City of Perris v. Stamper

376 P.3d 1221, 1 Cal. 5th 576, 205 Cal. Rptr. 3d 797, 2016 Cal. LEXIS 6749, 2016 WL 4268627
CourtCalifornia Supreme Court
DecidedAugust 15, 2016
DocketS213468
StatusPublished
Cited by20 cases

This text of 376 P.3d 1221 (City of Perris v. Stamper) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Perris v. Stamper, 376 P.3d 1221, 1 Cal. 5th 576, 205 Cal. Rptr. 3d 797, 2016 Cal. LEXIS 6749, 2016 WL 4268627 (Cal. 2016).

Opinions

Opinion

LIU, J.

The City of Perris (the City) is located 70 miles east of Los Angeles. This case involves the City’s condemnation of a 1.66-acre strip of defendants’ property in order to build a road. By taking the strip, the City has divided the property into two irregularly shaped parcels. The City claimed that defendants would have been required to dedicate the strip to the City, with no compensation, had they sought to put the property to its highest and best use, i.e., light industrial development. The City thus offered to pay defendants the agricultural (undeveloped) value of the strip, relying on City of Porterville v. Young (1987) 195 Cal.App.3d 1260 [241 Cal.Rptr. 349] (Porterville). Porterville held that when a city takes a portion of undeveloped property, which it would have lawfully required the owner to dedicate to the city as a condition of developing the remainder of the property, the owner is entitled to compensation based on the undeveloped state of the property rather than its highest and best use. (Id. at pp. 1265-1269.)

The trial court agreed with the City that Porterville applies here and that defendants were entitled to a stipulated agricultural value of $44,000 for the taking. In reaching this conclusion, the trial court found the City’s dedication requirement to be lawful under Nollan v. California Coastal Comm’n (1987) 483 U.S. 825 [97 L.Ed.2d 677, 107 S.Ct. 3141] (Nollan) and Dolan v. City of Tigard (1994) 512 U.S. 374 [129 L.Ed.2d 304, 114 S.Ct. 2309] (Dolan). Those cases hold that in order to satisfy the Fifth Amendment to the United States Constitution, a dedication requirement must have an “essential nexus” (Nollan, supra, 483 U.S. at p. 837) to the valid public purpose that would be served by denying the development permit outright and must be “ ‘rough[ly] proportional]’ ” to “the impact of the proposed development” at issue (Dolan, supra, 512 U.S. at pp. 390, 391). The Court of Appeal agreed with the trial court on the applicability of Porterville but held that the legality of the dedication requirement under Nollan and Dolan should have been decided by a jury, not a judge. For this reason, and because of certain evidentiary errors, [586]*586the Court of Appeal sent the case back to the trial court to revisit the legality of the dedication requirement under Nolían and Dolan.

We granted review on two questions: First, is the constitutionality of a reasonably probable dedication requirement under Nolían and Dolan a question that must be resolved by a jury pursuant to article I, section 19 of the California Constitution? Second, was the City’s dedication requirement a “project effect” that must be ignored in determining just compensation for the taking under Code of Civil Procedure section 1263.330?

As to the first question, we hold that the essential nexus and rough proportionality inquiries under Nolían and Dolan are properly decided by a court, not by a jury. Our precedent holds that article I, section 19 of the California Constitution, which governs eminent domain, requires only factually intensive questions directly related to compensation to be submitted to a jury. (See Metropolitan Water Dist. of So. California v. Campus Crusade for Christ, Inc. (2007) 41 Cal.4th 954, 971-973 [62 Cal.Rptr.3d 623, 161 P.3d 1175] (Campus Crusade).) Because the Nolían and Dolan issues are mixed questions of law and fact in which the legal issues predominate, and because the constitutionality of a dedication requirement is analytically prior to any factual dispute as to whether the condemner would actually impose the requirement, the questions belong to the court.

As to the second question, we hold that the project effect rule generally applies, and Porterville does not apply, to situations where it was probable at the time the dedication requirement was put in place that the property designated for public use was to be included in the project for which the property is being condemned. The applicability of the project effect rule thus turns on a preliminary factual question to be decided by the court. Because the trial court believed the project effect rule was categorically inapplicable in this situation, it made no factual findings bearing on the rule’s applicability. Such findings may be made on remand.

I.

In 1985, defendants (the Owners) purchased the property at issue (the Property), a rectangular plot measuring approximately 9.12 acres located north of Ramona Expressway and south of Markham Street. The Property is zoned to allow light industrial development. The Owners originally purchased the Property for their metal fabricating businesses, but the Property remained undeveloped at the time this suit was filed.

A.

This controversy concerns a 1.66-acre strip of land that the City sought to condemn in 2009 in order to complete construction of a portion of Indian [587]*587Avenue, a secondary arterial street designed to channel truck traffic toward Harley Knox Boulevard en route to Interstate 215. This strip, which arcs through the Property, comprises roughly 20 percent of the Property and splits the remainder into two roughly triangular parcels—one is 5.5 acres, the other is 2.0 acres—on either side. A map showing the Property and the 1.66-acre strip at issue appears in an appendix to this opinion.

For many years, the City was a predominantly agricultural community, but it has recently experienced significant growth and has developed a more diverse economy. Historically, Indian Avenue was an undeveloped right of way that ran north-south in a straight alignment and did not abut the Property. But in 1999, the City amended its general plan and circulation element by passing resolution No. 2756, which rerouted the Indian Avenue right of way south of Ramona Expressway (the southern realignment) so that it would no longer run straight but would instead curve to the northeast before intersecting Ramona Expressway. A circulation element is a required component of a municipality’s general plan and consists of “the general location and extent of existing and proposed major thoroughfares, transportation routes, terminals, any military airports and ports, and other local public utilities and facilities, all correlated with the land use element of the plan.” (Gov. Code, § 65302, subd. (b)(1).)

The catalyst for the southern realignment of Indian Avenue was the building of a large distribution center by Lowe’s Companies, Inc. (Lowe’s), south of Ramona Expressway. In order to develop a site big enough to accommodate its distribution center, Lowe’s asked the City to realign Indian Avenue around to the east of the original Indian Avenue right-of-way south of Ramona Expressway. The City agreed to vacate its original Indian Avenue right-of-way south of Ramona Expressway, and in return, Lowe’s agreed to dedicate to the City the property needed for the southern realignment of Indian Avenue.

Indian Avenue was then partially developed as a road for carrying truck traffic south of Ramona Expressway. At the time of this lawsuit, Indian Avenue remained undeveloped north of Ramona Expressway, where the Property is located. This meant that Indian Avenue ended as it met Ramona Expressway, forming a T-junction.

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Cite This Page — Counsel Stack

Bluebook (online)
376 P.3d 1221, 1 Cal. 5th 576, 205 Cal. Rptr. 3d 797, 2016 Cal. LEXIS 6749, 2016 WL 4268627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-perris-v-stamper-cal-2016.