IMO, the whole situation's a little sad. Common sense rarely dictates when "money" is at stake.
BTD lived there for a total of - what 3 and a half months - at least 8 months short of the 12 month lease she signed, right?
At any rate, I have no idea and am no help in terms of property/landlord/renter laws in Orange County. In my limited experience with it, it always seems like the person trying to use common sense (and IMO, decency) gets screwed - no matter what side they're on - renter or landlord.