City of Ontario v. We Buy Houses Any Condition
D083080
Cal. Ct. App.Jul 31, 2024Background
- The City of Ontario filed an eminent domain action to acquire multiple vacant industrial lots owned by We Buy Houses Any Condition, LLC, adjacent to Ontario International Airport.
- The City’s resolution of necessity cited "mitigation of airport impacts and elimination of blight" as the public uses, but did not describe any specific project for the property.
- We Buy Houses moved for summary judgment, arguing the City had not identified a proposed project as required by California’s Eminent Domain Law.
- The trial court granted summary judgment in favor of We Buy Houses and awarded them reduced attorney’s fees, finding the City had committed a gross abuse of discretion by failing to articulate a proposed project.
- The City appealed both the summary judgment and the fee award, arguing errors in legal standard and the fee calculation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a specific project must be identified to exercise eminent domain | City: Only public use, not a specific project, is required; or exceptions apply | We Buy Houses: Statute requires a proposed project | Must identify a proposed project; City’s general citation to blight or airport mitigation not enough |
| Whether the Community Redevelopment Law (CRL) exempts the City from project identification | CRL’s policy on blight authorizes eminent domain for blight elimination without specific project | CRL does not override project identification requirement; redevelopment agencies now dissolved | CRL does not provide an exemption; City must still comply with Eminent Domain Law |
| Whether authorities for airport-related land acquisition exempt compliance with Eminent Domain Law | Statutes relating to airports allow condemnation for noise/safety impacts without stating project | General authorities don’t waive requirement for a proposed project | No exemption; City must identify a proposed use even for airport-related condemnation |
| Whether attorney fee award for We Buy Houses was an abuse of discretion | Fees unrelated to summary judgment and duplicative should not be recoverable | Fees were reasonable and necessary; City’s expert not credible | No abuse of discretion; trial court properly reduced and explained fee award |
Key Cases Cited
- City of Stockton v. Marina Towers LLC, 171 Cal.App.4th 93 (Cal. Ct. App. 2009) (must identify a specific proposed project in a resolution of necessity under eminent domain law)
- City of Oakland v. Oakland Raiders, 203 Cal.App.3d 78 (Cal. Ct. App. 1988) (standard for reviewing attorney fee awards is abuse of discretion)
- City of San Jose v. Great Oaks Water Co., 192 Cal.App.3d 1005 (Cal. Ct. App. 1987) (litigation expenses recoverable even if case resolved before trial in eminent domain actions)
