Clover v. Camp Pendleton & Quantico Housing LLC

District Court, S.D. California·Decided March 4, 2023·No. 3:20-cv-00567·Unknown

Opinion

JASON CLOVER, et al., Case No.: 20cv567-LAB (WVG)

Plaintiffs, ORDER GRANTING IN PART v. DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT OR, ALTERNATIVELY, PARTIAL QUANTICO HOUSING LLC, et al., SUMMARY JUDGMENT [Dkt. 79] Defendants. Plaintiffs Jason and Valerie Clover, along with their minor children, J.C. and P.C., by and through their guardian ad litem Roger Holmes (collectively, “Plaintiffs”), are former residents of military housing located on base at Marine Corps Base Camp Pendleton (“Camp Pendleton”). They bring this action against Defendants Camp Pendleton & Quantico Housing LLC (“CPQH”) and LPC Pendleton Quantico Property Management, LP (“LPC”) (collectively, “Defendants”), for injuries stemming from Defendants’ alleged failure to properly maintain or repair Plaintiffs’ residence, resulting in moisture, water intrusion, and mold conditions in their residence. On February 7, 2023, Defendants filed a Motion for Summary Judgment or, in the Alternative, Partial Summary Judgment. (Dkt. 79). Plaintiffs oppose Defendants’ motion. (Dkt. 89). The Court has read all materials in support of and in opposition to the Motion, and rules as follows. I. UNDISPUTED MATERIAL FACTS1 Under the Military Housing Privatization Initiative (“MHPI”), branches of the Armed Forces can establish public-private ventures with a private entity to operate and manage their military housing on government land. Pursuant to the MHPI, the United States Navy (“Navy”) entered into an Operating Agreement with Hunt Lincoln Clark Family Communities, LLC, to form Defendant CPQH, to aid and assist the Navy with its military housing operations, including at Camp Pendleton.2 Under the terms of the Operating Agreement, CPQH has primary responsibility for managing the military housing it owns. Under its terms, the United States directs the cash flow for the operations phases of the project, and retains budgetary approval and oversight, as well as direct budgeting involvement. On or about August 1, 2001, the Navy entered into a Ground Lease with Defendant CPQH for the South Mesa I neighborhood, including the property located at 296 Tierra Blanca, Oceanside, California (“Property). The Navy retained the right to inspect the Camp Pendleton housing at any time on environmental issues. CPQH was directed by the Operating Agreement to enter a Property Management Agreement (“PMA”) with Defendant LPC relating to the South Mesa I community and the Property. The PMA contains a Management Plan and Mold Management Plan (“the Plans”). The Plans developed a strategy for addressing military housing conditions and maintenance requests, and specifically mold and moisture conditions, in the housing, and outline a general plan, and give certain

1 Pursuant to Federal Rule of Evidence 201, Defendants’ request for judicial notice as to Exhibits A-1, B-1, C-1, and D-1 is GRANTED. (Dkt. 79-2); see Anderson v. Holder, 673 F.3d 1089, 1094 n.1 (9th Cir. 2012) 2 Both Defendants CPQH and LPC are affiliates of a company called Liberty Military Housing, formerly known as Lincoln Military Housing (“Lincoln”). (Dkt. 98 directions and factors to evaluate, based on what is discovered on site, for response to tenant complaints and service orders, including specifically those as to mold and moisture; the Navy set the parameters for the Plans. CPQH has exclusive management and control of the property management business of the company and has full authority to take all actions necessary or appropriate to pursue the business and carry out the company’s purpose of the Company. Plaintiff Jason Clover, a United States Marine, along with his family, were residents on the Property at Camp Pendleton, from on or about June 2014 until on or about June 2019. They filed their initial complaint in San Diego Superior Court on November 22, 2019, asserting ten state law causes of action against Defendants. (Dkt. 1-4). They claim that while living at the Property, they became sick from water intrusion and mold issues and that Defendants didn’t adequately address these issues during the duration of Plaintiffs’ tenancy. Defendants subsequently removed the case to federal court. Summary judgment is appropriate under Rule 56(a) where the movant “shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). In order to prevail, a party moving for summary judgment must show the absence of a genuine issue of material fact with respect to an essential element of the non-moving party’s claim, or to a defense on which the non-moving party will bear the burden of persuasion at trial. See Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Once the movant has made this showing, the burden then shifts to the party opposing summary judgment to identify “specific facts showing there is a genuine issue for trial.” Id. at 324. The party opposing summary judgment must then present affirmative evidence from which a jury could return a verdict in that party’s favor. Anderson v. Liberty Lobby, 477 U.S. 242, 257 (1986). On summary judgment, the Court draws all reasonable factual inferences in favor of the non-movant. Id. at 255. “Credibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge.” Id. (citation omitted). “The mere existence of a scintilla of evidence in support of the plaintiff’s position will be insufficient; there must be evidence on which the jury could reasonably find for the plaintiff.” Id. at 242. The Court does not make credibility determinations or weigh conflicting evidence. Id. at 255. Rather, the Court determines whether the record “presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.” Id. at 251–52. A. Federal Enclave Doctrine Defendants first argue that the Court should grant summary judgment on certain of Plaintiffs’ state law claims under the federal enclave doctrine. This doctrine originates from Article I, Section 8, Clause 17, of the United States Constitution, which “provides that Congress shall have the power to exercise exclusive legislation over all places purchased by the consent of the legislature of the state in which the same shall be.” Stiefel v. Bechtel Corp., 497 F. Supp. 2d 1138, 1147 (S.D. Cal. 2007). It permits, with some exceptions, “the continuance of those state laws existing at the time of surrender of sovereignty.” Id. “Only state laws in effect at the time of cession or transfer of jurisdiction, however, can continue in operation. Laws subsequently enacted by the state are inapplicable in the federal enclave unless they come within a reservation of jurisdiction or are adopted by Congress.” Id. (citation omitted). Defendants assert, and Plaintiffs don’t dispute, that Camp Pendleton is a federal enclave, and that the federal government purchased that land from the State of California “no later than December 31, 1942.” Id. at 1147; accord Cooper v. S. Cal. Edison Co., 170 Fed. Appx. 496, 497 (9th Cir. 2006) (citing United States v. Fallbrook Pub. Util. Dist., 110 F. Supp. 767, 771 (S.D. Cal. 1953)). The parties instead dispute whether Camp Pendleton’s federal enclave status even applies here, and whether it bars certain of Plaintiffs’ state law claims that were enacted after the creation of the federal enclave in 1942. Specifically, Plaintiffs argue that, in passing the MHPI, Congress

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