VENTURA, Calif. — California's 2nd Appellate District has affirmed judgment for a landlord sued by tenants who claimed entitlement to 13 years back rent because of mold problems. Dixon v. Morehart Land Co., No. B174956 (Calif. Super., Ventura Cty.).

The court, in an unpublished opinion, held that Fred and Jinger Dixon were not entitled to recover their $1,250 security deposit, nor did they provide the trial court with any reason to order return of $107,000 in rent paid under a long-term lease agreement.

The Dixons first raised their habitability claims after Morehart Land Co. served them with a 30-day notice to quit their Ventura, Calif., residence, and followed with an unlawful detainer action in May 2002. That action was settled, but the Dixons didn't vacate the premises until August 2002.

The Dixons had first rented the premises in 1989 with a month-to-month sublease, and in 2002 renegotiated the sublease and agreed to pay the same rent, $650 per month, but increase the security deposit from $200 to $1250.

The Dixons sued Morehart in March 2003 for nuisance, negligence per se, uninhabitability and an accounting of the security deposit. The couple alleged that during the entire term of the lease, their residence had mold behind walls, salt water intrusion in the well water, and a hole in the roof.

The Ventura County Superior Court granted Morehart's demurrer to all claims save for the accounting of the security deposit. The court found for Morehart on that claim at trial, citing the Dixon's stay beyond the notice to quit the premises.

In affirming on the habitability issue, the Court of Appeals said even if the trial court erred in sustaining Morehart's demurrer, the Dixons failed to provide sufficient evidence of water intrusion or other major housing code violations sufficient to prove a lack of habitability.

The court concluded, '[t]he Dixons believe they are entitled to the return of all the rent they paid over 13 years, even though they had the enjoyment of the premises during that time, did not complain of serious defects, and held over three months past the thirty-day notice to quit. Normally, one may not obtain damages upon a fully executed contract.'

James T. Holmes of Howe & Holmes in Ventura represents the Dixons.

Terrence J. Bonham of Benton, Orr, Duval & Buckingham in Ventura represent Morehart Land Co.
Related Document: Unpublished Opinion - MOL-0505-08 (PDF format)
 

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