Justia Real Estate & Property Law Opinion Summaries

The Orange County Transportation Authority (OCTA) awarded a contract to OC 405 Partners Joint Venture (OC 405) for improvements to Interstate 405. OC 405 then awarded subcontracting work to Golden State Boring & Pipe Jacking, Inc. (GSB). However, the parties disagreed on the scope of the subcontract work and did not execute a written subcontract. OC 405 subsequently contracted with another subcontractor, leading GSB to file a lawsuit seeking benefit of the bargain damages, claiming OC 405 did not comply with Public Contract Code section 4107’s substitution procedures.The Superior Court of Orange County granted summary judgment in favor of OC 405 and other defendants, holding that GSB was not entitled to the protections of section 4107 because it did not meet the requirements of section 4100 et seq. Specifically, GSB was not a "listed subcontractor" in the original bid, and its proposed work did not exceed one-half of 1 percent of the prime contractor’s total bid, a threshold requirement under section 4104.The California Court of Appeal, Fourth Appellate District, Division Three, reviewed the case. The court affirmed the lower court’s decision, concluding that section 4107’s substitution procedures did not apply to OC 405’s substitution of GSB. The court emphasized that the protections of section 4100 et seq. only apply to subcontractors whose proposed work exceeds the one-half of 1 percent threshold of the prime contractor’s total bid. Since GSB’s bid did not meet this threshold, it was not entitled to the protections under section 4107. The court also noted that the contractual provisions in the prime contract did not alter this statutory requirement. Thus, the judgment in favor of the defendants was affirmed. View "Golden State Boring & Pipe Jacking, Inc. v. Astaldi Construction" on Justia Law

A landlord argued that a case brought by the Los Angeles City Attorney to enforce California's Public Nuisance Law (PNL) violated Government Code section 53165.1, which bars local governments from penalizing tenants or landlords solely due to contact with law enforcement. The case involved a 116-unit apartment complex in North Hollywood, where the People alleged a gang-related public nuisance. The complaint sought abatement of the nuisance, a permanent injunction, and civil penalties.The Los Angeles County Superior Court granted a preliminary injunction requiring the defendants to implement several security measures, including proper lighting, video monitoring, and private security. The court also ordered criminal background checks on tenants. Defendants appealed, and a different panel of the Court of Appeal affirmed the preliminary injunction but directed the trial court to consider modifying it in light of section 53165.1. On remand, the trial court modified the injunction to remove the background check requirements but confirmed the validity of the rest of the injunction.The California Court of Appeal, Second Appellate District, reviewed the case and held that enforcing the PNL is not prohibited by section 53165.1 because the PNL is a state law, not a local ordinance, rule, policy, program, or regulation. The court also determined that the action brought by the city attorney on behalf of the People of the State of California is not an action by a "local government" within the meaning of section 53165.1. Additionally, the court found that the preliminary injunction did not penalize tenants or landlords solely due to contact with law enforcement. The order was affirmed. View "People ex rel. Soto v. Group IX BP Properties" on Justia Law

Fell Holdings LLC and Stanyan Holdings LLC, misdescribed as California limited liability companies instead of Delaware limited liability companies, filed unlawful detainer proceedings against Fell Street Automotive Clinic, Stanyan Street Automotive Clinic, and Laurence Nasey. Nasey had lost ownership of two properties in San Francisco during a nonjudicial foreclosure but continued operating his businesses through a leaseback arrangement with the new owners, memorialized in a settlement agreement. The agreement allowed Nasey to repurchase the properties, with stipulated judgments against him if he failed to do so.The trial court entered judgments in favor of Fell Holdings and Stanyan Holdings, which were later enforced. Appellants moved to vacate these judgments, arguing that the misdescription of the plaintiffs' corporate status deprived the court of jurisdiction, rendering all judicial actions void. The trial court denied the vacatur motions.The California Court of Appeal, First Appellate District, reviewed the case. The court held that the misdescription of the plaintiffs' corporate status did not automatically void the judgments. Instead, the issue was whether the discrepancy could be cured by amendment under Code of Civil Procedure section 473, subdivision (a)(1). The court reversed the trial court's orders denying the vacatur motions and remanded the case, directing the trial court to vacate the judgments and enforcement orders without prejudice. The trial court was instructed to consider any motions by the plaintiffs to amend their complaints to correct the misdescription and to address appellants' arguments regarding the release of Nasey's $202,500 earnest money deposit. The parties were to bear their own costs on appeal. View "1215 Fell SF Owner LLC v. Fell Street Automotive Clinic" on Justia Law

Allan Gumarang entered into a lease agreement with Braemer on Raymond, LLC (Lessor) to operate an ice cream parlor. The lease included provisions requiring the Lessor to maintain the property and for Gumarang to obtain liability insurance and indemnify the Lessor against claims arising from his use of the property. In October 2017, a fire destroyed the property, and Gumarang alleged that the Lessor and its management (Management) failed to ensure the property had adequate fire prevention systems.Gumarang filed a lawsuit against the Lessor and Management for breach of contract, negligence, and other claims. In response, the Lessor and Management demanded that Gumarang defend and indemnify them under the lease terms. When Gumarang refused, they filed a cross-complaint for indemnity and breach of contract. Gumarang filed an anti-SLAPP motion to strike the cross-complaint, arguing it arose from his protected activity of filing the lawsuit.The Superior Court of Los Angeles County granted Gumarang’s anti-SLAPP motion in part, striking the cross-claims for comparative indemnity and equitable indemnity but denied it for the contractual indemnity and breach of contract claims. The court found that the latter claims did not arise from protected activity and that the indemnity provision in the lease was enforceable. The court also denied Gumarang’s request for attorney fees, finding he did not achieve a practical benefit from the partial success of his anti-SLAPP motion.The California Court of Appeal, Second Appellate District, affirmed the lower court’s decisions. The appellate court agreed that the cross-claims for contractual indemnity and breach of contract did not arise from Gumarang’s protected activity of filing the lawsuit but from his alleged breach of the lease’s indemnity provision. The court also upheld the denial of attorney fees, concluding that Gumarang did not obtain a significant practical benefit from the partial success of his anti-SLAPP motion. View "Gumarang v. Braemer on Raymond, LLC" on Justia Law

Plaintiffs Francisco Lorenzo and Angelina Nicolas sued Core/Related Grand Avenue Owner, LLC, Tishman Construction Corporation of California, and Calex Engineering, Inc. for wrongful death after their daughters were killed by a dump truck driven by Stanley Randle, an employee of a subcontractor. The truck was traveling from an unpermitted off-site staging area to a construction project in downtown Los Angeles. Plaintiffs argued that the defendants' decision to use an unpermitted staging area was negligent and led to the accident.The Superior Court of Los Angeles County granted summary judgment in favor of the defendants, concluding that they did not owe a duty of care to the decedents. The court found that the defendants' actions were not the proximate cause of the accident and that the defendants did not have a duty to ensure the safety of the decedents under the circumstances.The California Court of Appeal, Second Appellate District, Division One, reversed the lower court's decision. The appellate court held that the defendants did owe a duty of care to the decedents. The court reasoned that Civil Code section 1714 establishes a general duty to exercise reasonable care for the safety of others, and the defendants' decision to establish an unpermitted staging area foreseeably created a risk of harm. The court also found that the Rowland factors did not justify an exception to this duty. The court further rejected the defendants' argument that their conduct did not proximately cause the accident, concluding that there were triable issues of fact regarding causation. The judgment was reversed, and the case was remanded for further proceedings. View "Lorenzo v. Calex Engineering, Inc." on Justia Law

A motorcyclist, Bradley Charles St. John, died after colliding with a 300-pound pig on a rural road and subsequently being struck by another vehicle. The pig had escaped from a nearby property owned by Gary and Judy Schaeffler, who had leased it to Judy’s brother and sister-in-law, Michael and Suzanne Mountjoy. The Mountjoys were responsible for maintaining the property, including the fences, under an oral lease agreement. The Schaefflers visited the property occasionally but did not reside there.St. John’s widow sued the Schaefflers and the Mountjoys for negligence, claiming they failed to properly secure the livestock. The Superior Court of Los Angeles County granted summary judgment in favor of the Schaefflers, ruling they owed no duty of care to St. John as out-of-possession landlords without actual knowledge of the dangerous condition.The California Court of Appeal, Second Appellate District, Division Five, reviewed the case. The court held that a landlord owes a duty of care if they have actual knowledge of a dangerous condition and the right to enter the property to remedy it, or if they have reason to believe a dangerous condition exists at the start or renewal of a lease and fail to conduct a reasonable inspection. The court found that the Schaefflers did not have actual knowledge of the unsecured livestock and had no reason to know the fences were inadequate. Therefore, they had no duty to inspect or secure the property. The court affirmed the trial court’s summary judgment in favor of the Schaefflers. View "Estate of St. John v. Schaeffler" on Justia Law

Leslie J. Knoles (Decedent) and Ruth Catello co-owned a property as joint tenants with a right of survivorship. After Decedent's death in 2020, the property's title became disputed. Decedent's four siblings and Catello were involved in probate proceedings regarding the property and other estate assets. Concurrently, the siblings filed a civil action in 2022 to partition the property. The trial court identified the property owners as Catello and Decedent’s estate and ordered a partition by sale. Catello appealed, arguing that the siblings lacked standing to sue for partition because ownership of the property was still undetermined in probate court.The Superior Court of San Diego County entered an interlocutory judgment for partition by sale, identifying the property owners and ordering the sale proceeds to be distributed accordingly. Catello did not challenge the siblings' standing during the trial court proceedings. The siblings filed a cross-claim for partition by sale, asserting that the 2020 quitclaim deed was valid and that they would inherit Decedent's interest in the property. The trial court ruled in favor of the siblings, leading to Catello's appeal.The Court of Appeal, Fourth Appellate District, Division One, State of California, reviewed the case. The court held that the siblings lacked standing to bring the partition claim because the probate court had not yet determined the ownership of the property. The court emphasized that clear title is required to bring a partition action, and the ongoing probate proceedings meant that the siblings' ownership interest was not confirmed. Consequently, the court reversed the trial court's judgment, concluding that the uncertainty of ownership precluded the siblings from establishing the necessary standing for their partition claim. View "Amundson v. Catello" on Justia Law

The plaintiff, Shalome Kaushansky, retained Stonecroft Attorneys, APC, to represent her in a legal action against her landlord due to various issues during her tenancy, including water leaks, mold, electrical problems, and harassment. Stonecroft filed a complaint but failed to advance the case, conduct discovery, or respond to the landlord's discovery requests. Shortly before the trial, Stonecroft withdrew from the case, leading Kaushansky to settle for $2,500.Kaushansky then sued Stonecroft for professional negligence, breach of fiduciary duty, and unfair competition. The Los Angeles County Superior Court found in favor of Kaushansky, awarding her $91,734.29 for professional negligence and $25,000 for breach of fiduciary duty, totaling $116,734.29. The court found Stonecroft failed to plead all applicable causes of action, conduct discovery, and protect Kaushansky from foreseeable prejudice upon withdrawal. However, the court ruled in favor of Stonecroft on the unfair competition claim and declined to award punitive damages.The California Court of Appeal, Second Appellate District, reviewed the case. The court reversed the $91,734.29 award for professional negligence, finding no substantial evidence that Kaushansky could have collected this amount from her landlord. The court noted that Kaushansky failed to prove the landlord's solvency or the collectibility of a hypothetical judgment. However, the court affirmed the $25,000 award for breach of fiduciary duty, finding substantial evidence that Stonecroft's withdrawal constituted intentional misconduct, justifying emotional distress damages. The judgment was affirmed in part and reversed in part, with each party bearing its own costs on appeal. View "Kaushansky v. Stonecroft Attorneys, APC" on Justia Law

Attorney Steven C. Kim took a lien against his client’s real property to secure his attorney fee. The trial court ordered Kim’s client to convey that property to fulfill a sales contract. Kim’s lien obstructed the sale, and the trial court expunged Kim’s lien. Kim’s client appealed, the Court of Appeal dismissed the appeal, no one sought review in the Supreme Court, and the judgment became final in 2018. Three days later, Kim brought a new suit against the same buyer of the same property, seeking a declaration that his expunged lien was valid and the result in the earlier suit was wrong. The buyer successfully invoked issue preclusion, and Kim now appeals this new defeat.The Superior Court of Los Angeles County granted the buyer’s motion for judgment on the pleadings without leave to amend, reasoning that the doctrine of collateral estoppel barred Kim’s effort to relitigate the lien question. The court later also ruled for the buyer on its cross-complaint, and Kim alone appealed.The Court of Appeal of the State of California, Second Appellate District, Division Eight, affirmed the judgment. The court held that the earlier litigation precluded relitigation of the lien question. The lien issue was actually litigated and necessarily decided in the first suit, and Kim was in privity with his client Central Korean. The court found that Kim had a financial interest in the lien question and controlled the litigation in cooperation with his client. The court dismissed Kim’s new arguments about section 1908 of the Code of Civil Procedure as they were raised for the first time in his reply brief. The trial court’s analysis of issue preclusion was deemed correct, and the judgment was affirmed, awarding costs to the respondents. View "Kim v. New Life Oasis Church" on Justia Law

Matthew V. Herron filed a petition for writ of mandate against the San Diego Unified Port District and the Coronado Yacht Club, alleging that the lease of coastal public trust land to the private club violated the public trust doctrine, the San Diego Unified Port Act, the Public Resources Code, and the Port’s Master Plan. Herron claimed that the lease was executed without public notice or competitive bidding and requested the court to compel the Port District to comply with proper procedures and award the lease to a qualified applicant who would operate the property for public benefit.The Superior Court of San Diego County sustained the demurrer without leave to amend, concluding that it lacked jurisdiction to interfere with the Port District’s discretionary decisions under a writ for traditional mandamus and that the time for filing a writ for administrative mandamus had expired. The court dismissed Herron’s petition with prejudice, leading to Herron’s appeal.The California Court of Appeal, Fourth Appellate District, Division One, reviewed the case de novo and affirmed the trial court’s judgment. The appellate court held that Herron failed to establish a claim for traditional mandamus because the Port District’s decision to lease the land involved discretionary authority, not a ministerial duty. The court also found that Herron’s petition for administrative mandamus was untimely, as it was filed more than four years after the lease became final, exceeding the 90-day statutory limit. Consequently, the appellate court concluded that Herron was not entitled to relief under either theory and affirmed the dismissal of his petition. View "Herron v. San Diego Unified Port District" on Justia Law