Rossco Holdings Inc. v. State of California

212 Cal. App. 3d 642, 260 Cal. Rptr. 736, 1989 Cal. App. LEXIS 763
CourtCalifornia Court of Appeal
DecidedJuly 26, 1989
DocketB035188
StatusPublished
Cited by29 cases

This text of 212 Cal. App. 3d 642 (Rossco Holdings Inc. v. State of California) 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
Rossco Holdings Inc. v. State of California, 212 Cal. App. 3d 642, 260 Cal. Rptr. 736, 1989 Cal. App. LEXIS 763 (Cal. Ct. App. 1989).

Opinion

*646 Opinion

KLEIN, P. J.

Plaintiffs Rossco Holdings Incorporated, doing business as Quaker Corporation, (Quaker) and Michel T. Ghosn (Ghosn) (collectively, appellants) appeal the order of dismissal entered after the trial court sustained the demurrer interposed by the defendants, State of California (the State) and the California Coastal Commission (the Commission) (collectively respondents). 1 , 2

Summary Statement

Appellants own substantial acreage in the Malibu-Santa Monica Mountains area of the County of Los Angeles (the County). Quaker holds title to the 227-acre Quaker property and the 102-acre Piuma property; Ghosn owns the 160-acre Ghosn property.

After the Commission imposed various conditions upon the development of the parcels, the appellants sued. Their complaint alleged the properties wrongfully had been included within the coastal zone of the Commission’s jurisdiction and asserted the conditions were improper and excessive.

We shall conclude the trial court properly: (1) placed the properties within the coastal zone; (2) ruled the landowners must comply with Code of Civil Procedure section 1094.5 prior to, or in conjunction with, a claim for inverse condemnation; and, (3) found the Commission is not a “person” for purposes of federal civil rights violations.

However, we shall reverse the trial court’s ruling that acceptance of a permit and compliance with its conditions does not constitute a waiver of the right to attack those conditions.

Factual and Procedural Background

We treat as true all properly pleaded allegations of the complaint for the purpose of an appeal from an order sustaining a demurrer. (Thompson v. County of Alameda (1980) 27 Cal.3d 741, 746 [167 Cal.Rptr. 70, 614 P.2d 728, 12 A.L.R.4th 701].) The trial court also appropriately considered matters which may be judicially noticed such as the background of the California Coastal Act of 1976 (the Coastal Act), its legislative history and subsequent attempts to modify it. (Blank v. Kirwan (1985) 39 Cal.3d 311, *647 318 [216 Cal.Rptr. 718, 703 P.2d 58]; Code Civ. Proc., § 430.70.) We shall do likewise. Allegations of the complaint which are inconsistent with, or contradicted by, judicially noticed facts must be rejected. (Blatty v. New York Times Co. (1986) 42 Cal.3d 1033, 1040 [232 Cal.Rptr. 542, 728 P.2d 1177].)

Preliminarily, appellants indicate certain causes of action dismissed by the trial court on the condition they be asserted in other lawsuits have been so asserted, and thus are no longer in issue in this appeal. The factual summary and procedural history here is limited to those matters which remain in dispute. The issues are: (1) the boundaries of the coastal zone; (2) the conditions imposed by the Commission on development of the Piuma property; and (3) federal civil rights claims pursuant to 42 United States Code section 1983 as to each of the three parcels respecting both the boundary dispute and the conditions imposed upon development.

1. Allegations of the boundary dispute.

Appellants claim their respective properties are not within the coastal zone established by the Coastal Act. In the area of these properties, the coastal zone is defined as “that land and water area . . . , specified on the maps identified and set forth in Section 17 of that chapter of the Statutes of the 1975-76 Regular Session enacting this division, . . . [I]t extends inland to the first major ridgeline paralleling the sea or five miles from the mean high tide line of the sea, whichever is less, . . .” (Pub. Resources Code, § 30103, subd. (a).) 3

The maps referred to in section 30103, subdivision (a), drew the coastal zone boundary line in Malibu at the five-mile limit. Although appellants’ properties are within this five-mile limit, they are beyond the first topographic elevation paralleling the sea. Appellants claim this topographic elevation constitutes a major ridgeline within the meaning of section 30103 and conclude their properties are not subject to the jurisdiction of the Commission.

Appellants seek damages for the wrongful imposition of jurisdiction by the Commission over their properties under theories of inverse condemnation, denial of due process and civil rights violations.

*648 2. Allegations of improper conditions of development.

a. The Quaker and Ghosn properties.

Appellants contend the Commission imposed unreasonable conditions on development of their parcels. Regarding the Quaker property, these conditions, among other things, required Quaker to dedicate 200 acres of open space easement, reduce the number of residential lots on the property, create environmentally sensitive habitat areas and purchase transferable development credits (TDC’s).

As to the Ghosn property, the complaint alleges the Commission delayed development in bad faith, arbitrarily changed and increased the severity of conditions it had approved in an earlier permit application, and improperly attempted to freeze the property as open space in order to facilitate its acquisition as a state or federal park.

Only the causes of action which allege these restrictions violated appellants’ civil rights remain in issue.

b. The Piuma property.

Quaker alleges the Commission restricted a County-approved development of the Piuma property by requiring Quaker to purchase 21 TDC’s at a cost of $297,000. Quaker also claims it lost County approval of more valuable lots and was forced to dedicate a portion of its land as open space.

However, the complaint also states Quaker has complied with the conditions imposed by the Commission as to the Piuma permit by purchasing the TDC’s and recording an offer to dedicate to a government. The complaint states that by virtue of the permit issued July 23, 1985, “Quaker was allowed to develop” the Piuma property subject to the referenced conditions.

As to the Piuma property, Quaker alleges inverse condemnation, denial of due process and civil rights violations, and requests declaratory and injunctive relief.

3. The trial court’s ruling.

a. The boundary dispute.

The trial court sustained the respondents’ demurrer to the boundary dispute causes of action without leave to amend. It found the Legislature *649

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Bluebook (online)
212 Cal. App. 3d 642, 260 Cal. Rptr. 736, 1989 Cal. App. LEXIS 763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rossco-holdings-inc-v-state-of-california-calctapp-1989.