Commercial vs Residential Use, Property Damage Liability and Lawful Detainers

We defended the owner of a commercial property (a lender that had foreclosed and credit bid at the foreclosure sale) in a civil action by the former tenant of the property that had been evicted in an unlawful detainer action we prosecuted for the owner/lender.

• The former tenant alleged property damage and emotional distress caused by the condition of the property, a mixed-use retail space in San Francisco.
• The former tenant also alleged that he had a residential lease with the prior owner of the property (the borrower) and that our client was required to maintain the property in a condition suitable for use as a residence, rather than as a commercial space.

Through thorough investigation and depositions, we were able to highlight the weaknesses of the former tenant’s case while also underscoring the tremendous burden the former tenant would face at trial to establish that the lease was residential rather than commercial, and to establish liability and damages.

We achieved a very favorable resolution for our client through mediation, which further resulted in substantial savings to our client in defense costs and attorney fees. With the costs of Real Estate litigation constantly on the rise, our firm remains vigilant in its efforts to achieve the best resolution of a case in the most cost-effective manner.

PLP: Commercial Real Estate Attorneys serving Oakland and the San Francisco Bay Area

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