On June 26, 2025, the California Court of Appeal for the Second District published a decision in Eshagian v. Cepeda that will impact how landlords prepare and serve three-day notices to pay or quit. While the notice evaluated in the case was not a CAA form, as discussed below, CAA is recommending that members temporarily cease use of CAA three-day notices and 30-day CARES Act notices, unless advised otherwise by their attorney, while revised forms are developed in light of the new ruling.
What did the court decide?
The court held the three-day notice was invalid because, among other reasons, it failed to provide essential information needed for an “ordinary tenant” to reasonably understand their deadline to pay and avoid eviction. Specifically:
“…the notice did not state when the notice period commenced or ended, nor did it inform [the tenant]…when the notice was served, which commenced the three-day period. Absent this information, an ordinary tenant would not have reasonably understood the deadline by which the tenant needed to pay the rent due to avoid forfeiture of the premises.”
The court reversed the landlord’s possession judgment because the notice was legally insufficient.
Why does this matter for landlords?
While the ruling addressed a pay or quit notice, its reasoning implies that other types of three-day notices, such as those for lease violations or nuisance, may also be affected. The ruling applies both to those notices served prior to the ruling being issued, as well as those served in the future.
The court did not provide instructions on what notices must include to meet the “ordinary tenant” standard it articulated, but CAA’s preliminary understanding is that, at a minimum:
- Notices need to inform the tenant of the date the notice period commences (typically the date of service).
- Notices should specify that Saturdays, Sundays and judicial holidays are excluded from the count (CAA’s forms already include this requirement).
These two items of information should allow tenants to reasonably understand their compliance deadline.
CAA’s recommendation
Although CAA’s current three-day notices and 30-day CARES Act notices forms arguably remain compliant — because they inform tenants that the period begins upon service of the notice — and although the court did not review or invalidate a CAA form, CAA strongly recommends that members do not use existing CAA three-day notices and 30-day CARES Act notices forms without first consulting with their attorney until revised forms are released.
CAA is actively working to update its three-day notices and 30-day CARES Act notices forms to ensure confidence in compliance with this new standard. We expect to release revised forms by Friday, July 11, 2025.
