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McClain v. Octagon Plaza, LLC
Filed January 31, 2008
Cite as 2008 SOS 835


Trial Court’s Decision Sustaining Defendant's Demurrer to the Claims, Reversed on Appeal

McLain as lessee sued her defendant landlord Octagon Plaza, LLC for misrepresentation after discovering that she had been overpaying rent and common expenses.

The Second District, Division Four Court sustained defendant's demurrer to the claims.

On appeal, the California Court of Appeal reversed the trial court's decision for sustaining defendant's demurrer to the claims based on the following grounds:

  • A waiver provision in the lease did not insulate the defendant from misrepresentation claims where the defects were not obvious.

  • Defendants did not violate plaintiff’s rights under Consumer Credit Reporting Agencies Act. Defendant identified tenant as a commercial enterprise, and obtained credit report to determine whether plaintiff could meet her financial obligations under the lease.

With the foregoing arguments, the appellate court reversed the trial court’s decision.


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