BV Industries v. City of Los Angeles CA2/2

CourtCalifornia Court of Appeal
DecidedApril 8, 2026
DocketB340042
StatusUnpublished

This text of BV Industries v. City of Los Angeles CA2/2 (BV Industries v. City of Los Angeles CA2/2) 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
BV Industries v. City of Los Angeles CA2/2, (Cal. Ct. App. 2026).

Opinion

Filed 4/8/26 BV Industries v. City of Los Angeles CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 TWO

BV INDUSTRIES, LLC, et al., B340042

Plaintiffs and Appellants, Los Angeles County Super. Ct. No. 22STCV17296 v.

CITY OF LOS ANGELES et al.,

Defendants and Respondents.

APPEAL from an order of the Superior Court of Los Angeles County, Maureen Duffy-Lewis, Judge. Affirmed in part and reversed in part. Law Office of Randall Rich, Randall B. Rich; Marcus, Watanabe & Enowitz and Daniel J. Enowitz for Plaintiffs and Appellants. Joseph C. Graven; Burke, Williams & Sorensen, Charles H. Abbott, Alena Shamos and Alan A. Sozio for Defendants and Respondents. _______________________________ Plaintiffs BV Industries, LLC (BVI) and Royal 420 (Royal) are, respectively, the owner and lessee of commercial warehouse properties (collectively, the Property) in downtown Los Angeles. The Property sits within the service area of defendant Los Angeles Department of Water and Power (DWP), a department of defendant City of Los Angeles. Individual defendants Jeffrey Bergman, Ronald Schram, and Victor Pukhalsky are city employees. Plaintiffs sued when electric service to the Property was interrupted and not restored. After three amended complaints, on defendants’ demurrer, the trial court ordered plaintiffs’ action dismissed in its entirety and entered judgment accordingly. We agree with plaintiffs that they adequately alleged a cause of action against DWP for nuisance. Plaintiffs otherwise fail to show reversible error. We therefore reverse the judgment of dismissal only as to their sixth cause of action as against DWP and affirm in all other respects. BACKGROUND I. Factual Background We draw the factual background from the allegations of plaintiffs’ third amended complaint (TAC). We also note facts, but do not rely on them in our analysis, that defendants improperly assert in their briefing. The Property comprises adjoining parcels commonly known as 806 and 810-816 East 61st Street in Los Angeles. BVI has owned the Property since 2015. DWP is the exclusive provider of electric service in the area where the Property is located. Royal is engaged in the cannabis business. Though plaintiffs allege Royal was BVI’s tenant at the Property “[a]t all times relevant” to the TAC, they also allege Royal’s lease was set

2 to commence only in 2019 after Royal received its “licenses to grow, manufacture and distribute cannabis.” In 2017, BVI had another tenant at the Property “who was in a 5 year lease paying $37,500.00/month . . . .” That tenant is not named and is not a party to the action. In May 2017, there was a power outage at the Property. Defendants begin their respondents’ brief by asserting this was plaintiffs’ fault: “By using heat lamps to cultivate cannabis, [plaintiffs] overloaded a transformer that powers several businesses, including [the Property],” causing the transformer to “bl[o]w.” These facts are not alleged in the TAC, nor are they the subject of any request for judicial notice. A week after the power outage, DWP “came to the Property, replaced their transformer[,] and, without warning, advance notice, or any legitimate reason, cut the power wires that connect all power and electricity to the Property.” Neighboring properties serviced by the transformer, however, did have their electric service restored at that time. In July 2017, DWP advised BVI it would “no longer service the electrical panels that the Property had, which were 400 Amp, 1 phase, and 1200 Amp, 3 phase; and that []DWP no longer services 3 wire systems and now require[s] a 4-wire system.” For its electric service to be restored, BVI would need to “demolish its entire existing electrical panels and related equipment in the Property.” DWP further advised that, going forward, BVI’s service would be limited to 800 amps unless it “install[ed], at its own expense a transformer on the Property. This would involve installing an entirely new system, estimated at $400,000.00, and would take a year or more to build.” These demands came as a surprise to BVI because “the electricity for the [Property] had been fully functional prior to the time the wires were cut, and all

3 electricity bills were paid and current. The Property [had] large high voltage electrical panels, which were built to code, inspected and approved by both []DWP and . . . Los Angeles Department of Building and Safety[] who both signed the plans, permits and inspections.” Plaintiffs allege DWP’s demands were baseless pretext to cause BVI’s then-existing tenant to terminate its lease and thereby force BVI to sell the Property. According to plaintiffs, “[]DWP and [its] investors coveted the Property” due to the Property’s valuable cannabis entitlements. Without power, BVI would be forced to sell, “DWP investors” would then buy it for “cents on the dollar,” DWP “would then come and re-connect the power lines and restore service and the new owner backed by []DWP would then enjoy the illegal enrichment of the instant power increase with all the Cannabis entitlements that are attached to the Property.” BVI and DWP went back and forth over getting the power restored to the Property. In summary, “over the span of 7 years to [the] date [of the TAC], virtually every several weeks or every month, []DWP would present a new task or condition that [BVI] needed to satisfy in order to be promised the return of power to the Property. However, each time [BVI] met those conditions []DWP would impose yet another new condition not previously disclosed or mentioned. This went on for 5 years and continues to [the date of the TAC].” Plaintiffs allege DWP “has never provided any official written explanation as to why it disconnected power from the Property—and ha[s] not restored the power even as of the date of [the TAC].” Though there are allegations concerning the individual defendants’ conduct during the period in which plaintiffs sought

4 to have their electric service restored, plaintiffs do not argue in their opening brief that any of the individual defendants were individually liable for the conduct they say gives rise to liability— DWP cutting the power lines to the Property and refusing to restore its electric service. II. Procedural Background BVI sued DWP and 100 Doe defendants in May 2022. DWP filed an answer to BVI’s initial complaint in July 2022. In May 2023, BVI amended its initial complaint to identify the individual defendants as three of their Doe defendants. Royal separately sued the City of Los Angeles in 2023. The trial court ordered that action consolidated with BVI’s and directed the filing of a joint complaint. Plaintiffs filed their first amended complaint against all five defendants in September 2023. After a pre-demurrer meet and confer, the parties stipulated to defendants filing a second amended complaint (the SAC). The SAC, filed in November 2023, contained four causes of action: (1) inverse condemnation; (2) violations of section 1983 of title 42 of the United States Code (section 1983); (3) violations of section 1961 of title 18 of the United States Code (section 1961); and (4) “violations of the California Government Code.” Defendants filed a demurrer to the SAC. The trial court sustained it without leave to amend as to plaintiffs’ causes of action under sections 1983 and 1961.

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BV Industries v. City of Los Angeles CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bv-industries-v-city-of-los-angeles-ca22-calctapp-2026.