MIDLAND PACIFIC BLDG. CORP. v. King

63 Cal. Rptr. 3d 129, 153 Cal. App. 4th 499, 2007 Cal. App. LEXIS 1189
CourtCalifornia Court of Appeal
DecidedJuly 18, 2007
DocketB192017
StatusPublished

This text of 63 Cal. Rptr. 3d 129 (MIDLAND PACIFIC BLDG. CORP. v. King) 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
MIDLAND PACIFIC BLDG. CORP. v. King, 63 Cal. Rptr. 3d 129, 153 Cal. App. 4th 499, 2007 Cal. App. LEXIS 1189 (Cal. Ct. App. 2007).

Opinion

63 Cal.Rptr.3d 129 (2007)
153 Cal.App.4th 499

MIDLAND PACIFIC BUILDING CORPORATION, Plaintiff and Respondent,
v.
John E. KING et al., Defendants and Appellants.

No. B192017.

Court of Appeal of California, Second District, Division Six.

July 18, 2007.

*131 Manatt, Phelps & Phillips, Michael M. Berger, Lara M. Krieger, Los Angeles; and William S. Walter, Oakland, for Defendants and Appellants.

Adamski Moroski Madden & Green, Thomas D. Green, Avila Beach, Raymond A. Biering, San Luis Obispo; Brown, Winfield & Canzoneri and Thomas F. Winfield III, Los Angeles, for Plaintiff and Respondent.

*130 GILBERT, P.J.

"The paradigm SLAPP is a suit filed by a large land developer against environmental activists or a neighborhood association intended to chill the defendants' continued political or legal opposition to the developers' plans. [Citations.]" (Wilcox v. Superior Court (1994) 27 Cal.App.4th 809, 815, 33 Cal.Rptr.2d 446, disapproved on another ground by Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53, 68, fn. 5, 124 Cal.Rptr.2d 507, 52 P.3d 685.)[1] Paradigms change. Here we conclude plaintiff developer brought its lawsuit to vindicate "a legally cognizable right," not "to obtain an economic advantage" over the defendants. (Id. at p. 816, 33 Cal. Rptr.2d 446.)

Plaintiffs action is for breach of contract and fraud. Defendants file an anti-SLAPP motion. (Code Civ. Proa, § 425.16.)[2] They claim the lawsuit arises from the exercise of their constitutional rights of free speech and petition in processing a tract map. The trial court denies the motion.

We conclude that the lawsuit does arise from protected activity, but the trial court properly denied the motion. Plaintiff showed a probability of prevailing on its claim. We affirm.

FACTS

Contract

John and Carole King own 27 acres in San Luis Obispo County. The property is within the city of San Luis Obispo's (City) sphere of influence, and is subject to a specific plan adopted by the City.

In February of 2003, the Kings entered into a written contract to sell their property to Midland Building Corporation (Midland). Midland agreed to pay $125,000 for each "market rate lot." "Market rate lot" is defined in the contract as a single family residential lot that is: (a) in substantial conformance with the draft specific plan and the draft vesting tentative tract map dated May 2001; (b) approved by the City as part of a vesting tentative tract map; and (c) not subject to requirements, restrictions or limitations related to affordable housing. The parties estimated that there would be 120 market rate lots, but acknowledged that the actual number may be more or less.

The Kings agreed to obtain approval of a specific plan and vesting tentative tract map in substantial conformance with the draft specific plan and draft tentative tract map at their expense.

As part of the purchase price, Midland agreed on execution of the contract to lend the Kings $1 million secured by the property, and to pay the Kings $15,000 per month to be applied to existing loans secured by the property until close of escrow.

*132 Escrow would close when the Kings obtained all entitlements and approvals necessary for the construction of a subdivision in substantial conformance with the draft specific plan and draft vesting tentative tract map.

Complaint

All did not go as planned. Midland filed this action against the Kings in February of 2006. Midland's first amended complaint alleges as follows:

In 2005, the Kings told Midland that the City demanded a reconfiguration of the tentative map to accommodate additional affordable housing. The reconfiguration would increase the number of detached single family residential lots to approximately 140. Midland agreed that the reconfiguration would be in substantial conformance with the draft tract map referred to in the contract. The reconfigured map is referred to as the "Amended Draft Tract Map."

In January of 2006, the Kings spoke with Midland's vice-president, Reed Harris. John King told Harris that the cost to obtain subdivision map approval was more than he had anticipated.[3] In addition, the value of the property had increased since the contract was signed. King told Harris that Midland should agree to an increase of $35,000 per lot. If Midland did not agree, King threatened to withdraw the Amended Draft Tract Map, which Midland had approved, and submit a new map to the City. The new map would dramatically increase the density of the project and substantially decrease the size of many lots. A few days later, King repeated this to Midland's president, Dennis Moresco.

On January 23, 2006, Midland's counsel wrote to the Kings rejecting the plan, and insisting that the Kings perform as provided in the contract.

On January 25, 2006, the City's planning commission considered the tentative map for the property. The map before the commission was the 140-lot Amended Draft Tract Map approved by Midland. City staff recommended approval of that map. But for the first time, the Kings presented a new tentative tract map at the hearing. The new map showed 80 lots around the perimeter of the Kings' property, but no lots in the interior. The Kings told the commission they planned to return later and seek approval of a much higher density development in the interior. The complaint refers to the new map as the "High Density Tract Map."

At the same hearing, the planning commission considered tentative subdivision maps for two properties adjacent to the Kings' property. By agreement between the City and the three applicants, the tentative maps for the three properties were being processed concurrently. The residential density of the maps for the adjacent properties is consistent with the density shown on the Amended Draft Tract Map. The commission approved the maps for the adjacent properties with no change in density.

On March 7, 2006, the city council considered the subdivision application for the Kings' property. It voted to have the High Density Tract Map returned to the planning commission for further review. At the hearing, the Kings' representative said the Kings would submit a new map that will include approximately 190 lots. Such a map will not substantially comply *133 with the 140-lot Amended Draft Tract Map approved by Midland.

Anti-SLAPP Motion

The Kings responded to the complaint by filing an anti-SLAPP motion. In support of the motion, they submitted an affidavit by David Watson, the Kings' director of planning and project development. Watson declared the Kings' project had to be changed in order to be consistent with the City's recently enacted housing element and the specific plan for the area. The adopted specific plan is different from the draft plan. It requires higher densities, multiple housing types, affordable housing, area-wide drainage improvements, and other major infrastructure improvements to be constructed at the owner's expense. In response to the City's concerns, the Kings presented a revised map and plan to advance the City's "`affordable-by-design' " housing element goals. The revised map was unanimously endorsed by the planning commission, and the city council unanimously supported the revised design.

Midland submitted the declaration of Reed Harris, its vice-president, in opposition to the motion.

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Cite This Page — Counsel Stack

Bluebook (online)
63 Cal. Rptr. 3d 129, 153 Cal. App. 4th 499, 2007 Cal. App. LEXIS 1189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midland-pacific-bldg-corp-v-king-calctapp-2007.