Flats Management Group v. L.A. County Metro. Trans. Auth. CA2/8

CourtCalifornia Court of Appeal
DecidedApril 24, 2026
DocketB333260
StatusUnpublished

This text of Flats Management Group v. L.A. County Metro. Trans. Auth. CA2/8 (Flats Management Group v. L.A. County Metro. Trans. Auth. CA2/8) 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
Flats Management Group v. L.A. County Metro. Trans. Auth. CA2/8, (Cal. Ct. App. 2026).

Opinion

Filed 4/24/26 Flats Management Group v. L.A. County Metro. Trans. Auth. CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

FLATS MANAGEMENT GROUP, B333260, B334627 LLC, et al., Los Angeles County Plaintiffs and Appellants, Super. Ct. No. BC691935

v.

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY, et al.,

Defendants and Appellants.

APPEALS from orders and a judgment of the Superior Court of Los Angeles County, Gregory Keosian, Judge. Affirmed in part, reversed in part, and remanded. Century Law Group, Edward O. Lear; Evans Kingsbury, Noreen M. Evans for Plaintiffs and Appellants. Horvitz & Levy, Robert H. Wright and Mark A. Kressel; Lewis Brisbois Bisgaard & Smith, Edward E. Ward, Jr. and Judith J. Steffy for Defendants and Appellants. ____________________ On the southeast corner of Wilshire Boulevard and South Gale Drive in a bustling Beverly Hills neighborhood sits a single- story commercial building that has housed various restaurants and businesses since the 1930s. The physical address of the building is 8400 Wilshire Boulevard. Two blocks west, at the corner of Wilshire and La Cienega Boulevard, is the location for a subway station that the Los Angeles Metropolitan Transportation Authority (“Metro”) had been planning for years in the expansion of its Purple Line westward. Construction on the Wilshire/La Cienega station began in 2015. 2015 was also the year that a new restaurant hoped to open at 8400 Wilshire Boulevard. However, because of the ongoing construction at the Wilshire/La Cienega station, the restaurant’s owners delayed their plans twice before officially opening in May 2017. Despite positive reviews, business at the restaurant was not good. In January 2018, the restaurant and its landlord sued Metro, the City of Beverly Hills (“City”), and Skanska Traylor Shea, the contractor building the station (“Skanska,” and collectively with Metro and City, “Defendants”), bringing claims for inverse condemnation, nuisance, negligence, and intentional interference with contracts. The restaurant remained open throughout 2018 but closed in January 2019 due to expenses exceeding revenues.

2 Defendants prevailed at the bench trial on the inverse condemnation claim. They then moved for a nonsuit on the remaining claims, and the trial court granted the motions by the City and Skanska. The court denied Metro’s nonsuit, allowing the plaintiffs’ remaining claims to proceed against Metro. Then the jury found Metro negligent and awarded over $4 million in damages to the plaintiffs. The court denied Metro’s post-trial motions. Both sides appealed. Flats and Simon seek reversal of the trial court’s decisions on inverse condemnation and granting nonsuit to the City and Skanska. City and Skanska moved to dismiss the plaintiffs’ appeal against them on untimeliness grounds. Metro asks that we reverse the judgment against it, contending the trial court erred in denying its motion for judgment notwithstanding the verdict. Flats and Simon filed a second appeal, seeking reversal of the trial court’s post-judgment award of prevailing party costs to City and Skanska. We consolidated that appeal with the first for purposes of oral argument and decision. We grant City and Skanska’s motion to dismiss the Flats and Simon’s appeal against them. We affirm the trial court’s decision on inverse condemnation. We reverse its decision denying Metro’s motion for judgment notwithstanding the verdict and order it to enter judgment for Metro. We dismiss as moot Flats and Simon’s second appeal. And we remand for proceedings consistent with this opinion. Undesignated statutory citations refer to the Code of Civil Procedure.

3 I We recount the facts and procedural history. A When Victor Alexandroff was contemplating retirement, some of his friends found for him what seemed to be an ideal investment property. Alexandroff, a licensed attorney who had practiced since 1987 and worked for over 25 years at the Los Angeles City Attorney’s Office, was looking for a way to supplement the income he would receive from his pension. Alexandroff visited the property, located at 8400 Wilshire Boulevard (“Property”). In his own words, he “fell in love with it.” Originally built in the 1930’s, the Property, a standalone single- story art deco building, has one of the oldest liquor licenses in the state and a history of successful restaurants as tenants, including a sushi restaurant owned by Matt Damon and Ben Affleck. The Property’s history, along with its proximity to the Saban Theatre, which hosted many events, impressed Alexandroff. While he was still doing due diligence and researching the Property, Alexandroff learned that Metro was in the process of expanding its Purple Line and constructing the Wilshire/La Cienega subway station very close to the Property. He understood from his research and the papers he read that the above-ground construction would finish in 2017. Alexandroff thought that in the long run, it would actually be beneficial to own property next to the station. Alexandroff and his wife, through an entity called Simon A. Management, LLC (“Simon”), purchased the Property at the end of 2013. At the time of purchase, the Property had, as a tenant for several years, a popular high-end restaurant named Red Medicine. Adam Fleischman, a self-taught restaurateur who

4 started the restaurant brands Umami Burger and 800 Degrees Pizza, had founded Red Medicine as a Beverly Hills destination restaurant. Alexandroff thought owning the Property would be “headache free” because Red Medicine would be a good tenant. Not long after Simon bought the Property, at some point in 2014, Fleischman decided to close Red Medicine to pursue his other restaurants. But around that time, the Property had caught the eye of Kyle Schutte, an up-and-coming chef. Schutte knew Fleischman and had been working with restaurateurs Lisa Long and Emily Mura-Smith to develop a restaurant concept they named “The Flats,” which would serve gourmet flatbreads and sandwiches with an extensive cocktail selection. Mura-Smith and Long had decades of experience running restaurants together. They had previously collaborated with celebrity chef Fabio Viviani, who had appeared on the television series Top Chef, to open an Italian restaurant. Schutte believed the Property would be the perfect flagship location for their restaurant. Long, Mura-Smith, and Schutte envisioned the restaurant as a concept they could eventually franchise to other locations. Long and Mura-Smith set up an entity called Flats Management Group, LLC (“Flats”), to run the restaurant. In 2014, Long approached Alexandroff to inquire about leasing the Property. Alexandroff met with Long and learned of her history as an experienced restaurateur who had opened multiple successful restaurants in the past. Given her track record, Alexandroff decided Long was someone that he wanted to work with. Flats signed a lease with Simon in November 2014, and Alexandroff understood that Long and her team would be doing

5 some renovations at the Property before opening their restaurant. Fleischman agreed to guarantee the lease for a year. Long and Mura-Smith were also aware that construction would begin in 2015 near the Property. Long had experienced Metro’s expansion of its Red Line near one of her previous restaurants in North Hollywood. While the construction was somewhat inconvenient, Long did not feel that it significantly detracted from her restaurant’s operations.

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

Related

Bank of America National Trust & Savings Ass'n v. Superior Court
128 P.2d 357 (California Supreme Court, 1942)
People v. Ayon
352 P.2d 519 (California Supreme Court, 1960)
People v. Ricciardi
144 P.2d 799 (California Supreme Court, 1943)
Morehart v. County of Santa Barbara
872 P.2d 143 (California Supreme Court, 1994)
Lopez v. Southern California Rapid Transit District
710 P.2d 907 (California Supreme Court, 1985)
County of Los Angeles v. Faus
312 P.2d 680 (California Supreme Court, 1957)
Hensley v. Harris
312 P.2d 414 (California Court of Appeal, 1957)
Rose v. State of California
123 P.2d 505 (California Supreme Court, 1942)
Holloway v. Purcell
217 P.2d 665 (California Supreme Court, 1950)
Heimann v. City of Los Angeles
185 P.2d 597 (California Supreme Court, 1947)
Hecton v. People Ex Rel. Department of Transportation
58 Cal. App. 3d 653 (California Court of Appeal, 1976)
Searcy v. Hemet Unified School District
177 Cal. App. 3d 792 (California Court of Appeal, 1986)
Kinoshita v. Horio
186 Cal. App. 3d 959 (California Court of Appeal, 1986)
Maughan v. GOOGLE TECHNOLOGY, INC.
49 Cal. Rptr. 3d 861 (California Court of Appeal, 2006)
Border Business Park, Inc. v. City of San Diego
49 Cal. Rptr. 3d 259 (California Court of Appeal, 2006)
Foster v. County of San Luis Obispo
14 Cal. App. 4th 668 (California Court of Appeal, 1993)
Melbostad v. Fisher
165 Cal. App. 4th 987 (California Court of Appeal, 2008)
Ricketts v. McCormack
177 Cal. App. 4th 1324 (California Court of Appeal, 2009)
In Re Baycol Cases I & II
248 P.3d 681 (California Supreme Court, 2011)
Cassim v. Allstate Insurance
94 P.3d 513 (California Supreme Court, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
Flats Management Group v. L.A. County Metro. Trans. Auth. CA2/8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flats-management-group-v-la-county-metro-trans-auth-ca28-calctapp-2026.