Pinto Lake MHP LLC v. County of Santa Cruz

CourtCalifornia Court of Appeal
DecidedOctober 30, 2020
DocketH045757
StatusPublished

This text of Pinto Lake MHP LLC v. County of Santa Cruz (Pinto Lake MHP LLC v. County of Santa Cruz) 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
Pinto Lake MHP LLC v. County of Santa Cruz, (Cal. Ct. App. 2020).

Opinion

Filed 10/30/20 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SIXTH APPELLATE DISTRICT

PINTO LAKE MHP LLC, H045757 (Santa Cruz County Plaintiff and Appellant, Super. Ct. No. 17-CV-01424)

v.

COUNTY OF SANTA CRUZ,

Defendant and Respondent.

A mobile home park owner sought judicial review of a county hearing officer’s denial of its special rent adjustment application. The trial court sustained the county’s demurrer for failure to join the mobile home park residents as parties, but allowed leave to amend the combined complaint and mandamus petition to add the residents. The owner elected to stand on its original pleading, and the trial court granted the county’s motion to dismiss the case for failure to file an amended pleading. We reject the park owner’s arguments that the trial court’s ruling on the demurrer was error. The trial court engaged in the first of the two-part inquiry under Code of Civil Procedure section 389 to determine whether a civil action should proceed in the absence of persons who are deemed necessary but who cannot be made parties. The trial court concluded that the residents are necessary parties under Code of Civil Procedure section 389, subdivision (a), and we find no abuse of discretion in that ruling. But the trial court did not reach the question under Code of Civil Procedure section 389, subdivision (b) of whether the case should be dismissed due to the residents’ absence (rendering them indispensable parties under the statute). That inquiry is triggered when a person deemed necessary to the action cannot be joined as a party. The parties disagreed in the trial court about whether the statute of limitations had run on joinder. The trial court most likely would have addressed the limitations issue after the park owner filed an amended complaint naming the residents as parties. But the owner’s election to stand on its original pleading truncated the process. The trial court granted the county’s unopposed motion to dismiss the case without actually deciding whether the residents could be made parties or whether the lawsuit could continue without them. In light of the procedural posture of the case and the discretionary and equitable nature of the indispensable party inquiry, we will remand the matter to allow the trial court to determine whether under subdivision (b) the matter should be dismissed or proceed in the residents’ absence. I. BACKGROUND The County of Santa Cruz Mobilehome Rent Adjustment Ordinance (codified as Chapter 13.32 of the County Code) provides for two types of mobile home park rent adjustments. A park owner may make an annual general rent adjustment without notice to the county, based on specified criteria. (Santa Cruz County Code, § 13.32.030.) An owner who believes the annual rent adjustment does not provide for “a just and reasonable return on the owner’s property” may petition for a special rent increase. (Id., § 13.32.040(A).) Represented by counsel, Pinto Lake MHP LLC (Pinto Lake), the owner of a 177-space mobile home park in Santa Cruz County, filed a special rent adjustment petition seeking to increase rents by approximately 47 percent. Notice was provided to the residents, whose names were appended to the petition as required by the ordinance (id., § 13.32.060(B)(2)(b)), and the county Mobile and Manufactured Home Commission appointed a hearing officer to adjudicate the matter. The residents hired their own counsel who submitted written objections to the petition and engaged in extensive discovery regarding the proposed rent increase. After settlement efforts were unsuccessful, an administrative hearing was held in which both sides called expert 2 witnesses to address whether a rent increase was necessary to provide Pinto Lake with a just and reasonable return on its investment as contemplated in the County Code. After considering post-hearing briefs about a presumption in the ordinance regarding income and expense projections, the hearing officer issued a written decision denying the proposed increase. Pursuant to Santa Cruz County Code section 13.32.60(B)(16) (providing for judicial review of the hearing officer’s decision under Code of Civil Procedure sections 1094.5 and 1094.6), Pinto Lake filed a petition for administrative mandamus and complaint for declarative and injunctive relief naming the county and the hearing officer as respondents. The hearing officer filed a notice of non-interest in the proceedings, and the county demurred to the petition on grounds that Pinto Lake failed to join the mobile home park residents as indispensable parties. The county argued that the residents are necessary to the lawsuit under Code of Civil Procedure section 389, subdivision (a) because they claimed an interest in the matter by participating in the administrative proceeding, and disposing of the matter in their absence would impair their ability to protect that interest. The county further argued that the owner was time-barred from joining the residents as parties to the lawsuit, and the equitable factors listed in Code of Civil Procedure, section 389 subdivision (b) favored a dismissal. The county prepared the administrative record at Pinto Lake’s request, which it lodged with the trial court and cited in its demurrer. Citing Pinnacle Holdings, Inc. v. Simon (1995) 31 Cal.App.4th 1430 (Pinnacle Holdings), Pinto Lake argued in opposition that the residents are “not only [] not indispensable parties [], they are not even proper parties” to the trial court’s review of the final administrative decision in which no relief was sought against the residents. Pinto Lake argued that the residents were no more responsible for the outcome of the administrative proceeding than are witnesses or amicus curiae. It also argued that the

3 statute of limitations did not bar amending the complaint to join the residents as parties in the trial court. At the hearing on the demurrer, the trial court adopted its tentative decision to sustain the demurrer (with leave to amend) for failing to join the residents as parties, citing Liang v. San Francisco Residential Rent Stabilization and Arbitration Bd. (2004) 124 Cal.App.4th 775 (Liang). With the parties’ agreement, the court set a hearing on the demurrer to the anticipated first amended complaint. Instead of amending its complaint/mandamus petition, Pinto Lake filed a notice of election to stand on the original pleadings. The county moved for dismissal under Code of Civil Procedure section 581, subdivision (f)(2) (authorizing dismissal where a plaintiff fails to amend the complaint after a demurrer is sustained with leave to amend); Pinto Lake did not oppose the motion. A judgment of dismissal was entered for failing to file an amended pleading, giving rise to this appeal. II. DISCUSSION When a demurrer is sustained with leave to amend but the plaintiff elects not to amend the complaint, the resulting judgment of dismissal will be affirmed if the complaint is objectionable under any grounds raised by the demurrer. (Sutter v. Gamel (1962) 210 Cal.App.2d 529, 533.) A trial court’s order or judgment is presumed correct, and “ ‘[a]ll intendments and presumptions are indulged to support it on matters as to which the record is silent.’ ” (Denham v. Superior Court (1970) 2 Cal.3d 557, 564.) Rules governing demurrers to civil complaints apply to mandamus actions. (Code Civ. Proc., § 1109.) Trial and appellate courts ruling on a demurrer “ ‘may properly take judicial notice of … established facts from both the same case and other cases.’ ” (McKell v. Washington Mutual, Inc. (2006) 142 Cal.App.4th 1457, 1491.) A plaintiff may not avoid a demurrer by suppressing facts which prove the pleaded facts false. (Ibid.; Alta-Dena Dairy v.

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

Related

Glaski v. Bank of America CA5
218 Cal. App. 4th 1079 (California Court of Appeal, 2013)
State of California v. Superior Court
524 P.2d 1281 (California Supreme Court, 1974)
Thompson v. Palmer Corporation
291 P.2d 995 (California Court of Appeal, 1956)
Denham v. Superior Court
468 P.2d 193 (California Supreme Court, 1970)
Bank of California v. Superior Court
106 P.2d 879 (California Supreme Court, 1940)
Sonoma County Nuclear Free Zone '86 v. Superior Court
189 Cal. App. 3d 167 (California Court of Appeal, 1987)
Beresford Neighborhood Ass'n v. City of San Mateo
207 Cal. App. 3d 1180 (California Court of Appeal, 1989)
Sierra Club, Inc. v. California Coastal Commission
95 Cal. App. 3d 495 (California Court of Appeal, 1979)
Alta-Dena Dairy v. County of San Diego
271 Cal. App. 2d 66 (California Court of Appeal, 1969)
Sutter v. Gamel
210 Cal. App. 2d 529 (California Court of Appeal, 1962)
People Ex Rel. Lungren v. COMMUNITY REDEVELOPMENT AGENCY FOR CITY OF PALM SPRINGS
56 Cal. App. 4th 868 (California Court of Appeal, 1997)
Tracy Press, Inc. v. Superior Court
164 Cal. App. 4th 1290 (California Court of Appeal, 2008)
Hayes v. CALIFORNIA DEPARTMENT OF DEVELOPMENTAL SERVICES
42 Cal. Rptr. 3d 363 (California Court of Appeal, 2006)
Save Our Bay, Inc. v. San Diego Unified Port District
42 Cal. App. 4th 686 (California Court of Appeal, 1996)
Pinnacle Holdings, Inc. v. Simon
31 Cal. App. 4th 1430 (California Court of Appeal, 1995)
County of San Joaquin v. State Water Res. Control Bd.
54 Cal. App. 4th 1144 (California Court of Appeal, 1997)
Duffey v. Superior Court
3 Cal. App. 4th 425 (California Court of Appeal, 1992)
Liang v. San Francisco Residential Rent Stabilization & Arbitration Board
21 Cal. Rptr. 3d 715 (California Court of Appeal, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
Pinto Lake MHP LLC v. County of Santa Cruz, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinto-lake-mhp-llc-v-county-of-santa-cruz-calctapp-2020.