AIDS HEALTHCARE FOUNDATION v. CITY OF LOS ANGELES et al.
B311144
In the Court of Appeal of the State of California, Second Appellate District, Division Seven
December 14, 2022
CERTIFIED FOR PUBLICATION; (Los Angeles County Super. Ct. No. 20STCV29238)
Thomas A. Myers, Jonathan M. Eisenberg, Kirra N. Jones and David M. Gruen for Plaintiff and Appellant.
Michael N. Feuer, City Attorney, Scott Marcus, Chief Assistant City Attorney, Blithe S. Bock, Managing Assistant City Attorney, Michael M. Walsh, Deputy City Attorney, for Defendants and Respondents.
INTRODUCTION
This appeal pits the anti-corruption objectives of the Political Reform Act of 1974 (PRA) (
FACTUAL AND PROCEDURAL BACKGROUND
A. The PLUM Committee
The PLUM committee consists of five councilmembers from the 15-member Los Angeles City Council.3 It oversees the Planning Department‘s development of land use plans and zoning and environmental review laws. The PLUM committee also reviews and votes on proposed real estate projects that seek discretionary approvals. These approvals often require “overruling the usual planning and zoning rules that apply to average residents and small businesses of the City.” The PLUM committee holds considerable sway over the hearing of real estate development projects because, after the PLUM committee issues its recommendation to the city council, the clerk puts the item on a “consent-type section” of the meeting. From there, if no councilmember requests the full City Council hold a hearing about the project, the City Council approves the item in a “quick mass vote without public comment.” “These votes happen so fast that often times the public attending the hearing does not even realize it has occurred.” The chair of the PLUM committee has particular power because the chair exercises control over the committee agenda and “can be a single bottleneck for whether or not a real estate project receives a hearing and goes on to City Council with a positive recommendation.”
B. Corruption on the PLUM Committee
In 2020 a federal criminal investigation revealed that two former city councilmembers, Jose Huizar and Mitchell Englander, allegedly engaged in bribery and other corruption in connection with their work on the PLUM committee.
Englander sat on the PLUM committee from 2012 until his resignation in October 2018. In January 2020, after a five-year investigation, a federal grand jury indicted Englander for falsifying material facts, making false statements, and witness tampering. The indictment allegеd that Englander had accepted tens of thousands of dollars of cash bribes in the bathrooms of a Las Vegas casino, plus additional bribes of hotel rooms and other gifts from a businessman while on trips to Palm Springs and Las Vegas with several people, including a real estate developer. Englander pleaded guilty to federal charges for obstruction of justice.
Huizar sat on the PLUM committee as a member and/or its chair from 2007 until his removal in November 2018. In June 2020 federal law
Around the same time as Huizar‘s arrest, the City commenced “revocation proceedings of approvals” as to one real estate development project in downtown Los Angeles linkеd to the criminal charges. Soon, prosecutors identified another project implicated in Huizar‘s illicit behavior. AHF alleges the corruption taints at least two other projects. In addition, the Los Angeles City Attorney is investigating other real estate development projects with possible ties to the scandal, and other city councilmembers have requested a formal review of such projects. AHF summarizes these events as an “ongoing corruption scandal regarding the approval of real estate projects” in Los Angeles.
C. AHF‘s Claims
On August 4, 2020, nearly two years after either Englander or Huizar last sat on the PLUM committee or took any official act, AHF, a nonprofit organization4 with its headquarters in Los Angeles, filed the instant action against the City. AHF alleged two causes of action: (1) injunctive relief for violation of the PRA, and (2) taxpayer action to prevent waste (
action in relation to which such a violation occurred‘” and that “[t]his includes the restraining of permits.” AHF thus “seeks an order restraining building permits granted by the City of Los Angeles during” the period of time when Huizar and/or Englander “sat on the PLUM committee and engaged in violations of
AHF prayed for preliminary and permanent injunctive relief prohibiting the City “from taking any further actions or expend[ing] any taxpayer funds to facilitate, review, process, or see to completion any building project approved during” Huizar‘s and/or Englander‘s tenure on the PLUM committee “and estаblished to be engaged in violations of
D. The City‘s Demurrer
On September 23, 2020, the City demurred to AHF‘s complaint, identifying a number of purportedly incurable deficiencies. Central to this appeal, the City sought dismissal on the ground that the 90-day statutes of limitation contained in
heavily on a factually similar case, Ching v. San Francisco Bd. of Permit Appeals (1998) 60 Cal.App.4th 888 (Ching).
AHF opposed the demurrer, primarily by attempting to distinguish Ching factually and legally. AHF аsserted the PRA‘s four-year statute of limitations contained in
On December 7, 2020, the trial court heard and sustained the City‘s demurrer without leave to amend, stating that the court “disagree[s] with plaintiff” and “believe[s] that Ching is controlling.” The trial court issued its written judgment in favor of the City on December 29, 2020, dismissing AHF‘s action. AHF timely appealed.
DISCUSSION
A. Standard of Review
“We independently review the superior court‘s ruling on a demurrer and determine de novo whether the complaint alleges facts sufficient to state a cause of action or discloses a complete
defense.” (Ivanoff v. Bank of America, N.A. (2017) 9 Cal.App.5th 719, 725.) “We assume the truth of properly pleaded factual allegations, facts that reasonably can be inferred from those expressly pleaded, and matters that are judicially noticeable.” (Genis v. Schainbaum (2021) 66 Cal.App.5th 1007, 1015; accord, Ivanoff, at p. 725.)
“The application of the statute of limitations on undisputed facts is a purely legal question,” which, on appeal from a demurrer, requires that we “take the allegations of the operative complaint as true and consider whether the facts alleged establish [plaintiff‘s] claim is barred as a matter of law.” (Aryeh v. Canon Business Solutions, Inc. (2013) 55 Cal.4th 1185, 1191; accord, San Diego Unified School Dist. v. Yee (2018) 30 Cal.App.5th 723, 730.) ”De novo review is also appropriate where, as here, the appeal involves a question of statutory interpretation.” (Lopez v. Friant & Associates, LLC (2017) 15 Cal.App.5th 773, 777; accord, Bruns v. E-Commerce Exchange, Inc. (2011) 51 Cal.4th 717, 724.)
Where the trial court has sustained a demurrer without leave to amend, we must also “determine whether or not the plaintiff could amend the complaint to state a cause of action.” (Das v. Bank of America, N.A. (2010) 186 Cal.App.4th 727, 734.) However, “the burden falls upon the plaintiff to show what facts he or she could plead to cure thе existing defects in the complaint. [Citation.] ‘To meet this burden, a plaintiff must submit a proposed amended complaint or, on appeal, enumerate the facts and demonstrate how those facts establish a cause of action.‘” (Ibid.; see Schifando v. City of Los Angeles (2003) 31 Cal.4th 1074, 1081 [“[t]he plaintiff has the burden of proving that an amendment would cure the defect“].)
B. The 90-day Statute of Limitations in Section 65009 Bars AHF‘s Claims
1. The Political Reform Act
The voters approved the PRA in 1974 as an initiative measure (Proposition 9). The PRA “concern[ed] elections and different methods for preventing
subsection, the court shall accord due weight to any injury that may be suffered by innocent persons relying on the official action.” (
As originally enacted, the PRA included a two-year statute of limitations in
2. Section 65009
In contrast to the four-year statute of limitations contained in the PRA,
originally enacted, former section 65907 provided in relevant part: “Any action or proceeding to attack, review, set aside, void or annul any decision of matters listed in Sections 65901 and 65903, or concerning any of the proceedings, acts or determinations taken, done or made prior to such decision, or to determine the reasonableness, legality or validity of any condition attached thereto, shall not be maintained by any person unless the action or proceeding is commenced within 180 days after the date of such decision. Thereafter all persons are barred from any such action or proceeding or any defense of invalidity or unreasonableness of such decision or of such proceedings, acts or determinations.” (Stats. 1965, ch. 1341, \u00a7 5, p. 3228.) In 1983, the Legislature shortened the 180 days to the current 90 days. (Ching, supra, 60 Cal.App.4th at p. 893, citing to Stats. 1983, ch. 1138, \u00a7 2, p. 4314.)
In 1996, the Legislature repealed former section 65907 and simultaneously moved its limitation language to what are now subdivisions (c)(1)(E) and (F) of
Subdivisions (c)(1)(A) through (F) then delineate a host of local land use and zoning cases to which the statute‘s 90-day time limit applies, including actions: “(A) To attack, review, set aside, void, or annul the decision of a legislative body to adopt or amend a general or specific plan . . . [\u00b6] (B) To attack, review, set aside, vоid, or annul the decision of a legislative body to adopt or amend a zoning ordinance. [\u00b6] (C) To determine the reasonableness, legality, or validity of any decision to adopt or amend any regulation attached to a specific plan. [\u00b6] (D) To attack, review, set aside, void, or annul the decision of a legislative body to adopt, amend, or modify a development agreement . . . . [\u00b6] (E) To attack, review, set aside, void, or annul any decision on the matters listed in
Confirming that “no action” means no action, the statute reiterates that “[u]pon the expiration of the time limits provided for in this section, all persons are barred from any further action or proceeding.” (
3. Section 65009‘s Broad Reach Controls
Contrary to its argument in the trial court that the four-year statute of limitations in
functions and duties of a board of zoning adjustment or a zoning administrator in a prescribed portion of the county.”
The City contends, and the trial court ruled, that
The Ching court, relied on by the City and the trial court in its ruling, confronted and rejected an identical argument. (Ching, supra, 60 Cal.App.4th 888.) In Ching, the plaintiff sought to vacate a permit appeals board‘s decision to grant a developer‘s application for a conditional use permit, based on a board member‘s conflict of interest in violation of the PRA. (Id. at p. 891.) Like AHF here, the plaintiff in Ching equivocated as to which statute of limitations applied, first arguing in opposition to the board‘s demurrer that the three-year time bar in
applies.“].) Rather, Ching determined that the 90-day limitations period prescribed by former Government Code section 65907 for challenges to a broad variety of local land use decisions controlled. (Id. at p. 891.)
While agreeing that some PRA claims fall within a three- or four-year statutes of limitation, Ching rejected the argument that a PRA claim changes the limitations period for land use actions governed by former section 65907 (now 65009). First, “former section 65907 ‘contains no exceptions,’ and uses ‘unqualified language’ manifesting a plain intent on the part of the Legislature ‘to limit the time to seek review’ of an agency decision. There is no exception for actions filed under the Political Reform Act.” (Ching, supra, 60 Cal.App.4th at pp. 894-895.) Second, “[i]t is a basic rule of statutory construction that specific statutes control general ones.” (Id. at p. 895, citing
Other courts have reached similar conclusions.8 In California Standardbred Sires Stakes Com., Inc. v. California Horse Racing Bd. (1991) 231 Cal.App.3d 751, 755, also cited by the Ching court, the plaintiff promoted breeding of standardbred horses. It sought a writ of mandamus to compel the California Horse Racing Board (Board) to issue a license for a racing meet (the source of the plaintiff‘s funding). The plaintiff sought relief based on an alleged conflict of interest, which it argued violated the PRA. The Board demurred, arguing that Business and Professions Code section 19463 provided a 30-day statute of limitations to challenge the Board‘s action. The plaintiff did not dispute the application of the shorter limitations period; rather, it argued equitable tolling should extend its time to file. The court of appeal in California Standardbred dismissed the PRA claim as untimely. (Ibid.)
In Howard Jarvis Taxpayers Assn. v. City of Los Angeles (2000) 79 Cal.App.4th 242, 248, disapproved on other grounds in Ardon v. City of Los Angeles (2011) 52 Cal.4th 241, 250, the plaintiffs challenged a tax ordinance. They argued the ordinance
violated Proposition 218, a voter initiative which amended the California Constitution to require the electorate to vote on, and approve, any new tax. (Howard Jarvis Taxpayers Assn., at p. 245 & fn. 1.) The court held the 90-day time bar set forth in
The City cites another statute of limitations,
permits considered by the PLUM committee might implicate the SMA. However, given that
For example, the court in Presenting Jamul v. Board of Supervisors (1991) 231 Cal.App.3d 665, 671, noted that “the Legislature by design drafted
C. The Gravamen of the Case Implicates the 90-day Statute
To avoid
True, the gravamen of AHF‘s action dictates the applicable statute of limitations. (See Hensler v. City of Glendale (1994) 8 Cal.4th 1, 22-23 (Hensler) [“To determine the statute of limitations which applies to a cause of action it is necеssary to identify the nature of the cause of action, i.e., the ‘gravamen’ of
the cause action [citations] . . . [T]he nature of the right sued upon and not the form of action nor the relief demanded determines the applicability of the statute of limitations under our code“].) Hensler rejected a plaintiff‘s attempt to avoid the statutory reach of
The same rationale applies here. While AHF may challenge corruption under the PRA, the gravamen of AHF‘s action is an attack on, or review of, the PLUM committee‘s decisions related to permitting and real estate project approvals.
D. Applying the 90-day Limitations Period Does Not Unconstitutionally Amend the PRA
AHF argues thаt applying the 90-day statute of limitations to its PRA claim would amount to an unconstitutional legislative amendment to a duly-enacted voter initiative. AHF concedes on appeal that the time bar in
The California Constitution provides, in relevant part, that “The Legislature may amend or repeal an initiative statute by another statute that
precluding the Legislature from undoing what the people have done, without the electorate‘s consent.‘” However, the Legislature “is not thereby precluded from enacting laws addressing the general subject matter of an initiative” and thus “remains free to address a ‘related but distinct area’ [citations] or a matter that an initiative measure ‘does not specifically authorize or prohibit.‘” (Id. at pp. 1025-1026.) “[F]or purposes of article II, section 10, subdivision (c), an amendment includes a legislative aсt that changes an existing initiative statute by taking away from it.” (Id. at pp. 1026-1027.)
AHF does not fully account for the permissible parameters of legislative amendment. In quoting
Putting aside this permissible legislative amendment process, we cannot reasonably construe the 90-day local land use statute of limitations as an improper amendment to, or curtailing of, the PRA.
First, as explained above, the 90-day time bar currently codified in
The Legislature obviously could not impermissibly have undone or taken away from a voter initiative that did not yet exist.
Second, the Legislature added
Moreover, even if we assume that when the electorate passed the PRA, it intended for the existing catch-all statute of limitations from
E. Policy Considerations Do Not Override Clear Statutory Language
Finally, AHF advances certain policy reasons for рermitting a longer period of time to “discover and ferret out corruption.”11 In this case, we do not reach the competing public policy goals at work in the PRA and
Here, “[t]he Legislature intended the limitation period stated in former section 65907 to permit no exception.” (Ching, supra, 60 Cal.App.4th at p. 896.) Accordingly, like Ching, we must enforce the 90-day time bar. We affirm the trial court‘s dismissal of AHF‘s PRA cause of action, without leave to amend.12 The trial court properly dismissed AHF‘s complaint13 as time barred by
DISPOSITION
The judgment is affirmed. The City is to recover its costs on appeal.
HOWARD, J.*
We concur:
PERLUSS, P. J.
SEGAL, J.
* Judge of the Marin County Superior Court, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
