Superior Strut & Hanger Co. v. Port of Oakland

72 Cal. App. 3d 987, 140 Cal. Rptr. 515, 1977 Cal. App. LEXIS 1787
CourtCalifornia Court of Appeal
DecidedAugust 29, 1977
DocketCiv. 39294
StatusPublished
Cited by21 cases

This text of 72 Cal. App. 3d 987 (Superior Strut & Hanger Co. v. Port of Oakland) 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
Superior Strut & Hanger Co. v. Port of Oakland, 72 Cal. App. 3d 987, 140 Cal. Rptr. 515, 1977 Cal. App. LEXIS 1787 (Cal. Ct. App. 1977).

Opinion

Opinion

EMERSON, J. *

The California Relocation Assistance Law, Government Code section 7260 et seq., (hereafter CRAL or the Act) provides in substance that a public entity which acquires real property for public use shall compensate a displaced person for relocation expenses and certain other losses. (Gov. Code, § 7262.) 1

Respondent Superior Strut & Hanger Co., claiming to be a displaced person as defined in section 7260, subdivision (c), recovered judgment against appellant Port of Oakland (hereafter the Port). The judgment awarded relocation costs and also attorneys’ fees. The Port appeals.

Prior to December 3, 1968, respondent, a manufacturing company, was the tenant in a building owned by the Oakland Dock and Warehouse Company. On that date, the Port acquired the property from Oakland, Dock, for the purpose of developing it into a marine terminal facility. The Port, until such time as demolition of buildings would be required, elected to continue to rent the property to respondent. Accordingly, respondent and the Port entered into two “License and Concession Agreements” in April of 1969 and April of 1970.

Thereafter, respondent was offered a substitute location for lease by the Port. Respondent accepted this offer and on February 23, 1972, the parties executed a lease for this location (known as the Embarcadero Property). Respondent thereafter commenced plans to construct a new building on the Embarcadero Property. However, due to the subsequent discovery of an error in the description of the property given respondent *993 by the Port, it became necessary for respondent to redesign the building and resubmit bids to contractors. On April 11, 1972, respondent was served with a “Thirty Days’ Notice Terminating Tenancy.” However, due to the above-mentioned error and other factors, respondent was unable to move into the Embarcadero Property by May 11, 1972. The Port took no further action, except to urge that respondent move at the earliest possible date. On July 1, 1972, at the insistence of the Port, respondent executed a promissory note for $14,437.15 stated to be the damages suffered by the Port as a result of respondent’s delay in vacating the premises. Respondent finally completed its move from the property on November 7, 1972. Although the Relocation Assistance Act was passed in 1971 and became mandatory upon public entities on July 1, 1972, the Port did not advise respondent of any rights to claim CRAL benefits. (See § 7261.)

On January 7, 1974, respondent filed a written claim for damages against the Port for “in excess of $100,000” as the result of relocation costs incurred in vacating the premises. On February 8, 1974, the Port notified respondent thát the claim was rejected “because the claim is not a proper charge against the Board [of Port Commissioners], and claimant failed to present its claim to the Board within the time specified by law.” Respondent thereupon instituted the instant action for breach of duty to pay relocation assistance costs and for damages.

The Port first argues that respondent failed to state a cause of action, since it never alleged that its displacement occurred as the result of an exercise of the power of condemnation. The premise underlying this contention is that the CRAL was intended to apply only to those persons displaced as the result of the exercise of the power of eminent domain. The Port cites Redevelopment Agency v. Diamond Properties (1969) 271 Cal.App.2d 315 [76 Cal.Rptr. 269], and Concrete Service Co. v. State of California ex. rel. Dept. Pub. Wks. (1969) 274 Cal.App.2d 142 [78 Cal.Rptr. 923], for the proposition that in order for a claimant to be entitled to compensation for fixtures and equipment, the property must be taken pursuant to the public entity’s power of condemnation. However, these cases deal with an entirely different issue and were decided under California’s Eminent Domain law, which is clearly separate in purposes and policies from the recently passed Relocation Assistance law. (See City of Mountain View v. Superior Court (1975) 54 Cal.App.3d 72, 77-81 [126 Cal.Rptr. 358].) In order to ascertain whether respondent’s complaint stated a cause of action, it is necessary to examine the statutory provisions of CRAL itself. Such an examination *994 makes it evident that an actual exercise of the power of eminent domain is not a prerequisite to relocation benefits.

Government Code section 7260, subdivision (c) defines a “displaced person” as “any person who moves from real property, or who moves his personal property from real property, as the result of the acquisition of such real property ... by a public entity ... or as the result of a written order from a public entity to vacate the real property, for public use.” Subdivision (g) defines “public use” as “a use for which real property may be acquired by eminent domain.” (Italics added.) By use of the words “may be” rather than “is” the very language of the Act makes it manifest that the actual filing of a condemnation action need not take place for coverage to be applicable under the Act. It is common knowledge that a large proportion, perhaps even the majority, of • acquisitions of real property by public entities for public use are effected by “open market purchases” from the owner, rather than by condemnation. Indeed section 7267.1 requires a public entity to make every reasonable effort to acquire the property by negotiation. In view of these statutory provisions we think it clear that the Legislature did not intend that tenants who are displaced as the result of a purchase of real property for public use be denied relocation benefits, while such benefits are granted to those who are displaced as the result of acquisition by condemnation.

Moreover, the Port’s view that a condemnation action is essential to the recovery of relocation benefits is contrary to the views expressed by both the California Law Revision Commission and the Attorney General of California. In urging that the relocation provisions of section 7260 et seq. be kept separate from the eminent domain statutes, the commission stated: “The relocation assistance provisions are applicable to acquisitions of property by public entities by any means, including eminent domain.” (Cal. Law Revision Com. Rep., Recommendation Proposing The Eminent Domain Law (Dec. 1974) p. 1653.) The Legislature followed the commission’s recommendation and kept the statutes separate. The Attorney General, in commenting upon the issue, states: “The entitlement of a person to relocation benefits comes into being when that person’s property is acquired by a public entity for a public use. The manner of the acquisition has no effect upon the right of a person to relocation benefits.” (57 Ops. Cal.Atty.Gen. (1974) p. 72, italics added.) We reject the Port’s claim that an actual exercise of its power of eminent domain was necessary for the provisions of CRAL to come into play. It is indisputable that the property was acquired for public use, which is all that is required by the Act.

*995

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Bluebook (online)
72 Cal. App. 3d 987, 140 Cal. Rptr. 515, 1977 Cal. App. LEXIS 1787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/superior-strut-hanger-co-v-port-of-oakland-calctapp-1977.