City of Corona v. Naulls

166 Cal. App. 4th 418, 83 Cal. Rptr. 3d 1, 2008 Cal. App. LEXIS 1369
CourtCalifornia Court of Appeal
DecidedJuly 30, 2008
DocketE042772
StatusPublished
Cited by23 cases

This text of 166 Cal. App. 4th 418 (City of Corona v. Naulls) 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
City of Corona v. Naulls, 166 Cal. App. 4th 418, 83 Cal. Rptr. 3d 1, 2008 Cal. App. LEXIS 1369 (Cal. Ct. App. 2008).

Opinion

Opinion

MILLER, J.

The trial court issued a preliminary injunction preventing Ronald Naulls and his business enterprise, Healing Nations Collective (HNC), a medical marijuana dispensary operating within the City of Corona (the City), from conducting any further operations. The court found that, because HNC was “operating as a non-permitted, non-conforming use,” its operation “constitutes a nuisance per se, which the City may abate by seeking injunctive relief in this Court.” On appeal, Naulls and HNC challenge the sufficiency of the evidence to support the order, contending the court’s finding as to “non-permitted, non-conforming use” is based on a faulty legal premise. We affirm. 1

FACTUAL AND PROCEDURAL BACKGROUND

Naulls is president and chief executive officer of HNC, a California mutual benefit nonprofit corporation. On May 2, 2006, Naulls applied for a business *421 license to operate HNC as a new business in the City. The City uses a preprinted form which states, in red text, the following: “The City of Corona Municipal Code requires that all businesses pay a business tax, but such payment does not authorize an applicant to do business in the City. All Businesses must comply with all city codes and must have the Department of Planning approval prior to opening.” In the portion of the license application calling for a description of the proposed business activity, Naulls penned, “Mise. Retail.” Naulls signed the application, declaring under penalty of the laws of California that the information provided was true and correct.

Before submitting his application, Naulls visited the City’s business license department and spoke with Carol Warfield, a customer service representative. According to Warfield, although the application does not enumerate the types of businesses eligible for licensure, the City expects the applicant to truthfully describe the nature of his or her business in the space provided. In response to Warfield’s inquiry as to the type of business he was planning on operating, Naulls said that he would be opening a “ ‘miscellaneous retail’ establishment” and would be selling “ ‘miscellaneous medical supplies.’ ” Warfield reviewed the application and, based upon the information provided, issued Naulls a receipt, which served as a temporary business license. She would not have issued a business license to Naulls had she known that the true nature of HNC’s operations was “to cultivate, store, sell and distribute marijuana.”

On June 20, 2006, Naulls telephoned the City’s planning director, Peggy Temple, to schedule a meeting “regarding establishing a business in the City.” At first reluctant to respond to Temple’s inquiry as to the nature of the business, Naulls eventually admitted that he operated a medical marijuana establishment. At their meeting two days later, Temple informed Naulls that marijuana dispensaries were not, and never have been, a permitted land use under the City’s zoning laws. Temple also then informed Naulls that, at a special meeting held the day before, the City had enacted a moratorium on medical marijuana dispensaries. Naulls admitted that prior to opening his dispensary he was informed by a planning department employee that the proposed use was not permitted and that, in the event he proceeded to open the business, he would be subject to law enforcement.

On July 7, 2006, legal counsel for the City wrote to Naulls informing him that, among other things, the City had imposed a moratorium on the establishment of medical marijuana dispensaries. Further, because HNC had been established unlawfully, it was not exempt even though its application had already been filed. Naulls was directed to cease distributing marijuana, either from his business or otherwise. In a letter dated July 14, 2006, Naulls’s *422 attorney referenced a telephone conversation with the City’s counsel, reiterating his position that “the clinic is a prior legal non-conforming use. If you are aware of any authority supporting the position that anything not permitted under the zoning code is therefore prohibited, please make me aware of it.”

On August 8, 2006, counsel for the City replied, informing Naulls’s attorney that HNC’s business license was invalid because he had falsified his application, medical marijuana dispensaries were not a permitted use under the City’s municipal code and Specific Plan, and HNC failed to comply with the procedures required for establishing a “similar use” zoning designation. Naulls was again directed to cease and desist from operating HNC.

The following day, the City filed the underlying lawsuit, alleging that HNC’s operation constituted a public nuisance in violation of Civil Code section 3479. Specifically, the City alleged that use of the premises at which HNC was operating was a nuisance per se under section 1.08.020 of the City’s municipal code in that Naulls operated HNC in contravention of sections 5.02.030 (pertaining to business licenses) and 5.02.370, subdivision (B) (pertaining to zoning regulations). The City sought a temporary restraining order to close down HNC’s operations, and preliminary and permanent injunctions to prevent use of the premises pending submission of a new business license application and compliance with all federal, state, and local laws.

At a hearing in August, the court denied the City’s ex parte application for a temporary restraining order, but set a hearing for September 28, 2006, regarding the City’s request that a preliminary injunction issue. Having directed the City to file a new motion, the court remarked it “think[s] there is some probability of a preliminary injunction issuing.” The hearing on the City’s request for a preliminary injunction was eventually continued, and on October 4, 2006, Naulls filed his answer to the complaint.

In late October, the City filed its motion for a preliminary injunction, asserting various grounds, i.e., (1) notwithstanding the passage of the Compassionate Use Act of 1996 (CUA; Health & Saf. Code, § 11362.5) and the Medical Marijuana Program Act (MMPA), Naulls was operating HNC in violation of the Controlled Substances Act (CSA), as interpreted in Gonzales v. Raich (2005) 545 U.S. 1 [162 L.Ed.2d 1, 125 S.Ct. 2195], and (2) Naulls’s continued operation of HNC violated provisions of the City’s municipal code and Specific Plan with regard to its application for business license and zoning regulations and thus constituted a nuisance per se.

*423 In a declaration in support of the City’s motion, Temple alleged that because a medical marijuana dispensary was not a permitted use in any of the zoning areas within the Specific Plan, any other specific plan, 2 or any of the code’s zoning provisions, Naulls would have been required to amend the Specific Plan to include his requested use. She asserted; “In order to obtain an amendment of the Specific Plan, Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
166 Cal. App. 4th 418, 83 Cal. Rptr. 3d 1, 2008 Cal. App. LEXIS 1369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-corona-v-naulls-calctapp-2008.