Justia Real Estate & Property Law Opinion Summaries

Articles Posted in California Courts of Appeal
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In 2017, Bakewell submitted applications regarding its proposed development of "Campus Town," on approximately 122 acres of the former Fort Ord military base. The City of Seaside certified an environmental impact report under the California Environmental Quality Act, Public Resources Code section 21000, and approved the project. After holding a public hearing, the Fort Ord Reuse Authority (FORA) determined that the project was consistent with the Fort Ord Reuse Plan. A nonprofit organization filed a petition for a writ of mandate, alleging that the Campus Town EIR violated CEQA and that FORA’s failure to provide the Committee with notices of the consistency hearing for the project violated the Committee’s right to due process. Bakewell argued that the CEQA causes of action were time-barred and the due process cause of action was moot.The court of appeal affirmed the dismissal of all claims. Under Emergency rule 9(b) the last day for the Committee to file its petition asserting CEQA causes of action was August 4, 2020; it was not filed until September 1, 2020. there is currently no requirement that development projects proposed for the former Fort Ord military base be consistent with the Fort Ord Reuse Plan, so the due process claim is moot. View "Committee for Sound Water & Land Development v. City of Seaside" on Justia Law

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Lassen Irrigation Company (Irrigation Company) challenged the superior court’s orders interpreting paragraphs1 17 and 55 of the 1940 Susan River Water Rights Decree (decree). The superior court adopted the trust’s interpretations of those paragraphs, thereby overturning the contrary decisions by Honey Lake Valley Resource Conservation District, serving as the watermaster administering the decree. Although the superior court expressed an unfamiliarity with water law, it viewed the trust’s interpretations of the paragraphs as “not ridiculously inconsistent with the objectives of the overall agreement” and “within the bounds of the agreement and . . . consistent with the language in the agreement.” The Court of Appeal concluded the trust’s interpretations of paragraphs 17 and 55, as adopted by the superior court, were unreasonable considering the language, record, history, and context of the decree. The superior court’s finding the trust’s place of use change request otherwise comported with Water Code section 1706 and California water law also did not save the paragraph 17 order. Accordingly, the superior court’s orders were reversed in their entirety. View "Dow v. Lassen Irrigation Company" on Justia Law

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Canyon Vineyard Estates I, LLC (CVE) appealed from a grant of summary judgment in favor of Mountains Restoration Trust (MRT), John Paul DeJoria, the County of Los Angeles, and the California State Attorney General. CVE also appeals from an injunction in favor of MRT and from an award of attorney fees and costs in favor of MRT and the Attorney General.   The Second Appellate District affirmed the summary judgment order finding that there is no genuine issue of material fact that the property is subject to a valid conservation easement. However, the court concluded that the injunction is overbroad in that it improperly bars CVE from filing further litigation to challenge the conservation easement without regard to the potential merits of a future claim. Thus, the court reversed the injunction and remanded the matter to the trial court to enter a new injunction that is more narrowly tailored so that it does not enjoin future lawful actions by CVE. The court reasoned that CVE has not demonstrated a triable issue of fact as to whether Tuna Canyon remains subject to a conservation easement held by MRT. The court explained that the grant of a fee title subject to a condition subsequent did not preclude the grant of a conservation easement. Moreover, the court held that the trial court must ensure the injunction does not preclude CVE from exercising its right to seek relief in court. View "Canyon Vineyard Estates I v. DeJoria" on Justia Law

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Sara, an elderly woman, owned the property and resided there with her husband, who has dementia. San Mateo County informed Sara that she owed taxes and faced foreclosure. Miller, a real estate salesperson, contacted Sara and offered to secure a reverse mortgage to pay Sara’s tax obligation. Miller provided Sara with a document to sign. Sara believed the document was to secure a $500,000 reverse mortgage and that after she signed, Miller would pay the taxes. Sara did not read the document but signed it. The document was actually a purchase agreement. A deed transferring the property to Rex was recorded the same day. The District Attorney’s Office notified Sara of the sale. Lion had purchased the property from Rex. Miller pled no contest to unlawfully and knowingly procuring and offering a false or forged instrument to be filed in a state public office and grand theft of the property. Lion filed a quiet title action.The state moved to void the deed to Rex. The court determined the deed was forged and that the matter was appropriately addressed in the criminal proceeding. The court of appeal affirmed the adjudication of the deed as void from its inception, rejecting arguments that Miller’s no contest plea “was not an adjudication of the alleged falsity or forgery” of the deed, that the finding was not supported by the record, and the court should have deferred to the pending quiet title action. View "People v. Miller" on Justia Law

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The owners purchased the property in a wooded area of Los Gatos to build a home. They sought to remove some trees, including a large eucalyptus tree that straddled the property line, not realizing that the eucalyptus was partially on the neighbor’s property and that they needed her permission to remove it. They assumed they could remove the eucalyptus because they had received permits from the county. The owners’ general contractor, TWA, hired a subcontractor for tree trimming. The subcontractor damaged the eucalyptus tree.The neighbor sued. The owners filed a cross-complaint against TWA for comparative negligence, breach of contract, express contractual indemnity, equitable indemnity, and other claims. TWA filed a cross-complaint against the owners, alleging breach of contract and other claims. At trial, the owners and TWA settled the suit with the neighbor. The suits involving their cross-complaints continued. TWA presented no evidence that the subcontractor who worked on the eucalyptus was licensed for tree trimming work.The court of appeal affirmed that TWA was 100 percent at fault for the neighbor’s damages and had been paid $10,000 for the tree trimming services performed by the subcontractor. The court rejected arguments that the trial court erred in interpreting the licensing statute, Business and Professions Code section 7031.3, and misinterpreted the construction agreement. View "Kim v. TWA Construction, Inc." on Justia Law

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Martha owns the largest undeveloped parcel of property in the vicinity of Tiburon, 110 acres on top of a mountain, overlooking much of the town and commanding a stunning view of San Francisco Bay. For decades, Martha has sought approval from the County of Marin to develop the property. Local opposition has been intense, including federal court litigation, starting in 1975 and resulting in stipulated judgments in 1976 and 2007. The county twice publicly agreed to approve Martha building no fewer than 43 units on the property. In 2017, the county certified an environmental impact report and conditionally approved Martha’s master plan for 43 single-family residences. The county believed its actions were compelled by the stipulated judgments.The town and residents sued, claiming that the county effectively agreed it would not follow or enforce state law, specifically, the California Environmental Quality Act, to prevent the development of an anticipated project. The court of appeal upheld the approvals. Governmental powers are indefeasible and inalienable; they cannot be surrendered, suspended, contracted away, waived, or otherwise divested. Government cannot bind the hands of its successors. In this case, the county did not abdicate its authority or otherwise undertake not to comply with CEQA. “With its eyes wide open,” the county complied with a binding, final judgment; that judgment in no way anticipated or legitimated ignoring CEQA. View "Tiburon Open Space Committee v. County of Marin" on Justia Law

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Plaintiff-appellant Joseph Amato sold a house at a price that he contended was much less than the property was worth. He sued the broker who listed the property for him, defendant-respondent Steve Downs, as well as the broker’s employer, defendant-respondent Coldwell Banker Residential Brokerage Company (Coldwell Banker). On the day of trial, the court found that Amato had waived his right to a jury trial by failing to comply with a local pretrial procedural rule. It then denied Amato’s request that a different judge hear the case due to the trial judge’s involvement in pretrial settlement negotiations. After Amato presented his evidence, the court granted a motion for judgment in favor of Downs and Coldwell Banker on all of Amato’s claims. On appeal, Amato argued he was erroneously deprived of his right to a jury trial. Furthermore, the judge should have recused himself as trier of fact, one of Amato's witnesses was dismissed before the witness finished testifying, and defendants' motion should not have been granted. After review, the Court of Appeal found the trial court indeed erred in deeming Amato to have waived jury trial despite his violations of the local rules. Judgment was reversed on this ground, and the matter remanded for further proceedings. View "Amato v. Downs" on Justia Law

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After a bench trial, the trial court resolved a property line dispute between two neighbors by creating an easement in favor of Respondents, the encroaching property owners. It granted Respondents an exclusive implied easement and, alternatively, an equitable easement over the entire encroachment. Appellants appealed the judgment.   Appellants made three primary arguments on appeal. First, the trial court’s judgment “should be reversed because, as a matter of law, the court cannot create an exclusive implied easement.” Second, that the court erred in creating an implied easement.” Third, that the court abused its discretion and “erred in creating an equitable easement” which “is not narrowly tailored to promote justice and is significantly greater in scope and duration than what is necessary to protect [respondents’] needs.”   The Second Appellate District reversed the trial court’s judgment on the cause of action for implied easement and affirmed the judgment on the cause of action for equitable easement. The court held that the trial court erred in granting an exclusive implied easement that amount to fee title. The court reasoned that in this case there was no express grant of an exclusive easement. And the encroachment, totaling 1,296 square feet of appellants’ 9,815-square-foot property, cannot reasonably be qualified as de minimis as it amounts to approximately 13.2 percent of Appellants’ property.  The court affirmed the trial court’s creation of an equitable easement reasoning that substantial evidence supports the trial court’s finding that respondents were innocent and did not have knowledge of their encroachment on Appellants’ property. View "Romero v. Shih" on Justia Law

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In 2008, Morris defaulted on her home mortgage. After negotiating a loan modification, she again defaulted in 2009. Morris and her husband, Mazhari, then filed two bankruptcy proceedings. Mazhari died while the second bankruptcy was pending. Morris unsuccessfully tried to obtain another loan modification. Following the 2016 lifting of the automatic stay in her third bankruptcy, Morris’s home was sold at public auction to Chase, the deed of trust beneficiary and successor to the original lender. Morris claims that the trustee’s sale occurred without notice to her because Chase and then Rushmore, the loan servicer, pursued foreclosure secretly while giving her false assurances that loan modification terms were forthcoming and shuttling her between uninformed representatives who gave her inconsistent information about her modification request.Morris sought post-foreclosure relief, including damages, an order setting aside the trustee’s sale, and a declaration quieting title under the California Homeowner Bill of Rights (HBOR) (Civ. Code 2923.6, 2923.7) and other theories. In 2018, the trial court dismissed all claims. After another delay occasioned by another bankruptcy, Morris appealed. The court of appeal reversed in part, with respect to claims alleging failure to appoint a single point of contact (HBOR 2923.7), dual tracking (2923.6), and failure to mail upon request a notice of default and notice of trustee’s sale 2924b). The court otherwise affirmed. View "Morris v. JPMorgan Chase Bank N.A." on Justia Law

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AIDS Healthcare Foundation and Coalition to Preserve LA (CPLA) (collectively, “Plaintiffs”) filed a petition for writ of mandate in the superior court challenging the approval by the City of Los Angeles (the “City”) of a real estate development project ( the “project”) proposed in an area covered by the Hollywood Redevelopment Plan. Plaintiffs argued that the City’s approval of the project violated the 15 percent requirement because it did not commit 15 percent of the residential units for affordable housing. The court denied the petition and entered judgment for the City and 6400 Sunset, LLC (the “real party”).   The Second Appellate District affirmed the Superior Court’s order denying Plaintiff’s writ of mandate arguing that the City’s approval of the project violated the 15 percent requirement. The court held that Dissolution Law rendered the 15 percent requirement inoperative and, even if it had remained operative, it does not apply. The court reasoned that the Dissolution Law renders the 15 percent requirement inoperative because complying with that requirement depends upon the allocation of tax increments to redevelopment agencies. Further, the Dissolution Law did not grant to the housing successor any powers the former redevelopment agency did not have (Sec. 34176, subd. (a)(1)), and former redevelopment agencies did not have general police powers. Thus, because general police powers were not available to redevelopment agencies under the Community Redevelopment Law and the Dissolution Law granted housing successors no greater powers, the City could not, as a housing successor, invoke such powers to require a developer to comply with the 15 percent requirement. View "AIDS Healthcare Foundation v. City of L.A." on Justia Law