Read this doc on Scribd: CCSF v Kip Macy
In case you did not want to read all 96 pages of it, apparently the Macys have allegedly been in violation of the law. According to this filing, the Macys have been using the Ellis Act the evict tenants from their building. However, under the Ellis Act, when the property owner removes the property from the rental market, they cannot re-let any of the units for at least five years. It seems that after evicting most of the tenants, they then entered into agreement (exhibit D, page 44) with another individual, by the name of Ricardo Cartagena. Under this agreement, Cartegena would obtain new tenants for the building and be allowed to become a part owner of the building.
Essentially, they were using Cartagena as a straw man so that they could re-rent the units. After new tenants were brought it, the Macy's are alleged to have then evicted Cartegena from the building.
Then there is the litany of building violations committed by the Macys.
Yes, I understand that a person is innocent until proven guilty. However, if the documents attached as exhibits the City's complaint are real, then Kip and Nicole Macy have some serious explaining to do. And somehow, I don't think it can be explained by saying that this is all a hullabulloo caused by a tenant who is "behaving in a manner approaching vexatious litigation".