New Lawsuit Wave – Tenant Class Actions

DPA Attorneys is seeing a wave of tenant class action lawsuits. Hotels are being sued for their check-in and check-out policies of avoiding guest tenancy status.

Under California law, a person who occupies a motel or hotel room as his or her primary residence for 30 or more days becomes a tenant and has certain legal protections, including the right to due process before being evicted.

Many hotels have implemented a policy where they require guests to check out before the 30-day period and then allow the guest to check back in a few days later. Courts in California have found this practice to be a way of sidestepping the law. Tenants are now using this precedent to file class actions.

Tenants argue that this hotel policy is depriving them of their would-be tenant rights had the hotel not forced them to check out. They file class actions so they are able to include all other tenants who this policy was implemented against.

These lawsuits are in addition to the wave of evictions we are handling as a result of long-term guests failing to pay rent.

We understand hoteliers are facing financial strain, but we strongly advise owners to refrain from the “28-day shuffle”. With this approach, you will avoid unpaid rent issues, evictions, and lawsuits.

Should you need assistance or have any questions, please reach out to us at ppatel@dpaattorneys.com.