6221 HOLLIS LLC v. TELLER, et al.

Discussion

Defendants claim that Plaintiff fails to state sufficient facts to constitute a cause of action because Plaintiff is not a party to the lease agreement and therefore lacks standing to sue and that Plaintiff fails to plead its own performance under the lease in keeping the premises habitable.

Plaintiff asserts that sufficient facts regarding standing are pled but that it can amend to show chain of title, that they are not required to pled habitability specifically on a demurrer as that goes to the merits, and that the allegedly related second complaint Is not an issue because it has not been served on Plaintiff and is not the first filed action.

Standing/Privity

Plaintiff pleads that it is the current owner of the Subject Premises and that Hollis General Partnership is its predecessor in interest. (FAC ¶¶ 1, 4.) However, the FAC is unclear as to when Plaintiff acquired the property, whether the breach occurred before or after the purchase, and whether the cause of action for breach of the lease was transferred to Plaintiff via assignment.

The Court agrees with Defendants the issue of standing must be pled; however, the proper course is to allow Plaintiff to amend the FAC to allege the necessary facts. (See River's Side at Washington Square Homeowners Assn. v. Superior Court (2023) 88 Cal.App.5th 1209, 1241 [“California allows great liberality in the amendment of pleadings, particularly when the only change is a substitution of parties without alteration of the substantive grounds of the suit We see no reason this same rule would not also allow Plaintiff to amend its complaint to sue as the assignee of its members rather than as the representative of its members.” (internal citation and quotation marks omitted.)].)

Thus, Defendants’ demurrer as to standing is SUSTAINED WITH LEAVE TO AMEND.

Performance (habitability)

Plaintiff does not specifically plead habitability, but the FAC does state, “Plaintiff and its predecessor provided the Premises under the Lease and stood ready to accept rent as required.” (FAC ¶ 15.)

The Court disagrees that Plaintiff is required to affirmatively plead habitability to bring a breach of contract claim against their tenants, since the breach of habitability is an affirmative defense.

SUPERIOR COURT OF CALIFORNIA COUNTY OF ALAMEDA

26CV172224: 6221 HOLLIS LLC, A CALIFORNIA LIMITED LIABILITY COMPANY vs TELLER, et al. 06/16/2026 Hearing on Demurrer to First Amended Complaint; filed by Pamela Teller (Defendant) + CRS# 839197900673 in Department 518 (See e.g. Green v. Superior Court (1974) 10 Cal.3d 616, 620 [“ Finally, we have concluded that a landlord's breach of this warranty of habitability may be raised as a defense in an unlawful detainer action. Past California cases have established that a defendant in an unlawful detainer action may raise any affirmative defense which, if established, will preserve the tenant's possession of the premises.”].)

Thus, Defendant’s demurrer is OVERRULED as to this issue.

Second Pending Action

Although a pending action between the same parties regarding the same issues is a reason to sustain a demurrer under CPP § 430.10(C). Here, Plaintiff has not been served and further this is the first filed action. (See California Union Ins. Co. v. Trinity River Land Co. (1980) 105 Cal.App.3d 104, 108–109 [“the pendency of another action growing out of the same transaction (here, the insurance contracts and the fire) is a ground for abatement of the second action but never for abatement of the first.”] (internal citation omitted).)

If Plaintiff is served in the second action and the parties and issues are deemed to be the same, that would potentially be a reason to demurrer to the second action as the first filed case takes priority.

Thus, Defendant’s demurrer is OVERRULED as to this issue.

Defendants further ask the court to award Defendants their costs of suit and, pursuant to the attorneys’ fees provision of the Lease (Article 11), their reasonable attorneys’ fees. However, Defendants have failed to submit a declaration regarding their fees. Further, and more importantly, it seems nonsensical to award Defendants fees under a contract to which Plaintiff is not a party. This issue is not yet ripe.

Order

For the foregoing reasons, Defendants’ demurrer is SUSTAINED WITH LEAVE TO AMEND as to the standing/privity issue only.

Plaintiff must file and serve a second amended complaint curing the defects on or before July 17, 2026.

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PLEASE NOTE: Pursuant to California Rule of Court 3.1308, subdivision (a)(1), this tentative ruling will become the order of the Court unless it is contested before 4:00 PM on the court day

SUPERIOR COURT OF CALIFORNIA COUNTY OF ALAMEDA

26CV172224: 6221 HOLLIS LLC, A CALIFORNIA LIMITED LIABILITY COMPANY vs TELLER, et al. 06/16/2026 Hearing on Demurrer to First Amended Complaint; filed by Pamela Teller (Defendant) + CRS# 839197900673 in Department 518 preceding the noticed hearing.

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