Justia Real Estate & Property Law Opinion Summaries

Laura Lazar sued real estate brokers Lynette Bishop, Shen Shulz, Sotheby’s International Realty, Inc., and Shen Realty, Inc. for breach of fiduciary duty related to the sale of her father's Malibu house. Lazar's father, Daniel Gottlieb, had assigned his causes of action to her. The complaint alleged that the brokers failed to disclose a dual agency and did not work to obtain the highest possible sale price, resulting in a sale price significantly lower than the house's value.The Superior Court of Los Angeles County granted the defendants' motion for summary judgment, concluding that Lazar lacked standing to sue because the cause of action for breach of fiduciary duty was not assignable under Civil Code section 954. The court likened the relationship between a real estate broker and client to that of an attorney and client, which involves a highly personal and confidential relationship, making such claims nonassignable. Lazar appealed the decision.The California Court of Appeal, Second Appellate District, Division Three, reviewed the case. The court held that a cause of action for breach of a real estate broker’s fiduciary duties, which seeks only damages related to property rights and pecuniary interests, is assignable. The court reversed the grant of summary judgment and remanded the case for the trial court to consider the remaining grounds argued in the defendants' motion. The appellate court found that the transactional nature of the broker-client relationship, unlike the attorney-client relationship, does not involve highly personalized rights of recovery, and thus, the claim is assignable. View "Lazar v. Bishop" on Justia Law

Majestic Asset Management, LLC, Wintech Development, Inc., Hai Huang, and Jen Huang owned and operated a golf course within a gated community governed by The Colony at California Oaks Homeowners Association. The owners had obligations to maintain the golf course and surrounding areas, secured by a performance deed of trust (PDOT). After failing to meet these obligations, the Association sought judicial enforcement, leading to a foreclosure decree and valuation of the PDOT.The Superior Court of Riverside County initially ruled in favor of the Association, finding the owners in breach of their maintenance obligations and issuing a permanent injunction. When the owners failed to comply, the court appointed a receiver to manage the golf course. After the receiver's efforts proved insufficient, the Association moved for foreclosure. The trial court valued the PDOT at $2,748,434.37, including the cost to repair the golf course and management fees, and ordered foreclosure.The California Court of Appeal, Fourth Appellate District, reviewed the case. The court affirmed the trial court's decision to use the cost of repair ($2,503,500) as the value of the PDOT but found the inclusion of management fees ($244,934.37) inappropriate. The court modified the foreclosure decree to reflect the correct value of $2,503,500. The court also upheld the ruling that the owners would remain bound by the maintenance obligations if they paid the PDOT's value to retain the property, ensuring the Association's right to performance as long as the owners held the golf course.The court concluded that the foreclosure decree was equitable and did not violate foreclosure law or the one form of action rule. The Association was awarded costs and reasonable attorney fees incurred on appeal. View "Majestic Asset Management, LLC v. The Colony at California Homeowners Assn." on Justia Law

Casa Mira Homeowners Association (Casa Mira) applied for a coastal development permit to construct a 257-foot seawall to protect a condominium complex, sewer line, apartment building, and a segment of the Coastal Trail in Half Moon Bay from erosion. The California Coastal Commission (Commission) denied the permit for the condominiums and sewer line, built in 1984, but approved a 50-foot seawall for the apartment building, built in 1972, and suggested relocating the Coastal Trail inland as a feasible alternative to armoring.The San Mateo County Superior Court granted Casa Mira's petition for a writ of mandate, concluding that the term "existing structures" in the California Coastal Act referred to structures existing at the time of the seawall application, thus entitling the condominiums and sewer line to protection. The court also found insufficient evidence to support the Commission's decision to relocate the Coastal Trail instead of constructing the seawall.The California Court of Appeal, First Appellate District, Division Three, reviewed the case. The court held that "existing structures" in the context of the Coastal Act refers to structures that existed before the Act's effective date of January 1, 1977. Consequently, the condominiums and sewer line, built in 1984, were not entitled to shoreline armoring. The court reversed the trial court's judgment on this point.However, the appellate court affirmed the trial court's finding that the Commission's decision to relocate the Coastal Trail was not supported by substantial evidence. The court noted that the Commission's revised staff report lacked a detailed factual basis and explanation for rejecting the original staff recommendation, which found no viable location for rerouting the trail while maintaining its aesthetic and recreational value. Thus, the judgment was affirmed in part and reversed in part. View "Casa Mira Homeowners Assn. v. California Coastal Commission" on Justia Law

JHVS Group, LLC and its members, Jasanjot Singh and Harshana Kaur, purchased a 66.4-acre pistachio orchard from Shawn Slate and Dina Slate for approximately $2.6 million. The Slates agreed to carry a loan for $1,889,600, and JHVS made a $700,000 down payment. The agreement included provisions for interest payments and additional payments coinciding with expected crop payments. JHVS alleged that the Slates and their brokers, Randy Hayer and SVN Executive Commercial Advisors, misrepresented material facts about the property, including water rights and the value of the 2022 crop. JHVS claimed the actual value of the crop was significantly lower than represented, and they fell behind on payments, leading the Slates to record a notice of default.JHVS filed a lawsuit in the Superior Court of Madera County, raising seven causes of action, including breach of fiduciary duty, negligence, intentional fraud, negligent misrepresentation, breach of contract, rescission based on fraud or mutual mistake, and injunctive relief to stop the foreclosure process. JHVS filed a motion for a preliminary injunction to prevent the foreclosure sale, arguing that the Slates and Hayer had lied about water restrictions and misrepresented the crop's value. The trial court granted the preliminary injunction after the defendants did not appear or file a response.The California Court of Appeal, Fifth Appellate District, reviewed the case and found that the trial court lacked fundamental jurisdiction over the Slates because they were never served with the summons and complaint. The appellate court determined that the trial court's order was void as to the Slates due to the lack of proper service and reversed the preliminary injunction order with respect to the Slates. The case was remanded for further proceedings consistent with the appellate court's opinion. View "JHVS Group, LLC v. Slate" on Justia Law

JHVS Group, LLC and its members, Jasanjot Singh and Harshana Kaur, purchased a 66.4-acre pistachio orchard from Shawn Slate and Dina Slate for approximately $2.6 million. The Slates agreed to carry a loan for $1,889,600, and JHVS made a $700,000 down payment. The agreement included interest payments and additional payments tied to crop yields. JHVS alleged that the Slates and their brokers, Randy Hayer and SVN Executive Commercial Advisors, misrepresented critical information about water rights and crop values, leading to financial losses and a notice of default filed by the Slates.The Superior Court of Madera County issued a preliminary injunction to prevent the foreclosure sale of the property, based on JHVS's claims of fraud and misrepresentation. The court granted the injunction after the defendants failed to appear or respond to the motion. The order was intended to preserve JHVS's right to rescind the contract.The California Court of Appeal, Fifth Appellate District, reviewed the case and found that the trial court lacked fundamental jurisdiction over the Slates because they were never properly served with the summons and complaint. The appellate court determined that the preliminary injunction was void as to the Slates due to this lack of jurisdiction. Consequently, the appellate court reversed the trial court's order granting the preliminary injunction against the Slates and remanded the case for further proceedings consistent with its opinion. The appellate court awarded costs to the Slates. View "JHVS Group, LLC v. Slate" on Justia Law

A vintner challenged the County of Los Angeles's decision to ban new vineyards in the Santa Monica Mountains North Area. The area is largely rural, with a small portion used for agriculture, including vineyards. The County had previously regulated vineyards through a 2015 ordinance requiring conditional use permits and development standards. In 2016, the County initiated a comprehensive update to the North Area Plan and Community Standards District, which required an environmental impact report (EIR) under the California Environmental Quality Act (CEQA).The draft EIR proposed continued regulation of vineyards but did not include a ban. After public comments, the final EIR maintained this approach. However, the County Board of Supervisors ultimately decided to ban new vineyards entirely when they approved the project in 2021. The vintner argued that this change rendered the EIR's project description unstable and required recirculation for further public comment.The Superior Court of Los Angeles County denied the vintner's petition for a writ of mandate, finding no CEQA violation. The vintner appealed, arguing that the vineyard ban fundamentally altered the project and violated Government Code section 65857 by not referring the modification back to the planning commission.The California Court of Appeal, Second Appellate District, Division Two, affirmed the lower court's decision. The court held that the vineyard ban did not alter the nature or main features of the project, thus not destabilizing the project description in the EIR. The court also found that the vintner failed to demonstrate prejudice from the County's procedural error under Government Code section 65857, as there was no evidence that a different outcome was probable if the planning commission had reconsidered the ban. View "Gooden v. County of Los Angeles" on Justia Law

The case involves a challenge to the County of Los Angeles's decision to ban new vineyards in the Santa Monica Mountains North Area. The area is a significant ecological and scenic resource, with most of its land designated as open space. In 2016, the County began updating the North Area Plan and Community Standards District, which included regulations for vineyards. Initially, the draft environmental impact report proposed stringent regulations but did not ban new vineyards. However, after public comments, the County Board of Supervisors decided to impose a total ban on new vineyards.The Superior Court of Los Angeles County denied the petition for a writ of mandate filed by John Gooden and the Malibu Coast Vintners and Grape Growers Alliance, Inc. The petitioners argued that the County violated the California Environmental Quality Act (CEQA) by not recirculating the environmental impact report after the vineyard ban was added and that the County failed to follow Government Code section 65857 by not referring the ban back to the Department of Regional Planning.The California Court of Appeal, Second Appellate District, Division Two, affirmed the lower court's decision. The court held that the addition of the vineyard ban did not alter the nature or main features of the project described in the environmental impact report, thus not rendering the project description unstable. The court also found that the petitioners had waived any claim for recirculation. Additionally, the court assumed a procedural error under Government Code section 65857 but concluded that the petitioners failed to demonstrate that this error was prejudicial or that a different outcome was probable if the error had not occurred. View "Gooden v. County of Los Angeles" on Justia Law

Santa Rita Holdings, Inc. applied for a conditional use permit (CUP) from the County of Santa Barbara to cultivate cannabis on a 2.54-acre parcel owned by Kim Hughes. The only access to the parcel is through a private easement over land owned by JCCrandall, LLC. JCCrandall objected to the use of its easement for cannabis transportation. Despite the objection, the County granted the CUP, and the County’s Board of Supervisors upheld the decision, finding the road adequate for the project.JCCrandall petitioned for a writ of administrative mandate, challenging the County’s determination. JCCrandall argued that the use of the easement for cannabis activities was prohibited by the easement deed and federal law, required JCCrandall’s consent under state law, and violated County standards for private roads. The trial court denied the petition, applying the substantial evidence standard and finding the County’s decision supported by substantial evidence.The California Court of Appeal, Second Appellate District, Division Six, reviewed the case. The court held that the trial court erred in applying the substantial evidence standard instead of the independent judgment standard, as JCCrandall’s right to exclude unauthorized persons from its property is a fundamental vested right. The appellate court also found that under federal law, cannabis is illegal, and thus, the use of the easement for cannabis transportation exceeds the scope of the easement. The court concluded that the County’s reliance on Civil Code section 1550.5, subdivision (b) was misplaced, as it defies the Supremacy Clause of the U.S. Constitution. The judgment was reversed, and costs were awarded to JCCrandall. View "JCCrandall v. County of Santa Barbara" on Justia Law

This case involves a dispute over two adjacent properties, each containing a multi-unit apartment complex with on-site parking. The plaintiffs, Eli and Maha Batta, sought to establish easement rights for additional parking and trash dumpsters on a disputed area of the adjacent property owned by the defendant, Therese Hunt. The Battas purchased their property from Hunt in 1994 and claimed that their tenants had used the disputed area for parking and dumpsters since then. Hunt refused to sign a parking covenant in 2019, leading the Battas to file a lawsuit seeking to quiet title to an easement by grant, prescription, or irrevocable license, and for breach of contract.The Superior Court of Los Angeles County conducted a bench trial and ruled in favor of the Battas, finding they had established easement rights by oral grant, prescription, and implication. The court ordered that the easement would expire upon a bona fide sale of either property. Both parties appealed the decision. Hunt argued that the trial court erred in granting the easement rights, while the Battas contended that the court abused its discretion by ruling that the easement would expire upon a sale.The California Court of Appeal, Second Appellate District, Division Eight, reviewed the case and found that the trial court's findings were inconsistent. The trial court had found both that Hunt had granted an easement and that the Battas' use of the property was adverse, which are mutually exclusive conditions. The appellate court concluded that these inconsistent findings required reversal. Additionally, the appellate court found that the trial court abused its discretion by allowing the Battas to amend their complaint to add a cause of action for an easement by implication without giving Hunt the opportunity to rebut the evidence. Consequently, the judgment was reversed and the case was remanded for further proceedings. View "Batta v. Hunt" on Justia Law

A nonprofit organization challenged the County of Los Angeles's approval of a residential housing development project in the Santa Clarita Valley. The project included a conditional use permit, an oak tree permit, and a vesting tentative tract map. The organization alleged that the County violated the California Environmental Quality Act (CEQA) by failing to adequately analyze and disclose the project's environmental impacts and by not providing proper procedural notices. They also claimed violations of the Subdivision Map Act (SMA) and local zoning laws.The Los Angeles County Superior Court granted the developer's motion for judgment on the pleadings, finding that the organization's claims were barred by the 90-day limitations period under Government Code section 66499.37 of the SMA. The court ruled that the organization failed to serve a summons within 90 days of the County's approval of the vesting tentative tract map, which was required for any action challenging a subdivision decision.The California Court of Appeal, Second Appellate District, reviewed the case. The court held that section 66499.37 of the SMA did not bar the organization's CEQA claims to the extent they alleged procedural violations and failures to analyze and disclose environmental impacts, as these claims were unique to CEQA and could not have been brought under the SMA. However, the court found that the CEQA claims challenging the adequacy of mitigation measures imposed as conditions of the project's approval were barred by the SMA's 90-day limitations period. The court reversed the trial court's judgment and remanded the case, directing the trial court to deny the motion for judgment on the pleadings regarding the CEQA cause of action and grant it concerning the SMA and zoning law violations. View "Santa Clarita Organization for Planning v. County of L.A." on Justia Law