disclosures – CCP 1281.95

Contract – B&P 7159

Down payment – B&P 7159

Rescission – 15 USC 1635, 12 CFR 226.15, 226.23, B&P 7163

Security Interest – B&P 7031(c), CC 1804.3

See Contracts and Unruh Act

HOME SOLICITATION CONTRACTS – CC 1689.5 et seq., 16 CFR Part 429, B&P 17500.3

HOMESTEAD EXEMPTION – Cal. Const., Art. XX, 1.5, CCP 704.710 et seq., 704.910 et seq.

HOMESTEAD FILING SERVICES – B&P 17537.6

HOUSEHOLD GOODS CARRIERS – PUC 5101 et seq., CPUC Max. Rate Tariff 4, 49 CFR 1005

I

IDENTIFICATION

Paying by Check – CC 1725(c)

Paying by Credit Card – CC 1747.08(d)

IDENTITY THEFY – CC 1798.92, 18 USC 1028

IMMIGRATION CONSULTANTS – B&P 22440 et seq.

Contract Cancellation – B&P 22442(f)

Form Contract – 16 CCR 3840

IMPLIED WARRANTY (see Warranty)

INDEPENDENT WHOLESALE REPRESENTATIVES – CC 1738.10 et seq.

INDUCEMENTS TO VISIT LOCATION OR ATTEND SALES PRESENTATION – B&P 17537.1

INFORMATION PRACTICES ACT – CC 1798 et seq.

Amendment to Record – CC 1798.35-1798.37

Exemptions from Disclosure – CC 1798.40

Inspection – CC 1798.32, 1798.34

Limits on Disclosure – CC 1798.24

INJUNCTIVE RELIEF

Granting – CCP 526 et seq., B&P 17203, 17204, 17535

Penalties for Violating – CCP 1209 et seq., B&P 17207, 17535.5

INNKEEPERS’ LIABILITY – CC 1859 et seq.

INTENT TO MAKE SALES PRESENTATION – B&P 17533.8

INTEREST CHARGES

Damages

Contract Claims – CC 3287

Not Stated in Contract – CC 3289(b)

Personal Injury/Settlement Offer – CC 3291

Post judgment Interest Rates – CCP 685.010 et seq.

Usury Provisions – Cal. Const., Art. XV, 1, et seq.

INVENTION DEVELOPMENT SERVICES – B&P 22370 et seq.

Contract Cancellation – B&P 22373

INVESTIGATIVE CONSUMER REPORTING AGENCIES ACT – CC 1786 et seq.

L

LABELING GOODS

Food, Drugs and Cosmetics (see Food, Drug and Cosmetic Law) – H&S 109875 et seq.

Grey Market Goods – CC 1797.8 et seq.

“Made in USA” – B&P 17533.7

Packaging – B&P 12601 et seq.

Used, Defective, Seconds – B&P 17531, CC 1770(a)(6)

LANDLORD/TENANT LAW – CC 1940 et seq., CCP 1159 et seq.

Abandoned and Lost Property (Tenant’s) – CC 1965, 1980 et seq.

“Arrieta” Claims (Pre-judgment Claim of Right of Possession) – CCP 415.46, 1174.25, 1174.3

Habitability – CC 1941, et seq.

Innkeeper’s Liability (see Innkeeper’s Liability)

Landlord’s Right of Entry – CC 195

Notice to Terminate Tenancy – CC 1946

Notice to Terminate Sole Lodger – CC 1946.5

Periodic Tenancies – CC 1943, 1945

Prepaid Rental Listing Service – B&P 10167 et seq.

Repair and Deduct – CC 1942

Residential Hotels – CC 1940.1, H&S 50519

Retaliatory Eviction Prohibited – CC 1942.5

Security Deposit – CC 1950.5

Amount – CC 1950.5(c)

Bad Faith Retention – CC 1950.5(l)

Commercial - CC 1950.7

Purposes and Uses – CC 1950.5(b),(e)

Return – CC 1950.5(f),(g)

Service of Notice Upon Tenant- CCP 1162

Service of Summons – CCP 415.10 et seq.

Unlawful Detainer – CCP 1161

Unlawful Detainer Assistants (see Unlawful Detainer Assistants)

Untenantable Dwelling – CC 1941, 1941.1, 1942.3, CCP 1174.2

Utilities

Meters – CC 1940.9

Non-Interruption – CC 789.3

Service Deposits – PUC 10009.6

Telephone Jacks – CC 1941.4

LANGUAGE TRANSLATION OF CONTRACT – CC 1632, 1689.7

LAUNDRIES/DRYCLEANERS

Lien – CC 3051

Sale – CC 3066

LAWYERS (see Attorneys)

LAYAWAY PRACTICES – CC 1749 et seq

LEGAL DOCUMENT ASSISTANTS – B&P 6400 et seq.

“LEMON LAW” – CC 1793.22 et seq., 15 USC 2304

LEASES (see Automobiles, Consumer Leasing Act, Rent-to-Own)

LENDERS

Credit Unions – FC 14000 et seq.

Finance Lenders – FC 22000 et seq.

Industrial Loan Companies – FC 18000 et seq.

Installment Sales (see Automobile Sales Finance and Unruh Acts)

Insurance Premium Finance Agency – FC 18560 et seq.

Pawnbrokers – FC 21000 et seq.

Real Estate Brokers – B&P 10240 et seq.

LIENS

General – CC 2872 et seq.

Mechanics – CC 3109 et seq.

Vehicles (Labor, Towing and Storage) – CC 3067 et seq.

LIMITATIONS PERIODS – CCP 312 et seq.

LIMITS ON QUANTITIES SOLD – B&P 17500.5

LOTTERIES, RAFFLES, AND SWEEPSTAKES – PC 319 et seq.

M

“MADE IN USA” – B&P 17537.7

MAGNUSON–MOSS WARRANTYACT – 15 USC 2301 et seq., 16 CFR Part 700 et seq.

MAIL/TELEPHONE/CATALOG SALES – B&P 17538 et seq., 16 CFR Part 435

MAXIMS OF JURISPRUDENCE – CC 3509 et seq.

MECHANICS LIEN – CC 3109 et seq.

MEDICAL INFORMATION (Confidentiality) – CC 56 et seq.

MEMBERSHIP CAMPING CONTRACTS – CC 1812.300 et seq.

Contract Cancellation – CC 1812.303, 1812.304

MILITARY PERSONNEL IN SMALL CLAIMS COURT – CCP 116.540(e)

MISREPRESENTATION(see also Advertising)

Affiliation or Association – CC 1770(a)(3)

Authority of Salesman or Agent – CC 1770(a)(18), VC 11713.1(m)

Benefits of Goods or Services – CC 1770(a)(5)

Certification – CC 1770(a)(2)

Geographic Origin of Goods or Services – CC 1770(a)(4)

In General – CC 1770

Ingredients of Goods or Services – CC 1770(a)(5)

Misleading Statements – B&P 17500 et seq.

Obligation – CC 1770(a)(14)

Part Needed/Part Installed – CC 1770(a)(15)

Quality of Goods or Services – CC 1770(a)(7)

Quantities of Goods or Services – CC 1770(a)(5)

Rights/Remedies – CC 1770(a)(13)

Source or Sponsorship of Goods or Services – CC 1770(a)(2),(a)(5)

MOBILEHOME RESIDENCY LAW – CC 798 et seq.

MOBILEHOME WARRANTIES – CC 1797 et seq.

MONEY EXCHANGE HOUSES – B&P 22515 et seq.

MORTGAGE FORECLOSURE CONSULTANTS – CC 2945 et seq.

Contract Cancellation – CC 2945.2

MOVERS (see Household Goods Carriers)

N

NEGATIVE OPTION PLANS – 16 CFR Part 425, CC 1584.5

NEGOTIABLE INSTRUMENTS (see Checks)

NEW CAR “LEMON LAW” – CC 1793.22 et seq., 15 USC 2304

NEWSPAPER

Advertisements Run in Good Faith – B&P 17502

Circulation Claims – B&P 17533

NUISANCE – CC 3479 et seq.

O

OCCUPANCY (Wrongful) – CC 3334

ON-TIME SERVICE CALLS AND DELIVERY OF GOODS (4-hour appointment) – CC 1722

OWNERSHIP (False Statement) – B&P 17505

P

PACKAGING AND LABELING – B&P 12601 et seq

PARKING LOT (DISCLAIMER OF LIABILITY) – CC 1630, 1630.5

PERSONAL EMERGENCY RESPONSE UNIT – CC 1689.6(b), 1689.7(a)(2)

PERSONAL FINANCE LENDERS (see Lenders)

PERSONAL PROPERTY

Hiring (leasing/renting) – CC 1925 et seq., 1955 et seq.

Duty of Care – CC 1928

Duty to Repair – CC 1929

Leases – 15 USC 1667 et seq., 12 CFR Part 213

Lost – CC 2080 et seq.

Tenant’s – CC 1965, 1980 et seq.,

Commercial – CC 1993 et seq.

Unclaimed – CC 2081 et seq.

PHYSICALLY DISABLED PERSONS

Assistive Devices – CC 1793.02

Denial of Services – B&P 125.6

Discrimination – CC 54 et seq.

Fraud (Treble Damages) – B&P 17206.1, CC 1780(b), 3345

Wheelchairs – CC 1793.025

PHONE CORPORATIONS (Notice of Residential Rates and Services) – PUC 786

POLITICAL ITEMS (Sale and Manufacture) – CC 1739 et seq.

PREPAID RENTAL LISTING SERVICE – B&P 10167 et seq.

Refund of Fees – B&P 10167.10

PRICE

Before-Rebate Cost – B&P 17701.5

Gouging (Post Disaster) – PC 396

Price Reductions and Disclosures (Misleading Statements) – CC 1770(a)(13), B&P 17509 (includes internet)

Secondhand Goods – B&P 17531 (includes internet), CC 1770(a)(6)

Selling or Leasing at Advertised Terms – CC 2985.71(b), B&P 17538.7, VC 11713.1(e)

Two or More Articles in Same Ad – B&P 17507

Value and Former Value – B&P 17501

PRIVACY

Automobile Black Boxes – VC 9951

Bank Account Numbers – FC 4100

Business Records – 1798.90 et seq

California Privacy Provisions – Cal. Const. Art. I, Sec. 1

Computer Spyware – B&P 22947 et seq.

Consumer Information in Government Records – CC 1798 et seq., CCP 1985.4

Consumer Records – CC 1798.91 et seq., CCP 1985.3, 1985.4

Court Records – PC 964

Credit Card Address Change – CC 1747.06

Credit Card Numbers on Receipts – CC 1747.09

Domestic Violence Victims – CC 1798.79.8

Driver’s License Information – VC 1808 et seq., 18 USC 2721

Driver’s License Scanning – CC 1798.90.1

Educational Records (Family Educational Rights & Privacy Act of 1974 “FRRPA”) – 20 USC 1232g, 34 CFR Part 99

Federal Privacy Act – 5 USC 552a

Financial Records – GC 7460 et seq, FC 4050 et seq., 12 USC 3401 et seq

Health Information (HIPAA) -45 CFR Parts 160 and 164

Identity Theft – CC 1798.92, 18 USC 1028

Information Practices Act – CC 1798 et seq.

Insurance Records – IC 791 et seq

Library Records – GC 6254, 6267, 6276.28

Online Privacy – B&P 22575 et seq., GC 6254.21, 11015.5

Reproductive Health Care – GC 6218 et seq.

Security Breach Notice – CC 1798.29, 1798.82, 1798.84

Social Security Numbers – CC 1798.85 et seq., 1785.11.1, 1785.11.6, LC 226, Fam. Code 2024.5, CCP 674, R&T 2191.3, CC 1798.88 et seq., Com. Code 9526.5, EC 66018.55, GC 27300

Supermarket Club Cards – CC 1749.60

Video Rental Records – CC 1799.3, 18 USC 2710

Voter Records – Election Code 2166.7, 2194, 8023, 8105, 8202, 8204, GC 6254.24

Workplace Surveillance – LC 435

Disclosure of Personally Identifiable Marketing Information – CC 1748.12, 1785.19.5

PRIZES

As Inducements – B&P 17537.1

Conditional Offer – B&P 17537

Disclosure of Intent to Make a Sales Presentation – B&P 17533.8 (includes internet)

Misleading – B&P 17537(a)

Promotional Giveaways (see Promotional Giveaways)

PROFESSIONAL ADVERTISING (Restrictions) – B&P 17500.1

PROMOTIONAL GIVEAWAYS – B&P 17537.1

PROPERTY (see Personal Property, Real Property)

PUBLIC RECORDS ACT – GC 6250 et seq.

Agencies’ Duties – GC 6253.4

Exemptions – GC 6254 et seq., 6255

Request for Disclosure – GC 6253

Right of Access – GC 6253

PUNITIVE DAMAGES (see Damages)

PYRAMID SCHEME (see Endless Chain)

R

RADIO, TELEVISION, APPLIANCE REPAIR – B&P 9800 et seq.

REAL ESTATE BROKER

License and Regulations – B&P 10130 et seq.

REAL PROPERTY

Conveyance Law – CC 1091 et seq.

Default (Purchase Contract) – CC 1675 et seq.

Deposit (see Deposits (Real Estate))

Foreclosure Consultants – CC 2945 et seq.

Home Equity Loan Disclosures – CC 2970 et seq.

Home Equity Sales Contracts – CC 1695 et seq.

Home Loan Prepayment Penalty – CC 2954.9 et seq., 15 USC 1639(c)

Homestead Filing Services (see Homestead Filing Services)

Impound Accounts – CC 2954 et seq.

Late Charges – CC 2954.4

Mechanics Lien (see Mechanics Lien)

Sale Contract – 2985 et seq

Writing Required – CC 1624

Sales Disclosures – CC 1102 et seq.

Timeshares (see Timeshare Contracts)

Transfer Disclosures (Residential) - CC 1102 et seq., CC 2079 et seq.

REBATE

Before Rebate Price – B&P 17701.5

Receipt as Condition of Sale – CC 1770(a)(17), 1803.10, 2982.1

RECLAIMED, RECONDITIONED OR USED GOODS REPRESENTED AS NEW – CC 1770(a)(6), B&P 17531 (includes on the internet)

RECREATIONAL VEHICLE PARK OCCUPANCY LAW – CC 799.20 et seq.

REFERRAL DISCOUNT – CC 1770(a)(17), 1803.10, 2982.1

REMEDIES

Civil Penalties – B&P 17206, 17536

Consumers Legal Remedies Act – CC 1780 et seq.

Damages (see Damages)

Enhanced Penalties – B&P 17206.1, CC 1780(b), 3345

Injunction – CCP 525 et seq. B&P 17203 et seq.

Restitution – B&P 17206(d)

RENT SKIMMING – CC 890 et seq.

RENT-TO-OWN – CC 1812.620 et seq.

Cash Price – CC 1812.622(e), 1812.623(a)(5), 1812.644

Collection Practices – CC 1812.638

Contract Disclosures and Terms – CC 1812.623

Lost or Damaged Item – CC 1812.627

Maintenance of Item – CC 1812.633

Prohibited Acts – CC 1812.624, 1812.625, 1812.626, 1812.635, 1812.638 et seq.

Purchase Option – CC 1812.632

Reinstatement – CC 1812.631(b)

REPAIR

Appliance and Electronic – B&P 9800 et seq.

Automobile – B&P 9880 et seq.

Consumer Warranties – CC 1790 et seq., Com. Code 2313 et seq.

Four-Hour Requirement – CC 1722

Part Not Needed/Part Not Provided – CC 1770(a)(15), (a)(16)

Service Contracts (see Service Contracts)

Warranty (see Warranties)

Warranty Repair Standards (see Warranties)

RETAIL INSTALLMENT SALES (see Unruh Sales Act)

RETURN POLICY DISPLAY REQUIREMENTS – CC 1723

ROSENTHAL FAIR DEBT COLLECTION PRACTICES ACT – CC 1788 et seq.

ROBOCALLS – 47 USC 227(b), 16 CFR Part 3110, CC 1770(a)(22), B&P 17363.5, PUC 2871 et seq.

Private Right of Action – 47 USC 227(b)(3)

S

SALES

Bait and Switch – B&P 17500 (includes on the internet), CC 1770(a)(9), (a)(10)

By Telephone (see Telephonic Sellers)

Installment

Automobiles (see Automobile Sales Finance Act)

Consumer Goods and Services (see Unruh Act)

Multiple Units or Additional Products – B&P 17504, 17509 (includes on the internet)

Telephone and Communications Equipment – B&P 17361 et seq.

SCALPING TICKETS – PC 346

SECURITIES – Corp. Code 25000 et seq.

SECURITY DEPOSITS (see Landlord/Tenant Law)

SELF-SERVICE STORAGE FACILITIES – B&P 21700 et seq.

SELLER–ASSISTED MARKETING PLANS (SAMPS) – CC 1812.200 et seq.

Contract Cancellation – CC 1812.208 et seq., 1812.215

Definitions – CC 1812.201

Disclosures – CC 1812.204 et seq.

Remedies – CC 1812.218 et seq.

SELLERS OF TRAVEL – B&P 17550 et seq

Advertising – B&P 17550.15(k), 17550.1, 17550.2, 17550.24(f)

Delivery of Tickets – B&P 17550.15(c)(3), 17550.17

Refunds – B&P 17550.14

Registration – B&P 17550.20, 17550.24

Trust Account – B&P 17550.15(b), 17550.16

Travel Consumer Restitution Fund – B&P 17550.35 et seq.

SEMINAR SALES – CC 1689.20 et seq.

SENIOR CITIZENS (Enhanced Penalties for Fraud Against) – CC 1780(b), 3345, B&P 17206.1

SERVICE CONTRACTS – CC 1794.4 et seq., B&P 9855 et seq.

SIMULATED CHECKS – B&P 17539.1(a)(13), 22433

SMALL CLAIMS ACT – CCP 116.110 et seq.

Definitions – 116.130

Fees – 116.230

Jurisdiction – 116.220 et seq.

SONG–BEVERLY CONSUMER WARRANTY ACT (see also Warranties) – CC 1790 et seq.

SONG–BEVERLY CREDIT CARD ACT (see also Credit Cards) – CC 1747 et seq.

SPORTS MEMORABILIA, AUTOGRAPHED – CC 1739.7

SPORTS TRADING CARDS – B&P 21670 et seq.

SPYWARE, COMPUTER – B&P 22947 et seq.

STATUTES OF LIMITATION – CCP 312 et seq.

STRUCTURAL PEST CONTROL OPERATORS – B&P 8500 et seq.

SWAP MEETS, FLEA MARKETS, AND OPEN-AIR MARKETS – B&P 21660 et seq.

SWIMMING POOL CONSTRUCTION CONTRACTS – B&P 7165 et seq.

T

TANNING FACILITIES – B&P 22700 et seq.

TELEMARKETING AND CONSUMER FRAUD AND ABUSE PREVENTION ACT – 15 USC 6101 et seq., 16 CFR Part 310

TELEPHONE

Billing/Collections (900/976 Numbers) – PUC 2884 et seq. (see also Fair Debt Collection Practices Act)

Residential Services and Rates (Notices) – PUC 786

Sale of Telephone and Communications Equipment – B&P 17361 et seq.

TELEPHONE CONSUMER PROTECTION ACT – 47 USC 227 et seq.

TELEPHONE SALES – B&P 17511 et seq., 16 CFR Part 310

Automatic Dialing-Announcing Device (Robocalls) – CC 1770(a)(22), B&P 17363.5, PUC 2871 et seq., 16 CFR Part 3110

Contract Cancellation – B&P 17511.5(e), CC 1689.6

Disclosures – B&P 17500.3, 17511.5

“Do Not Call” Lists – 47 USC 227(c)(1)(A), 47 CFR 64.1200(d)

Fraud and Abuse Prevention – 15 USC 6101 et seq., 16 CFR 310.4

Information Charges (Disclosure) – PUC 2889, 16 CFR 310.3

Live Voice Introduction – CC 1770(a)(22), 47 USC 227(b)(1), 47 CFR 64.1200

Registration – B&P 17511.3 et seq.

Solicitation – B&P 17500.3, 17511.1

Unlawful – CC 1670.6

Venue – CCP 395(b)

TELEVISION

Repair – B&P 9800 et seq.

Picture Tube Labels – B&P 17531.6 et seq.

TICKET SELLERS – B&P 22500 et seq.

TIMESHARE CONTRACTS – B&P 11210 et seq.

Rescission – B&P 11238

Timeshare Plans – B&P 11212(z)

TOWING

Credit Cards – VC 22651.1

Deficiency Claims – CC 3068.2

Liens – CC 3068.1

Owner’s Request for Release – CC 3068.1, VC 22658(i)(3)

Request Prerequisite for Service – VC 22513

TOYS (Unassembled) – B&P 17531.1

U

UNASSEMBLED

Furniture – CC 1770(a)(11), (a)(12)

Toys – B&P 17531.1

UNFAIR

Competition – B&P 17200 et seq., CC 1770

Restraint of Trade – B&P 16600 et seq.

Trade Practices – B&P 17000 et seq.

UNIVERSAL PRODUCT CODE (UPC) DISCLOSURES – CC 7100 et seq.

UNLAWFUL DETAINER ASSISTANTS – B&P 6400 et seq.

Contract Cancellation – B&P 6410(d),(e)

Form Contract – 16 CCR 3890

UNLICENSED PROVIDERS OF GOODS OR SERVICES (Treble Damages) – CCP 1029.8

UNPAID WAGES – LC 203, 227.3

UNRUH CIVIL RIGHTS ACT – CC 51 et seq.

UNRUH ACT(Retail Installment Sales) – CC 1801et seq.

Add-on Sales – CC 1808.1 et seq.

Buyer Unable to Obtain Financing – CC 1803.9

Buyer’s Claims and Defenses – CC 1804.1et seq., 16 CFR Part 433

Contract – CC 1803.2 et seq., 1804.1

Default/Repossession – CC 1812.2 et seq.

Deficiency Judgment Prohibited – CC 1812.5

Delinquency Charges – CC 1803.6

Finance Charges – CC 1805.1 et seq., 1810.2

Penalties – CC 1812.6 et seq.

Retail Installment Accounts – CC 1810.1 et seq.

Sales by Mail/Telephone (Coverage of Act) – CC 1803.8

Security Interests – CC 1804.3

“Supervised Financial Organizations” – CC 1801.6

Venue – CC 1812.10

UNSOLICITED GOODS – CC 1584.5 et seq., 16 CFR Part 425

USED MERCHANDISE

Motor Vehicles – 16 CFR Part 455

Disclosure – B&P 17531, CC 1770(a)(6)

Federal Surplus – B&P 17531.5, 17533.5

Television Picture Tubes – B&P 17531.6 et seq.

Warranties (see Warranties) – CC 1795.5

USURY – Cal. Const., Art. XV, 1, CC 1916.1 et seq.

V

VEHICLE LEASING ACT – CC 2985.7-2993

Attorney’s Fees – CC 2988.9

Cooling off Period – CC 2985.8(e)

Damages – CC 2988.5

Defenses – 2986.10

Definitions – CC 2985.7

Disclosures – CC 2985.71

Lease Contract, Contents of – CC 2985.8, 2986.4

Prohibited Practices – CC 2985.8(i), 2986.3, 2986.6, 2986.12, 2989.4

Recisions – CC 2988.7

Refunds of Down payments – CC 2986.13

Reports to Consumer Credit Reporting Agencies – CC 2987(g)

Residual Value – CC 2988, 2989.2

Spanish Language forms – CC 2991

VIDEO EQUIPMENT REPAIR – B&P 9800 et seq.

VIDEO RENTAL RECORDS – CC 1799.3, 18 USC 2710

VOCATIONAL SCHOOLS (Private Postsecondary Education Act of 2009) – 94800 et seq.

Cancellation, Withdrawal, and Refunds – EC 94919 et seq.

Enrollment Agreements and Disclosures – EC 94902 et seq.

Identification Required for Recruiters – EC 94901

Prohibitions – EC 94897 et seq.

W

WARRANTIES

Arbitration Programs

All Consumer Products – 16 CFR Part 703

Conspicuous Disclosure Required – CC 1792.4

New Cars – B&P 472 et seq., CC 1793.22(d)

“As Is” Sales Com. Code 2316

No Implied Warranties - CC 1791.3,

Used Cars – 16 CFR 455.2

Waiver of Warranties by Buyer – CC 1792.5

Assistive Devices – CC 1793.02

Buyer’s Damages and Remedies- CC 1791.1(d), 1794, Com. Code 2714, 2715

Disclaimer – CC 1792.3-1792.5, Com. Code 2316, 2719

Express Warranties –, 1793, 1793.1, 1793.2, Com. Code 2313 et seq.

Defined – CC 1791.2

Implied Warranties -

Defined – CC 1791.1

Disclaimer – CC 1792.4, Com. Code 2316

Fitness – CC 1792.1, 1792.2, Com. Code 2315

Merchantability – CC 1792, Com. Code 2314

No Waiver – CC 1792.3

Leased Goods – CC 1795.4

Installation Standards – CC 1796

“Lemon Law” – CC 1793.22 et seq., 15 USC 2301 et seq.

Magnuson-Moss WARRANTY ACT – 15 USC 2301 et seq., 16 CFR Part 700 et seq.

Rejection of Goods – Com. Code 2601, 2602, 2606(1)(b), 2607(2)

Revocation of Acceptance of Goods – Com. Code 2608

Remedies Cumulative – CC 1790.4

Remedy Fails of Essential Purpose – Com. Code 2719(2)

Repair, or Replace, or Reimburse Provision – CC 1793.2(d)

Repair Standards- CC 1796.5

Returned “Lemon” Notice – CC 1793.22(f), 1793.23 et seq.

Service Contracts – CC 1794.4 et seq, B&P 9855 et seq.

Time Allowed for Repair – CC 1793.2(b),(d)

Tolling of Warranty Period – CC 1793.1(a)(2), 1795.6 et seq.

Used Goods – CC 1795.5

WATER TREATMENT DEVICES – B&P 17577 et seq.

Contract Cancellation – B&P 17577.3

WEIGHT LOSS CONTRACTS – CC 1694.5 et seq.

Contract Cancellation – CC 1694.7(b)

Death or Disability of Buyer – CC 1694.8(a)

Move/Transferability of Buyer – CC 1694.8(b)

WHEELCHAIR WARRANTY/DISCLOSURE REQUIREMENTS – CC 1793.025

WILLFUL OR NEGLIGENT ACTS – CC 1714

WORTH OR VALUE – B&P 17501, CC 1770(a)(13)

*****

Guide to Abbreviations:

B&P = California Business & Professions Code
Cal. Const. = California Constitution
CC = California Civil Code
CCP = California Code of Civil Procedure
CCR = California Code of Regulations
CFR = Code of Federal Regulations
Com. Code = California Commercial Code
Corp. Code = California Corporations Code
CPUC = California Public Utilities Commission
Ed. Code = California Education Code
Evid. Code = California Evidence Code
FC = California Financial Code
Fam. Code = Family Code
GC = California Government Code
H&S = California Health & Safety Code
Harb. & Nav. Code = California Harbors & Navigation Code
IC = California Insurance Code
PC = California Penal Code
PUC = California Public Utilities Code
R&T = Revenue and Taxation Code
USC = United States Code
VC = California Vehicle Code
“et seq.” = and the following sections

Stipulation Of Square Footage In Lease Does Not Insulate Landlord From Measurement Fraud Claim

timothymccandless — Sat, 03 Sep 2011 23:06:41 +0000

May 2008

Many commercial leases (including American Industrial Real Estate
Association (“AIREA”) forms) include a stipulation by the parties that
the premises contain a certain number of rentable square feet and that
such number will not be changed during the lease term, irrespective of
any subsequent measurements of the premises. The California Court of
Appeal, Second Appellate District, recently ruled that such provisions
do not insulate landlords from claims of fraud
and misrepresentation when it is later discovered that the stipulated
square footage was incorrect. (McClain v. Octagon Plaza, LLC (2008) 159 Cal.App.4th 784.)

Octagon Plaza, LLC, as landlord, and Kelly McClain dba A+ Teaching
Supplies, as tenant, entered into a commercial shopping center lease in
February of 2003 for a period of five years and two months. The parties
executed a standard form agreement prepared by the AIREA. The lease
described the size of the unit leased by McClain as “approximately 2,624
square feet” and attached a diagram of the shopping center. When
McClain was investigating whether to lease the unit in January of 2003,
she attempted to confirm the size and was told by Octagon that measuring
the unit would be “unreasonably costly due to the unit’s unusual
angles.” Octagon insisted it had “intimate knowledge” of the space and
that it was 2,624 rentable square feet. Because the base rent in the
shopping center was $1.45 per square foot per month, McClain’s resulting
base rent was $3,804.00 per month. Moreover, because the unit occupied
23 % of the shopping center, McClain would be responsible for a
corresponding share of the common area maintenance expenses.

Paragraph 2.1 of lease provided, in part, that “any statement of size
set forth in this Lease, or that may have been used in calculating
Rent, is an approximation which the Parties agree is reasonable and any
payments based thereon are not subject to revision whether or not the
actual size is more or less.” The lease further provided: “Lessee
acknowledges that: (a) it has been advised by Lessor … to satisfy
itself with respect to the condition of the Premises … and their
suitability for Lessee’s intended use, [and] (b) Lessee had made such
investigation as its [sic] deems necessary with reference to such
matters and assumes all responsibility therefore as the same relate to
its occupancy of the Premises…”

In early 2005, McClain discovered the correct size of the shopping
center was 12,800 square feet, rather than the 11,835 square feet
Octagon had used in calculating McClain’s share of the common expenses.
She also discovered her unit occupied approximately 2,438 square feet,
rather than the 2,624 square feet represented in the lease. Accordingly,
the base rent for the unit should have been $3,535.10 per month, rather
than $3,804.00, and McClain’s share of the common expenses should have
been 19 %, rather than 23 %. As a result, the lease as written
purportedly required her to pay “excess” rent of more than $90,000 over
the term.

McClain filed suit alleging, among other things, fraud by intentional
or negligent misrepresentation, breach of covenant of good faith and
fair dealing and failure to provide an accounting for common area
expenses.

With respect to the fraud claim, Octagon defended on the ground that
Paragraph 2.1 is an exculpatory provision that bars McClain’s claim. The
Court disagreed, noting that Civil Code § 1668 provides that “[a]ll
contracts which have for their object, directly or indirectly, to exempt
anyone from responsibility for his own fraud … whether willful or
negligent, are against the policy of the law.” The Court then stated
that “a stipulation intended to bar a party’s fraud claims does not bind
the party, and thus the insertion of language agreeing that a material
misrepresentation is reasonable is of no effect.”

With theses principles in mind, the Court found the language of the
lease, including the exculpatory clause in Paragraph 2.1, did not bar
McClain’s claim for fraud or a showing that the misrepresentations
reasonably induced her to accept the lease. The discrepancy between the
measurement in the lease and the true measurement was substantial. The
fact that Paragraph 2.1 put McClain on notice that the representations
of size were approximations does not preclude her from asserting that
they were, in fact, materially and unreasonably inaccurate.

Although the Court held McClain could state a claim for fraud, it
ruled she could not claim breach of the implied covenant of good faith
and fair dealing based on the allegation that Octagon negotiated a per
square foot price for the Premises and then intentionally, or
negligently, overstated the true size of the Premises. The basis for the
Court’s decision to deny this claim was that the “implied covenant is a
supplement to an existing contract, and thus it does not require
parties to negotiate in good faith prior to any agreement.”

The Court also denied McClain’s request for a declaration that she
was entitled to an accounting beyond that which Octagon previously
provided on the basis that the lease requires the parties to share the
common expenses of the shopping mall, but provides Octagon exclusive
management and control over those expenses. Octagon would have the right
to satisfy its obligation to provide a “reasonably detailed statement
of the expenses” in any reasonable manner it selects, including
providing McClain with copies of the pertinent documents or giving her
an opportunity to view the original documents. McClain would not be
entitled to dispute the need for expenses or to audit the records as she
requested.

In sum, the lesson here is that a landlord must be cautious in the
statements it makes during lease negotiations and in the lease with
respect to the size of a particular premises. If the statement is
incorrect, and the mismeasurement caused the tenant to pay more than it
should have and there is evidence that the landlord was aware of it or
discouraged the tenant from having the space re-measured, the standard
AIREA exculpatory clause (and similar clauses in non-form leases) will
not shield the landlord from a fraud claim.

Jury slams law firm with $103M verdict for working against client

timothymccandless — Sat, 03 Sep 2011 22:38:39 +0000

POSTED: 02:34 PM Wednesday, November 3, 2010
BY: Sylvia Hsieh, Dolan Media Newswires
TAGS: Baker & McKenzie, legal malpractice, verdict

A Mississippi jury has hit the world’s largest law firm with a $103 million verdict in a suit alleging legal malpractice, breach of fiduciary duties, conspiracy and interfering with business relationships.

A Texas businessman won a suit against Baker & McKenzie and senior counsel in its Dallas office, claiming that while representing him in several oil drilling deals from 2000 to 2006, they actually worked with his business partner behind his back, treating his company like a personal “piggy bank,” forcing litigation aimed at “bringing him to his knees” and ultimately driving his business into the ground.

“The activities of Baker & McKenzie led to the destruction of my client’s businesses,” said Mark A. Nelson, a partner at Bryan Nelson P.A. in Hattiesburg, Miss., and lead attorney for the plaintiff.

Baker & McKenzie argued at trial that the firm only represented the plaintiff on a limited matter, but according to Laurence E. Best, who represented cross-plaintiffs in the suit, the evidence of a long-term relationship was “overwhelming.”

“There was correspondence, documents, e-mails and even a few telephone messages from 2000 up until 2006. … The cumulative effect of the years and the documents was very strong evidence,” said Best, a partner at Best Koeppel in New Orleans.

Defense attorney James Brown of Liskow & Lewis in New Orleans declined to comment.

In a statement, Baker & McKenzie said, “We strongly disagree with the verdict,” and “we are confident we acted in a manner that was entirely consistent with our professional obligations.”

Attorney-client relationship

The two-week trial centered on whether an attorney-client relationship formed between 49 year-old oil drilling businessman S. Lavon Evans and Baker & McKenzie.

At trial, Baker & McKenzie denied that the firm represented either Evans or the cross-plaintiff Laredo Energy Holdings, said Best.

But, from the jury box, “all the documentation was crystal clear that [Baker & McKenzie] represented the plaintiffs,” said Eric Tiebauer, an attorney in Waynesboro, Miss., who also represented Evans.

The strongest piece of evidence was a check from Evans and his companies made out to Baker & McKenzie for legal services for over $7,000, Tiebauer said.

Evans was approached by a businessman named Reed Cagle to create a company to operate an oil rig, called Rig 12. It was Cagle who introduced Evans to Baker & McKenzie’s senior counsel in Dallas, Joel Held, according to the complaint.

The firm prepared documents forming Laredo Energy Holdings, giving Evans 51 percent and Cagle 49 percent ownership in the new company.

“Mr. Evans was supposed to contribute Rig 12 and Cagle was supposed to contribute [$5.6 million in] cash. But Cagle didn’t contribute cash; he actually mortgaged Rig 12 without the knowledge or consent of the majority interest holder, Mr. Evans,” said Best, who represented Laredo as a* This noscript section of this tag only cross plaintiff and won $22.4 million of the verdict against Baker & McKenzie.

Within two weeks of creating the operating agreement – which said that Evans wouldn’t mortgage the rig under any circumstances – Baker & McKenzie was working with Cagle to saddle the company with $7 million in debt, the plaintiffs argued. This put a cloud over the title of Rig 12 and another rig owned by Evans, Rig 11, they claimed.

Evans argued that Baker & McKenzie also helped the insolvent Cagle create subsidiary companies of Laredo without Evans’ knowledge, siphoning off more than $8 million for Cagle’s own benefit.

Eventually, Rigs 11 and 12 were both seized by the sheriff and sold at auction to satisfy debts, said Best.

A loan document mortgaging Rig 12 allegedly without Evans’ knowledge or consent was introduced at trial, and the most telling trial moment was when Baker & McKenzie attorney/defendant Joel Held was cross-examined about the document, said Tiebauer.

Held testified that he didn’t think the document referred to Rig 12, even though it mentioned Rig 12 by name.

“I can’t tell you how many times that document contained ‘Rig 12′ – four to six times. His testimony was that in his opinion it referred to Rig 11. I don’t think the jury found that to be credible,” said Tiebauer.

Two styles

The jury may have been struck by a few contrasting styles in the courtroom.

On one end, the defense table for the world’s largest law firm, with gross revenues topping $2.1 billion in 2009, was populated with lawyers, paralegals and tech assistants.

“They had a very large presence in the courtroom,” said Best.

On the other side, the plaintiffs’ attorneys used a benchbook of exhibits and the court-provided overhead projector to display exhibits, he said.

There was also a stark difference between Evans and the two key defense witnesses.

Evans came across as a modern day cowboy, in contrast to Held, a 71-year-old East Coast lawyer with a heavy Boston accent, said Best.

Cagle, who testified by video, appeared to be a well-manicured, self-described “money man” – whose job it was to raise money, not drill – and “not at all a cowboy-type,” said Best.

The defense argued that Evans, as an astute businessman in the rough and tumble oil industry, knew what he was doing, succeeded in convincing the jury to allocate 10 percent of comparative fault to him.

The jury, which included an oil rig crew worker and an accounting clerk, waded through 300 exhibits such as complex business transactions such as mineral leases, joint venture formation, security agreements and the financing of drilling equipment, as well as testimony from several experts about the duties of a law firm.

But Best suggested that the jury – which awarded the amount of damages that both the plaintiff and cross-plaintiff asked for – could also have reached its conclusion with a dose of common sense.

“If a lawyer with Baker & McKenzie sat preparing documents for [Evans], talking to him, advising him on contracts and other matters, [and] then denies it, that’s not a credible defense that you can sell to lay people. … To a non-lawyer, if it looks like a duck and sounds like a duck, it must be a duck,” said Best.

Sylvia Hsieh is a reporter with Lawyers USA, a sister publication of New Orleans CityBusiness

Lease Accounting 101: Tenants Suing Landlords For Fraud And Maintenance Expenses

timothymccandless — Sat, 03 Sep 2011 22:31:41 +0000

Kelly McLain leased space in a small, strip mall for her A+ Teaching Supplies
store in Valencia, California. Her landlord, Octagon Plaza, LLC
represented the space she would lease was approximately 2,624 square
feet, and that her store was 23% of the entire mall, so she also had to
pay 23% of the common area maintenance charges based on 11,835 square
feet in the mall. Her rent was $1.45 per square foot, making her base
rent (before CAM charges) $3,804.

No, the next question is not going to be: if one train left the station at 3:12 p.m. traveling west
at 54 miles an hour and another train left the station at 3:36 p.m. on
the opposite side of town travelling east at 36 miles an hour, then when
will they meet?

The question here is whether a tenant can sue her landlord for fraud and to what extent can she obtain an accounting of
the CAM charges?

The lease allowed her to verify the square footage of the store, and when she sought to do so, her landlord became
offended that she would question the integrity of the representation, so she accepted the measurement as is.

Unfortunately, the space was smaller and the shopping center was bigger. Kelly obtained a copy
of Octagon’s application for earthquake insurance, which listed the
overall size of the mall at 12,800 square feet and her space slightly
smaller at 2,438. At that size, she would have been responsible for
only 19% of the CAM charges and her base rent would have been lower at
$3535 per month.

The trial court ruled based on those facts that she wasn’t able to establish fraud, but the court of appeal reversed, noting that over the term of her lease, the difference amount to $90,000 in rent, despite the slight monthly differences.

The
appellate court also ruled that Kelly’s lease provision entitling her
to inspect and verify the basis for the CAM charges allowed her to do
just that, and required Octagon to open its records to her. When you
read the opinion, you’ll discover the relationship between the tenant
and landlord was much more acrimonious than I’ve described here, so
you’ll probably guess that Kelly wanted to do more than verify the CAM
charges, she wanted to be able to disallow those she thought were
unnecessary. The court granted her access to the records, but stopped
short of giving her a vote based on the language in the lease.

By the way, the Octagon Mall is presently listed for sale
at $6,800,000, with its square footage listed at 11,835, with seven
tenants. No word whether A+ Teaching Supplies is still there.

What are the benefits of an audit to the tenant?

timothymccandless — Thu, 01 Sep 2011 05:17:53 +0000

Annual Lease Audits are an essential tool for companies to assure appropriate expense control. Facility costs often represent the second largest single expense category after payroll.

The benefits to tenants who audit their leases with McCandless Law Firm include

	•		Our clients realize immediate and future financial savings by identifying errors and overcharges made by their landlords
	•		The negotiation of refunds or credits, is managed by a bona fide team of lease audit experts who represent the tenant’s interests, while protecting their relationship with their landlord
	•		By outsourcing to experienced lease audit professionals, companies can reduce the burden on their real estate and accounting staffs
	•		Companies can deter future overcharges by signaling to their landlord that the tenant is aware of the terms of their lease
	•		McCandless Law firm will complement our client’s real estate team (brokers, attorneys, negotiators, etc.) by identifying potential improvements for language in future leases We will initiate a lawsuit to Protect your rights and the rights of other tenants at no upfront costs to you only a percentage of the savings

How do I know if I have the right to audit my lease?

timothymccandless — Thu, 01 Sep 2011 05:13:24 +0000

The majority of leases include explicit language pertaining to audit rights. This language may include information governing audit timing, audit procedures, audit costs, and dispute resolutions.

Some leases include no language whatsoever concerning audit rights. In such cases, landlords sometimes assert that a tenant has no rights. However, where leases are silent on audit rights, the proper interpretation is that the tenant does indeed have audit rights as prescribed by law (e.g. good faith and fair dealing).

Since the courts have historically sided with tenants in the few cases brought before them on this subject, landlords typically soften their stances and provide audit rights after engaging in discussion on this topic.

What is a lease audit?

timothymccandless — Thu, 01 Sep 2011 05:12:03 +0000

A lease audit is a systematic process comprised of the examination of all documents associated with your lease, invoices and other correspondance from the landlord, as well as data from other sources to determine whether charges assessed by the landlord under a tenant’s lease have been proper. RTG’s goal is to identify errors and overcharges by landlords that will lead to rent refunds and future savings for tenants.

A lease audit is also commonly referred to as a Rent Audit, a CAM Audit, an Escalation Expense Audit, Lease Compliance Consulting, or a Lease Review.

Typically, we look closely at things like base rent, operating expenses, common area maintenance charges, real estate taxes, etc.

Dissecting the Lease: CAM Charges

timothymccandless — Thu, 01 Sep 2011 05:09:19 +0000

By Jennifer Duell Popovec

One of the most complicated elements of a medical office lease is common area maintenance fees, also known as CAM charges. If you don’t understand CAM charges and their impact on your monthly operations costs, you might be in for a surprise when you receive your rental statement.

Here, Medical Office Today offers an in-depth look at CAM charges and what you can to do work with your landlord to limit these expenses.

CAM charges are expenses incurred in maintaining the common areas of a building. They include everything from property taxes and insurance to landscaping and janitorial. These fees are not static – they can increase or decrease over the course of your lease, depending on the landlord’s expenses. For example, if property taxes increase for your medical office building, that translates into higher CAM fees.

Tenants end up paying a pro rata share of these CAM expenses – an additional $8 to $15 per square foot on top of the base monthly rent, depending on the quality of the building. CAM charges should directly relate to how a building is managed – a nicer building, for example, will have higher CAM expenses than a so-so building.

“CAM charges are greatly misunderstood, and in many instances, physician practices will enter into lease agreements and be surprised when it turns out that they have a CAM expense obligation,” says Scott Kuklish, executive vice president and managing director for PM Realty Group’s healthcare division. “It ends up being an emotional issue because people don’t pay enough attention to CAM charges.”

Estimating CAM charges

The type of lease you have in place determines whether you have an obligation to pay monthly CAM charges in addition to your monthly rent. Don’t be fooled – tenants end up paying CAM charges in one way or another, regardless of their type of lease, but the difference is whether the CAM charges are included in the monthly rent or added on top of it.

If you have a full-service or gross lease, you don’t have to worry about the extra expense of CAM charges because all building maintenance costs are already rolled in the rental rate. Net leases, on the other hand, do not roll CAM charges into the base rent. If you have a net lease, you are obligated to pay CAM fees. (That’s why rental rates for full-service and gross leases generally exceed rental rates for triple-net leases.)

In the past, CAM charges only applied to tenants in retail centers. Today, tenants in nearly every property type, from office to industrial, are subject to CAM charges.

When you sign a lease, whether it’s a new lease or a renewal, the amount of CAM charges you are required to pay will be outlined in the lease. However, the amount is only an estimate; it is based on the landlord’s annual operating budget.

The actual amount that you will owe might be more or less than what the landlord budgets. For example, if the building’s elevator needs to be replaced and that is an expense the landlord did not budget for, that elevator will increase your CAM charges.

CAM charges are adjusted on an annual basis, usually within the first three months of the calendar year. You will receive a notice that CAM fees have been recalculated based on how much money was spent during the previous year. If total expenses exceeded the budget outlined in your lease, you may owe additional CAM fees from the previous year, Kuklish notes.

As a tenant, you have the right to request a copy of the operating budget for review. Additionally, you should work with your landlord to understand how the CAM charges are estimated and what your estimated pro rata share will be.

While leases may outline expenses, they rarely offer specific details on quality or frequency of maintenance. If you are concerned about specific maintenance issues – you have a pet peeve about clean restrooms, for example – you need to include language within your lease if you to ensure that your landlord will invest operating dollars to your satisfaction.

“When you sign a lease, it’s very important to understand where and how the landlord spends money to maintain and operate the building,” Kuklish says.

Efficient building operations

The amount medical tenants can expect to pay in CAM charges will vary, depending on the location in the U.S. and the type of property, says Sonny O’Drobinak, medical specialist with global real estate services firm Grubb & Ellis Co.’s Walnut Creek, Calif., office.

Typically medical office buildings have higher maintenance and operating expenses because they are classified as improved property, which means they have higher property taxes and insurance costs.

“We see CAM costs continuing to increase,” Kuklish says. “The major expenses are insurance, utilities and property taxes, which have doubled and tripled in some areas.” However, he notes that landlords have an obligation to manage their buildings prudently because their management decisions have a direct impact on what tenants end up paying for CAM charges.

In general, CAM charges reflect the state of the economy, O’Drobinak notes. When times are tough, owners and landlords push their vendors to keep expenses to a minimum. However, at some point these vendor costs will escalate based upon inflation factors of material, supplies and labor expenses, he adds.

Sophisticated tenants have language within their leases that addresses the idea of the landlord competitively bidding expenses annually, as well as appealing tax assessments to keep the expenses in focus and reduced, O’Drobinak explains.

It’s important to point out that most landlord try to operate and maintain their buildings efficiently and cost effectively. It’s rare to find an owner or landlord that spends wily-nily without care or cause.

“Landlord’s are subject to market competition, and therefore manage their properties to keep expenses to a minimum,” O’Drobinak contends. “If expenses are too high, prospective and existing tenants will go to buildings that have lower expenses.”

Ways to reduce CAM charges

As a medical tenant, there are things that you can do as part of lease negotiations to help yourself and to reduce your CAM charges.

One of the most effective ways to protect yourself from escalating CAM charges is to negotiate a maximum limit for CAM charges within your lease. This basically caps the amount of CAM fees that you are required to pay, regardless of whether the landlord’s CAM budget increases or decreases.

“Generally, landlords don’t want to cap CAM charges,” Kuklish admits, pointing out that it’s certainly not in their best interest to absorb unexpected expenses. “Yet if you are in a competitive environment, there are landlords who will agree to do so because they want to fill their buildings.”

O’Drobinak says most owners are more apt to negotiate base rental rates than CAM fees. Moreover, your ability to negotiate a cap on CAM expenses depends on your desirability as a tenant and how much the landlord wants you in the building. It also is based on how much space you will occupy.

In addition to capping CAM expenses caps, tenants can request that their heating and cooling be metered separately so they pay only for their own usage. If you don’t meter your space separately, you may end up paying for the tenant down the hall who has the A/C on full blast while wearing sweaters.

Additionally, both Kuklish and O’Drobinak suggest that physicians take a proactive approach to the maintenance of the buildings in which they have offices. By keeping an eye on janitorial, landscaping and other operations, tenants can make landlords aware of waste and mismanagement.

“Keeping the landlord informed about issues that might create additional expenses such as faulty lighting timers and broken irrigation lines that increase utility expenses is one way to keep expenses lower,” O’Drobinak says.

If you see sprinklers watering the sidewalk or trash piling up in the dumpster, go ahead and tell your landlord. “It’s a joint effort, and it’s entirely appropriate to bring these issues to the attention of your landlord or property manager,” Kuklish says. “Reduced CAM charges benefit both landlords and tenants.”

Working with Your Landlord to Reduce CAM Charges

timothymccandless — Thu, 01 Sep 2011 05:06:02 +0000

By Daniel Casciato

If your medical practice plans to lease commercial space in a building with multiple tenants, you’ll have to factor in those pesky Common Area Maintenance (CAM) charges.

These are the costs incurred by the landlord that provides a benefit to all of the tenants collectively, such as maintenance and improvement costs associated with the property’s elevators, hallways, lobbies, restrooms, janitorial services, parking lots, sidewalks, and anything else that is shared among the tenants.

“For property that is leased to a medical practice, the CAM expenses are no different as they generally have the same common areas as any other commercial property,” says C. Mina Kim, a real estate attorney with Los Angeles-based Schorr Law PC.

As with any aspect of your medical office lease, CAM expenses can be negotiated, but first you need to understand what CAM charges your practice is responsible for and how these charges are being calculated.

Scrutinize the charges

Landlords have a duty to tell tenants what they are going to include in the CAM charges, according to Joanne Fanizza, an attorney who practices law in New York and Florida. From there, you can then negotiate what you might have to pay.

“Commercial leases should set forth specifically what the landlord is going to provide for CAM and the type of costs that the landlord will incur,” she says. “And this is where a savvy tenant can be an eagle eye.”

For instance, Fanizza has seen some commercial leases where the landlord incurred advertising expenses to draw commercial business to the property. However, for a medical office, that expense might not pertinent.

“For a client who has a restaurant, that expense is important,” she says. “If a medical provider sees that a landlord wants to include the cost of advertising to draw businesses as part of their CAM charges, that is probably something a medical office doesn’t need, and you can negotiate that portion of the CAM out.”

Kim notes that the most common dispute arising out of CAM expenses is whether the amount of CAM expenses charged to the tenant is valid. “Unfortunately, many commercial leases do not contain a provision permitting tenants to audit or request an accounting of the CAM expenses,” she says.

When there is no provision in the lease permitting the tenants to audit or request an accounting, the tenant is unable to verify that the expenses were properly and fairly calculated. Without a right to audit or request an accounting, landlords are also more likely to get away with fraudulent overcharges to the tenants.

“Accordingly, tenants should negotiate to include a provision in the lease permitting them to audit or request an accounting, if such a provision is not already in the lease,” Kim advises.

Determine how CAM expenses are calculated

After you ask for a clear list of what is included in the CAM charges and make sure it’s pertinent to your practice, Fanizza then recommends asking for the formula that the landlord is using to figure each tenant’s CAM. For example, if you are in a facility that has 100,000 square feet of rental space and you occupy 10,000 square feet, you should be properly charged 1/10 of the landlord’s overall costs for CAM.

“It’s important to know the divisor,” stresses Fanizza.

Kim agrees: “In most commercial leases, the CAM expenses will be allocated to each tenant based on the proportion of space the tenant leases relative to the entire property.”

That is another reason why it’s important to understand what is included in the CAM expenses, Kim points out. “Medical practices may be particularly impacted when utility costs are included as a CAM expense,” she adds. “When medical practices use high energy equipment in their property, as they often do, the utility costs included in the CAM expenses can be quite significant.”

Therefore, Kim says that is important to consider the types of equipment that are used throughout the property and whether it is reasonable for your office to share in such expenses.

“If the lease does not specify what is included as CAM expenses, the tenant should ask the landlord what they are and ask to include them into the lease,” she says. “Indeed, tenants can negotiate what is included in the CAM expenses, as well as negotiate a cap on the amount the fees can increase each year.”

Finally, Fanizza says to make sure you are not going to be charged for CAM if there are vacancies. “You don’t want to be hooked for a vacant property’s portion of the CAM,” she says. “If there’s a vacant 1,000-square-foot premise, make it the landlord’s problem. Make sure the lease is clear that the CAM charges apply strictly to your square footage.”