Arguello Assocs. v. Dyas CA1/2
This case concerns the right of a landlord to set a market rate rent when the original tenant of a rent controlled apartment leaves and another occupant continues to reside in the unit. The specific question presented is whether landlords may be required to have their rights under a state law determined in local rent board administrative proceedings, subject to judicial review, or must be permitted to bypass administrative proceedings and bring the issue to court in the first instance. The trial court in the present case dismissed the landlord’s complaint for declaratory relief, holding that the landlord failed to exhaust administrative remedies. Although we disagree with appellant’s view that it would never be proper for a trial court to deny declaratory relief in such cases, in circumstances of this case we find the trial court abused its discretion. Accordingly, we will reverse.
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