Justia Real Estate & Property Law Opinion Summaries

Plaintiff Brian L. Sheehy, as trustee, sued Chicago Title Insurance Company over a dispute involving an easement on his property. Plaintiff designated an attorney, who had previously represented the defendant, as an expert witness to testify about the defendant's handling of the claim. The defendant filed a motion in limine to exclude this expert, arguing that the State Bar Rules of Professional Conduct prohibited the attorney from testifying adversely to the defendant. The trial court granted the motion to exclude the expert.Plaintiff then filed a petition for a writ of mandate with the Court of Appeal, which was summarily denied. Concurrently, plaintiff appealed the trial court's ruling, citing Brand v. 20th Century Insurance Company/21st Century Insurance Company (2004) for the proposition that the order was appealable. The Court of Appeal stayed the preparation of the record, considered dismissing the appeal, and requested briefing from the parties. A hearing was subsequently held.The California Court of Appeal, Fourth Appellate District, Division Three, dismissed the appeal. The court held that it only has jurisdiction over direct appeals from appealable orders or judgments. The court emphasized that, in ordinary civil cases, appeals are generally only permitted from final judgments to prevent piecemeal disposition and multiple appeals. The court distinguished between orders on motions to disqualify counsel, which are appealable, and orders on motions in limine, which are not. The court disagreed with the precedent set in Brand, concluding that orders on motions in limine are not appealable as they are not final collateral orders or injunctions. The court decided that such orders should be reviewed only by writ petition or by appeal from the final judgment. View "Sheehy v. Chicago Title Insurance Co." on Justia Law

The Town of Apple Valley (TAV) sought to condemn a private water utility system via eminent domain. In November 2015, TAV passed two resolutions of necessity (RON) to acquire the water system, which was owned by Carlyle Infrastructures Partners and operated by Apple Valley Ranchos Water (AVR). In January 2016, TAV filed an eminent domain action to acquire the system. A day later, Carlyle sold the system to Liberty Utilities. After extensive proceedings, including a 67-day bench trial, the trial court found that TAV did not have the right to acquire the system and entered judgment and awarded attorney’s fees to Liberty. TAV appealed.The Superior Court of San Bernardino County ruled that Liberty bore the burden of proving by a preponderance of the evidence that at least one of the required elements for eminent domain was not satisfied. The court also ruled that Liberty need not submit the administrative record (AR) underlying TAV’s RONs. The trial court held a bench trial and issued a Statement of Decision (SOD) finding that Liberty met its burden, rejecting TAV’s evidence and relying on Liberty’s post-RON evidence. TAV’s objections to the SOD were overruled, and the court entered judgment for Liberty and awarded attorney’s fees.The California Court of Appeal, Fourth Appellate District, Division Two, reversed the trial court’s decision. The appellate court held that the trial court applied the wrong standard of proof and failed to give appropriate deference to TAV’s decision and findings. The trial court also improperly based its decision on post-RON facts and events. The appellate court remanded the matter for further proceedings consistent with its opinion, directing the trial court to determine whether to allow TAV to take the water system, remand the matter to TAV for further administrative proceedings, or hold a new trial applying the correct burdens of proof and standard of review. View "Town of Apple Valley v. Apple Valley Ranchose Water" on Justia Law

Plaintiff Jeanie Reese, acting as conservator for Leoma Musil, filed a lawsuit against Select Portfolio Servicing, Inc. (SPS) and other defendants, alleging violations of the Homeowner’s Bill of Rights (HBOR) and California’s Unfair Competition Law (UCL). The dispute arose when SPS recorded a notice of trustee’s sale while Reese’s loan modification application was pending. Reese claimed that SPS violated former section 2923.6 by proceeding with foreclosure actions during the loan modification process.The trial court initially granted summary judgment in favor of the defendants, but this decision was reversed on appeal, with the appellate court finding a triable issue of material fact regarding whether Reese had submitted a complete loan modification application. Upon remand, Reese amended her complaint, but the trial court sustained the defendants’ demurrer without leave to amend, ruling that SPS had not violated former section 2923.6 because it recorded a new notice of trustee’s sale and sold the property more than a year after denying the loan modification application and Reese’s subsequent appeal.The California Court of Appeal, First Appellate District, reviewed the case and affirmed the trial court’s judgment. The appellate court held that SPS’s actions did not constitute a violation of former section 2923.6, as the new notice of trustee’s sale recorded in May 2018 cured any previous violation. The court also found that the 18-month delay between the denial of the loan modification application and the new notice of trustee’s sale rendered the initial violation immaterial. Consequently, the court concluded that Reese’s complaint did not state a cause of action under former section 2923.6, and the trial court’s decision to sustain the demurrer without leave to amend was appropriate. View "Reese v. Select Portfolio Servicing, Inc." 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 this parcel is via a private easement over land owned by JCCrandall, LLC. JCCrandall objected to the use of its easement for cannabis transportation, citing federal law and the terms of the easement deed. Despite these objections, the County granted the CUP, and the County’s Board of Supervisors upheld this decision on appeal.JCCrandall then petitioned for a writ of administrative mandate, challenging the County’s determination that the easement provided adequate access for the project. JCCrandall argued that the use of the easement for cannabis activities was prohibited by federal law and the easement deed, that state law required its consent for such use, and that the road did not meet County standards. 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 and reversed the trial court’s decision. The appellate court held that the trial court should have applied the independent judgment standard because JCCrandall’s right to exclude unauthorized persons from its property is a fundamental vested right. The court further held that under federal law, cannabis is illegal, and thus, JCCrandall cannot be forced to allow its property to be used for cannabis transportation. The court also found that the use of the easement for cannabis activities exceeded the scope of the easement, which was created when cannabis was illegal under both state and federal law. The judgment was reversed, and costs were awarded to JCCrandall. View "JCCrandall, LLC v. County of Santa Barbara" on Justia Law

The case involves a dispute between neighboring property owners, Eberhard and Ursula Schneider (plaintiffs) and Karla S. Lane (defendant), over an easement used by Lane to access her property. The easement was initially destroyed by flooding in 2002, leading to a 2011 judgment that established the easement burdened the entire servient tenement owned by the Schneiders. The court relocated the easement further inland on the Schneiders' property. After another flooding incident in 2018 damaged the relocated easement, the Schneiders filed an action for quiet title and declaratory relief, while Lane filed a cross-complaint for declaratory relief.The Superior Court of Alpine County granted Lane summary judgment against the Schneiders' complaint, ruling it was barred by res judicata. At trial on Lane's cross-complaint, the court again relocated the easement further inland but ruled that Lane was responsible for stabilizing the riverbank to prevent further erosion under Civil Code section 845.The California Court of Appeal, Third Appellate District, reviewed the case. The court affirmed the trial court's decision to relocate the easement but reversed the ruling that Lane was responsible for stabilizing the riverbank. The appellate court held that section 845 requires the dominant tenement owner to maintain the easement in good repair but does not obligate them to construct new improvements, such as a riverbank stabilization project, separate from the easement to protect it from potential future harm. The court also found that the trial court did not abuse its discretion in selecting the new easement route that imposed the least burden on the servient tenement. View "Schneider v. Lane" on Justia Law

A.D. Improvements, Inc. (ADI) leased property from the California Department of Transportation (Caltrans) and sought to purchase it under Streets and Highways Code section 118.1, which mandates that Caltrans offer to sell commercial real property deemed excess to the current occupant at fair market value. ADI used the property commercially and applied to purchase it after Caltrans designated it as excess. However, Caltrans denied the application, arguing that the property was not commercial when initially acquired. The trial court agreed with Caltrans and denied ADI's petition for a writ of mandate.The Superior Court of San Bernardino County found that ADI met the conditions of section 118.1, including leasing, occupying, and improving the property. However, it ruled that the statute applied only to property that was commercial when acquired by Caltrans, interpreting "acquired" as a past-tense verb.The Court of Appeal, Fourth Appellate District, Division One, State of California, reviewed the case de novo. The court determined that the plain and contextual reading of section 118.1 requires the property to be commercial at the time it is deemed excess, not when it was acquired. The court found that the statute's language, legislative history, and Caltrans' own manuals support this interpretation. Consequently, the court reversed the trial court's decision and remanded the case with directions to issue a writ requiring Caltrans to offer to sell the property to ADI at fair market value. The court held that ADI is entitled to its costs on appeal. View "A.D. Improvements v. Dept. of Transportation" on Justia Law

The case involves the Santa Clarita Organization for Planning the Environment and Advocates for the Environment (collectively, SCOPE) challenging the County of Los Angeles and Williams Homes, Inc. (Williams) over the approval of a residential housing development project in the Santa Clarita Valley. SCOPE's lawsuit contested the County's approval of a conditional use permit, an oak tree permit, and a vesting tentative tract map, alleging violations of the Subdivision Map Act (SMA) and the California Environmental Quality Act (CEQA).The Superior Court of Los Angeles County granted Williams's motion for judgment on the pleadings without leave to amend, finding that SCOPE's claims were barred under Government Code section 66499.37 of the SMA because SCOPE failed to serve a summons within 90 days of the County's approval of the vesting tentative tract map. The court concluded that section 66499.37 applied to both the SMA and CEQA causes of action, as the CEQA claims were intertwined with the SMA claims.The California Court of Appeal, Second Appellate District, Division Seven, reviewed the case. The court held that section 66499.37 does not bar SCOPE's CEQA claims to the extent they allege procedural violations of CEQA and the County's failure to analyze and disclose the project's environmental impacts, as these claims are unique to CEQA and could not have been brought under the SMA. However, the court found that section 66499.37 does apply to SCOPE's CEQA claims challenging the reasonableness of the conditions of approval of the vesting tentative tract map, specifically the mitigation measures adopted as a condition of approval.The Court of Appeal reversed the judgment and remanded the case, directing the trial court to enter a new order denying the motion for judgment on the pleadings with respect to the first cause of action for violation of CEQA and granting the motion with respect to the second cause of action for violation of the SMA and zoning and planning law. View "Santa Clarita Organization for Planning the Environment 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. The County's fire and public works departments deemed the road adequate for the project. Despite JCCrandall's objections, the County granted the CUP, and the Board of Supervisors upheld this decision.JCCrandall petitioned for a writ of administrative mandate, arguing that the use of the easement for cannabis activities was prohibited by the easement deed and federal law, that state law required their consent for such activities, and that the road did not meet County standards. 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 determined 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 their property is a fundamental vested right. The appellate court held 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 also found that the County's reliance on Civil Code section 1550.5, subdivision (b), which deems cannabis activities lawful under California law, defies the Supremacy Clause of the U.S. Constitution. Consequently, the judgment was reversed, and costs were awarded to JCCrandall. View "JCCrandall v. County of Santa Barbara" on Justia Law

The 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.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 granted the easement but ordered it to 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 on procedural and evidentiary grounds, 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, reviewed the case and found that the trial court's findings were inconsistent and irreconcilable. The trial court had found both that Hunt had granted an easement and that the Battas' use of the property was without permission, which are contradictory. 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.The Court of Appeal reversed the judgment and remanded the case for further proceedings consistent with its opinion. View "Batta v. Hunt" on Justia Law

The case involves a proposed residential housing development project near the University of Southern California (USC) by the City of Los Angeles. The project, which includes 102 units and various amenities, was found by the City to be exempt from environmental review under the California Environmental Quality Act (CEQA) as a Class 32 urban in-fill development. The appellants, West Adams Heritage Association and Adams Severance Coalition, challenged this determination, arguing that the City abused its discretion by not finding the project consistent with the applicable redevelopment plan, improperly relying on mitigation measures for noise impacts, and failing to show the project would not have significant adverse impacts on traffic safety.The Los Angeles County Superior Court denied the appellants' writ petition, rejecting their challenges to the project. The court found that the City did not abuse its discretion in concluding the project would not have significant impacts on traffic or historical resources. The appellants then appealed the decision.The California Court of Appeal, Second Appellate District, Division One, reviewed the case. The court initially reversed the trial court's decision, holding that the City improperly relied on mitigation measures for noise impacts. However, the Supreme Court transferred the case back to the Court of Appeal with instructions to reconsider in light of Assembly Bill No. 1307 and the Make UC A Good Neighbor v. Regents of University of California decision.Upon reconsideration, the Court of Appeal held that under the new law, noise generated by project occupants and their guests is not considered a significant environmental effect under CEQA. Therefore, the noise concerns do not preclude the application of the Class 32 exemption. The court also determined that the City must assess whether the project is consistent with the applicable redevelopment plan before granting the exemption. The court reversed the trial court's decision and remanded the case for the City to conduct this analysis. The court also concluded that the state density bonus law preempts the redevelopment plan's density provisions, allowing the City to calculate the project's allowable density based on the general zoning ordinance. View "West Adams Heritage Assn. v. City of Los Angeles" on Justia Law