Thursday, September 10, 2026

Universal Shopping Plaza v. Hong (Cal. Ct. App. - Sept. 9, 2026)

The Universal Shopping Plaza owns a shopping mall in San Gabriel. Piong Hong owns the Five Star Restaurant, a seafood place in that shopping mall. Hong and the restaurant pays a huge amount of rent; over $60,000 every month. During COVID, Hong says that the office manager at Universal reduced his rent by ten percent to compensate him for the closures during that period. So in January 2023, Hong deducts $65,989 from his rent, to correspond to the ten percent discount during 2022.

Universal doesn't appear to agree with the discount, but doesn't appear to do anything in response. After deducting the $65,989 in early 2023, Hong then continues to pay his full monthly rent. For all of the rest of 2023. For all of 2024. For 23 straight months.

In February 2025, Hong again pays his full monthly rent. But now, Universal tells him that's not good enough. They issue a 3-day notice, saying that Hong didn't pay the full amount two years ago, in January 2023, so he's got to pay up. Hong disagrees, and responds that not only was he promised the discount, but that in any event, there's a specific provision of the Code of Civil Procedure (Section 1161) that prohibits three-day notices that are filed more than a year after the alleged nonpayment of rent. But Universal says that because the lease agreement says that all rental payments are applied first to any overdue rent, Hong was "constantly" overdue, including in 2025, so the notice is timely.

The case goes to a three day bench trial. Hong represents himself, and does so through a Mandarin interpreter. He loses. The trial court evicts the restaurant from the mall, and orders Hong to pay around $190,000.

Hong then appeals, and represents himself pro per.


If you're the law firm that represents Universal, it's not exactly a career highlight to lose to a pro per litigant.

In any event, I was somewhat rooting for Hong. Maybe he shouldn't have unilaterally decided to deduct the alleged ten percent discount from his rent. But if Universal had a problem with that, it should have sued initially. Not waited two years, retaining the full amount of rent for that entire period, and then file suit. That's exactly what Section 1161 was designed to prevent.

And because of all this, Hong gets evicted from the mall, and his restaurant there closed down. Events that are not suddenly reversed notwithstanding his success on appeal.

Though he seems to perhaps reopened his restaurant inside the Hilton in San Gabriel. Good for him.

(Though those Yelp reviews aren't exactly stellar, TBH.)