Freeny v. City of San Buenaventura

CourtCalifornia Court of Appeal
DecidedJune 4, 2013
DocketB240893
StatusPublished

This text of Freeny v. City of San Buenaventura (Freeny v. City of San Buenaventura) 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
Freeny v. City of San Buenaventura, (Cal. Ct. App. 2013).

Opinion

Filed 6/4/13

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

ROBERT FREENY et al., 2d Civil No. B240893 (Case No. 56-2011-00403267- Plaintiff s and Appellants, CU-WM-VTA) (Ventura County) v.

CITY OF SAN BUENAVENTURA et al,

Defendants and Respondents.

The California Tort Claims Act (Act) confers immunity from tort liability on public employees when they make "basic policy decisions" in a legislative capacity. (Gov. Code, §§ 820.2, 821, 821.2.)1 We hold that public employees' tort immunity for legislative decision-making applies even when that decision-making is also alleged to involve the making of misrepresentations motivated by "actual fraud, corruption or actual malice." (§ 822.2) For this reason and others, we affirm the dismissal of plaintiffs' suit against a city and five city council members for nearly $2 million in compensatory damages, plus punitive damages, for voting against an application for building permits and variances.

1 All statutory references are to the Government Code unless otherwise indicated. FACTS AND PROCEDURAL HISTORY We draw these facts from the allegations in the complaint, which we accept as true except where contradicted by the exhibits attached to the complaint. (Tucker v. Pacific Bell Mobile Servs. (2012) 208 Cal.App.4th 201, 210.) I. Administrative Review Plaintiffs Robert and Linda Freeny (plaintiffs) own two adjacent parcels of land in mid-town City of San Buenaventura (City). For three years, they worked with their own architect and consulted with the City's staff to design a living facility for senior citizens. The City's planning commission (Planning Commission) eventually approved a 44-unit, 42,172-square foot facility (the Project), and concomitantly granted a conditional use permit, a design review, an administrative variance, and a lot-line adjustment. A group of 35 persons living near the proposed facility appealed the Planning Commission's decision to the City Council. Following a remand to the Planning Commission for further fact-finding, the City Council took up the matter at a public hearing. On a five-to-two-vote, the City Council approved the neighbors' appeal and overturned the Planning Commission's approval. In so doing, the City Council found that building a facility of that "size" on a "street-to-street lot" was "incompatible" with the "existing residential neighborhood." The City Council stated that plaintiffs "need[ed] to rethink the entirety of the project," but that its denial was "without prejudice" and invited plaintiffs to submit a "redesign[ed]" project. The City Council subsequently adopted a formal resolution sustaining the appeal "without prejudice." II. Plaintiffs' Complaint Plaintiffs sued the City and five City Council members (collectively, defendants) who voted to reject the Project.2 The complaint includes a petition for

2 Plaintiffs also sued two neighbors who oppose the Project, but the trial court struck plaintiffs' claims against the neighbors under the anti-SLAPP law. Plaintiffs do not appeal that ruling.

2 administrative mandamus seeking an order (1) commanding the City to approve the Project or (2) requiring a new hearing before the City Council. The complaint also prays for $1.8 million in compensatory damages and additional punitive damages arising from tort claims for fraud, misrepresentation and, because plaintiffs are in their 70s, elder abuse. III. The Trial Court's Ruling The trial court sustained defendants' demurrers without leave to amend on two grounds. First, the court concluded that plaintiffs' lawsuit was not ripe because the City's denial "without prejudice" left administrative remedies unexhausted. The court rejected plaintiffs' arguments that further exhaustion was futile or would irreparably injure plaintiffs. Second, the court ruled that defendants were immune from liability for adopting laws under sections 818.2 and 821; for denying permits or similar authorizations under sections 818.4 and 821.2; and for exercising their discretion under section 820.2. The court concluded that this immunity applied "irrespective of the specific causes of action" plaintiffs alleged. DISCUSSION We independently review the trial court's sustaining of a demurrer. (San Mateo Union High Sch. Dist. v. County of San Mateo (2013) 213 Cal.App.4th 418, 425 (San Mateo).) In so doing, we accept the complaint's allegations as true and construe them liberally to attain substantial justice among the parties. (Ibid.) We review the trial court's decision not to grant leave to amend for an abuse of discretion. (Reynolds v. Bement (2005) 36 Cal.4th 1075, 1091 (Reynolds), abrogated on other grounds in Martinez v. Combs (2010) 49 Cal.4th 35, 62-66.) On appeal, plaintiffs bear the burden of establishing error. (San Mateo, supra, at p. 426.) I. Exhaustion of Administrative Remedies When an administrative forum exists for presenting claims, a party is usually required to present claims in that forum before "resorting to the courts . . . ." (Coachella Valley Mosquito Vector Control Dist. v. California PERB (2005) 35

3 Cal.4th 1072, 1080.) "Exhaustion requires 'a full presentation to the administrative agency upon all issues of the case and at all prescribed stages of the administrative proceedings.'" (City of San Jose v. Operating Engineers Local Union No. 3 (2010) 49 Cal.4th 597, 609, quoting Bleeck v. State Bd. of Optometry (1971) 18 Cal.App.3d 415, 432.) This is not a case where the would-be litigant skipped the administrative procedures entirely. To the contrary, plaintiffs presented their application for building permits and variances to the Planning Commission and the City Council. Plaintiffs also obtained a definitive ruling rejecting their application as to the 42,172-square foot project that underlies this lawsuit. Defendants contend that this was still not enough. Defendants note that the City Council's rejection was "without prejudice," and argue that plaintiffs have yet to avail themselves of their right under the City's municipal code (SBMC) to file a new application with the Planning Commission. (See SBMC § 24.565.050(H).) Because the City Council advised plaintiffs that they would "need" to "rethink" and "redesign" "the entirety of the project" before submitting a new application, the question presented is whether the duty to exhaust administrative remedies requires plaintiffs to reexhaust their remedies by vetting an entirely different project through the same administrative process even though the project they seek to challenge judicially has already been definitively rejected through that process. We review this question de novo. (Sierra Club v. City of Orange (2008) 163 Cal.App.4th 523, 536.) Whether reexhaustion with an entirely different project is required depends on the nature of the subsequent judicial challenge. If a plaintiff is claiming that a government entity has effected a regulatory taking by "'. . . deny[ing] [her] all economically beneficial or productive use . . .'" of her property, denial of a single use or project may not be sufficient. (Landgate, Inc. v. California Coastal Com. (1998) 17 Cal.4th 1006, 1017, citing Lucas v. South Carolina Coastal Council (1992) 505 U.S. 1003, 1015, italics added.) Presentation and rejection of other

4 uses—that is, reexhaustion—may also be necessary to establish that the property has no use. (See Dunn v. County of Santa Barbara (2006) 135 Cal.App.4th 1281, 1299-1301; Del Monte Dunes v. City of Monterey (9th Cir. 1990) 920 F.2d 1496

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Freeny v. City of San Buenaventura, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeny-v-city-of-san-buenaventura-calctapp-2013.