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  • MEL MURPHY ET AL VS. RESIDENTIAL RENT STABILIZATION AND ARBITRATION WRITS OF MANDATE OR PROH., CERTI., ETC./ADMIN. AGEN document preview
  • MEL MURPHY ET AL VS. RESIDENTIAL RENT STABILIZATION AND ARBITRATION WRITS OF MANDATE OR PROH., CERTI., ETC./ADMIN. AGEN document preview
  • MEL MURPHY ET AL VS. RESIDENTIAL RENT STABILIZATION AND ARBITRATION WRITS OF MANDATE OR PROH., CERTI., ETC./ADMIN. AGEN document preview
  • MEL MURPHY ET AL VS. RESIDENTIAL RENT STABILIZATION AND ARBITRATION WRITS OF MANDATE OR PROH., CERTI., ETC./ADMIN. AGEN document preview
  • MEL MURPHY ET AL VS. RESIDENTIAL RENT STABILIZATION AND ARBITRATION WRITS OF MANDATE OR PROH., CERTI., ETC./ADMIN. AGEN document preview
  • MEL MURPHY ET AL VS. RESIDENTIAL RENT STABILIZATION AND ARBITRATION WRITS OF MANDATE OR PROH., CERTI., ETC./ADMIN. AGEN document preview
  • MEL MURPHY ET AL VS. RESIDENTIAL RENT STABILIZATION AND ARBITRATION WRITS OF MANDATE OR PROH., CERTI., ETC./ADMIN. AGEN document preview
  • MEL MURPHY ET AL VS. RESIDENTIAL RENT STABILIZATION AND ARBITRATION WRITS OF MANDATE OR PROH., CERTI., ETC./ADMIN. AGEN document preview
						
                                

Preview

ELECTRONICALLY 1 MICHAEL G. SCHINNER (SBN 142363) DENISE R. PRITCHARD (SBN 346469) FILED Superior Court of California, 2 SCHINNER & SHAIN, LLP County of San Francisco 96 JESSIE STREET 3 SAN FRANCISCO, CA 94105 03/06/2024 Telephone: (415) 369-9050 Clerk of the Court BY: DAEJA ROGERS 4 Fax: (415) 369-9053 Deputy Clerk 5 Attorneys for PETITIONERS MEL and NUANNOI MURPHY 6 7 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 COUNTY OF SAN FRANCISCO 10 UNLIMITED JURISDICTION CPF-24-518485 11 12 MEL and NUANNOI MURPHY, CASE NO.: ______________ 13 PETITIONERS NOTICE AND VERIFIED PETITION FOR WRIT OF ADMINISTRATIVE MANDAMUS (CCP § 14 vs. 1094.5); MEMORANDUM OF POINTS AND 15 AUTHORITIES IN SUPPORT OF PETITION RESIDENTIAL RENT STABILIZATION FOR WRIT OF ADMINISTRATIVE 16 AND ARBITRATION BOARD CITY & MANDAMUS; EXHIBITS; DECLARATION COUNTY OF SAN FRANCISCO, FROM PETITIONERS ATTORNEY IN 17 SUPPORT; AND [PROPOSED] ORDER RESPONDENT. GRANTING PETITION 18 19 Remote Appearance 20 DATE: April 11, 2024 TIME: 9:00 a.m. 21 DEPT.: 501 22 23 TO ALL PARTIES AND THEIR COUNSEL OF RECORD HEREIN: 24 PLEASE TAKE NOTICE that on April 11, 2024, at 9:00 a.m., or soon thereafter as the 25 matter may be heard in in Department 501, with the Honorable Charles F. Haines presiding, 26 PETITIONERS MEL and NUANNOI MURPHY (“Petitioners”) will and hereby does move and 27 petition the Court by this Ex Parte Application for a peremptory writ of administrative mandamus, 28 Verified Petition for Writ of Mandate 1 1 pursuant to Code of Civil Procedure section 1094.5 to compel RESPONDENT RESIDENTIAL 2 RENT STABILIZATION AND ARBITRATION BOARD CITY & COUNTY OF SAN 3 FRANCISCO (“Respondent Rent Board”), to set aside its decision of January 17, 2023, and 4 subsequently on November 6, 2023, denying Petitioners appeal (Appeal No. AL220057; Original 5 No. T220449) for the real property located at 1756 Broadway Street #7, San Francisco, California 6 7 (the “Property”), and to reconsider Petitioners case on the basis of relevant evidence that, in the 8 exercise of reasonable diligence, was improperly excluded at the hearing before Respondent Rent 9 Board. In support, Petitioners allege as follows: 10 PARTIES 11 1. Petitioners MEL MURPHY and NUANNOI MURPHY are residents of the City and 12 County of San Francisco, California. On or about November 6, 2023, Respondent Rent 13 Board issued a final decision through oral communication to the Petitioners attorney, 14 15 Michael G. Schinner, Esq., denying the Petitioners appeal for reconsideration of 16 Respondent Rend Board’s decisions issued on November 28, 2022 (Original No. 17 T220449) and subsequently on January 17, 2023 (Appeal No. AL220057), of which 18 action Petitioners seek review by this Court. A true and correct copy of the Petitioners 19 appeal for reconsideration is attached hereto as Exhibit A. 20 2. Respondent Rent Board is an agency of the City of San Francisco authorized to interpret 21 and enforce San Francisco’s Residential Rent Ordinance. It is the agency that has taken 22 23 the action by which Petitioners are aggrieved and of which Petitioners seek review by 24 this Court. 25 JURISDICTION AND VENUE 26 3. This Court has jurisdiction to issue writ of mandate pursuant to Code of Civil Procedure 27 section 1094.5. 28 Verified Petition for Writ of Mandate 2 1 4. Venue is proper in this Court to pursuant to California Code of Civil Procedure section 2 392 because San Francisco County is the county where the real property that is the 3 subject of this action is situated. 4 5. Petitioners have no plain, speedy and adequate remedy at law. 5 GENERAL ALLEGATIONS 6 7 6. The Property is located at 1756 Broadway Street in San Francisco. The building consists 8 of approximately seven residential units. There are no commercial units. 9 7. On or around July 26, 2021, Petitioners purchased the Property from Mr. Jonathan 10 Tourzan and received a rent roll in escrow listing the rent for Mr. Petr Seckar (the 11 “Tenant”) as $1,450 per month, and a closing statement listing Tenant’s deposit as 12 $1,500. 13 8. On June 1, 2022, Petitioners, as the new Landlord of the Property, increased Tenant’s 14 15 monthly rent from $1,450 to $1,483.35, and provided Tenant with a written notice of the 16 rent increase. 17 9. On May 24, 2022, a petition (Case No. T220449) was filed by Tenant with Respondent 18 Rent Board alleging that Petitioners increased the rent over the allowable limits and 19 requesting a determination of Tenant’s lawful rent. 20 10. On August 25, 2022, a hearing was held by Respondent Rent Board, and the record was 21 closed September 1, 2022. 22 23 11. During the hearing before Respondent Rent Board, Tenant testified moving into the 24 vacant subject unit #7 on April 1, 2011, and paying the owner, John B. Hoagland Living 25 Trust, an initial base rent of $500 per month. Tenant stated that the initial monthly base 26 rent was not increased and remained at $500 per month from move-in date until August 27 31, 2016. Tenant further testified that on or around September 16, 2016, the owner of the 28 Verified Petition for Writ of Mandate 3 1 Property at the time, Mr. Tourzan, orally raised the tenant’s rent from $500 to $1,450 per 2 month, requested a deposit of $1,500 per month, refused to accept the Tenant’s $500 rent 3 for September 2016, and told Tenant through text message exchanges that Tenant could 4 move out of the building if Tenant did not pay the higher rent. Tenant further testified 5 that he paid rental obligations of $1,450 per month to the landlords of the Property from 6 7 September 2016 through May 2022. 8 12. On November 28, 2022, the Administrative Law Judge, Michael J. Berg, granted the 9 Tenant’s petition and determined that Petitioners were liable for the sum of $40,981.10 to 10 the Tenant for rent overpayments for the period from May 1, 2019, through November 11 20, 2022. A true and correct copy of the Respondent Rent Board’s decision for Case No. 12 T220449 is attached hereto as Exhibit B. 13 13. In December 2022, Petitioners timely filed an Appeal (Appeal No. AL220057) to 14 15 Respondent Rent Board for the Property, which was denied on January 17, 2023. A true 16 and correct copy of the Respondent Rent Board’s final decision for Appeal No. 17 AL220057 is attached hereto as Exhibit C. 18 14. On March 3, 2023, Petitioners became aware of new facts and information that was 19 improperly excluded at the hearing before Respondent Rent Board, including Tenant’s 20 special relationship with the prior owner of the Property (the “John B. Hoagland Living 21 Trust”), that Tenant paid a significantly lower rent for his unit at the Property as a result 22 23 of an employment agreement with the prior owner of the Property, and Tenant negotiated 24 and agreed to the rent increases proposed by Mr. Tourzan in September 2016. 25 15. In July 2023, Petitioners obtained declarations from Mr. Tourzan’s real estate agent, Ms. 26 Mirella Webb, and Petitioners real estate agent, Ms. Lucy Yeung, providing support for 27 Petitioners appeal to Respondent Rent Board and setting forth the new facts and 28 Verified Petition for Writ of Mandate 4 1 circumstances that each became aware of on March 3, 2023. 2 16. In November 2023, Petitioners filed an appeal to Respondent Rent Board asking for 3 reconsideration of the Petitioners case as a result of the newly discovered evidence that 4 by due diligence was not discovered until after the hearing before Respondent Rent 5 Board; however, on November 6, 2023, Respondent Rent Board through telephone 6 7 communications to Petitioners Attorney, Michael G. Schinner, denied Petitioners appeal 8 and refused to re-open Petitioners case. 9 FIRST CAUSE OF ACTION 10 (Writ of Mandate Against Respondent Rent Board) 11 17. Petitioners incorporate by this reference each and all of the allegations of Paragraphs 1 12 through 16 hereof, as if fully set forth herein. 13 18. Petitioners are filing this Petition for Writ of Administrative Mandamus (Code of Civil 14 15 Procedure Section 1094.5) on the grounds that Respondent Rent Board’s findings are not 16 supported by the weight of the evidence and there is relevant evidence that, in the 17 exercise of reasonable diligence, was improperly excluded at the hearing before 18 Respondent Rent Board. 19 19. As a result of the Tenant’s improper exclusion of relevant evidence during the hearing 20 before Respondent Rent Board, Petitioners were wrongfully held liable to Tenant for 21 refunds of rent overpayments in the amount of $40,981.10. 22 23 20. After becoming aware of relevant evidence not disclosed or otherwise available at 24 hearing before Respondent Rent Board, the Petitioners obtained declarations from 25 Petitioners real estate agent (Ms. Lucy Yeung) and Mr. Tourzan’s real estate agent (Ms. 26 Mirella Webb) and subsequently filed a motion for reconsideration to Respondent Rent 27 Board in order for the new or different facts and circumstances to be considered. 28 Verified Petition for Writ of Mandate 5 1 21. Respondent Rent Board’s final decision to sustain its original findings and not reopen 2 Petitioners case is an abuse of discretion, in that such penalty is disproportionately harsh 3 and excessive to Petitioners. 4 22. Pursuant to Code of Civil Procedure section 1094.5, Petitioners are entitled to relief by 5 this Court to set aside Respondent Rent Board’s final decision and reconsider Petitioners 6 7 case in light of relevant evidence improperly excluded from the hearing before 8 Respondent Rent Board. 9 23. At all times herein, Petitioners exhausted all administrative remedies available, and as 10 such, Petitioners have no plain, speedy, or adequate remedy in the original course of the 11 law, other than relief sought by this Petition. 12 24. Pursuant to Code of Civil Procedure Section 1094.5. Petitioners seek review and request 13 the opportunity to submit the relevant evidence that was improperly excluded at hearing 14 15 before the Respondent Rent Board. 16 SECOND CAUSE OF ACTION 17 (Declaratory Relief) 18 25. Petitioners incorporate by this reference each and all of the allegations of Paragraphs 1 19 through 24 hereof, as if fully set forth herein. 20 26. An actual controversy exists between the parties concerning their respective rights and 21 duties because Petitioners contend that Tenant of the Property, Mr. Petr Seckar, 22 23 improperly excluded relevant evidence at the hearing before the Respondent Rent Board, 24 and, as such, Respondent Rent Board determined that the annual allowable rent increase 25 should be calculated on a base rent of $500, instead of $1,450, thereby making 26 Petitioners liable for the sum of $40,981.10 to Tenant for rent overpayments for the 27 period from May 1, 2019 through November 20, 2022. 28 Verified Petition for Writ of Mandate 6 1 PRAYER 2 WHEREFORE, Petitioners respectfully pray as follows: 3 1. Under the First Cause of Action, that a peremptory writ of administrative mandamus 4 issue under seal of this Court commanding Respondent Rent Board to set aside its 5 decision and reconsider Petitioners case in light of the relevant evidence improperly 6 7 excluded at the hearing before Respondent Rent Board; 8 2. Under the Second Cause of Action, that this Court grant Petitioners declaratory relief; 9 3. Under each Cause of Action, this Court award Petitioners their costs of suit herein, 10 including out-of-pocket expenses and reasonable attorneys’ fees; and 11 4. Under each Cause of Action, that this Court grant Petitioners such other, different, or 12 further relief as the Court may deem just and proper. 13 Respectfully Submitted, 14 15 Dated: March 5, 2024 SCHINNER & SHAIN, LLP 16 17 ___________________________ MICHAEL G. SCHINNER 18 Attorneys for PETITIONERS MEL and NUANNOI MURPHY 19 20 21 22 23 24 25 26 27 28 Verified Petition for Writ of Mandate 7 1 EXHIBIT A 2 3 COPY OF PETITIONERS APPEAL TO RESPONDENT RENT BOARD 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Verified Petition for Writ of Mandate 9 San Francisco Residential Rent Stabilization and Arbitration Board NOTE: Any party may appeal the Decision of the Administrative Law Judge. Such appeal must be filed no later than fifteen (15) calendar days after the date of mailing of the Administrative Law Judge’s Decision. The filing of a timely appeal will stay only that portion of the Administrative Law Judge’s Decision that permits payment, refund, offsetting or adding rent. If you are filing a late appeal, you must state the reason in writing and include it with your appeal so that the Board can determine if there is good cause for the untimely filing. The filing of an untimely appeal does not stay any portion of the Administrative Law Rent Board Date Stamp Judge’s decision. APPEAL TO THE BOARD THIS APPEAL FORM MUST BE SUBMITTED AS FOLLOWS: 1. Appeals must be filed either by email (no copies required unless your appeal is over 40 pages, in which case it must be filed either by mail, delivery service or at the front counter with 16 copies). If filed by email, appeals must be filed as a single pdf document (no screenshots, links, videos or the like are accepted). Please do not submit multiple pdfs or multiple emails. If your appeal cannot be provided in a single pdf, please file it in person, by mail or delivery service. All supporting documents must be provided with the appeal to the board form. 2. If it is necessary to submit any supplemental reply to another party's (or the Rent Board's) submission on appeal, such reply must be submitted no later than 5 days before the Board meeting in the same manner as set forth above. Any documents received within 5 days of a Board Meeting will be provided to the Commission but may not be considered. Please do not file any documents both by email and in hard copy, choose one or the other. If you wish the Commission to have color copies, do not file by email. 3. If you are filing the appeal because you did not receive the notice of hearing, you must attach a completed Declaration of Non-Receipt of Notice of Hearing form, which is available at the Rent Board’s office and in the Forms Center on our website at https://sf.gov/rentboard. T220449 Michael J. Berg 1/17/2023 Case Number Name of Administrative Law Judge Date Decision was Mailed MEL and NUANNOI MURPHY o Landlord o Tenant o Master Tenant o Subtenant Name of Party Filing Appeal (Please Print) 1756 BROADWAY STREET, #7 San Francisco, CA 94109 Street Number of the Unit on Appeal Street Name Unit Number Zip Code I appeal the Administrative Law Judge’s Decision because I believe that the Administrative Law Judge erred or abused his or her discretion in the following respects (attached additional pages as necessary): This appeal is made pursuant to California Code of Civil Procedure §1008, on the basis of new or different facts and circumstances that were not disclosed or otherwise available to LANDLORD RESPONDENTS prior to the Rent Board’s final decision. NOTE: THE RENT BOARD WILL MAIL A COPY OF THIS APPEAL TO THE OTHER PARTY(IES). HOWEVER, THE PARTIES MUST SERVE EACH OTHER WITH ALL OTHER DOCUMENTS FILED AFTER THE INTIAL FILING OF THIS APPEAL, AND INDICATE YOU HAVE DONE SO. 11/03/2023 Date Signature* *If representative, print name Michael Schinner ADDITIONAL INFORMATION REQUIRED ON PAGE TWO OF THIS FORM 556 Appeal Form 5/5/23 25 Van Ness Avenue #320 www.sf.gov/rentboard Phone 415.252.4600 San Francisco, CA 94102-6033 rentboard@sfgov.org APPEAL TO THE BOARD (page two) Tenant or Subtenant Information: * If there is more than one tenant, attach additional names and addresses. Petr Seckar First Name Middle Initial Last Name 1756 Broadway St #7 San Francisco CA 94109 Mailing Address: Street Number Street Name Unit Number City State Zip Code Primary Phone Number Email Address Tenant or Subtenant Representative Information: First Name Middle Initial Last Name Mailing Address: Street Number Street Name Unit Number City State Zip Code Primary Phone Number Email Address Landlord or Master Tenant Information: * If there is more than one landlord, attach additional names and addresses. Mel Murphy First Name Middle Initial Last Name 4153 24th Street San Francisco CA 94114 Mailing Address: Street Number Street Name Unit Number City State Zip Code Primary Phone Number Email Address Landlord or Master Tenant Representative Information: Michael Schinner First Name Middle Initial Last Name 96 Jessie Street San Francisco CA 94105 Mailing Address: Street Number Street Name Unit Number City State Zip Code 415-369-9050 schinner@schinner.com Primary Phone Number Email Address Other Party Information: Please specify the other party’s role in this case First Name Middle Initial Last Name Mailing Address: Street Number Street Name Unit Number City State Zip Code Primary Phone Number Email Address 556 Appeal Form 5/5/23 25 Van Ness Avenue #320 www.sf.gov/rentboard Phone 415.252.4600 San Francisco, CA 94102-6033 rentboard@sfgov.org 1 MICHAEL G. SCHINNER (SBN 142363) DENISE R. PRITCHARD (SBN 346469) 2 SCHINNER & SHAIN, LLP 96 JESSIE STREET 3 SAN FRANCISCO, CA 94105 Telephone: (415) 369-9050 4 Fax: (415) 369-9053 5 Attorneys for LANDLORD RESPONDENTS 6 MEL and NUANNOI MURPHY 7 8 RESIDENTIAL RENT STABILIZATION AND ARBITRATION BOARD 9 CITY AND COUNTY OF SAN FRANCISCO 10 11 IN RE: 1756 BROADWAY STREET, #7 ) CASE NO. T220449 12 ) PETR SECKAR, ) MEMORANDUM OF POINTS AND 13 ) AUTHORITIES IN SUPPORT OF MOTION FOR TENANT PETITIONER, ) RECONSIDERATION OF ORDER DENYING 14 ) RESPONDENTS APPEAL TO THE RESIDENTIAL ) RENT STABILIZATION BOARD 15 and ) ) 16 MEL and NUANNOI MURPHY, ) ) 17 LANDLORD RESPONDENTS. ) ) 18 19 INTRODUCTION 20 In December 2022, LANDLORD RESPONDENTS filed an Appeal (Appeal No. AL220057) 21 22 to the Residential Rent Stabilization Board, City and County of San Francisco (the “Rent Board”) 23 for the real property located at 1756 Broadway Street #7, San Francisco, California (the “Property”). 24 On January 17, 2023, the Rent Board denied the Appeal, and rendered the decision by the 25 Administrative Law Judge as Final. LANDLORD RESPONDENTS hereby move for an 26 27 order requesting a motion for reconsideration of the order denying LANDLORD RESPONDENTS 28 appeal to the Rent Board. This Motion is made pursuant to California Code of Civil Procedure MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF MOTION FOR RECONSIDERATION OF 1 ORDER DENYING RESPONDENTS APPEAL TO THE RESIDENTIAL RENT STABILIZATION BOARD 1 §1008, on the basis of new or different facts and circumstances that were not disclosed or otherwise 2 3 available to LANDLORD RESPONDENTS prior to the Rent Board’s final decision. 4 STATEMENT OF FACTS 5 1. The Property is located at 1756 Broadway Street in San Francisco. The building consists 6 of approximately seven residential units. There are no commercial units. 7 8 2. On or around July 26, 2021, the LANDLORD RESPONDENTS (and current owners) 9 purchased the Property from Mr. Jonathan Tourzan and received a rent roll in escrow that showed 10 that the TENANT PETITIONER’s rent was $1,450 per month, and closing statement that stated the 11 TENANT PETITIONER’s deposit was $1,500. 12 13 3. The LANDLORD RESPONDENTS had no prior knowledge of TENANT 14 PETITIONER’s initial $500 base rent or rent history. As a result, on June 1, 2022, LANDLORD 15 RESPONDENTS increased TENANT PETITIONER’s rent from $1,450 to $1,483.35 with a written 16 notice of the rent increase. 17 18 4. On May 24, 2022, TENANT PETITIONER filed a petition alleging that the LANDLORD 19 RESPONDENTS increased the rent over the allowable limits and requesting a determination of the 20 TENANT PETITIONER’s lawful rent. 21 5. A remote hearing was held August 25, 2022, and the record was closed on September 1, 22 23 2022. 24 6. During the hearing, TENANT PETITIONER testified that he moved into the vacant 25 subject unit #7 on April 1, 2011, and paid the owner, John B. Hoagland Living Trust, an initial base 26 rent of $500 per month. TENANT PETITIONER stated that the initial base rent was not increased 27 28 and remained at $500 from move-in date to August 31, 2016. TENANT PETITIONER also testified MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF MOTION FOR RECONSIDERATION OF 2 ORDER DENYING RESPONDENTS APPEAL TO THE RESIDENTIAL RENT STABILIZATION BOARD 1 that on September 16, 2016, the new owner, Mr. Tourzan, orally raised the tenant’s rent from $500 2 3 to $1,450 per month and requested a deposit of $1,500 per month. TENANT PETITIONER testified 4 that he paid rental obligations of $1,450 per month to the landlords of the Property from September 5 2016 through May 2022. 6 7. The Administrative Law Judge, Michael J. Berg rendered a final decision on November 7 8 28, 2022, granting TENANT PETITIONER’s petition and ordering LANDLORD RESPONDENTS 9 to pay the sum of $40,981.10 to the TENANT PETITIONER for rent overpayments for the period 10 from May 1, 2019, through November 30, 2022. 11 6. LANDLORD RESPONDENTS filed an Appeal (Appeal No. AL220057) to the Rent 12 13 Board within 15 calendar days from the date of the Administrative Law Judge decision, and 14 subsequently on January 17, 2023, the Rent Board denied LANDLORD RESPONDENTS Appeal 15 and rendered the Administrative Law Judge’s decision final. 16 9. On March 3, 2023, LANDLORD RESPONDENTS became aware of the new facts that 17 18 TENANT PETITIONER did not disclose during his testimony, including that (a) TENANT 19 PETITIONER’s initial base rent amount of $500 per month was a result of special relationship with 20 the previous owner and landlord of the property, the John B. Hoagland Living Trust, and (b) 21 TENANT PETITIONER negotiated and agreed, in writing, to the rent increases proposed by Mr. 22 23 Tourzan on September 14, 2016. The Court should relieve LANDLORD RESPONDENTS as a 24 result of newly discovered evidence that by due diligence could not have been discovered during the 25 hearing. LANDLORD RESPONDENTS were not aware that TENANT PETITIONER paid a 26 significantly below market initial base rent due to TENANT PETITIONER’s special relationship 27 28 with the prior owner as a caretaker. A true and correct copy of the TENANT PETITIONER’s party MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF MOTION FOR RECONSIDERATION OF 3 ORDER DENYING RESPONDENTS APPEAL TO THE RESIDENTIAL RENT STABILIZATION BOARD 1 admission is attached hereto as Exhibit A. 2 3 ARGUMENT 4 California Code of Civil Procedure §1008 permits a party to request reconsideration of an 5 order. Section 1008(b) states: 6 A party who originally made an application for an order which was refused in whole 7 8 or part, or granted conditionally or on terms, may make a subsequent application for 9 the same order upon new or different facts, circumstances, or law, in which case it 10 shall be shown by affidavit what application was made before, when and to what 11 judge, what order or decisions were made, and what new or different facts, 12 13 circumstances, or law are claimed to be shown. For a failure to comply with this 14 subdivision, any order made on a subsequent application may be revoked or set aside 15 on ex parte motion. 16 The Rent Board Rules and Regulations Section 6.11 provides that a rent increase that 17 18 exceeds allowable annual and banked amounts may be justified if it is established that the rent for a 19 unit is significantly below those of comparable units in the same general area due to extraordinary 20 circumstances. Moreover, under special circumstances, rent increases are permitted when the initial 21 base rent of a unit is set in a very low amount, or the rent was not increased, or the rent was only 22 23 increased negligible amounts during the tenancy as a result of a special relationship between the 24 landlord and tenant or other extraordinary circumstances unrelated to market conditions. 25 In this case, the 190% increase from $500 to $1,450 on September 16, 2016, is lawful 26 because TENANT PETITIONER’s initial base rent of $500 was a result of a special relationship 27 28 between TENANT PETITIONER and the prior owner of the Property (the John B. Hoagland Living MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF MOTION FOR RECONSIDERATION OF 4 ORDER DENYING RESPONDENTS APPEAL TO THE RESIDENTIAL RENT STABILIZATION BOARD 1 Trust). TENANT PETITIONER paid a significantly lower rent compared to other comparable units 2 3 on the market as a result of an employment agreement in which TENANT PETITIONER served as 4 caretaker to the John B. Hoagland Living Trust. As a result of Mr. Tourzan’s purchase of the 5 property in 2016, TENANT PETITIONER was no longer employed as a caretaker for the John B. 6 Hoagland Living Trust, and TENANT PETITIONER negotiated and agreed to a rent increase, in 7 8 writing, with Mr. Tourzan on September 14, 2016. 9 The Administrative Law Judge Order of refunds of rent overpayments, in the amount of 10 $40,981.10, is not justified because TENANT PETITIONER failed to disclose that he had a special 11 relationship with the John B. Hoagland Living Trust that resulted in him paying an initial base rent 12 13 amount of $500.00 per month, an amount significantly below the rent for comparable units in the 14 same general area. 15 The Rent Board was operating under mistaken assumption that the rent increases were not 16 subject to extraordinary circumstances. The TENANT PETITIONER’s initial base rent was 17 18 significantly less than market rent because of TENANT PETITIONER’s special relationship with 19 the John B. Hoagland Living Trust. TENANT PETITIONER failed to disclose the special 20 relationship or that he negotiated, in writing, to the rent increases in September 2016 with Mr. 21 Tourzan. 22 23 CONCLUSION 24 For all the foregoing reasons, LANDLORD RESPONDENTS respectfully request that the 25 Court grant LANDLORD RESPONDENTS motion for reconsideration of the order denying 26 LANDLORD RESPONDENTS appeal to the Rent Board on the basis of new facts and 27 28 circumstances, as shown by the Declarations of LUCY YEUNG, MIRELLA WEBB, MEL MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF MOTION FOR RECONSIDERATION OF 5 ORDER DENYING RESPONDENTS APPEAL TO THE RESIDENTIAL RENT STABILIZATION BOARD 1 MURPHY, and NUANNOI MURPHY, attached hereto, as well as on all the papers, pleadings, and 2 3 records on file in this action. 4 5 6 Dated: October 31, 2023 SCHINNER & SHAIN, LLP 7 /s/ Michael G. Schinner ___________________________ 8 MICHAEL G. SCHINNER Attorney for Landlord Respondents 9 MEL and NUANNOI MURPHY 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF MOTION FOR RECONSIDERATION OF 6 ORDER DENYING RESPONDENTS APPEAL TO THE RESIDENTIAL RENT STABILIZATION BOARD 1 MICHAEL G. SCHINNER (SBN 142363) DENISE R. PRITCHARD (SBN 346469) 2 SCHINNER & SHAIN, LLP 96 JESSIE STREET 3 SAN FRANCISCO, CA 94105 Telephone: (415) 369-9050 4 Fax: (415) 369-9053 5 Attorney for LANDLORD RESPONDENTS 6 MEL and NUANNOI MURPHY 7 8 RESIDENTIAL RENT STABILIZATION AND ARBITRATION BOARD 9 CITY AND COUNTY OF SAN FRANCISCO 10 11 IN RE: 1756 BROADWAY STREET, #7 ) CASE NO. T220449 ) 12 PETR SECKAR, ) DECLARATION OF MEL MURPHY, IN SUPPORT ) OF LANDLORD RESPONDENTS MOTION FOR 13 TENANT PETITIONER, ) RECONSIDERATION OF ORDER DENYING ) RESPONDENTS APPEAL TO THE RESIDENTIAL 14 ) RENT STABILIZATION BOARD. and ) 15 ) ) 16 MEL and NUANNOI MURPHY, ) ) 17 LANDLORD RESPONDENTS. ) ) 18 ) ) 19 ) 20 DECLARATION OF MEL MURPHY 21 I, MEL MURPHY declare the following: 22 23 1. I am the owner and landlord for the real property located at and commonly known as 1756 24 Broadway Street #7, San Francisco, California (the “Property”), and have personal knowledge of the 25 facts contained herein. 26 27 28 DECLARATION OF MEL MURPHY 1 1 2. I submit this declaration in support of LANDLORD RESPONDENTS motion for reconsideration 2 of the order denying LANDLORD RESPONDENTS appeal to the Residential Rent Stabilization 3 Board, City and County of San Francisco (the "Rent Board").. 4 3. On July 26,2021, my wife and I purchased the Property from Mr. Jonathan Tourzan (the previous 5 owner and landlord). 6 7 4. At no time prior to purchasing the Property was it disclosed that TENANT PETITIONER rented 8 his unit (unit #7) from the previous owner, the John B. Hoagland Living Trust, at an initial base rent 9 amount of$500.00 per month, nor that Mr. Tourzan had imposed a rent increase of 190% from lO $500.00 to $1,400.00 on September 16, 2016. During escrow, the Seller's Disclosure only disclosed 11 a garbage lien from 2020, and that a death occurred on the Property in unit #4 on December 2019. 12 The Seller's Disclosure. provided that there were no "tenants in the Property not covered by a written 13 lease or rental agreement for their units." The rent roll provided by Seller during escrow stated that 14 15 TENANT PETITIONER's rent was $1,450.00 per month and that.TENANT PETITIONER paid a 16 deposit of$1,500.00. 17 6. After the Rent Board issued .its final decision denying the LANDLORD RESPONDENTS appeal 18 on January 17, 2023, I became aware of new facts that were not presented to the Rent Board by 19 TENANT PETITIONER regarding the rent increase in 2016. On March 3, 2023, Ms. Mirella Webb 20 (Mr. Tourzan's real estate agent) informed Ms. Yeung through electronic communication that 21 TENANT PETITIONER paid !he John 8. Hoagland Living Trust an initial base rent amount of 22 23 $500.00 per month because of TENANT PETITIONER's special relationship with the John B. 24 Hoagland Living Trust as a full-time caretaker. As of March 3, 2023, I became aware that TENANT 25 PETITIONER paid an initial base rent significantly below the rent for comparable units in the same 26 general area as a result of his employment as a full time caretaker for the John B. Hoagland Living 27 Trust. The electronic communication provided to Ms. Yeung also consisted of a Party-Opponent 28 DECLARATION. OF MEL MURPHY 2 1 Admission showing that TEN WT PETITIONER negotiated with Mr. Tourzan, in writing, for the 2 rent increase on September 14, 2016. 7. At this time, I intend to file a motion for reconsideration 3 based on the new facts that came to my attention after the Rent Board issued its final decision 4 denying the LANDLORD RESPONDENTS appeal on January 17, 2023. 5 6 7 8 I declare under penalty of perjury under the laws of the State of California that the 9 10 foregoing is true and correct. 11 12 13 14 15 Dated: 3/3/ 2023 2:38 PM 4 Re: Fwd: Fw: lease 5 To lucy Copy Ma rk Bonn 6 .)r ';"'~ Yes, will do. 7 On Fri, Mar 3. 2023, 1 :43 PM lucy < >wrote: 8 Hi Mirella. Lastly, could I please trouble you to ask Jonathan tor a copy of the signed lease agreement? Although, 9 Jonathan mentioned lhat he could not find his signed lease agreement with Petr during our escrown transaction . This is just incase that we needed. 10 Thank you again. Lucy 11 On 03/03/2023 1:19 PM PST lucy < >wrote· 12 Thank you, M irella. for the emciil chain. Appreciated. 13 Unfortunately. Rent Board has dosed this case. The nel wrote: 17 Jonathan indiccites that Petr is lying and they negotiated a new lease . See chain below .•. 18 Mirella Webb 19 Senior Investment Advisor 20 Compass Commercial Tel: 415.814.6699 Cell: 41 5.640.4133 21 (FonneTly APR Investment Group) 1699 Van Ness Ave. 2nd Floor San Francisco. CA 94109 22 M:JP. (\Nww.bo!).!!~9bbleam.com( License CA: 01409540 23 24 25 26 ~Ups:li'Webmaol7 networl 3/3/2023 12:04 PM 3 Fwd: Fw: lease 4 To lucy < lucy@lyeung.com> •Mark Bonn 5 Jonathan indicates that Petr is lying and they negotiated a new lease. See chain below ... 6 Mirella Webb Senior Investment Advisor 7 Compass Commercial Tel; 415.814.6699 8 (Formerly APR Investment Group) Cell: 415.640.4133 9 1699 Van Ness Ave. 2nd Floor San Francisco, CA 94109 License CA: 01409540 http ;//~'>\!~ ~2!l."!"e!!bleam...!f.9Jn/ 10 11 12 13 - · - Forwarded message ···-- From: Jonathan Tourzan < > Date: Fri. Mar 3. 2023 at 11 :59 AM 14 Subject: Fw: lease To: Mirella Webb < > 15 Petr is lying. We negotiated a new lease. The $500 rent included his employment as a full time 16 caretaker. 17 From: petr seckar < ,. > Sent: Wednesday, September 14, 2016 5:07 AM To: Jonat han To urzan < > 18 Subject: Re: lease 19 Hi!! 20 The rent 1500 S ls ok but lf you could lower it to 1400$ that would be great .. .. If not Im ok with 1500$ I forgot the number 12 .Securit y deposit you said you can lower it t o 1500 S 21 Let me know when you want me to sign the lease Thanks Peter 22 23 24 25 haps:J/wecma•r? necworksolulionsemail.comtappeu~e!pnnl.html?ptn\_ 16886724 75818 113 26 27 28 DECLARATION OF MIRELLA WEBB 4 1 2 716;23. 12:41 PM Professional Em3il_ Fwd_ ~w_ lease Printout 3 4 Od: Jonathan Tourzan < ' . > 5 Odeslano: 13. l 12 Sent: Monday, September 12. 2016 8:27 PM To: Jonathan Tourzan 13 Subject: Re: lease 14 HI !! I couldnt add the cements to the document then i w ill write them here ..... 15 my fu ll name for the lease; Petr Seckar 16 14..... only two electric operated items may be plugged in any electric receptacle {if you can take this out J 17 15 .... not sure if should be there but i guess doesnt really matter ... 19....tenant can put pictures at walls 18 add 30 ... Tenant can use or have access to garden area 19 i hope it is not confusing ... let me know when you want me to sign the lease 20 Thanks Peter 21 Od: Jonathan Tourzan < _ > Odeslano: 7. zafi 2016 21:00 22 Komu: ,. , !' Predmet: Fwd: lease 23 24 Sent from my iPhone 25 26 https:liwebm1117 nelworksolutiDnsemail com/appsuilelorinl.html?pronl_ 16886724758 18 213 27 28 DECLARATION OF MIRELLA WEBB 5 1 716123. 12:4 1 PM Professional Email_ F\lld_ Fw_ lease Printout 2 3 Begin forwarded message: 4 5 From: Jonathan Tourzan < > Date: September 7, 2016 at 11:09:44 AM PDT 6 To: Jonathan Tourzan < > Subject: lease 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 https:ltwebmail7 networksolu~onsemail.com/appauitelprint html?prin t_ 1688672475818 3/3 28 DECLARATION OF MIRELLA WEBB 6 1 MICHAEL G. SCHINNER (SBN 142363) DENISE R. PRITCHARD (SBN 346469) 2 SCHINNER & SHAIN, LLP 96 JESSIE STREET 3 SAN FRANCISCO, CA 94105 Telephone: (415) 369-9050 4 Fax: (415) 369-9053 5 Attorneys for LANDLORD RESPONDENTS 6 MEL and NUANNOI MURPHY 7 8 RESIDENTIAL RENT STABILIZATION AND ARBITRATION BOARD 9 CITY AND COUNTY OF SAN FRANCISCO 10 11 IN RE: 1756 BROADWAY STREET, #7 ) CASE NO. T220449 ) 12 PETR SECKAR, ) DECLARATION OF LUCY YEUNG, IN SUPPORT ) OF LANDLORD RESPONDENTS MOTION FOR 13 TENANT PETITIONER, ) RECONSIDERATION OF ORDER DENYING ) RESPONDENTS APPEAL TO THE RESIDENTIAL 14 ) RENT STABILIZATION BOARD; EXHIBITS A-C. and ) 15 ) ) 16 MEL and NUANNOI MURPHY, ) ) 17 LANDLORD RESPONDENTS. ) ) 18 ) ) 19 ) 20 21 DECLARATION OF LUCY YEUNG 22 I, LUCY YEUNG, declare the following: 23 1. I am a California real estate agent for “SF City Properties,” a San Francisco real estate company, 24 and I have personal knowledge of the facts contained herein. 25 26 2. I submit this declaration in support of LANDLORD RESPONDENTS motion for reconsideration 27 of the order denying LANDLORD RESPONDENTS appeal to the Residential Rent Stabilization