I signed a lease to rent a house in Pasadena, CA for one year. Due to safety concerns and the landlord corporation not repairing items, and the fact that no Occupancy Inspection had taken place and no Certificate of Occupancy (as required by municipal code) was issued, I decided to terminate the lease. According to Gruzen v Henry, the lease is null and void. I filed a small claims against the landlord corporation for illegally obtained rent (one month) security, and double moving expenses, all of which exceed $10,000. The landlord corporation counter-sued for back rent. I have since found out that the corporations status has been suspended as certified by the Secretary of State. Also, the corporation holds no business license in the municipality they are located as required by municipal code. I am going to make a motion to dismiss the counter-suit and claim based on the fact the corporations rights and privileges have been suspended since 11/1/2012, well before entering the lease agreement. My understanding of the Finance code is a corporation with a suspended status by the FTB as recorded by the SOS cannot sue or defend itself in a lawsuit. Will I get out of the cross claim upon motion and how about a default judgment since they really cannot defend the corporation. Also, my understanding is that even filing a lawsuit on behalf of a suspended corporation is a misdemeanor.
