Beaty v. Gold Springs West Assn. CA5

CourtCalifornia Court of Appeal
DecidedMay 22, 2013
DocketF064461
StatusUnpublished

This text of Beaty v. Gold Springs West Assn. CA5 (Beaty v. Gold Springs West Assn. CA5) 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
Beaty v. Gold Springs West Assn. CA5, (Cal. Ct. App. 2013).

Opinion

Filed 5/22/13 Beaty v. Gold Springs West Assn. CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIFTH APPELLATE DISTRICT

JAMES BEATY, F064461 Plaintiff and Appellant, (Super. Ct. No. CV55295) v. OPINION GOLD SPRINGS WEST ASSOCIATION et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Tuolumne County. James A. Boscoe, Judge. Dambacher, Trujillo & Wright, Joseph L. Wright, Gary P. Dambacher, Timothy T. Trujillo and Brandon M. Kilian for Plaintiff and Appellant. Lewis Brisbois Bisgaard & Smith and Andrew E. Benzinger for Defendants and Respondents. -ooOoo-

This is an appeal from summary judgment granted against plaintiff and appellant, James Beaty, on his four causes of action against defendant and respondent, Gold Springs West Association (the association). The case involves construction of certain provisions of the governing documents of a homeowners association. We reverse the summary judgment, but modify and affirm portions as a summary adjudication of issues, reverse portions, and remand for entry of a new order on the association’s motion for summary adjudication. We will also remand the matter to the trial court for further proceedings on plaintiff’s first, second, and third causes of action. FACTS AND PROCEDURAL HISTORY In 1973, Martin Development Corporation (the “declarant”) recorded a “declaration of protective restrictions” in conjunction with its mapping of the Gold Springs subdivision unit 1 in Tuolumne County. The declaration of covenants, conditions, and restrictions (CC&R’s) established rights and duties among the declarant and persons purchasing lots in the subdivision to govern its development and operation. The CC&R’s had two groups of provisions particularly pertinent to this appeal. The first group of provisions in the CC&R’s concerned architectural standards in the subdivision. The CC&R’s limited use of lots in the subdivision to single-family dwellings and associated buildings, provided for general building standards (“natural materials that harmonize with their surroundings whenever possible”), setbacks, and other development criteria. Section 3, entitled “Architectural Control by Declarant,” provided, in part: “No building or other structure shall be commenced, erected or maintained in Gold Springs, nor shall any exterior addition or alteration be made until the plans and specifications therefor have been submitted to and approved in writing by Declarant. [¶] In the event Declarant fails to approve or disapprove such design within 30 days after said plans and specifications and any subsequent data requested by Declarant has been submitted to it, approval will not be required and this paragraph will be deemed to have been fully complied with.” Section 23 provided: “Since these covenants and restrictions have been prepared to insure the architectural integrity and quality of life in Gold Springs for the benefit of all property owners, Declarant reserves the right to arbitrarily withhold its approval of submitted plans and specifications when it

2 believes, in good faith, that said plans are inconsistent with the purpose herein described.” The CC&R’s provide that declarant “and each person to whose benefit this Declaration inures may proceed at law or in equity to prevent … violation of any provision of this Declaration.” Section 29 provided, in relevant part: “The provisions of this Declaration shall be liberally construed to effectuate the purpose described herein.” The second group of CC&R’s dealt with a nine-acre recreation area to be held in common by the owners of the lots in the subdivision. Section 1 of the CC&R’s provided that the declarant would maintain the recreation area and could assess against the lot owners a charge of $48 per year to defray the cost of such maintenance. After a certain percent of the lots in the subdivision were sold, the declarant was permitted, on certain additional conditions, to transfer the recreation area to a homeowners association formed for the purpose of maintaining and managing the recreation area. In 1979, the association was formed and the recreation area was transferred to it. The articles of incorporation of the association, both in 1979 and presently, state that the “specific and primary purpose for which the Association is formed is to own and maintain [the] recreation area.” “The general purposes of the Association are to provide all types of services, facilities and improvements deemed useful, beneficial or necessary to the use and enjoyment of [the recreation area] by members of the Association.” The articles provide that the association may exercise all powers of a corporation “under the General Nonprofit Corporation Law.” The articles provide: “However, the Association shall not, except to a nominal necessary degree, engage in any activities or exercise any powers that are not in furtherance of the primary purposes of the Association.” The declarant (and a successor developer) apparently exercised the power of architectural review under the CC&R’s and, after 1979, the association merely managed the recreation area until, in 1984, the association and a majority of lot owners amended the CC&R’s to substitute the association in place of declarant. Thus, the recorded

3 amendment simply substitutes the words “Gold Springs West Association” for the word “declarant” in the various provisions concerning architectural review and control. The articles of incorporation of the association were not amended, and the “primary purpose” of the association as stated in the articles of incorporation continued to be the management of the recreation area. There apparently was disagreement among the owners of Gold Springs lots over the appropriate level of activity of the association in enforcing the CC&R’s beyond its management of the recreation area. For example, in 1989, the board of directors of the association proposed amendment of the articles of incorporation to broaden the powers of the association. The letter tendering the matter for a vote of the membership stated: “[The association] cannot legally enforce compliance for our design review committee.” In each of the votes of the membership on this issue, the majority of those voting voted against amendment of the articles of incorporation. At the relevant times, the board did not maintain an architectural review committee and did not act to approve or reject building, addition, or remodeling plans. Plaintiff is a homeowner in the Gold Springs subdivision and a member of the association. He has been involved in efforts to seek enforcement of the architectural review standards by the association and to amend the articles of incorporation to expand the stated duties of the association to include an express duty to act to approve or disapprove the plans for development lot owners are required to submit to the association prior to construction or remodeling. The association asserts that both it and individual lot owners have the right under the CC&R’s to enforce the declarations, including the architectural standards, but it contends it does not have—and that its membership has consistently failed to grant to it—the power to act with respect to such enforcement. In 2009, plaintiff filed an action for declaratory and injunctive relief and for damages against the association and its individual board members. After demurrer was

4 sustained with leave to amend, plaintiff filed the operative first amended complaint in 2010.

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Beaty v. Gold Springs West Assn. CA5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beaty-v-gold-springs-west-assn-ca5-calctapp-2013.