Legal Question in Real Estate Law in California
Judgement after terminating a lease- never notified of it...
My mother had a business a while back, and was under a lease
agreement. She closed the business, and now a judgement has appeared on
her credit from the company she leased from. She never received any
certified letters, or calls stating that this was happening, so she
assumed they forgave the amount due, since we made significant
improvements on the property which she paid for out of her pockets of at
least $22,000. I haven't contacted the owners of the property yet. I'd
like to get more information about judgements to see what her rights are
as a tenant, and how tenant improvements apply to amounts due. Should the owners have
paid for the improvements? The improvements were, adding a new gas line, sewer line, and
commercial hood for restaurant purposes. They are now leasing the place to a restaurant using our improvements. Thank you.
2 Answers from Attorneys
Re: Judgement after terminating a lease- never notified of it...
The improvements you describe may have become the property of the landlord at the time made. In any event, they became the landlord's property when they remained in place (were not removed by the tenant) at the end of the lease. See Civil Code section 1019.
Whether the judgment was properly obtained and whether it can be removed are questions that must be answered by a lawyer who has had a chance to review the judgment and interview your mother. Service of process is a requsite first step in a legal proceeding which results in a judgment. Failure to serve is one of several possible ways to attack the judgment.
Re: Judgement after terminating a lease- never notified of it...
Mr. Whipple is correct. You should arrange for a consultation with an attorney as soon as possible. You might also write to the credit reporting agency informing them of your position and that you are contesting this entry on her credit report.
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