Background:
Mr. Sanchez had a longstanding arrangement with Ms. Bao, who lived in China, to pay certain expenses like property taxes and deduct them from his rent. In 2023, they allegedly agreed that Mr. Sanchez would renovate the basement to increase rental income and deduct the costs from his rent. He withheld rent for December 2023, January 2024, and February 2024, totaling $13,300. In March 2024, the landlord issued a 10 Day Notice to end the tenancy due to non-payment of rent, which Mr. Sanchez disputed.

Legal Issues:
The legal issues included whether the arbitrator’s decision upholding the eviction notice was patently unreasonable and whether the hearing was procedurally fair. Mr. Sanchez argued that the arbitrator failed to consider the alleged agreement allowing rent deductions for renovations and that he was misled about the handling of his claims.

Decision and Analysis:
The court found the arbitrator’s decision patently unreasonable for not addressing the key issue of the alleged agreement. The hearing was also deemed procedurally unfair as Mr. Sanchez was misled about the timing and scope of the hearings.

Outcome and Costs:
The petition for judicial review was allowed, the arbitrator’s decision was set aside, and the case was remitted for rehearing. No order for costs was made. Initially, the arbitrator had awarded the landlord $13,300 in unpaid rent.