Rader v. Apple Valley Building & Development Co.

261 Cal. App. 2d 308, 68 Cal. Rptr. 108, 1968 Cal. App. LEXIS 1747
CourtCalifornia Court of Appeal
DecidedApril 18, 1968
DocketCiv. 31474
StatusPublished
Cited by3 cases

This text of 261 Cal. App. 2d 308 (Rader v. Apple Valley Building & Development Co.) 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
Rader v. Apple Valley Building & Development Co., 261 Cal. App. 2d 308, 68 Cal. Rptr. 108, 1968 Cal. App. LEXIS 1747 (Cal. Ct. App. 1968).

Opinion

COLLINS, J. pro tem. *

In this action plaintiffs seek rescission of a real estate purchase agreement on the ground of misrepresentation. 1 One of the defendants, Apple Valley Building and Development Company (hereafter Apple Valley) filed k general and special demurrer, both of which were sustained (by Judge Charvat) with leave to plaintiffs to file an amended complaint within 15 days. Upon their failure to do so, said defendant’s motion for judgment of dismissal was granted (by Judge Rayeraft). The appeal is from the judgment of dismissal.

The complaint, filed on August 26, 1965, alleged that, on July 30, 1957, plaintiffs entered into a written contract with defendant Title Insurance and Trust Company (hereafter TITCO) for the purchase of two adjacent lots in a San Bernardino County real estate development known as Apple Valley. A copy of the contract is attached as an exhibit to their complaint. The complaint alleged that TITCO and various “Doe” defendants were agents of Apple Valley at the time of the transaction; that the defendants represented that said lots could be used for the purpose of constructing thereon multiple unit apartment houses two stories in height, and that plaintiffs purchased the lots for the sole purpose of constructing thereon a 22-unit two-story multiple dwelling apartment house. The complaint further alleged that the lots were located less than 200 feet from the nearest edge of the east- *311 west runway of the Apple Valley airport; that (apparently in September 1963) the Federal Aviation Agency (hereafter FAA) “denied” plaintiffs the right to construct an apartment house on the said property. It is further alleged that, in 1965, when negotiations for settlement failed, plaintiffs served a notice of rescission and demanded the return of $6,398 which they had theretofore paid on the contract, plus an additional $3,000 for expenses they had incurred in preparation for the development of the lots for their intended purpose. A second cause of action alleged the substance of the first cause of action and added the allegation that the lots had become valueless to plaintiffs by reason of the action of the FAA.

Paragraph VI of the first cause of action states:

“Defendants and each of them represented to plaintiffs that the said lots which were the subject of this purchase could be used by plaintiffs for the purpose of constructing thereon multiple unit apartment houses two stories in height.”

Apple Valley 2 filed general and special demurrers. The general demurrers asserted that neither the first nor the second cause of action stated facts sufficient to constitute a cause of action. The special demurrer to the first cause of action asserted uncertainty, particularly with respect to the foregoing paragraph VI, on the ground that it did not allege whether representations as to the permissible use of the lots were oral or in writing, when they were made, by whom they were made, and whether the persons who allegedly made representations were authorized to do so by Apple Valley. The special demurrer further asserted that the allegations are uncertain because they do not state whether the alleged representations were made fraudulently or negligently. The same grounds of demurrer were asserted with respect to the second cause of action.

There is no allegation in the complaint as to who made the representation, when it was made or whether, at the time it was made, it was false or (to use the language of plaintiffs’ brief on appeal) “incorrect.”

Paragraph VII of the complaint states: “. . . Plaintiffs believed the said representation . . .”; paragraph VIII after alleging that FAA conducted a study pursuant to part 77 of subpart E of chapter I of title 14 of its Regulations, determined that plaintiffs’ proposed construction “would *312 have a substantial adverse effect upon the safe and efficient utilization of navigable air space, and it thereby determined that the proposed structure would be a hazard to air navigation and denied plaintiffs the right to construct an apartment house on said property. The determination letter was issued in Washington, D.C., on September 16,1963. ”

The minute order made at the time the demurrers were sustained has not been made a part of the clerk’s record on appeal so we are not apprised as to the ground, or grounds, on which the trial court rested its decision. 3 However, this is of no consequence since the complaint is so patently insufficient that the demurrer was properly urged on both the general and special grounds. The complaint was vulnerable to general demurrer because it alleges as facts matters which are contrary to law, particularly the allegation that FAA, after determining that plaintiffs’ proposed construction would be a hazard to air navigation, denied them the right to undertake their desired construction.

We take judicial notice of Federal Aviation Regulations, title 14, chapter 1, part 77 4 which plaintiffs have impleaded, as well as of the Federal Aviation Act (49 U.S.C.A., §1301 et seq.). (See Evid. Code, §451, subds. (a) and (b); 44 U.S.C.A., §§ 305(a) and 307.)

At no time has either federal law or FAA regulations invested the agency or its administrator with any authority to “deny” the owner of private property the right to perform construction work on his property. To do so would be an outright violation of constitutional provisions, to-wit, “. . . nor shall private property be taken for public use, without just compensation.” (U.S. Const., Amend. V, concluding clause.) 5 At most the Federal Aviation Act and FAA Regula *313 tions authorize FAA to conduct investigations, make aeronautical studies with resulting evaluation and determination whether contemplated construction would be a hazard to air navigation. Regulations in effect in 1963 when plaintiffs allege they were “denied” the right to perform desired construction work required them to give advance notice of their intention to FAA, and the studies and determination usually ensued after such notice. In cases of adverse determination, the property owner would be denied an FAA license or construction permit. The regulation afforded the property owners the right to certain administrative hearings and procedures. It is not alleged in the complaint that plaintiffs pursued these procedures or exhausted their administrative remedies.

In any case, effective and conclusive denial of right to make use of private property is a matter for judicial determination. 6 Hence the allegation in plaintiffs’ complaint that in 1963 they were “denied” any rights in their lots is a conclusion and is contrary to law. The general demurrer that their complaint did not state a cause of action was well taken and properly sustained on that ground.

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Cite This Page — Counsel Stack

Bluebook (online)
261 Cal. App. 2d 308, 68 Cal. Rptr. 108, 1968 Cal. App. LEXIS 1747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rader-v-apple-valley-building-development-co-calctapp-1968.