Ewing v. City of Carmel-By-The-Sea

234 Cal. App. 3d 1579, 286 Cal. Rptr. 382, 91 Daily Journal DAR 12504, 91 Cal. Daily Op. Serv. 8193, 1991 Cal. App. LEXIS 1173
CourtCalifornia Court of Appeal
DecidedOctober 9, 1991
DocketH007702
StatusPublished
Cited by28 cases

This text of 234 Cal. App. 3d 1579 (Ewing v. City of Carmel-By-The-Sea) 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
Ewing v. City of Carmel-By-The-Sea, 234 Cal. App. 3d 1579, 286 Cal. Rptr. 382, 91 Daily Journal DAR 12504, 91 Cal. Daily Op. Serv. 8193, 1991 Cal. App. LEXIS 1173 (Cal. Ct. App. 1991).

Opinion

*1584 Opinion

ELIA, J.

Plaintiff homeowners challenge the constitutionality of a zoning ordinance prohibiting transient commercial use of residential property for remuneration for less than 30 consecutive days. The trial court upheld the ordinance. We affirm.

Factual And Procedural Background

Plaintiffs are owners of single-family, residential property zoned R-l in the City of Carmel-by-the-Sea. Plaintiffs challenge Ordinance No. 89-17, unanimously adopted by the Carmel City Council in May 1989. The ordinance prohibits the “Transient Commercial Use of Residential Property for Remuneration . . . in the R-l District.”

The ordinance defines the “transient commercial use of residential property” as “the commercial use, by any person, of Residential Property for bed and breakfast, hostel, hotel, inn, lodging, motel, resort or other transient lodging uses where the term of occupancy, possession or tenancy of the property by the person entitled to such occupancy, possession or tenancy is for less than thirty (30) consecutive calendar days.” The ordinance defines “remuneration” as “compensation, money, rent, or other bargained for consideration given in return for occupancy, possession or use of real property.”

The ordinance provides that “[a]ny Person acting as agent, real estate broker, real estate sales agent, property manager, reservation service or otherwise who arranges or negotiates for the use of Residential Property . . .” and “[a]ny Person who uses, or allows the use of, Residential Property in violation [of the ordinance] is guilty of an infraction for each day in which such Residential Property is used, or allowed to be used . . . .” To enforce the ordinance, “[t]he City Attorney may seek legal, injunctive, or other equitable relief . . . .”

Plaintiffs filed this action in June 1989, seeking declaratory and injunctive relief, as well as an award of damages for violation of their civil rights under 42 United States Code section 1983 and an award of attorney fees under 42 United States Code section 1988. In August 1989, the trial court preliminarily enjoined Carmel from enforcement of the ordinance. In October 1990, after trial, the court lifted the preliminary injunction and entered judgment for Carmel, finding the ordinance to be “valid and enforceable.”

Plaintiffs appeal.

*1585 Discussion

Plaintiffs contend the doctrine of collateral estoppel bars Carmel from adopting and litigating the validity of Ordinance No. 89-17. Assuming alternatively that collateral estoppel does not apply, plaintiffs contend the ordinance is constitutionally infirm in several respects. They maintain that it violates their rights of privacy and association, substantive and procedural due process, and equal protection.

We begin with plaintiffs’ argument regarding collateral estoppel. A decade ago, Carmel enacted a series of ordinances by which it sought to regulate transient rentals. While the final version adopted in 1981 was worded quite differently from the version at issue here, the intent and effect were essentially the same. The 1981 ordinance, like Ordinance No. 89-17, prohibited the rental of residential property for fewer than 30 days.

Some of the same homeowners involved in this suit challenged the earlier ordinances. The trial court permanently enjoined enforcement of the 1981 ordinance, finding it to be “unconstitutional as it invades the rights of association, privacy, and due process. The Court further finds that the Ordinance is over-broad and does not substantially effect its stated goals.” Carmel did not appeal. Plaintiffs maintain that Carmel is collaterally es-topped from relitigating the matter.

Given the difference in wording of the two ordinances, we think it doubtful the doctrine of collateral estoppel applies. In any event, we conclude that this case comes within the public interest exception to the application of the doctrine.

In Louis Stores, Inc. v. Department of Alcoholic Beverage Control (1962) 57 Cal.2d 749 [22 Cal.Rptr. 14, 371 P.2d 758], the district liquor control administrator instituted successive proceedings seeking to revoke the beer and wine wholesale license of a chain of retail grocery stores. The first proceeding was resolved in the stores’ favor. The second proceeding challenged the stores’ operations during a different period of time and under a revised statute. But the stores argued that the administrator was collaterally estopped from relitigating the matter because neither the statute nor the stores’ methods of operation had significantly changed since the first proceeding. The Supreme Court observed that res judicata should not be applied when it may have an adverse effect on third parties or when public interest requires that relitigation not be foreclosed. (Id. at p. 758.) “In the present case both of these factors, i.e., public interest and effect upon third persons, strongly indicate that the prior determination of the board should not operate to preclude either the department or the courts from reexamining the statute *1586 and applying the correct interpretation . . . .” (Ibid.) The court noted that the statute “concerns the public interest in an industry requiring close supervision and that it is an important part of an integrated and rather complex licensing and price regulating system.” (Ibid.)

In Chern v. Bank of America (1976) 15 Cal.3d 866, 872 [127 Cal.Rptr. 110, 544 P.2d 1310], the Supreme Court again “acknowledge^] ... a sound judicial policy against applying collateral estoppel in cases which concern matters of important public interest.” The court approved plaintiff’s relitigation of certain banking practices, noting that federal and state statutes “evidence[] a strong interest in protecting the public through . . . comprehensive scheme[s] of banking and financial regulations.” (Ibid) The court concluded: “Given the quality and intensity of the public interest involved, a reexamination of the legal significance of recurring factual events in which the same plaintiff is involved should not be foreclosed under collateral estoppel principles.” (Id. at p. 873; see also City of Sacramento v. State of California (1990) 50 Cal.3d 51, 64-65 [266 Cal.Rptr. 139, 785 P.2d 522]; Consumers Lobby Against Monopolies v. Public Utilities Com. (1979) 25 Cal.3d 891, 902 [160 Cal.Rptr. 124, 603 P.2d 41].)

Similarly, a city and its residents have an abiding and continuing interest in zoning. And a zoning ordinance that does not pass muster today may— due to changed circumstances, changed language, or changed goals—pass muster only a decade later. We conclude that, even if the doctrine of collateral estoppel were otherwise applicable, the public interest exception to the doctrine permits a zoning authority to try again.

We turn to the constitutionality of Ordinance No. 89-17, beginning with plaintiffs’ argument that the ordinance constitutes a “taking” in violation of the Fifth Amendment.

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Bluebook (online)
234 Cal. App. 3d 1579, 286 Cal. Rptr. 382, 91 Daily Journal DAR 12504, 91 Cal. Daily Op. Serv. 8193, 1991 Cal. App. LEXIS 1173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ewing-v-city-of-carmel-by-the-sea-calctapp-1991.