Prout v. Dept. of Transportation

California Court of Appeal·Decided January 16, 2019·No. C076812M·Published

Opinion

Filed 1/16/19 (unmodified opn. attached) CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Calaveras) ----

LOREN PROUT, C076812

Plaintiff, Cross-defendant and (Super. Ct. No. 11CV37909) Appellant, ORDER MODIFYING v. OPINION

DEPARTMENT OF TRANSPORTATION, NO CHANGE IN JUDGMENT Defendant, Cross-complainant and Respondent.

APPEAL from a judgment of the Superior Court of Calaveras County, Thomas A. Smith, J., Judge. Affirmed.

Law Offices of Kenneth M. Foley, Kenneth M. Foley for Plaintiff, Cross- defendant and Appellant.

Jeanne Scherer, Chief Counsel, Ardine N. Zazzeron, Assistant Chief Counsel, Daniel E. Muallem, and Joseph P. Carroll for Defendant, Cross-complainant, and Respondent.

THE COURT: The court on its own motion modifies the opinion filed on December 18, 2018, and ordered published on January 11, 2019, as follows:

1 On page 8, after the sentence ending on line 18 with “filing of the subdivision map,” insert the following new paragraph: Regardless whether traditional or administrative mandamus applies, Prout’s failure to pursue such remedy bars his Nollan challenge in this inverse condemnation complaint. Hensler v. City of Glendale (1994) 8 Cal.4th 1, held that validity of a decision attaching a condition to approval of a subdivision map must be judicially attacked by a timely petition for writ of administrative mandamus (90 days under Gov. Code, § 66499.37). (Hensler, supra, at pp. 22, 27.) The reason for a short limitations period to challenge the validity of such land use decisions is to permit and promote sound fiscal planning by state and local governmental entities and give them the alternative of changing a decision for which compensation might be required. (Id. at p. 27.) If no such early opportunity were given, and landowners could instead accept the condition and then seek compensation for inverse condemnation years later, meaningful governmental fiscal planning would become impossible. (Id. at pp. 27-28.)

This modification does not change the judgment.

BY THE COURT:

RAYE , P.J.

BLEASE , J.

HULL , J.

2 Filed 12/18/18; pub. order 1/11/19 ( see end of opn.) (unmodified version)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Calaveras) ----

Plaintiff, Cross-defendant and (Super. Ct. No. 11CV37909) Appellant,

v.

DEPARTMENT OF TRANSPORTATION,

Defendant, Cross-complainant and Respondent.

Loren Prout filed an inverse condemnation action, alleging Department of Transportation (Caltrans) violated the Fifth Amendment of the United States Constitution in 2010 by physically occupying without compensation a long, narrow strip of Prout’s land fronting State Highway 12, to make highway improvements. The land taken was a 1.31-acre strip, 20 feet wide and about 6,095 feet long. Caltrans cross-complained for breach of contract, promissory estoppel, and specific performance, alleging Prout agreed

1 to dedicate the strip by deed for highway purposes 20 years earlier when he obtained an encroachment permit for a subdivision he was developing. Prout’s subdivision map stated the strip of land fronting Highway 12, shown by hash marks on the map, was “IN THE PROCESS OF BEING DEEDED TO CALTRANS FOR HIGHWAY PURPOSES.” No deed was signed or recorded. After a bench trial on the bifurcated issue of liability, the trial court found Caltrans validly accepted the offer of dedication by physically occupying the strip for its highway improvements, and the court awarded specific performance on Caltrans’s cross-complaint and ordered Prout to execute a deed. On appeal, Prout claims the evidence is insufficient to support the trial court’s finding that he agreed to dedicate the entire strip of land, as opposed to just a small area needed to connect the subdivision’s private road to the state highway. Prout contends that, if dedication of the strip was a condition of the encroachment permit (as claimed by Caltrans), it was an illegal exaction under Nollan v. California Coastal Commission (1987) 483 U.S. 825 [97 L.Ed.2d 677] (Nollan). Prout also argues Caltrans’s 2012 cross- complaint for specific performance of a deed is barred by five-year statutes of limitations for recovery of real property. (Code Civ. Proc., §§ 318-321; unless otherwise indicated, statutory section references that follow are to this Code.) We conclude Prout’s Nollan challenge is barred by his failure to file a timely petition for writ of mandamus, and his inverse condemnation claim fails because substantial evidence supports the trial court’s finding that Prout made an offer to dedicate the entire strip of land in 1990 and did not revoke the offer before Caltrans accepted it by physically using the strip to make highway improvements in 2010-2011. We explain the cross-complaint is timely. Accordingly, we affirm the judgment.

FACTS AND PROCEEDINGS In 1977, Prout -- a licensed real estate broker and land developer -- acquired a 165-acre parcel of land on the north side of State Highway 12 in Calaveras County that

2 he wanted to develop into a project called the Golden Oaks Ranchettes Subdivision. This was the first project he developed without partners. He hired civil engineer Roark Weber to prepare tentative and final maps and deal with encroachment issues. Weber was also hired as agent by the owner (C. Leland Hall) of land on the south side of Highway 12, who wanted an encroachment permit to connect Highway 12 to a private road in his 17 Arabian Ranch Subdivision. Hall is not party to this lawsuit, and the two subdivisions were unrelated. In December 1989, Weber, as “agent” for the owners submitted to Caltrans an application for an encroachment permit allowing connections of the private roads to Highway 12. The application described the work Prout wanted to do within the State’s right of way as “Encroachment from private roads to Highway 12, with two-way left-turn pocket . . . .” Weber’s letter to Caltrans said, “We understand Caltrans may require that we provide an easement across parcels 4 and 5 for road purposes” and also promised to provide a legal description and parcel map of the area to be dedicated, which apparently was not done. On April 3, 1990, Caltrans issued an encroachment permit, granting permission to: “Construct two public road connections to connect two new private roads to Highway 12. Widen roadway, construct two left-turn pockets . . . . Right of way to 50 feet of centerline along Route 12 and drainage easements to be dedicated by subdivision map for 17 Arabian ranches and Golden Oaks Ranchett[e]s.” (Italics added.) The right of way to 50 feet of the center of the highway meant the 20-foot wide strip (1.31 acre) of vacant land was to be dedicated. The trial court noted Prout sometimes referred to it as 50 feet; a Caltrans engineer testified the reason to require a 50-foot dedication was to give Caltrans “free title” to the center line of the highway. Prout’s work was to be completed by September 30, 1990, but the parties agreed to extend the date to March 31, 1991. On November 20, 1990, a final subdivision map was recorded for Unit 1 of the subdivision Golden Oaks Ranchettes, creating 18 lots. The final map states that hash marks represent “AREA IN THE PROCESS OF BEING DEEDED TO CALTRANS FOR HIGHWAY PURPOSES.” The hash marks delineated an area 20-feet wide,

3 parallel to the centerline of Highway 12 and extending a total length of about 2,847 feet - - 599 feet to the west and 2,248 feet to the east of Toreno Way. The subdivision map was prepared and recorded by Weber as Prout’s agent and therefore binds Prout (Civ. Code, § 2330).

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