Feature

How to Avoid a Bedbug Lawsuit

by Daniel R. Stern

Bedbug infestation is becoming a hot topic among landlords and property managers. While these sorts of infestations have always been a source of frustration, bedbugs can also be a source of liability. As an example, a large hotel in New York City was sued by a guest who claimed that the hotel was infested. Being aware of the potential liability that may arise from bedbugs will help landlords and property managers avoid costly and time-consuming litigation.

The following are some common facts about these critters. Bedbugs are persistent. Getting rid of them requires persistence. Bedbugs can hide in extremely small cracks and crevices, making it difficult to locate breeding sites. Bedbugs are rarely seen in daylight and can live a year or longer without food (for example, human blood) and thus stay in their hiding places. Bedbugs can travel long distances and survive in suitcases, clothing, vehicles, aircraft, cruise ships and other modes of transportation.

The stigma attached to these parasites is causing some hotels and landlords to ignore infestations or treat them without professional help. Lack of professional treatment comes with great risks, notably the possibility of litigation.

California Civil Code �1941 requires that a lessor of a building intended for the occupation of human beings must, in the absence of an agreement to the contrary, put it into a condition fit for such occupation and repair all subsequent dilapidation thereof, which render it untenantable. A rental unit must be fit to live in; that is, it must be habitable. In legal terms, “habitable” means that the rental unit is fit for occupation by human beings and that it substantially complies with state and local building and health codes that materially affect tenants’ health and safety. Additionally, while the unit is being rented, the landlord must repair any problems that make the rental unit unfit to live in, or uninhabitable. The landlord has this duty to make these repairs under the California Supreme Court case Green v. Superior Court, which held that all residential leases and rental agreements contain an “implied warranty of habitability.” Under this implied warranty of habitability, the landlord is legally responsible for repairing conditions that seriously affect the rental unit’s habitability. That is, the landlord must repair substantial defects in the rental unit and substantial failures to comply with state and local building and health codes. Moreover, housing regulations adopted to preserve both the health and safety of the community require the landlord to keep the premises free from vermin.

While there are few published cases addressing the liability of landlords for bedbug infestations, in a recent New York case entitled Ludlow Properties, LLC. v. Peter H. Young, a landlord commenced an eviction proceeding against a tenant, seeking (in addition to eviction) unpaid rents for the rental unit. The tenant claimed a breach of warranty of habitability defense, stemming largely from the presence of bedbugs in the premises. The trial was held on April 22, 2004, and the trial court found that the bedbugs did not constitute mere annoyance but constituted an intolerable condition, notwithstanding the landlord’s efforts to exterminate them. The tenant was therefore entitled to a rent reduction of 45% for the period of time beginning when the tenant had bedbugs and ending when the bedbugs were eradicated. In another landmark case (Matthias v. Accor, 2003), a motel chain was successfully sued for $382,000 after guests were bitten by bedbugs.

As the previous cases illustrate, a landlord—despite his diligent efforts to eradicate bedbug infestations—may be subject to rent reductions and property-damage claims, as well as claims for constructive eviction. For example, a tenant could file a Rent Board petition against a landlord, alleging decreased services as a result of an alleged bedbug infestation. Such a claim may very well obtain redress from the Rent Board in the form of a rent reduction, despite the landlord’s attempts to deal with and ultimately solve the problem. To date, no tenant has brought a case for constructive eviction to the California Court of Appeal because of bedbug infestation, but we will no doubt see a wave of such cases, especially with the dramatic resurgence of bedbugs in recent times. Such a case, if successful, could subject a landlord to a huge financial liability given the trebling-of-damages policy under the San Francisco Rent Ordinance.

Landlords who encounter claims of bedbug infestation should address those claims immediately by seeking professionals who can swiftly and effectively deal with the problem. The mere presence of bedbugs could, at the very least, subject a landlord to possible rent reductions and, in the worst-case scenario, bring about lawsuits for constructive eviction. While there is a possibility that a landlord may successfully defend such a lawsuit, the costs of doing so will be no doubt much higher than paying professionals to deal with the bedbug infestation—an infestation that could, if left unfettered, effect not only one unit but the whole building. Ignoring the alleged problem or attempting to deal with it yourself will only increase your potential liability.

The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of SFAA or the San Francisco Apartment Magazine. The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Daniel R. Stern is with Wasserman-Stern, 415-567-9600. Copyright © 2006 by the San Francisco Apartment Magazine. All rights reserved.