City of Ontario v. We Buy Houses Any Condition

CourtCalifornia Court of Appeal
DecidedJuly 31, 2024
DocketD083080
StatusPublished

This text of City of Ontario v. We Buy Houses Any Condition (City of Ontario v. We Buy Houses Any Condition) 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 Ontario v. We Buy Houses Any Condition, (Cal. Ct. App. 2024).

Opinion

Filed 7/19/24; Certified for Publication 7/31/24 (order attached)

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

CITY OF ONTARIO, D083080

Plaintiff and Appellant,

v. (Super. Ct. No. CIVSB2111984) WE BUY HOUSES ANY CONDITION, LLC,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of San Bernardino County, Khymberli S. Y. Apaloo, Judge. Affirmed. Best & Krieger, Mark A. Easter and Guillermo A. Frias for Plaintiff and Appellant. Palmieri, Hennessey & Leifer, Patrick A. Hennessy and Erin B. Naderi for Defendant and Respondent. Plaintiff City of Ontario (the City) filed this eminent domain action to obtain properties owned by We Buy Houses Any Condition, LLC (We Buy Houses). The trial court granted summary judgment against the City, finding it had not articulated a “proposed project” as required to exercise its power of eminent domain. The court then granted We Buy Houses’s request for attorney fees, making certain reductions to the requested amounts. The City appeals, contending that the trial court erred by requiring it to identify a particular project. We find the City’s arguments unpersuasive and conclude that the trial court properly rejected the City’s effort to exercise eminent domain. The City separately argues that the fee award entered by the trial court constituted an abuse of discretion. The City claims, among other things, the trial court erred by failing to adequately explain its award, awarding fees unrelated to We Buy Houses’s motion for summary judgment, and awarding fees for excessive or duplicative work. Finding no abuse of discretion, we

affirm the fee award.1 FACTUAL AND PROCEDURAL BACKGROUND We Buy Houses owns multiple vacant lots adjacent to the Ontario International Airport in an area zoned for industrial use. According to the City, the properties “do not conform to applicable City and Airport land use requirements for development and suffer from impacts relating to Airport operations and general area blight.” In 2021, the City held a public hearing, after which the city council adopted a resolution of necessity authorizing the City to commence eminent domain proceedings to acquire the properties. The resolution of necessity stated: “The public uses for which the real property interest is to be acquired are mitigation of airport impacts and elimination of blight in the City of Ontario, San Bernardino County, California. Sections 37350.5 and 50470 of the California Government Code authorizes [sic] the City to acquire by

1 We Buy Houses has sought judicial notice of the City’s request for an extension of time to file its opening brief. As this document is not relevant to our disposition, the request for judicial notice is denied. 2 eminent domain real property necessary for such purposes.” The council found that “[t]he public interest and necessity require the proposed project” and “[t]he proposed project is planned or located in the manner that will be most compatible with the greatest public good and least private injury.” However, the resolution did not describe any proposed project. The City subsequently filed this action seeking to take We Buy Houses’s properties by eminent domain. Relying in large part on City of Stockton v. Marina Towers LLC (2009) 171 Cal.App.4th 93 (Marina Towers), We Buy Houses filed a motion for summary judgment on the ground that the City had no public project and had failed to describe any public project in its resolution of necessity. The City argued that because the resolution of necessity stated that “property is being acquired to mitigate airport impacts and for the elimination of blight,” “the project [was] adequately stated,” and the City did not have to identify a “particular ultimate use or project.” The trial court agreed with We Buy Houses that the City had not provided an adequate project description. After summarizing some of the “fundamentals of eminent domain law,” the court concluded, “[t]here is nothing in the Eminent Domain Law which states that just because a city would be using a property for a ‘public use,’ [it does] not have to have a ‘proposed project’ supporting the condemnation. The law requires both.” The court found there was no “specific project to accomplish [the City’s] aims” of mitigating blight and airport impacts. The court reasoned it was therefore not possible for the City to determine “that the ‘proposed project’ was in the public interest, was necessary, that it was planned or located in the manner most compatible with the public good and least private injury, and the property at issue was necessary for the project,” as required by statute.

3 Accordingly, the court held that the City had committed a “gross abuse of discretion” and granted summary judgment to We Buy Houses. After entering judgment against the City, the court granted We Buy Houses’s request for fees pursuant to Code of Civil Procedure section 1268.610. The court found the opinions of the City’s fee expert were not entitled to much weight because he did not have “any demonstrated background in the type of work that was done in this particular case” or “knowledge about reasonable rates for the Inland Empire.” The court further noted it had “seen quite a few of these” cases and was “going to apply [its] best judgment.” The court awarded reduced fees to We Buy Houses, observing that there was no apparent need for most of the services of a second law firm hired by We Buy Houses, time spent on “miscellaneous post- complaint communications,” or time spent drafting a trial brief after the motion for summary judgment. The court also found the lead partners had billed for duplicative tasks in connection with the motion for summary judgment, so awarded half of the time billed by each. The court awarded a total of $246,744.50 of the requested $331,161.50, disallowing $75,186.50 of We Buy Houses’s claimed fees. The City has appealed both the judgment and the fee award.

4 DISCUSSION A. Failure to Identify a Proposed Project 1. Standard of Review We review the trial court’s order granting We Buy Houses’s motion for summary judgment de novo. (Ryan v. Real Estate of Pacific, Inc. (2019) 32 Cal.App.5th 637, 642.) The City does not contend there exist any disputed issues of material fact, so the question before us is purely legal. (Nathanson v. Hecker (2002) 99 Cal.App.4th 1158, 1162.) 2. Analysis California enacted the “Eminent Domain Law,” title 7 of the Code of Civil Procedure, as a comprehensive statutory scheme to define the substantive and procedural parameters of eminent domain. (See, e.g., Property Reserve, Inc. v. Superior Court (2016) 1 Cal.5th 151, 201, fn. 20.) “Except as otherwise specifically provided by statute, the power of eminent domain may be exercised only as provided in” the Eminent Domain Law. (Code Civ. Proc., § 1230.020.) In other words, “[t]he provisions of the Eminent Domain Law govern all acquisitions by eminent domain except to the extent that specific provision is otherwise made by statute.” (Cal. Law Revision Com. com., 19 West’s Ann. Code Civ. Proc. (2007 ed.), foll. § 1230.020, p. 229.) Among the requirements laid out in the Eminent Domain Law, a government may exercise its power to acquire property for a proposed project only if all of the following are established: “(a) The public interest and necessity require the project[;]

“(b) The project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury[; and]

5 “(c) The property sought to be acquired is necessary for the project.” (Code Civ. Proc., § 1240.030.)

Thus, a “governing entity [must] identify a ‘project’ with a public purpose before it undertakes to condemn private property.” (Marina Towers, supra, 171 Cal.App.4th at p.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

California Redevelopment Ass'n v. Matosantos
267 P.3d 580 (California Supreme Court, 2011)
City of San Jose v. Great Oaks Water Co.
192 Cal. App. 3d 1005 (California Court of Appeal, 1987)
Redevelopment Agency of City of Huntington Park v. Norm's Slauson
173 Cal. App. 3d 1121 (California Court of Appeal, 1985)
Emmington v. Solano County Redevelopment Agency
195 Cal. App. 3d 491 (California Court of Appeal, 1987)
City of Oakland v. Oakland Raiders
203 Cal. App. 3d 78 (California Court of Appeal, 1988)
Anaheim Redevelopment Agency v. Dusek
193 Cal. App. 3d 249 (California Court of Appeal, 1987)
In Re Marriage of Falcone & Fyke
164 Cal. App. 4th 814 (California Court of Appeal, 2008)
City of Stockton v. Marina Towers LLC
171 Cal. App. 4th 93 (California Court of Appeal, 2009)
Nathanson v. Hecker
121 Cal. Rptr. 2d 773 (California Court of Appeal, 2002)
Santa Cruz County Redevelopment Agency v. Izant
37 Cal. App. 4th 141 (California Court of Appeal, 1995)
Property Reserve, Inc. v. Superior Court of San Joaquin County
375 P.3d 887 (California Supreme Court, 2016)
People v. Ault
33 Cal. 4th 1250 (California Supreme Court, 2004)
Ryan v. Real Estate of the Pac., Inc.
244 Cal. Rptr. 3d 129 (California Court of Appeals, 5th District, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
City of Ontario v. We Buy Houses Any Condition, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-ontario-v-we-buy-houses-any-condition-calctapp-2024.