Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)

Citation: Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)
Parent Document: Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)
Jurisdiction: California (state)
Effective Date: 2014-01-23
Original Source: https://www.courtlistener.com/opinion/2650742/nativi-v-deutsche-bank-national... ↗

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court accepted the view that the PTFA could be invoked only defensively in court, bona
fide tenancies for a term surviving foreclosure only by operation of the Act would be
largely unprotected and immediate successors in interest could interfere with tenants'
possessory rights with impunity so long as they did not commence eviction proceedings
or other legal action in which the Act could be raised as a defense. That result would be
completely at odds with the aim of the Act.
           Similarly, a conclusion that Congress was merely bestowing the isolated right to
occupy the leased premises through end of bona fide tenancies for a term would be
inconsistent with the statutory language suggesting that bona fide leases for a term
continue in effect ("a successor in interest may terminate a lease") and the protective
purposes of the PTFA. Such an interpretation would lead to the absurd result that a bona
fide tenant could "occupy" leased premises for the duration of a lease term with no
obligation to pay rent as provided by the lease to a successor in interest and a successor in
interest in a foreclosed property would not be obligated, by the lease's implied warranty
of habitability, "to maintain leased dwellings in a habitable condition throughout the term
of the lease. [Citation.]" (Peterson v. Superior Court (1995) 10 Cal.4th 1185, 1204.)
           The interpretation of section 702 of the PTFA that most reasonably comports with
Congressional intent is that a subordinate bona fide lease survives foreclosure for the
remainder of the term by operation of the Act regardless of the state law to the contrary
and, consequently, the bona fide tenants under that lease and the immediate successor in
interest in the foreclosed property have a landlord-tenant relationship, although the lease
may be terminated as provided in the Act. (Cf. Gross v. Superior Court (1985) 171
Cal.App.3d 265, 274 [purchaser of property, which was subject to local rent stabilization
ordinance, at nonjudicial foreclosure sale "became a 'landlord' by operation of law" even
though written lease agreement executed subsequent to the recordation of the deed of
trust].)

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