News & Insights

By Sean Gaffney

In an important win for commercial landlords, AB 1384 was signed into law by Governor Gavin Newsom earlier this month after receiving unanimous support from the State Senate. Sponsored by NAIOP, the new bill streamlines court procedures in unlawful detainer (eviction) lawsuits to minimize delay in resolution of cases involving commercial leases.

What Does this Mean for Commercial Landlords and Property Owners?

AB 1384 prevents commercial tenants from using procedural tactics to stall eviction proceedings. Savvy tenant counsel routinely exploited the overloaded motion hearing calendars of many judges by filing pretrial motions and then postponing their hearing dates well beyond the trial deadline that would otherwise apply.  Such motions must now be set for hearing within 7 court days of filing, and the hearing may only be postponed for an additional 10 court days and only then upon a showing of good cause.  By curbing this delay strategy, AB 1384 offers significant benefits to commercial landlords and property owners by providing for the faster recovery of possession and reduced exposure to legal fees.

Why was AB 1384 Needed?

AB 1384 was passed to create balance after unintended consequences arose from AB 2347, a prior bill which expanded protections for residential tenants. While AB 2347 gave all tenants more time to respond to eviction complaints, its application to commercial cases caused complications for property owners. AB 1384 restores balance by promoting a timelier process and more practical framework for resolving commercial eviction cases.

For many of our clients, AB 1384 provides much-needed clarification and greater efficiency in landlord-tenant disputes. If you have questions about how this legislation may affect your business or property, please don’t hesitate to contact us.