Gamerberg v. 3000 E. 11th Street, LLC

CourtCalifornia Court of Appeal
DecidedJanuary 21, 2020
DocketB290755
StatusPublished

This text of Gamerberg v. 3000 E. 11th Street, LLC (Gamerberg v. 3000 E. 11th Street, LLC) 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
Gamerberg v. 3000 E. 11th Street, LLC, (Cal. Ct. App. 2020).

Opinion

Filed 1/21/20 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SEVEN

RUBEN GAMERBERG, B290755

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. BC604287) v.

3000 E. 11TH ST., LLC,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County, Elizabeth Feffer, Judge. Reversed and remanded. Zakariaie & Zakariaie, Jack M. Zakariaie; Greines, Martin, Stein & Richland, Edward L. Xanders and Meehan Rasch for Defendant and Appellant. Schorr Law, Zachary D. Schorr and Stephanie C. Goldstein for Plaintiff and Respondent. _______________________ In 1950 the owner of property in Boyle Heights agreed to provide eight parking spaces to the owner of a neighboring lot who wanted to build a warehouse exceeding the maximum allowable square footage then permitted by the Los Angeles Municipal Code (LAMC). A notarized parking affidavit documenting the agreement was filed with the Los Angeles Department of Building and Safety (LADBS), which then issued the second property owner a building permit and, ultimately, a certificate of occupancy for the completed warehouse. The parking affidavit was never recorded; nor is there any evidence the eight parking spaces were ever identified by either property owner or used by the second property owner or his successors. 3000 E. 11th St., LLC, the successor in interest to the first landowner, appeals from the judgment entered after a bench trial upholding the unrecorded parking affidavit as an irrevocable license in favor of Ruben Gamerberg, the successor in interest to the second property owner. The LLC, through its owners Steve Soroudi and his father, contends the trial court erred as a matter of law by upholding the parking affidavit even though Soroudi did not have actual or constructive notice of the parking affidavit when he purchased the property. We reverse.

FACTUAL AND PROCEDURAL BACKGROUND In 1994 Soroudi and his father purchased 3001 E. 12th Street in Boyle Heights through a predecessor to their jointly owned limited liability corporation, 3000 E. 11th St., LLC. Soroudi inspected the property before purchase and saw no indication anyone other than the previous owner’s employees had parked on the property. Neither the title report nor the deed he reviewed mentioned the 1950 parking affidavit or listed it as an encumbrance on the property. From 1994 until 2013 Soroudi

2 allocated the parking spaces on the lot to his tenants. He had no knowledge of any outside claim to parking rights on the property. Gamerberg and his wife purchased 3045 E. 12th Street in 2007. He, too, was unaware of the 1950 parking affidavit or any previous use by his predecessors of parking spaces on 3001 E. 12th Street. In 2013, however, when Gamerberg began consulting with LADBS about expanding and remodeling the warehouse on his property, an LADBS plan checker informed Gamerberg there was a parking affidavit for the property on file. The notarized affidavit, executed in 1950 between the respective owners of the two parcels, asserted that the owner of 3001 E. 12th Street would provide eight parking spaces to “be available at all times for tenants at 3045 E. 12th St.”1 The plan checker explained that the spaces indicated on the parking affidavit could be “grandfathered in” to meet the parking

1 The warehouse then planned for 3045 E. 12th Street was required to provide eight off-street parking spaces. At the time the affidavit was executed, the LAMC did not require the document be recorded. In 1958 the LAMC was amended to require that all such agreements be recorded. (LAMC, art. 2, § 12.26, subd. (E)(5) [“5. Recorded Agreements. (Amended by Ord. No. 111,049, Eff. 5/3/58.) Whenever the off-street automobile parking spaces required by this section are provided on a different lot from that on which the use they are to serve is located, as a prerequisite to the issuance of the required building permit or certificate of occupancy, the owner or owners of said lot on which parking is to be provided shall record an agreement in the Office of the County Recorder of Los Angeles County, California, as a covenant running with the land for the benefit of the City of Los Angeles, providing that such owner or owners shall continue to maintain said parking spaces so long as the building or use they are intended to serve is maintained.”].)

3 requirements for any expansion, as long as he notified the other owner of the planned construction and Gamerberg’s need for the eight spaces described in the affidavit. In October 2013 Gamerberg’s architectural designer sent Soroudi a certified letter attaching the parking affidavit and stating: “This letter serves as verification for [the] existence of [a] Parking Affidavit granting use of [eight] Parking Spaces to tenants/owners of 3045 East 12th Street . . . at 3001 East 12th Street. . . . [P]lease provide us with exact locations as soon as possible.” Soroudi returned the receipt for the certified letter, consulted his attorney and made a claim on his title insurance. He did not respond to the letter, and neither Gamerberg nor his architectural designer contacted him further. The architectural designer provided the plan checker with a copy of the return receipt for the certified letter as proof Soroudi had been notified. Based on the receipt, the plan checker approved Gamerberg’s plans for the warehouse expansion; and LADBS issued a building permit for the expansion in January 2014. Nearing completion of the expansion in March 2015, Gamerberg, having already spent approximately $600,000 adding a new building behind the existing warehouse, dividing the warehouse space into five units and adding a mezzanine space,2 again contacted Soroudi to confirm the location and availability of the parking spaces. Soroudi requested documentation and

2 To comply with City parking requirements, Gamerberg had added two parking spaces, as well as parking for bicycles, in front of the warehouse and had been credited with the eight spaces described in the parking affidavit. The expansion project ultimately cost approximately $800,000.

4 informed Gamerberg the matter had been referred to his counsel. In July 2015 Gamerberg again demanded identification of the parking spaces, but Soroudi said his lawyer was still reviewing the issue. LADBS advised Gamerberg that the parking affidavit gave him the right to the eight parking spaces but that, if he was not able to gain access to the spaces, it was a civil matter between him and his neighbor. Gamerberg filed his complaint in this action on December 16, 2015, asserting causes of action seeking a declaration of an equitable servitude, an equitable easement or an irrevocable license.3 He proceeded to trial solely on the third cause of action for an irrevocable license. After a bench trial at which Gamerberg and Soroudi, as well as an LADBS supervisor, each testified, the court ruled an irrevocable license had been created in 1950 when Gamerberg’s predecessor had expended money to build the warehouse in reliance on Soroudi’s predecessor’s agreement to provide eight parking spaces. Relying principally on the decision in Noronha v. Stewart (1988) 199 Cal.App.3d 485 (Noronha), the court held the license was binding on the 1950 property owners’ successors in interest even if they took title with no knowledge of the parking affidavit.

3 Gamerberg also filed a lis pendens against Soroudi’s property, which Soroudi successfully moved to expunge after the superior court concluded Gamerberg had not established probable validity of any of his claims.

5 DISCUSSION 1. Standard of Review “The grant of an irrevocable license is ‘based in equity,’” which we review for an abuse of discretion. (Richardson v.

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Gamerberg v. 3000 E. 11th Street, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gamerberg-v-3000-e-11th-street-llc-calctapp-2020.