CBGM v. Guralnick CA4/2

CourtCalifornia Court of Appeal
DecidedJanuary 5, 2023
DocketE078064
StatusUnpublished

This text of CBGM v. Guralnick CA4/2 (CBGM v. Guralnick CA4/2) 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
CBGM v. Guralnick CA4/2, (Cal. Ct. App. 2023).

Opinion

Filed 1/5/23 CBGM v. Guralnick CA4/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FOURTH APPELLATE DISTRICT

DIVISION TWO

CBGM, LLC,

Plaintiff and Respondent, E078064

v. (Super.Ct.No. CVPS2000676)

WAYNE GURALNICK et al., OPINION

Defendants and Appellants.

APPEAL from the Superior Court of Riverside County. Chad W. Firetag, Judge.

Reversed with directions.

Klinedinst and Dan Lawton for Defendants and Appellants.

No appearance for Plaintiff and Respondent.

1 Respondent CBGM, LLC, the owner of the La Quinta, California Trilogy Golf

Course, alleged counsel for and the acting president of the Trilogy at La Quinta

Maintenance Association, Inc. Board of Directors (HOA Board) committed fraud,

negligent misrepresentation, and slander of title during negotiations over how the

homeowners association and the golf course owners would divide the costs of repairing

and maintaining a landscaped area on the periphery of the golf course.

The golf course owners alleged the representatives of the HOA Board made false

promises concerning their control over the project and its costs that were not

subsequently included in the controlling declaration of conditions, covenants, and

restrictions (CCRs), which promises had induced them into signing. They also allege

slander of title arising from the recording of the CCRs they say they were fraudulently

induced to sign

After CBGM signed the CCRs, the HOA Board submitted a ballot measure to the

homeowners, seeking approval of the rehabilitation project. The ballot measure focused

primarily on convincing the homeowners to take on additional fees to fund the

association’s portion of the costs and ratify the proposed division of costs for the project

between the golf course owners and the homeowners. The homeowners approved the

rehabilitation project, and the HOA Board recorded the new CCRs. After their frustration

grew with how the HOA Board was conducting the project, CBGM sued Guralnick, his

law firm, and the board president, asserting causes of action for fraud, negligent

misrepresentation, and slander of title.

2 Guralnick and his law firm filed an anti-SLAPP motion under Code of Civil

Procedure section 425.16, subdivision (e)(4) (unlabeled statutory citations refer to this

code) seeking to strike all three causes of action on the ground that they arise from

protected statements on a public issue made during negotiations over the rehabilitation

project. The trial judge, Riverside County Superior Court Judge Chad Firetag, denied the

motion on the ground that the statements at the heart of the dispute did not occur in the

context of an ongoing controversy, dispute, or discussion, which would warrant

protection under the anti-SLAPP statute.

We conclude the pleadings and affidavits establish the rehabilitation project was

the topic of ongoing discussions which concluded in a vote by homeowners, and that the

challenged statements therefore qualify for anti-SLAPP protection. We therefore reverse

the order denying the anti-SLAPP motion and remand for further proceedings, including

a determination whether CBGM can show a probability that they will prevail on their

claims.

I

FACTS

Due to the stage of this case, the facts we recount are as stated in the complaint

and in declarations submitted in connection with the anti-SLAPP motion.

Respondent CBGM, LLC owns and operates Trilogy Golf Course in La Quinta,

California. The golf course and a 61-acre landscaped perimeter area lie within a master-

planned community, called Trilogy at La Quinta, which has 1,238 homes.

3 The homeowners belong to the Trilogy at La Quinta Maintenance Association,

Inc. homeowners association (HOA), which isn’t a party to this case. Appellant Wayne

Guralnick is a lawyer who, together with his firm, Guralnick & Gilliland, LLP (also an

appellant), represented the HOA Board at all relevant times. Gary Turner, another

codefendant, is the HOA’s former president, but he isn’t a party to this appeal.

In 2003, the HOA recorded CCRs governing the golf course and the community.

The CCRs state the golf course must be maintained and operated to meet high standards

designed to sustain the prestige and value of the surrounding homes and development.

From 2003 to 2006, the golf course was well run and hosted several professional

tournaments.

In 2008, it was revealed during a presale inspection that acacia trees had been

planted in the perimeter area, though the original landscaping plan called for dwarf

acacia. The difference was important to homeowners because dwarf acacia grow to be

about four feet tall, whereas acacia can grow as high as 25 feet. If not trimmed, the acacia

trees would block views of the golf course, potentially diminishing home values.

Trimming the acacia trees cost $400,000 to $600,000 a year. As a result, the HOA, not

the golf course, was paying to maintain the perimeter area. According to CBGM’s

complaint, Guralnick was aware of the situation, and was also aware the cost of

maintaining the perimeter area wasn’t listed as a liability in the golf course’s financial

statements.

4 In early 2009, the golf course, clubhouse, and restaurant were sold to an

investment group. The problem with the acacia trees and the high cost of maintaining

them wasn’t disclosed to the investment group during escrow. Instead, Guralnick advised

the HOA Board to amend golf course CCRs to show the HOA would have a claim

against the golf course owner for any maintenance deficiencies, including deficiencies

related to the perimeter area. Between 2009 and 2014, the condition and operation of the

golf course and its restaurant deteriorated, and the HOA Board eventually threatened

litigation.

In August 2013, the investment group invited restauranteur Tom Brown to take

over the operation of the restaurant under a lease. Brown made a significant investment,

and conditions improved to such an extent that community leaders encouraged him to

purchase the golf course. Eventually, Brown formed CBGM with a partner and

completed the purchase in April 2015 for $5.1 million. Before the purchase, CBGM and

the HOA Board signed an agreement which, among other things, temporarily suspended

CBGM’s responsibility to maintain the perimeter area. After the purchase, CBGM

invested in significant improvements to the golf course.

In February 2016, the HOA Board and CBGM began negotiating over the

replacement for their temporary agreement, set to expire in April 2017. Guralnick and

Turner represented the HOA in these negotiations. CBGM employed outside legal

counsel. Included in these negotiations were the overall rehabilitation of the perimeter

area and a plan for its future maintenance. According to CBGM’s complaint, “it was

5 [their] well communicated goal to keep the Perimeter Area annual maintenance costs

below $225,000 per year and keep the rehabilitation costs below $2M. This was stated

over and over again and accepted by the HOA Board and Guralnick.”

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CBGM v. Guralnick CA4/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cbgm-v-guralnick-ca42-calctapp-2023.