Rutgard v. City of L.A.

CourtCalifornia Court of Appeal
DecidedJuly 30, 2020
DocketB297655
StatusPublished

This text of Rutgard v. City of L.A. (Rutgard v. City of L.A.) 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
Rutgard v. City of L.A., (Cal. Ct. App. 2020).

Opinion

Filed 7/30/20 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION TWO

RICHARD PAUL RUTGARD, B297655

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. BS170286) v.

CITY OF LOS ANGELES,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County, Mitchell L. Beckloff, Judge. Affirmed.

Michael N. Feuer, City Attorney, Kathleen A. Kenealy, Chief Assistant City Attorney, Scott Marcus, Chief, Civil Litigation Branch, Blithe S. Bock, Assistant City Attorney, Michael M. Walsh, Deputy City Attorney, for Defendant and Appellant.

Sullivan, Workman & Dee, Karyn A. M. Jakubowski, and Charles D. Cummings, for Plaintiff and Respondent. ****** California’s Eminent Domain Law (Code Civ. Proc., § 1230.010 et seq.)1 —and, in particular, Code of Civil Procedure section 1245.245—provides that when “[p]roperty acquired by a public entity [through eminent domain] . . . is not used for [its intended] public use . . . within 10 years of adoption of the resolution of necessity [that authorized its taking],” the entity must allow the property’s original owner an opportunity to buy it back “unless the [entity’s] governing body adopts” a new “resolution” “reauthorizing the existing stated public use.” (§ 1245.245, subds. (b), (f).) In this case, the City of Los Angeles adopted an initial resolution in 2007 and a reauthorization resolution in 2017. This appeal presents four cascading questions: First, does a public entity desiring to retain condemned property under section 1245.245 have to “adopt” its initial and reauthorization resolutions within 10 years of each other? We hold the answer is “yes.” Second, and if there is such a 10-year deadline, which definition of “adoption” does section 1245.245 use—the date when the resolutions are initially adopted, are finally adopted, or become effective? We hold that section 1245.245 uses the date of “final adoption.” Third, which law governs the inquiry into whether a resolution has been finally adopted—the local law governing the public entity at issue, or a standardized definition imposed by section 1245.245? We hold that local law fixes when a resolution is “finally adopted.”

1 All further statutory references are to the Code of Civil Procedure unless otherwise indicated.

2 Lastly, when are resolutions finally adopted under the local law applicable here—namely, the city’s charter? We hold that a resolution is “finally adopted” once the city council has enacted the resolution and it has either been (1) approved by the mayor, or (2) vetoed by the mayor, but overridden by the city council. Because the city in this case finally adopted its initial and reauthorization resolutions 19 days past the 10-year deadline, section 1245.245 requires the city to offer to sell the property back to its original owner. The trial court’s writ so ordering is accordingly affirmed. FACTS AND PROCEDURAL BACKGROUND I. Facts A. Property at issue This case concerns a two-story building with 8,300 square feet of commercial space (the Property). The Property is located on Figueroa Street in the Highland Park neighborhood of the City of Los Angeles (the City), and is registered as a City Historical Monument. In early 2007, the Property was owned by Richard Paul Rutgard (Rutgard). B. 2007 Ordinance On May 29, 2007, the Los Angeles City Council (the City Council) enacted an ordinance “authorizing the condemnation” of the Property (the 2007 Ordinance). The 2007 Ordinance constituted a Resolution of Necessity declaring that the Property was being “acquired for public purposes”—namely, to serve as a “constituent service center” for City residents. The 2007 Ordinance passed by a two-thirds majority of the City Council. On June 8, 2007, the Mayor of the City of Los Angeles (the Mayor) “approved” the 2007 Ordinance.

3 The City calculated the effective date of the 2017 Ordinance to be July 24, 2007. An ordinance presumptively becomes effective “31 days from its publication” (L.A. City Charter, vol. I, art. II, § 252), and an ordinance is deemed “published” if it is “posted . . . for at least ten days in three public places” (L.A. Admin. Code, § 2.13). The 2017 Ordinance was posted on June 14, 2007. C. The interregnum period On October 16, 2007, the City filed an eminent domain lawsuit to condemn the Property. In November 2009, the City and Rutgard settled the lawsuit and the City agreed to pay $2.5 million for the Property. Due to the “economic downturn in 2008,” the City never developed the Property into a constituent center. D. 2017 Ordinance On June 23, 2017, the City Council enacted an ordinance “reauthoriz[ing]” the “use of the Property for a constituent service center” (the 2017 Ordinance). The 2017 Ordinance passed by a two-thirds majority of the City Council. On June 27, 2017, the Mayor “approved” the 2017 Ordinance. The City calculated two different effective dates for the 2017 Ordinance. The City initially calculated the effective date to be August 7, 2017, based on a posting date of June 28, 2017, which would constitute publication 10 days later and would become effective 31 days after that. The very next day, however, the City re-calculated the effective date to be July 9, 2017, based (1) on a posting date of June 29, 2017, which would constitute publication 10 days later, and (2) on a finding that the ordinance should take “effect[] upon publication” under section 252 of the

4 city charter (thus bypassing the presumptive, 31-day waiting period). II. Procedural Background On July 24, 2017, Rutgard filed a verified petition for a writ of mandate alleging that the City had a “present legal duty” to “offer [him] a right of first refusal to purchase” the Property under section 1245.245 because its reauthorization of the 2007 taking was untimely.2 After the City filed an answer, after briefing on the merits, and after a hearing, the trial court issued a seven-page ruling granting Rutgard’s petition. The trial court ruled that the City had a “clear, present, ministerial duty to offer [Rutgard] the right of first refusal to purchase the Property” under section 1245.245 because the 2017 Ordinance was not timely under that section. The court reasoned that the City “adopted its initial resolution of necessity on May 29, 2007,” which was the day the City Council initially adopted the resolution; that the City had “failed to use the Property as a constituent service center”; and that all of the City’s acts to pass a reauthorization resolution occurred in June 2017, which was more than 10 years after May 29, 2007. The court rejected the City’s argument that section 1245.245’s 10-year clock should not begin to run until the date the 2007 Ordinance became effective (that is, on July 24, 2007) because, in the court’s view, “[the] language [of section 1245.245] could not be clearer: The 10-year

2 Rutgard also alleged a claim for declaratory relief, but voluntarily dismissed that claim after the trial court granted his writ petition. Although Rutgard’s petition sought relief against the City and the City Council, the City responded that the City Council is “not a separate legal entity from the City” and the trial court ultimately entered judgment against the City alone.

5 clock begins running on the date of adoption, not . . . the effective date of the ordinance.” The court further found that section 1245.245’s legislative history was consistent with its text: Both set the deadline for a new, reauthorization resolution as “within 10 years of the adoption of the [original] resolution of necessity” (italics added).3 Following the entry of judgment and the issuance of a writ of mandate, the City filed this timely appeal. DISCUSSION The City argues that the trial court erred in granting Rutgard’s writ of mandate.

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Rutgard v. City of L.A., Counsel Stack Legal Research, https://law.counselstack.com/opinion/rutgard-v-city-of-la-calctapp-2020.