Parkmerced Co. v. San Francisco Rent Stabilization & Arbitration Bd

In Parkmerced Co. v. San Francisco Rent Stabilization & Arbitration Bd. (1989) 215 Cal. App. 3d 490, the tenant's sister was listed on the lease. When the tenant moved out, the sister signed a separate agreement at a rate determined as though a vacancy had occurred. (Id. at p. 492.) The court held that the sister had been a tenant under the definition of the rent ordinance prior to her brother's departure from the property and entitled to the tenancy without an increase due to vacancy. (Id. at p. 494.) This determination was based on two grounds: that she was listed as an occupant on her brother's lease and that she had paid, and the landlord had accepted, rent. (Ibid.) The court stated: "There is absolutely no indication that this protection was intended to be limited to those tenants who sign formal lease agreements. "It is well settled that remedial legislation, such as the rent control ordinance at issue, must be liberally construed to effect its purposes. In contravention of this principle, Parkmerced urges us to adopt a narrow and unduly restrictive interpretation of the Rent Ordinance which would undermine the intent of the legislation and deny rent control protection to a long-term resident who occupied her apartment with the owner's knowledge and consent, albeit without a formal lease. We decline to do so." (Parkmerced, supra, 215 Cal. App. 3d at pp. 495-496.)