PINTO LAKE MHP LLC, Plаintiff and Appellant, v. COUNTY OF SANTA CRUZ, Defendant and Respondent.
H045757
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA SIXTH APPELLATE DISTRICT
Filed 10/30/20
CERTIFIED FOR PUBLICATION; (Santa Cruz County Super. Ct. No. 17-CV-01424)
We reject the park owner‘s arguments that the trial court‘s ruling on the demurrer was error. The trial court engaged in the first of the two-part inquiry under
The trial court most likely would have addressed the limitations issue after the park owner filed an amended complaint naming the residents as parties. But the owner‘s еlection to stand on its original pleading truncated the
I. BACKGROUND
The County of Santa Cruz Mobilehome Rent Adjustment Ordinance (codified as Chapter 13.32 of the County Code) provides for two types of mobile home park rent adjustments. A park owner may make an annual general rent adjustment without notice to the county, based on specified criteria. (
Pursuant to
Citing Pinnacle Holdings, Inc. v. Simon (1995) 31 Cal.App.4th 1430 (Pinnacle Holdings), Pinto Lake argued in opposition that the residents are “not only [] not indispensable parties [], they are not even proper parties” to the trial court‘s review of the final administrative decision in which no relief was sought against the residents. Pinto Lake argued that the residents were no more responsible for the outcome of the administrative proceeding than are witnesses or amicus curiae. It also argued that the statute of limitations did not bar amending the complaint to join the residents as parties in the trial court.
At the hearing on the demurrer, the trial court adopted its tentative decision to sustain the demurrer (with leave to amend) for failing to join the residents as parties, citing Liang v. San Francisco Residential Rent Stabilization and Arbitration Bd. (2004) 124 Cal.App.4th 775 (Liang). With the parties’ agreement, the court set a hearing on the demurrer to the anticipated first amended complaint.
Instead of amending its complaint/mandamus petition, Pinto Lake filed a notice of elеction to stand on the original pleadings. The county moved for dismissal under
II. DISCUSSION
When a demurrer is sustained with leave to amend but the plaintiff elects not to amend the complaint, the resulting judgment of dismissal will be affirmed if the complaint is objectionable under any grounds raised by the dеmurrer. (Sutter v. Gamel (1962) 210 Cal.App.2d 529, 533.) A trial court‘s order or judgment is presumed correct, and ” ‘[a]ll intendments and presumptions are indulged to support it on matters as to which the record is silent.’ ” (Denham v. Superior Court (1970) 2 Cal.3d 557, 564.)
Rules governing demurrers to civil complaints apply to mandamus actions. (
If a necessary person cannot be joined as a party, the trial court considers specific factors to “determine whether in equity and good conscience the action should proceed among the parties before it, or should be dismissed without prejudice, the absent person being thus regarded as indispensable.” (
We are not persuaded by Pinto Lake‘s argument that we should apply a de novo standard to the trial court‘s determination that the residents are necessary persons under subdivision (a) because the trial court‘s inquiry required no fact finding and involved only interpreting the relevant
A. THE TRIAL COURT‘S RULING THAT THE RESIDENTS ARE NECESSARY PARTIES UNDER CODE OF CIVIL PROCEDURE SECTION 389, SUBDIVISION (A) WAS NOT AN ABUSE OF DISCRETION
The trial court granted leave to amend after it sustained the county‘s demurrer for failing to join the residents as parties. While the order on demurrer describes the residents as indispensable parties, we understand the trial court as having decided only whether the residents are necessary parties to the lawsuit under subdivision (a). The trial court did not decide under subdivision (b) whether the statute of limitations was a bar to the residents’ joinder, nor whether the case should proceed in the residents’ absence. Instead, Pinto Lake was granted leave to join the residents as parties. (
Under
The record supports the conclusion that judicial review of the administrative decision in the residents’ absence would impede their ability to protect the interests they successfully advanced in the administrative proceeding conducted by the hearing officer. (Subd. (a)(2)(i).) The residents retained an expert who challenged the basis for the owner‘s proposed rent adjustment. Given that the county did not participate as a party in the administrative proceeding, the county does not have an interest in stepping into the
Citing People ex rel. Lungren v. Community Redevelopment Agency (1997) 56 Cal.App.4th 868 (Lungren), and City of San Diego v. San Diego City Employees’ Retirement System (2010) 186 Cal.App.4th 69 (San Diego), Pinto Lake argues that the residents’ interests will not be impaired if the lawsuit proceeds in their absence because the county shares the same goal in the litigation. Those authorities do not demonstrate that the trial court abused its discretion. In Lungren, the Attorney General challenged a redevelоpment agency‘s authority to enter into a land deal with a Native American tribe. (Lungren, at p. 877.) The tribe was not a necessary party to the lawsuit because its interest in an enforceable contract was adequately represented by the redevelopment agency‘s defense of its own action. (Id. at p. 876.) Similarly, the issue in San Diego was the legality of a decision by the employees’ retirement system to charge the city for the unfunded costs of service credits. (San Diego, at p. 85.) The employees were not necessary parties to the city‘s lawsuit agаinst the retirement system because their object in the lawsuit would duplicate the retirement system‘s defense of its decision. (Ibid.) In contrast here, there is no similar relationship between the residents and the county. As the neutral adjudicative body in the underlying administrative proceeding, the county‘s interest in a mandamus action under
Pinto Lake argues the residents are not necessary parties under Pinnacle Holdings, which it characterizes as controlling legal authority. The court in Pinnacle Holdings found mobile home park residents were not proper parties to a declaratory relief and mandamus aсtion involving a proposed rent increase. (Pinnacle Holdings, supra, 31 Cal.App.4th at p. 1432.) There the park owner petitioned a city mobile home rent review board for a discretionary rent increase pursuant to city ordinance. (Id. at pp. 1432–1433.) Receiving only partial relief, the owner sought review in the superior court, naming as defendants the city, the board, and four mobile home park residents who had attended a public hearing to protest the rent increase. (Id. at p. 1433.) The protesting residents were named as defendants and real parties in interest to the declaratory relief cause of action, and the park owner moved to certify a class of more than 300 residents with the four protesters as named representatives. (Id. at pp. 1432–1435Id. at p. 1433.) The superior court declined to certify the class, sustained the demurrers, and dismissed the demurring protesters as parties. (Ibid.)
The park owner in Pinnacle Holdings argued on appeal that joining the protesters as real parties in interest was permissible to eliminate any concern about the protesters’ due process rights. (Pinnacle Holdings, supra, 31 Cal.App.4th at pp. 1433, 1435.) Rejecting that argument, the appellate court noted that the protesters were four tenants who received notice of the owner‘s rent increase application; they had a right under the city‘s ordinance (a copy of which accompanied the application) to appear at the hearing and speak out against the proposed increase; the owner was not protecting those rights by suing the protesters; and the protesters had the ability to protect their interest by seeking injunctive relief under the city‘s ordinance or intervening in the owner‘s lawsuit if they so desired. (Id. at pp. 1435–1436Id. at p. 1437.)
Pinto Lake asserts that Pinnacle Holdings should control because, as in that case, the case here involves a mobile home park owner‘s rent increase application and a resulting decision affecting the park residents; an administrative mandamus proceeding in the trial court; and a request for relief (in the form of a writ directed to the county) neither against nor sought from the
Pinto Lake also points to language in Pinnacle Holdings suggesting, without elaboration, that the protesting residents in that casе were not “proper parties to the cause of action for administrative mandamus under Code of Civil Procedure section 1094.5 since that action is directed to a final administrative order or decision.” (Pinnacle Holdings, supra, 31 Cal.App.4th at p. 1436.) We reject Pinto Lake‘s interpretation that the prevailing party to a final administrative decision is not a proper party in an action challenging that very decision. Indeed, that proposition is contrary to the well-established rule that “[a] petition for writ of mandate must name the real рarty in interest,” who “is ‘usually the other party to the lawsuit or proceeding being challenged.’ ” (Sonoma County Nuclear Free Zone v. Superior Court (1987) 189 Cal.App.3d 167, 173.) We again observe that unlike the residents in Pinnacle Holdings, here the residents are specifically designated by the local ordinance as respondents in the administrative proceeding. (
We also reject Pinto Lake‘s argument that the trial court misapplied the law by relying on Liang, a case in which a landlord was deemed an indispensable
B. REMAND IS NECESSARY TO PERMIT THE TRIAL COURT TO DECIDE UNDER CODE OF CIVIL PROCEDURE SECTION 389, SUBDIVISION (B) WHETHER PINTO LAKE‘S LAWSUIT SHOULD PROCEED IN THE RESIDENTS’ ABSENCE
In light of Pinto Lake‘s election to stand on the original complaint, we may affirm its dismissal on any meritorious ground raised by the county‘s demurrer. (Sutter v. Gamel, supra, 210 Cal.App.2d at p. 533.) The county argued that the lawsuit should not proceed without the residents who were necessary and indispensable, and whose joinder was barred by the applicable statute of limitations. But the trial court never determined whether the residents could be made parties and, if not, whether the matter should be dismissed or proceed in their absence.4
Subdivision (b) of
III. DISPOSITION
The judgment is reversed. The matter is remanded to the trial court to exercise its discretion under
Grover, J.
WE CONCUR:
Greenwood, P. J.
Danner, J.
H045757 - Pinto Lake MHP LLC v. County of Santa Cruz
| Trial Court: | Santa Cruz County Superior Court Case No. 17CV01424 |
| Trial Judge: | Hon. John M. Gallagher |
| Counsel for Plaintiff/Appellant Pinto Lake MPH, L.L.C. | James Patrick Ballantine Ballantine Law |
| Counsel for Defendant/Respondent County of Santa Cruz | Jason Heath Dana McRae County Counsels Ryan M. Thompson Assistant County Counsel County of Santa Cruz |
| Counsel for Amicus Curiae Pinto Lake Mobile Home Park Homeowners Association | Creighton A. Mendivil Senior Citizens Legal Services |
H045757 - Pinto Lake MHP LLC v. County of Santa Cruz
