Goldrich, Kest & Stern v. City of San Fernando

617 F. Supp. 557, 1985 U.S. Dist. LEXIS 16442
CourtDistrict Court, C.D. California
DecidedAugust 27, 1985
DocketCV 82-1653-RJK
StatusPublished
Cited by11 cases

This text of 617 F. Supp. 557 (Goldrich, Kest & Stern v. City of San Fernando) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldrich, Kest & Stern v. City of San Fernando, 617 F. Supp. 557, 1985 U.S. Dist. LEXIS 16442 (C.D. Cal. 1985).

Opinion

MEMORANDUM OF DECISION

KELLEHER, Senior District Judge.

This matter is before the Court on the motion of City of San Fernando (“San Fernando” or “City”) for attorney’s fees. Plaintiff Goldrich, Kest & Stern (“Developer”) filed this suit in April, 1982, alleging a number of civil rights violations. On March 14, 1985 the Court granted City’s motion for summary judgment in its entirety; a Memorandum Decision (“Decision”) entered on May 28, 1985, explained the Court’s ruling. The City now seeks those attorney’s fees incurred in the preparation of defense of this action. Having carefully considered the voluminous record in this case, the Court finds that defendant City is entitled to recover attorney’s fees in the sum of $57,537. To that extent, the Court hereby GRANTS City’s motion.

Facts

Developer owns several contiguous parcels of undeveloped realty (the Herrick Manor property) located within the city lim *559 its of both San Fernando and of Los Angeles. Although already subdivided, Developer sought to resubdivide the property and looked to develop a high density, low and moderate income housing project on the site.

Since 1929, and at the time Developer purchased the Herrick Manor property, the San Fernando portion of the parcel had been zoned R1 — single family residential, 7500 square foot lots. Developer persuaded the San Fernando City Council (“City Council”) to adopt an ordinance which would have rezoned the San Fernando portion of Herrick Manor from R1 to R2 (medium density residential). Angered City residents forced the suspension of the ordinance’s, effective date and convinced the City Council to hold a special referendum on the rezoning issue. The San Fernando electorate resoundingly defeated the ordinance, thereby allowing the Herrick Manor property to retain its R1 designation.

In July, 1982 Developer filed a complaint in the Central District, seeking to overturn the referendum. City moved to dismiss, Developer agreed to do so and, in lieu of the suit, Developer filed an alternative development plan with the City. Once the City Council vetoed said alternative, Developer filed the instant action. Therein, Developer alleged that the referendum: (1) denied the property holder an economically viable use of the property; (2) exceeded the City’s police powers; and (3) constituted discriminatory and exclusionary non-rezoning in violation of the Fifth and Fourteenth Amendments.

Procedural History

City filed a motion to dismiss for failure to state a claim, Rule 12(b)(6), Fed.R.Civ.P. The Court took the matter under submission, and on September 20, 1983, filed an extensive Memorandum of Decision (“Memo”), granting defendant’s motion. Therein, the Court determined that City’s refusal to rezone was not a constitutionally recognized taking. The Court based this finding on the principles of condemnation law espoused by the Circuit in Haas v. City of San Francisco, 605 F.2d 1117 (9th Cir. 1979), cert. denied, 445 U.S. 928, 100 S.Ct. 1315, 63 L.Ed.2d 761 (1980), that the loss of the “highest and best” use of a parcel of property could not find relief in the U.S. Constitution. Further, the Court believed that City’s actions concerning the Herrick Manor property involved a reasonable exercise of its police powers. Finally, the Court also found that Developer did not have a requisite standing to raise the equal protection claims of unnamed third parties. In no uncertain terms, the Court explained that “[rjegardless of the ‘economic viability’ of plaintiff’s property as it is presently zoned, it is precisely what [Developer] bargained for when it purchased a parcel of land zoned R-l [sic] with all the economic limitations which that zone designation entails.” Memo at 7.

Developer’s proposed first amended complaint was lodged with the Court, yet was withdrawn by Developer for a retooled version, the second amended complaint. City renewed its 12(b)(6) motion; on January 23, 1984, the Court granted said motion and dismissed the second amended version of the complaint. At the hearing, the Court admonished Developer for its conclusory recitals of the alleged taking. The Court advised counsel of the necessity to allege, and to later prove, City’s deprivation of any viable economic use of the Herrick Manor property.

On April 9, 1984 the Court undertook the now familiar task of evaluating Developer’s complaint, the third amended edition, on Rule 12(b)(6) grounds. Therein, Developer alleged that City would not permit any development of the Herrick Manor parcel, whatsoever. At the time, the Court was skeptical of such accusations and believed that said assertions were merely an exercise in semantics instituted so as to avoid another dismissal. The oral joustings at the hearing, however, satisfied the Court that, for Rule 12(b)(6) purposes, Developer had finally presented sufficient allegations to avoid dismissal. Ultimately, Developer filed a fourth amended com *560 plaint, setting forth the allegations mentioned above.

From the initiation of this suit, the Court had expressed its doubts concerning the purportedly unconstitutional actions of the City. The Court repeatedly warned Developer of the heavy evidentiary burden that must be shouldered to prove a taking in this failure to rezone context. The Court’s skepticism was further fueled by Developer’s lackadaisical attitude toward this litigation. Developer frequently missed deadlines and was forced to file numerous ex parte applications for extensions of time. Such laxness, while not directly reflective on the merits of the action, did suggest to the Court that Developer fully understood the thin foundation supporting its federal action.

A heated letter from counsel for Developer to the managing partner of the contract City Attorney accused counsel for the City of misleading and inflammatory actions concerning a so-called settlement proposal made by Developer. A review of the record, however, contradicts said retorts. Specifically, it appears to the Court that Developer was attempting to use any avenue available to coerce the submission of the City Council into action favorable to Developer’s interests. City remained firm, however, and successfully avoided a full-blown confrontation. City had a right to avoid the so-called settlement offer for, at this stage of the action, Developer had virtually no chance of success on the merits.

For about six months the parties jockeyed during the discovery process. In October, Developer moved to reopen discovery, alleging a number of baseless grounds for its motion. The Court, generally magnanimous in its discovery extensions, denied Developer’s motion, finding it grounded on hollow, unsubstantiated allegations of misdeeds.by individuals related to City. In November, Developer moved for the Court to abstain, alleging “changed circumstances.” Developer conveniently forgot that it had hotly contested a similar motion to abstain, brought by the City in 1982. Instead, Developer attempted an about-face, and argued that “changed conditions” warranted abstention by the district court. In reality, the only changes in this action were Developer’s loss of an identical state action, see infra,

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Bluebook (online)
617 F. Supp. 557, 1985 U.S. Dist. LEXIS 16442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldrich-kest-stern-v-city-of-san-fernando-cacd-1985.