Loeffler v. Trabuco Highlands Community Assn. CA4/3
G059087
| Cal. Ct. App. | Dec 10, 2021Background
- Trabuco Highlands Community Association (Association) recorded CC&Rs in 1987 and annexed multiple "product lines" over time; assessments varied by product line based on differing common-area amenities and costs.
- In 1999 the Association adopted a uniform formula allocating fixed and variable assessment components proportionately across product lines; that methodology was applied to later annexations.
- In December 2012 Association annexed Vista/Fieldstone (Tract 16677); Jennifer Loeffler purchased a Vista lot in January 2013 and acknowledged a $166/month assessment at closing.
- Loeffler stopped paying assessments in May 2014, was notified of increased assessments and delinquencies, and filed a preemptive suit in 2016 asserting quiet title, slander of title, breach of CC&Rs, declaratory/injunctive relief, and other claims; Association filed a cross-complaint for unpaid assessments.
- The trial court granted Association summary adjudication on quiet title and slander of title as time-barred (statutes of limitations and litigation privilege), and after trial ruled Association had applied assessment methodology equally and uniformly and entered judgment for Association on Loeffler’s claims and on the cross-complaint for unpaid assessments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of quiet title challenge to annexation/vote | Loeffler argued annexation of Tract 16677 was invalid and title defects should be quieted | Association argued the vote was challenged too late and Civil Code §5145’s 1‑year election challenge period bars relief | Court: Quiet title claim is barred by statute (one-year limit for election challenges); summary adjudication affirmed |
| Slander of title based on recorded CC&Rs/notice of addition | Loeffler claimed recordation slandered title and was actionable | Association argued slander claim was time‑barred (3‑year limit) and protected by litigation privilege | Court: Slander of title claim barred by three‑year statute of limitations and litigation privilege; summary adjudication affirmed |
| Interpretation of CC&R §6.06 "assessed equally and uniformly" | Loeffler read it to require identical dollar assessments for every lot | Association said it requires equal and uniform application of the computation method across similarly situated lots; differences in dollar amounts may reflect differing benefits/costs | Court: "Equally and uniformly" means uniform method, not identical dollar charges; Association’s cost-per-square-foot formula applied uniformly—no breach found |
| Association’s cross-complaint (account stated / open book account) for unpaid assessments | Loeffler argued Association failed to prove agreement and elements of common counts | Association produced CC&Rs, purchase acknowledgment, notices, billing records showing assessments, notices of increases, delinquencies, and accounting entries | Court: Substantial evidence supports account stated and open book account elements; judgment for Association on cross‑complaint affirmed |
Key Cases Cited
- Quidel Corp. v. Superior Court, 57 Cal.App.5th 155 (Cal. Ct. App. 2020) (standard of review for summary adjudication is de novo)
- Davaloo v. State Farm Ins. Co., 135 Cal.App.4th 409 (Cal. Ct. App. 2005) (the body of the complaint, not the caption, defines the cause of action)
- Jensen v. Franchise Tax Bd., 178 Cal.App.4th 426 (Cal. Ct. App. 2009) ("equal and uniform" assessment principle concerns methods applied to similarly situated persons)
- Trafton v. Youngblood, 69 Cal.2d 17 (Cal. 1968) (elements and nature of an account stated)
- Zinn v. Fred R. Bright Co., 271 Cal.App.2d 597 (Cal. Ct. App. 1969) (essential elements of an account stated)
- Yield Dynamics, Inc. v. TEA Systems Corp., 154 Cal.App.4th 547 (Cal. Ct. App. 2007) (statement of decision need only address ultimate issues)
- Park Place Estates Homeowners Assn. v. Naber, 29 Cal.App.4th 427 (Cal. Ct. App. 1994) (homeowner may not withhold assessments due to CC&R enforcement disputes)