Nightfall Group Lawsuit: Legal Stakes and Potential Consequences

The Nightfall Group, operating as Ultimate Host, LLC, faces civil enforcement action from the Los Angeles City Attorney’s Office for alleged violations of the city’s Short-Term Rental Ordinance and Party House Ordinance. Filed in August 2023, the lawsuit claims the company facilitated illegal short-term rentals across numerous properties, many used for large parties causing significant neighborhood disruptions. Partial settlements were reached in September 2025 with three co-defendants, resulting in $280,000 in civil penalties, while litigation against the primary defendants—Ultimate Host, LLC and owner Mokhtar Jabli—remains pending as of early 2026.

This case highlights tensions between short-term rental operations and local regulations designed to protect housing availability and public safety. It affects neighbors burdened by noise and disturbances, property owners involved in such arrangements, the short-term rental industry, and city enforcement efforts.

Key Background: Los Angeles has regulated short-term rentals since adopting the Home-Sharing Ordinance in 2019, limiting rentals to a host’s primary residence (with exceptions) and requiring registration. The separate Party House Ordinance addresses repeated nuisances like excessive noise, litter, and public obstruction.

Current Status: Partial settlements prohibit non-compliant rentals and require guest notifications banning unruly parties. The main claims against Ultimate Host and Jabli continue in Los Angeles Superior Court (Case #23STCV19069).

Potential Outcomes: Possible remedies include injunctions against further violations, civil penalties (up to $2,500 per violation), and abatement of nuisances. Outcomes could influence enforcement against similar platforms.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult qualified counsel for specific guidance.

The Nightfall Group lawsuit represents a significant municipal enforcement effort against alleged illegal short-term rentals and party houses in Los Angeles. Initiated by City Attorney Hydee Feldstein Soto in August 2023, the civil action targets Ultimate Host, LLC (doing business as The Nightfall Group), its owner Mokhtar Jabli, and several associated property owners. The case illustrates the intersection of housing policy, public nuisance law, and consumer protection in a major U.S. city grappling with the impacts of platforms facilitating short-term stays.

Background & Legal Context

Los Angeles adopted its Home-Sharing Ordinance in 2019 to balance the growth of short-term rentals—popularized by platforms like Airbnb—with neighborhood stability and housing affordability. The ordinance restricts short-term rentals (defined as stays of 30 days or less) to a host’s primary residence, limits operators to one such property, mandates registration with the Department of City Planning, and requires the registration number to appear in listings. Violations can trigger civil penalties and injunctive relief.

Complementing this framework is the Party House Ordinance, which prohibits repeated use of residential properties for gatherings that cause excessive noise, disruptive behavior, obstruction of public rights-of-way, litter, vandalism, or other nuisances affecting public safety and quality of life. These rules reflect broader legislative intent to preserve long-term housing stock, particularly in rent-stabilized areas, and to mitigate documented community impacts from unregulated party events.

Prior to this case, the City Attorney’s Office had pursued enforcement against various short-term rental operators. The creation of a dedicated Public Rights Branch within the office strengthened capacity to address unfair business practices, consumer protection, and nuisance abatement—categories encompassing the claims against Nightfall.

The Nightfall Group positioned itself as a high-end home hosting platform, leasing properties long-term from owners and subleasing them as luxury “villas” for short-term stays. Advertised rates reached up to $16,000 per night, with optional add-ons such as catering, entertainment, and event services. The business model allegedly circumvented registration requirements and primary-residence restrictions, contributing to a pattern of party-related disturbances.

Key Legal Issues Explained

The lawsuit centers on two primary violations:

• Short-Term Rental Ordinance Breaches: By leasing multiple properties and offering them for short-term use without registration or primary-residence compliance, the defendants allegedly operated outside the ordinance’s narrow allowances. Subleasing arrangements further complicated compliance, as the end operator (Nightfall) did not reside in the properties.
• Party House Ordinance Violations: The complaint alleges that properties marketed by Nightfall frequently hosted large gatherings resulting in public nuisances. Excessive noise, blocked streets, litter, and disruptive behavior disrupted neighbors and strained public resources.

Supporting evidence includes Los Angeles Police Department records showing more than 250 service calls to Nightfall-associated properties in Hollywood between 2021 and 2023. These calls primarily concerned party-related disturbances, underscoring claims of ongoing nuisance activity.

The case invokes California’s Unfair Competition Law (Business & Professions Code § 17200 et seq.), which prohibits unlawful, unfair, or fraudulent business acts. Remedies may include injunctive relief to halt violations, restitution, and civil penalties—up to $2,500 per violation per day, depending on the court’s findings.

In real-world terms, such cases often follow a progression: initial complaint filing, discovery (exchange of evidence), potential motions, settlement negotiations, or trial. Partial settlements, as seen here, are common when co-defendants seek to resolve liability separately.

Latest Developments or Case Status

The complaint was filed on August 15, 2023, in Los Angeles Superior Court (Case No. 23STCV19069). It named Ultimate Host, LLC dba The Nightfall Group, Mokhtar Jabli, Jungle Kerry, Inc., 5554 Green Oak, LLC, and Kirill “Kirk” Ayzenberg (individually and as trustee).

In September 2025, the City Attorney announced settlements with three co-defendants:

• Kirill “Kirk” Ayzenberg: $215,000 civil penalty
• 5554 Green Oak, LLC: $45,000 civil penalty
• Jungle Kerry, Inc.: $20,000 civil penalty

Total penalties from these settlements reached $280,000. The agreements prohibit the settling defendants from engaging in non-compliant short-term rentals in Los Angeles and require them to notify guests that loud or unruly parties are prohibited.

Litigation against Ultimate Host, LLC and Mokhtar Jabli remains pending. No trial date or final resolution for the primary defendants has been publicly reported as of early 2026.

Related actions include a 2023 Miami Beach case where Nightfall was involved as a booking agent for an illegal short-term rental; it settled with minimal direct penalties against the company. Private suits, such as a 2024 breach-of-contract claim by staging firm Vesta Homes alleging over $116,000 in unpaid invoices, highlight additional financial and operational pressures.

Who Is Affected & Potential Impact

• Neighborhood Residents: Repeated disturbances from noise, traffic, and crowds degrade quality of life and public safety. Police responses divert resources from other needs.
• Property Owners: Those leasing to Nightfall may face liability for ordinance violations or nuisance claims, even if unaware of subtenant activities.
• Short-Term Rental Operators: The case signals heightened scrutiny of platforms bypassing registration or primary-residence rules, potentially deterring similar models.
• City and Housing Stock: Enforcement preserves long-term rental availability and rent-stabilized units, addressing affordability concerns.

Potential consequences include injunctions halting non-compliant operations, substantial penalties (potentially millions if violations are numerous), and reputational damage. For the industry, stricter compliance requirements could raise costs and limit inventory.

What This Means Going Forward

This enforcement action reinforces municipal authority to regulate short-term rentals amid ongoing debates over housing policy and economic impacts. It demonstrates the City Attorney’s commitment to using civil litigation to address public nuisances and ordinance violations.

Observers should monitor the pending claims against Ultimate Host and Jabli, as a final judgment could set precedent for similar cases. Future developments may include additional settlements, motions for summary judgment, or trial proceedings.

The case also underscores the importance of due diligence for property owners and operators in short-term rental arrangements, including verifying compliance with local ordinances.

Frequently Asked Questions

What triggered the Nightfall Group lawsuit?

The City Attorney filed suit in August 2023 after reports of over 250 LAPD responses to party-related disturbances at properties leased and subleased by Nightfall, combined with alleged failures to comply with registration and primary-residence requirements.

What penalties have been imposed so far?

In September 2025, partial settlements required three co-defendants to pay a combined $280,000 in civil penalties, along with prohibitions on future violations and guest notifications banning unruly parties.

Is the case fully resolved? No. While settlements were reached with three property-owner defendants, litigation against Ultimate Host, LLC and Mokhtar Jabli continues in Los Angeles Superior Court.

What laws were allegedly violated? The primary claims involve the Los Angeles Home-Sharing Ordinance (short-term rental restrictions) and Party House Ordinance (nuisance prevention), alongside California’s Unfair Competition Law.

How does this affect short-term rental hosts in Los Angeles?

Operators must ensure compliance with registration, primary-residence, and nuisance rules to avoid similar enforcement. Non-compliance risks civil penalties, injunctions, and business restrictions.

Can private individuals sue over party house disturbances?

Yes, neighbors may pursue private nuisance claims, though municipal enforcement often addresses widespread patterns more efficiently.

Conclusion

The Nightfall Group lawsuit underscores Los Angeles’ ongoing efforts to enforce short-term rental and nuisance regulations amid community concerns. Partial resolutions have imposed meaningful penalties and restrictions, while the unresolved claims against the core defendants highlight the complexity of regulating a dynamic industry. As proceedings continue, the outcome may influence compliance standards and enforcement priorities in California and beyond. Staying informed through official court records and City Attorney announcements remains essential for those tracking this matter.

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