Court Opinion

ID: 9720023
Source: CourtListenerOpinion
Date Created: 2023-08-26 08:12:57.348898+00
Date Added: 2024-06-11T12:50:29.533620
License: Public Domain

*1053WALLIN, J.,
Dissenting. — Read my lips! No tall houses! No blocked views! That is what petitioners, the neighborhood property owners, contend Southwest promised during meetings with them to discuss Southwest’s proposed development. But, say petitioners, Southwest reneged by obtaining approval of plans to import fill dirt to raise the height of some building sites and by obtaining building permits for houses as tall as two stories. Petitioners are angry because their ocean views have been impacted to a greater degree than they expected.
The majority concludes these allegations adequately state a cause of action for a new tort which might be called “developer fraud.” I believe, however, that this tort does not exist in California and, since petitioners cannot allege justifiable reliance upon the representations of Southwest, the demurrer was properly sustained. In my view, the only remedies available to petitioners are those under the applicable land use statutes. (See Planning and Zoning Law, Gov. Code, § 65000 et seq.; Subdivision Map Act, Gov. Code, § 66410 et seq.; California Environmental Quality Act, Pub. Resources Code, § 21000 et seq.)
The county’s approval of the tentative tract map, development permit, conditional use permit and variance was an administrative or “ ‘quasi-judicial’” act. (Horn v. County of Ventura (1979) 24 Cal.3d 605, 614 [156 Cal.Rptr. 718, 596 P.2d 1134]; Topanga Assn. for a Scenic Community v. County of Los Angeles (1974) 11 Cal.3d 506, 517 [113 Cal.Rptr. 836, 522 P.2d 12].) But this appellation merely establishes the standards applied by the county in acting on the application and the procedures for judicial review of its decision. (See Horn v. County of Ventura, supra, 24 Cal.3d at p. 614; see also Topanga Assn. for a Scenic Community v. County of Los Angeles, supra, 11 Cal.3d at p. 517.) It does not accurately reflect the nature of the county’s, or any other agency’s, land use review and approval process. (See Pacifica Corp. v. City of Camarillo (1983) 149 Cal.App.3d 168, 176 [196 Cal.Rptr. 670].)
The process by which development approvals are obtained is a political one. (Kaufman v. Fidelity Fed. Sav. & Loan Assn. (1983) 140 Cal.App.3d 913, 920 [189 Cal.Rptr. 818].) Vigorous political debate and long, often acrimonious, public hearings before planning commissions, boards of supervisors and city councils concerning development approvals are a common occurrence. Political candidates identify themselves as “pro-growth,” “slow-growth” or “no-growth” during every election campaign. Developers and their opponents routinely lobby elected officials, their staff, and the public concerning pending development proposals. Southwest was no exception.
*1054It would be,difficult, if not impossible, to justify reliance on representations made by participants in the political process. In Kaufman v. Fidelity Fed. Sav. & Loan Assn., supra, 140 Cal.App.3d 913, it was alleged the applicant for a zone change made false, and therefore libelous, statements about an opponent of the rezoning. The court concluded the statements were not actionable because they were made while the parties were engaged in “the political process of influencing zoning officials.” (Id. at p. 920.) Any allegedly libelous statements made during the attempt to influence that decision were merely opinions going to the merits of a matter under public scrutiny. Similarly, in Chavez v. Citizens for a Fair Farm Labor Law (1978) 84 Cal.App.3d 77 [148 Cal.Rptr. 278], the court rejected a cause of action for deceit based on misrepresentations to the electorate during a campaign against an initiative measure.
Furthermore, petitioners had no right to rely on Southwest’s representations regarding what would be presented to and approved by the county. In Borba v. Thomas (1977) 70 Cal.App.3d 144 [138 Cal.Rptr. 565], the court concluded the purchaser of property could not rely on the seller’s representations concerning prospective actions by a public agency. “Absent some special relationship between the parties, a private person is not entitled to rely on the opinion of another private person concerning the future decisions of a public body.” (Id. at p. 154.)
Southwest’s plans were finally approved only after several noticed public hearings. Any objections should have been presented by petitioners in the public forum. Typically these hearings are continued whenever significant objections are presented to allow the developer, the project’s opponents and the public agency’s planning staff to resolve the dispute. But no developer will dare to participate in any off-the-record discussions, so long as the new tort created by the majority is recognized. Any conferences with neighbors will become grist for the mill of a fraud lawsuit filed long after the development is completed if even one neighbor abhors the plan approved by the public agency. Indeed, an objecting neighbor who decides to remain blissfully ignorant by avoiding the many public forums for presenting his or her grievances will have a better fraud case than someone who attends the hearings and presents arguments opposing the development before it is approved by the planning commission, board of supervisors, city council or other public agency.
Petitioners’ failure to pursue the available statutory remedies is a further reason for denying relief. The legislative scheme provides remedies under the Planning and Zoning Law (Gov. Code, § 65000 et seq.), the Subdivision Map Act (Gov. Code, § 66410 et seq.), and the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) through an action to set *1055aside the county’s approval of the project. These statutes preclude a common law action for fraud based on the oral misrepresentations of the applicant for development approvals. A statutory remedy supplants the common law when it appears that the Legislature intended to occupy the field. (I. E. Associates v. Safeco Title Ins. Co. (1985) 39 Cal.3d 281, 285 [216 Cal.Rptr. 438, 702 P.2d 596].) The majority concludes that these statutory remedies are inapplicable because this action is against the developer Southwest, not the public agencies. I disagree.
A fraud action with its attendant punitive damages, even if unsuccessful, will have severe economic consequences on any project. No property owner, despite complying with every legal requirement to obtain the right to build, can rest until the fraud statute of limitations runs. Not surprisingly, the majority cites no cases holding such a tort exists in California.
The power to approve Southwest’s project rests solely with the county’s agencies, subject to the applicable zoning and land use laws. Petitioners do not allege the development is illegal. Apparently it conforms to the zoning and land use laws and the approvals obtained. Allowing unhappy neighbors to pursue a fraud action against a property owner for the tort of building a structure on its property which was approved by the responsible public agency amounts to granting a veto power over local land use decisions after a project is completed.
Other than through enforcement of private covenants, conditions and restrictions, adjoining homeowners have no power to approve or reject a project, although their input is usually sought by the public agency. In the Planning and Zoning Law (Gov. Code, § 65000 et seq.), the Legislature has enacted a scheme which severely restricts the ability of private citizens to challenge development approvals. With rare exceptions, only those issues raised by the challenger before the public agency during the approval process may be advanced in court (Gov. Code, § 65009), and strict time limits are specifically mandated to avoid the tremendous additional cost of delay and uncertainty to any property owner seeking to improve his or her property. (See, e.g., Gov. Code, § 65907 [court challenges to zoning decisions must be commenced within 90 days and are entitled to calendar priority]; Gov. Code, § 65921; Pub. Resources Code, § 21167 et seq.)1 *1056In establishing such restrictive limitations on the ability of citizens to attack a development approval, the Legislature has expressed a strong intent to provide for judicial remedies while ensuring that development will not be halted by the specter of lengthy litigation. Government Code section 65009 declares this intent: “(a)(1) The Legislature finds and declares that there currently is a housing crisis in California and it is essential to reduce delays and restraints upon expeditiously completing housing projects. [|] (2) The Legislature further finds and declares that a legal action challenging a decision of a city, county, or city and county has a chilling effect on the confidence with which property owners and local governments can proceed with projects. Legal actions filed to attack, review, set aside, void, or annul a decision of a city, county, or city and county pursuant to this division can prevent the completion of needed developments even though the projects have received required governmental approvals, [fl] (3) The purpose of this section is to provide certainty for property owners and local governments regarding decisions made pursuant to this division.”
The petitioners’ action, brought long after the time for challenging the development, is tantamount to a back door challenge to the approvals previously obtained. The majority’s approval of petitioners’ fraud complaint creates a new tort and erects a new barrier to a development duly approved by the responsible public agency. The clear intent of the Legislature in establishing strict time limits was to assure that, after the period for judicial review, development could proceed. The majority’s holding means that builders who have run the gauntlet of the time-consuming planning process and the post approval period for court challenges will now face new tort liability following completion of the project if any of the neighbors are unhappy with the result.
The harm claimed by the petitioners was caused by a land use decision made by the county in public hearings, not by the conduct of Southwest. No doubt petitioners would prefer to restore the Dana Point coastline to the pristine vista encountered by Richard Henry Dana more than 150 years ago. Today land use decisions are made by local agencies in noticed public hearings. A property owner who constructs an improvement in compliance with the approvals obtained does not commit a tort against its neighbors.
*1057The trial court’s order sustaining the demurrer was correct. I would deny the writ.
The petition of real parties in interest for review by the Supreme Court was denied September 26, 1991.

Similarly, “The Subdivision Map Act (Gov. Code, §§ 66410-66499.37) regulates the subdivision of real property and vests the power to regulate and control the design and physical improvements of a subdivision in the local governmental authority where the property is located. (California Coastal Com. v. Quanta Investment Corp. (1980) 113 Cal.App.3d 579, 588 [170 Cal.Rptr. 263].)” (Adler v. Elphick (1986) 184 Cal.App.3d 642, 646 [229 Cal.Rptr. 254].) Any action brought to challenge the approval of a subdivision must be *1056brought within 90 days of the approval by the public agency. (Gov. Code, § 66499.37.) Any action to challenge the environmental approvals for a development project must be brought within the time periods set forth in Public Resources Code section 21167, and the hearing on such a challenge must be given preference “to the end that all such actions shall be quickly heard and determined.” (Pub. Resources Code, § 21167.1.)