Acornhill Investments v. Pan City Plaza CA2/8

CourtCalifornia Court of Appeal
DecidedDecember 29, 2021
DocketB305473
StatusUnpublished

This text of Acornhill Investments v. Pan City Plaza CA2/8 (Acornhill Investments v. Pan City Plaza CA2/8) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acornhill Investments v. Pan City Plaza CA2/8, (Cal. Ct. App. 2021).

Opinion

Filed 12/29/21 Acornhill Investments v. Pan City Plaza CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

ACORNHILL INVESTMENTS, B305473 LLC, et al., (Los Angeles County Plaintiffs and Appellants, Super. Ct. No. LC100782)

v.

PAN CITY PLAZA, LLC, et al.,

Defendants and Respondents.

PAN CITY PLAZA, LLC, (Los Angeles County Super. Ct. No. LC104819) Plaintiff and Respondent,

ACORNHILL INVESTMENTS, LLC,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County, Huey P. Cotton, Judge. Affirmed. Randall A. Spencer for Plaintiffs and Appellants.

Law Offices of Terence M. Sternberg and Terence M. Sternberg for Defendants and Respondents.

_________________________

Appellants on the one hand, and respondents on the other, own neighboring commercial building properties each with their own parking lot. Appellants’ parking lot is small and landlocked, while respondents’ parking lot is large and has an entrance off Van Nuys Boulevard. The only way to access appellants’ landlocked small parking lot is via the driveway through and on respondents’ large parking lot. Appellants hold an easement over respondents’ large parking lot to access the small parking lot; this easement was created by a covenant and agreement signed by previous owners of both properties. Immediately prior to appellants’ purchase of the commercial building with the small parking lot, respondents narrowed the width of the driveway from 20 feet to 11 feet 8 inches. Appellants contend respondents were precluded from reducing the 20-foot width of the driveway. Respondents argue the law requires the width of the driveway to be a minimum of 9 to 10 feet. After a bench trial, the trial court ruled in favor of respondents, and ordered the driveway width be increased by one foot, making it 12 feet 8 inches. Appellants appeal the judgment. We affirm.

2 FACTUAL AND PROCEDURAL BACKGROUND A. Relevant Factual Background In 1981, Clyde and Sandra Mitchell owned three properties: 1) a commercial building with a small parking lot directly behind it, located at 8737 Van Nuys Boulevard in Panorama City, California (8737 property); 2) a commercial building located at 8727 Van Nuys Boulevard in Panorama City, California (8727 property); and 3) a large parking lot—located between the two commercial buildings—with a driveway opening onto Van Nuys Boulevard. The only way to access the small parking lot behind the 8737 property is via the driveway on the large parking lot. The Mitchells sold the 8737 property with the small parking lot to Paul and Edith Cohen. Upon completion of the sale, the small parking lot was going to become landlocked, as the Mitchells retained ownership of the large parking lot with the driveway that provided the only access to the small parking lot. Thus, the City of Los Angeles required the Mitchells to enter into three agreements/covenants, all recorded with the County Recorder’s Office on November 6, 1981, as follows: The first covenant and agreement was for a “community driveway.” The respective owners of the 8727 and 8737 properties “covenant and agree . . . to establish and maintain . . . a common or community driveway for ingress and egress to each [p]arcel and general driveway purposes over the entirety of the area.” The covenant was created “to comply with Section [12.21(A)(4)(h)] of the Los Angeles Municipal Code relating to required access to automobile parking spaces.” This covenant and agreement “shall run with the land and shall be binding upon” the owners and all parties acquiring any right, title, or

3 interest in the properties in the future. The second covenant and agreement provided that the 8737 property with the smaller lot has the right to use 10 parking spaces in the large parking lot. This covenant and agreement also runs with the land and is binding upon current and future owners of the properties and their successors, heirs, or assignees. The third covenant and agreement provided that the 8727 property has the right to use 18 parking spaces in the large parking lot. This covenant and agreement also runs with the land and are binding upon current and all future owners of both properties and their successors, heirs, assignees. In 1994, the Cohens transferred their interest in the 8737 property with the small parking lot to the Cohen Family Trust (Cohen Trust). In 1999, the Cohen Trust built a disabled person’s parking space in the large parking lot, in compliance with the Americans with Disabilities Act (ADA). Thereafter, the 8737 property owned by the Cohen Trust used 10 parking spaces and one ADA parking space in the large parking lot, with the consent of the owners of the large lot. Ten years later, in 2009, the successors to the Mitchells sold the 8727 property and the large parking lot to Pan City Plaza, owned by Daryoush Kashani, M.D. At time of purchase, there were 26 parking spaces on the large parking lot. We collectively refer to Pan City Plaza and Kashani as respondents. On March 16, 2012, a lawsuit between the Cohen Trust and EilEil, LLC (Pan City Plaza’s immediate predecessor) settled pursuant to terms of the “Deal Memo.” The Deal Memo required the Cohens to remove their ADA parking spot from the large parking lot and reinstall it in the small parking lot.

4 In May 2013, the Cohen Trust sold the 8737 property with the small parking lot to Acornhill Investments. Acornhill then leased the property to cardiologist Ravi Gupta, who used it as a medical office. We collectively refer to Acornhill and Ravi Gupta, M.D., Inc., as appellants. B. Appellants’ Civil Action On September 12, 2013, appellants filed a complaint against respondents and EilEil, LLC, alleging causes of action for declaratory relief, breach of contract, breach of covenant of good faith and fair dealing, negligence per se, fraud, and negligence. Appellants sought punitive damages and attorney fees. Appellants’ complaint included the following allegations: Appellants acquired and/or leased the 8737 property “in total and complete reasonable reliance upon the recorded Covenants and Agreements.” For approximately 31 years, “the owners, tenants and visitors of the 8737 property continually, visibly, openly and without objection used” the parking spaces in the large parking lot. However, within the few months preceding appellants’ acquisition of the 8737 property, respondents, “contrary to the Covenants and Agreements entered into in 1981”, added an electric gate separating the small parking lot from the large parking lot with the driveway, “thereby barring and blocking the sole entrance and exit to and from the small parking lot.” Respondents erected a metal fence on the property which hindered access from the large parking lot to the 8737 property. Respondents gave appellants two electronic clickers for their staff and visitors to access the small parking lot. This was done “without justification or any advance notice” to appellants.

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Bluebook (online)
Acornhill Investments v. Pan City Plaza CA2/8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acornhill-investments-v-pan-city-plaza-ca28-calctapp-2021.