Justia Real Estate & Property Law Opinion Summaries

The Court of Appeal of California, Fourth Appellate District, Division One, addressed an appeal from Hilltop Group, Inc., and ADJ Holdings, LLC (Hilltop Group), regarding a dispute with the County of San Diego (County), over the proposed North County Environmental Resources Project (NCER Project), a recycling facility. The Hilltop Group applied to develop the NCER Project on a parcel of land that was designated for industrial use by the County as part of its General Plan Update (GPU) in 2011. However, the project faced significant opposition from community members, homeowners associations, and the nearby City of Escondido due to concerns over potential environmental impacts.The County staff initially required Hilltop Group to conduct environmental studies. Based on these studies, the County concluded that the NCER Project qualified for a California Environmental Quality Act (CEQA) exemption under section 21083.3, meaning that no further environmental review would be needed. However, this decision was appealed to the Board of Supervisors, who voted to grant the appeals and require further environmental review. The Hilltop Group challenged this decision in court, arguing that the NCER Project did not have any significant and peculiar environmental effects that were not already evaluated by the program Environmental Impact Report (EIR) for the GPU.The Court of Appeals ruled in favor of Hilltop Group, finding that the Board of Supervisors did not proceed in a manner required by law when they denied the exemption and failed to limit further environmental review to those effects enumerated in Guidelines section 15183, subdivision (b)(1) through (4). The court concluded that the Board of Supervisors' findings of peculiar environmental effects in the areas of aesthetics, noise, traffic, air quality, and GHG emissions were not supported by substantial evidence in the record. Therefore, the court held that the Board of Supervisors' decision denying the CEQA exemption and requiring the preparation of an EIR constituted a prejudicial abuse of discretion. The court reversed the trial court's judgment and directed it to enter a new judgment granting the petition and issuing a peremptory writ of mandate directing the County to set aside its decision granting the administrative appeals and requiring the preparation of an EIR. View "Hilltop Group, Inc. v. County of San Diego" on Justia Law

The case involves a plaintiff, Joni Fraser, who was attacked by two pit bulls owned by a tenant, Hebe Crocker, who rented a single-family residence from landlords Ali Farvid and Lilyana Amezcua. Fraser sued both Crocker and the landlords. After settling with Crocker, the case proceeded against the landlords. A jury found that the landlords had actual knowledge of the dangerous propensity of the dogs and could have prevented foreseeable harm to Fraser, awarding her damages exceeding $600,000. However, the trial court granted the landlords' motion for judgment notwithstanding the verdict (JNOV), finding no substantial evidence to demonstrate the landlords' knowledge of the dogs' dangerous propensities.Under California law, a landlord who lacks actual knowledge of a tenant's dog's vicious nature cannot be held liable when the dog attacks a third person. The Court of Appeal affirmed the trial court's ruling. The Court held that the email from a neighbor mentioning "guard dogs" did not constitute substantial evidence that the landlords knew or must have known the dogs were dangerous. The Court also rejected the plaintiff's argument that the landlords' alleged false statements denying knowledge of the dogs constituted evidence of their knowledge of the dogs' dangerous nature. The Court concluded that there was no direct or circumstantial evidence that the landlords knew or should have known the dogs were dangerous. View "Fraser v. Farvid" on Justia Law

This case concerns the dissolution of a marriage between Diana and Andreas Lietz. The primary point of contention was the valuation of the family home. Diana presented an appraisal report valuing the home at $1.1 million, while Andreas's appraisal report valued it at $1,020,000. Both appraisal reports stated the home was on a 9,000 square feet lot. However, Diana attempted to argue that the lot size was more than 9,000 square feet. The trial court found Andreas's appraiser more credible and accepted his valuation. On appeal, Diana argued that the court erred by preventing her from presenting evidence and testimony suggesting that the lot size was larger than 9,000 square feet. The Court of Appeal of the State of California Fourth Appellate District Division Three affirmed the trial court's decision. The appellate court concluded that the trial court followed the correct procedure when it sustained objections to Diana's attempts to present evidence about the larger lot size due to the lack of competent evidence supporting her claim. The court emphasized that an expert witness could not assert case-specific facts in hearsay statements unless they were independently proven by competent evidence or covered by a hearsay exception. View "In re Marriage of Lietz" on Justia Law

This case involves a dispute between a group of plaintiffs (Jason and Elizabeth Riddick, and Renee Sperling) and the City of Malibu, the Malibu City Council, and the Malibu Planning Department (collectively referred to as the City). The plaintiffs sought to add an accessory dwelling unit (ADU) to their residence but their permit application was denied by the City. The plaintiffs petitioned the trial court for relief and obtained an order directing the City to process the proposed ADU as exempt from coastal development permit (CDP) requirements. The City appealed this decision, arguing that the trial court misinterpreted the City ordinance governing exemptions from the state’s CDP requirement. The plaintiffs cross-appealed, arguing that they established a right to a permit under state ADU standards as a matter of law, and therefore the court should have ordered the permit to be issued immediately.The Court of Appeal of the State of California Second Appellate District Division Five held that the City's interpretation of the ordinance was not entitled to deference. The court interpreted the ordinance's language to include ADUs directly attached to existing residences in the class of improvements exempt from the CDP requirement. As such, the court affirmed the trial court's decision requiring the City to process the plaintiffs' permit application under state ADU standards. The court also affirmed the trial court's rejection of the plaintiffs' argument that they were automatically entitled to a permit. View "Riddick v City of Malibu" on Justia Law

In this case, Epochal Enterprises, Inc., also known as Divine Orchids, entered into a commercial lease agreement with LF Encinitas Properties, LLC and Leichtag Foundation. The lease included a limitation of liability clause which stated that the defendants were not personally liable for any provisions of the lease or the premises, and the plaintiff waived all claims for consequential damages or loss of business profits. After the plaintiff sued the defendants, a jury found the defendants liable for premises liability and negligence.The jury awarded the plaintiff damages for lost profits and other past economic loss. However, the trial court granted the defendants’ motion for judgment notwithstanding the verdict (JNOV), reasoning that the lease agreement’s limitation of liability clause prevented the plaintiff from recovering the economic damages the jury awarded.The Court of Appeal, Fourth Appellate District Division One State of California, reversed the order granting JNOV in the defendants' favor, finding that the limitation of liability clause did not bar plaintiff’s recovery of damages. The court reasoned that the jury's award of damages necessarily implied a finding of gross negligence on the part of the defendants, which would be outside the scope of the indemnification clause. Further, the court held that the limitation of liability clause was void to the extent that it sought to shield the defendants from liability for their violations of the Health and Safety Code, as it violated public policy under Civil Code section 1668.On the defendants' cross-appeal regarding the damages award, the court affirmed the denial of the defendants' motion for partial JNOV, finding that substantial evidence supported the damages award. The court concluded that the jury could reasonably interpret the term "other past economic loss" on the verdict form as a different form of lost profits, and that the evidence presented to the jury provided a reasonable basis for calculating the amount of the plaintiff's lost profits. View "Epochal Enterprises, Inc. v. LF Encinitas Properties, LLC" on Justia Law

In February 2022, Gracia Bovis, an elder woman, signed documents transferring the title of her house to her daughter, Marina Casey. According to Bovis, Casey had misled her into signing the documents to protect her from rising property taxes. However, the documents transferred the property into Casey's name. Casey argued that the transfer was meant to protect the property from tax reassessment under Proposition 19. Bovis sought an Elder Abuse Restraining Order (EARO) against Casey, alleging financial abuse. The trial court granted the EARO and subsequently declared the deed transferring the property void ab initio (invalid from the outset). Casey appealed these decisions.The Court of Appeal of the State of California, First Appellate District, affirmed the issuance of the restraining orders, finding sufficient evidence of financial abuse, but reversed the order declaring the deed void. The appellate court concluded that the trial court exceeded its statutory authority under Welfare and Institutions Code section 15657.03 in declaring the deed void. The statute allows for the issuance of restraining orders to protect elders from further abuse, but does not provide the court with the authority to declare a deed void. The court noted that other permanent remedies, such as the return of property, can be pursued through a civil action under other provisions of the Elder Abuse Act. View "Newman v. Casey" on Justia Law

The case in question involved a dispute between Epochal Enterprises, Inc., doing business as Divine Orchids, and LF Encinitas Properties, LLC and Leichtag Foundation, over a commercial lease agreement for a property containing dilapidated commercial greenhouses known to contain asbestos and lead paint. Epochal Enterprises claimed that the defendants failed to disclose the presence of these hazardous substances, which resulted in economic damage when the County of San Diego quarantined the leased premises. A jury found the defendants liable for premises liability and negligence, and awarded Epochal Enterprises damages for lost profits and other past economic loss.However, the trial court granted the defendants' motion for judgment notwithstanding the verdict (JNOV), based on a limitation of liability clause in the lease agreement that purported to prevent Epochal Enterprises from recovering the economic damages awarded by the jury.The Court of Appeal, Fourth Appellate District Division One State of California, reversed the trial court's judgment. It found that the jury necessarily concluded that the defendants had violated the Health and Safety Code by failing to disclose the existence of asbestos, and that this violation of law rendered the limitation of liability clause invalid under Civil Code section 1668. The court concluded that the limitation of liability clause could not bar Epochal Enterprises from recovering damages for the defendants' statutory violations.The court also affirmed the trial court's denial of the defendants' motion for partial JNOV on the issue of damages, finding that the jury had a reasonable basis for calculating the amount of lost profits. The court remanded the case for further proceedings. View "Epochal Enterprises, Inc. v. LF Encinitas Properties, LLC" on Justia Law

In 2020, Loring De Martini agreed to sell a commercial property to Puja Gupta. A dispute arose and the parties entered arbitration. Subsequently, Gupta filed a petition to confirm the arbitration award and recorded a lis pendens on the property. Gupta obtained a judgment confirming the award, but abandoned the case after De Martini successfully moved to expunge the lis pendens. Gupta then filed a new action seeking to compel De Martini to complete the sale and recorded another lis pendens. De Martini moved to expunge the new lis pendens, arguing that Gupta needed the court's permission to record it under the Code of Civil Procedure section 405.36, as it was recorded by the same claimant and affected the same property. The trial court denied the motion, concluding that section 405.36 only applies to successive lis pendens filed in the same action and Gupta had established a prima facie case regarding the probable validity of a real property claim.De Martini petitioned the Court of Appeal of the State of California, First Appellate District, Division Three for a writ of mandate. The court granted the petition, concluding that the trial court erred both in its interpretation of section 405.36 and its application of the prima facie standard in determining the probable validity of the real property claim. The court held that section 405.36 requires a claimant to seek court permission before recording a lis pendens on the same property in a subsequent proceeding if a lis pendens in a prior, related proceeding has been expunged. Additionally, the court determined that the trial court should have applied a preponderance of the evidence standard, not a prima facie standard, in determining the probable validity of the real property claim. The court ordered the trial court to vacate its order denying expungement of the lis pendens and to enter a new order granting the requested expungement and ruling on De Martini's motion for attorney fees. View "Di Martini v. Superior Court" on Justia Law

In a dispute between K&S Staffing Solutions, Inc. (K&S) and The Western Surety Company (Western) and VSS International, Inc. (VSSI), the Court of Appeal of the State of California Third Appellate District upheld the Superior Court of San Joaquin County's decision that K&S was not a “laborer” within the meaning of the mechanics’ lien law and that payment bonds issued for the projects in question were subject to the mechanics' lien law’s requirements.K&S, a staffing company, sued VSSI and Western to recover unpaid amounts for services provided on state projects, arguing it was a “laborer” under the mechanics' lien law and thus entitled to assert a claim against payment bonds for the projects. The court disagreed, interpreting the term “laborer” in the law as a person "acting as an employee" performing labor or bestowing necessary services on a work of improvement, and concluded K&S, as an employer, did not qualify.Furthermore, K&S argued that the payment bonds issued for these state projects were not subject to the mechanics' lien law’s requirements because they were not "payment bonds" within the meaning of the law. However, the court disagreed, ruling that the bond requirements of the mechanics' lien law apply to state projects that require a bond under Public Contract Code section 7103 and other public entity projects that require a bond under section 9550. Consequently, the court affirmed the lower court's attorney fee award to the defendants under section 9564, which mandates attorney fees be awarded to the prevailing party in any action to enforce the liability on a payment bond. View "K & S Staffing Solutions v. The Western Surety Co." on Justia Law

In a case concerning subsidized low-income housing, the Court of Appeal of the State of California, Second Appellate District, Division Seven, ruled that tenants in such housing developments have standing to sue a property management company under the unfair competition law (UCL) if their tenancies are terminated prematurely due to legally deficient notices. The plaintiffs, who lived in housing managed by FPI Management, Inc., claimed that their tenancies were terminated after FPI provided just three days’ notice, instead of the legally required 30 days’ notice. The trial court granted summary judgment to FPI, deciding that the plaintiffs did not suffer an injury that would confer standing under the UCL. The appellate court, however, held that the plaintiffs were prematurely deprived of property rights and subjected to imminent legal peril due to FPI's legally deficient termination notices. This amounted to an injury sufficient to confer standing under the UCL. The appellate court also noted a distinction between the plaintiffs who lived in housing subsidized by the HOME Investment Partnerships Program (HOME plaintiffs) and those living in housing subsidized by section 8 of the United States Housing Act of 1937 (Section 8 plaintiffs). The Section 8 plaintiffs failed to demonstrate their legal entitlement to 30 days’ notice, leading the court to affirm the trial court's summary judgment in favor of FPI regarding the Section 8 plaintiffs' UCL claim. The court also affirmed the trial court's denial of the plaintiffs' motion for summary adjudication, but reversed the judgment and post-judgment order on costs, rendering the cost order moot. View "Campbell v. FPI Management, Inc." on Justia Law