T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3.

T he H onor abl e L y l e E . S tr om , S e ni orU ni t e d S t a t e s D i s tr i c tJ udge f or ** the D i s tr i c tof

N e br a s ka , s i tt i ng by de s i gna t i on.

NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T SU RF A N D SA N D , LLC, P la in tif

f - A p p e lla n t, v. C I T Y O F C AP I T OL A, D ef

endant- A pp el l ee . N o. 08- 16481 D . C. N o . 5 : 0 7 - CV - 0 5 0 4 3 - RS ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e N o rth e rn D is tr ic t o f C a lif o rn ia R i c ha r d S e e bor g, , P r e s i di ng A r gue d a nd S ubm i tt e d O c t obe r7, 2009 S a n F r a n c is c o , C a lif

o rn ia B e f o r e : S C H R O E D E R a n d B E R Z O N , C i r c u i tJ u d g e s , a n d S T R O M, D i stri ct ** Judg e. P la in tif

f S u r f a n d S a n d L L C ( “S u r f

a n d S a n d ” ) s e e k s to c h a lle n g e aC ap ito la m uni c i pa l or di na nc e i m pl e m e nt i ng as t a t e s t a tut e de s i gne d t o pr e ve ntow ne r s of m obi l e hom e pa rks f

r om a voi di ng r e ntc ontr ol by e f f e c t i ng s ha m c onve r s i ons of



# FI LED APR26 2 010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2

th e p a rk s f

r o m r e n ta l to o w n e d u n its . See C a l. G o v ’t C o d e § 6 6 4 2 7 .5 ( “S ta te C onve r s i on S t a tut e ” ) ; C i ty of C api t ol aM uni c i pa l C ode § 16. 70 ( “ C onve r s i on O r d in a n c e ” ) . T h e C o n v e r s io n O r d in a n c e im p le m e n ts th e S ta te C o n v e r s io n S ta tu te by de t a i l i ng the i nf

orm a t i on tha tpa rk ow ne r s m us tdi s c l os e w he n c onduc t i ng a surveyof re si dentsupp ortpri or t o a conv er si on and est abl i shi ng a pre sum pt i on that ac onve r s i on i s bonaf

i de onl y i f

am a j or i ty of the r e nt e r s s upportc onve r s i on. T he d i s tr i c tc o u rtd i s mi s s e d th e a c t i o n a n d w e a f f i rm. T he di s tr i c tc ourtc orr e c t l y he l d tha tthe f a c i a l c ha l l e nge t o the C onve r s i on O r di na nc e a s apubl i c r e gul a t ory t a ki ng w a s notr i pe . P l a i nt i f f ha d nots ought co m p en sat i o n fro m th e st at e as req u i red b y W i l l i am s on C ount

yR egi onal

P lanni ng C o m m is s io n v . H

a m ilto n B a n k

o f J o h n s o n C ity , 473 U . S . 172 ( 1985) . S ur f a nd S and con t ends on appeal thatbecause W i l l i am s on c r e a t e s aprude nt i a l ba rr i e rt o the e xe r c i s e of

j ur i s di c t i on, the di s tr i c tc ourts houl d ne ve rthe l e s s ha ve r e a c he d the m e r i t s . Y e tS ur f

a nd S a nd of

f e r s no good r e a s on w hy the di s tr i c tc ourts houl d ha ve d o n e s o . P la in tif

f n e v e rto o ka n y s te p s to c o n v e rt th e p r o p e rty a n d s o is u n ab le to s how tha tthe C onve r s i on O r di na nc e a dve r s e l ya f f e c t e d i t . A c c or di ngl y , our de c i s i on i n McC lun g v. C i t y of Su m ner , 5 4 8 F .3 d 1 2 1 9 , 1 2 2 4 ( 9 th C ir . 2 0 0 8 ) , in w h ic h th e d is p u te w a s “c le a r ly d e f in e d a n d c o n c r e te ,” is n o t o n p o in t.3

S urf and S and al so cont ends thati t s r egul at ory t aki ng s c l ai m i s r i pe un der W i l l i am s on be c aus e a n appl i c a t i on t o c onve rtthe pa rk w oul d be f ut i l e . T hough our c a s e l a w doe s r e c ogni z e af ut i l i ty e xc e pt i on t o W

i l l i am s on ’ s ri p en ess req u i rem en t s, th a t e x c e p tio n a d d r e s s e s th e f u tilityo f s ta te c o m p e n s a tio n r e m e d ie s , n o t th e f u tility o f th e m u n ic ip a l p r o c e e d in g s a lle g e d to g iv e r is e to th e ta k in g . Se e H ac i e nda V a lle yMo b ile Es ta te s v . C ityo f Mo r g a n Hill , 35 3 F . 3d 65 1, 65 7-61 (9th C i r. 2 0 0 3 ). S u rf

an d S an d h as n o t all eg ed an y d ef icien cies in C alifo rn ia’s c o m p e n s a tio n r e m e d ie s , a n d th u s th e f u tilitye x c e p tio n is in ap p lic ab le h e r e . W e the r e f or e c onc urw i th the di s tr i c tc ourttha tS ur f a nd S a nd’ s r e gul a t ory t a ki ngs cl ai m i s notye tri pe. T he di stri ctcourt ’ s a dd i t i on al ho l di ng thatS urf and S and fai l ed t o st at e a cl ai m for are gu l at ory t aki ng i s a l so soun d. U nd er P e nn C e ntr al T r ans por tat i on C o . v . N e w Y o rk C ity , 4 3 8 U . S . 1 0 4 (1 9 7 8 ), a p l ai n t i ff m u std em o n strat e atl east s o m e a d v e r s e im p a c t, e v e n in af a c ia l c h a lle n g e . S u r f

a n d S a n d h a s n o t s h o w n a n y . T h e C ity h a s n o t y e t d e n ie d S u r f a n d S a n d th e o p p o rtu n ityto c o n v e rt th e p a rkto r e s id e n t o w n e r s h ip . F or si m i l arre as on s, S urf and S and canno tes t abl i sh thatthe C i ty has ef fe ctuat ed a pri vat e t aki ng i n v i ol at i on of the F i fth A m endm ent ’ s “ pu bl i c use ”4

r e qui r e m e ntby tr a ns f

e rr i ng the va l ue of

the pr ope rty f

r om the ow ne r s t o the r e n te r s . Se e Ke lo v . C i t

yof N e w L ondon , 5 4 5 U .S . 4 6 9 ( 2 0 0 5 ) . T he di s tr i c tc ourta l s o c orr e c t l y di s m i s s e d S ur f a nd S a nd’ s c l a i m s tha tthe C onve r s i on O r di na nc e vi ol a t e d i t s s ubs t a nt i ve due pr oc e s s and e qua l pr ot e c t i on r i ght s . S ur f

a nd S a nd a r gue s tha tthe C i ty ’ s s t a t e d r e a s on f ora dopt i ng the C o n v e r s io n O r d in a n c e w a s n o t its a c tu a l r e a s o n , a n d th a t th e a c tu a l r e a s o n is c ons t i tut i ona l l y i m pr ope r . T he C i ty ’ s a c tua l m ot i va t i on, how e ve r , i s i rr e l e va nt unde rr a t i ona l ba s i s r e vi e w ; thi s c ourta s ks onl y “ w he the rthe gove rnm e nt a l body c o u ld h a v e h a d n o le g itim a te r e a s o n f o rits d e c is io n .” R i c hards on v . C i t yand C o u n tyo f H o n o lu lu , 124 F . 3d 1150, 1162 ( 9th C i r . 1997) ( i nt e rna l quot a t i ons om i tt e d) . T he C onve r s i on O r di na nc e s e rve s al e gi t i m a t e purpos e i n pr e ve nt i ng e v a s io n o f

r e n t c o n tr o l la w s . Se e E qui t yL i f e s t y le P r ops . , I

nc . v . C ount

yof San L uis O bis

po , 54 8 F . 3d 11 84 , 11 94 (9th C i r. 20 08 ) ( re cogn i zi ng re ntcontrol l aw s a s r a tio n a lly r e la te dto ale g itim a te p u b lic p u rp o s e ) . T he di s tr i c tc ourtpr ope r l y di s m i s s e d the “ c l a s s of one ” e qua l pr ot e c t i on cl ai m . S urf and S and’ s c om pl ai ntdo es no tal l ege f ac t s thatw ou l d est abl i sh that the m e r e e na c tm e ntof

the C onve r s i on O r di na nc e r e s ul t e d i n S ur f a nd S a nd s u f f e r in g in te n tio n a l, d if

f e r e n tia l, a n d irr a tio n a l tr e a tm e n t b y th e C ity , in c o m p a r is o n to as im ila r ly s itu a te d g r o u p . See V i l lag e of W i l low broo k v . O lec h , 5285

U .S . 5 6 2 , 5 6 4 ( 2 0 0 0 ) ; L az yY R anc h L td. v . B e hr e ns , 54 6 F . 3d 58 0, 58 9 (9th C i r. 2 0 0 8 ) .A F F I R M E D .