2010 Alerts

Unlicensed Contractors Be Warned: Your Clients Will Be Entitled to Reimbursement for All Amounts Paid
April 13, 2010

Alatriste v. Cesar's Exterior Designs, Inc. (2010) 2010 DJDAR 5125 is the most recent example of how far the courts will go to protect consumers from unlicensed contractors. Read more.

2009 Alerts

Broker Held Entitled to Commission Even Without Completed Sale
October 8, 2009

In RC Royal Development and Realty Corporation v. Standard Pacific Corporation (2009) 2009 DJDAR 14254, the appellate court held that a buyer's broker had earned its commission at the time that the buyer entered into a purchase contract, and that the close of escrow was not a condition to the obligation to pay that commission. Read more.

Easements by Necessity Do Not Apply to Public Lands
July 18, 2009

Easements by necessity are probably not available when the subject properties' common ownership was governmental. In Murphy v. Burch (2009) 2009 DJDAR 5929, the appellate court would not find an "easement by necessity" over an existing private road crossing the defendants' property because the federal government had not reserved a right of access over defendants' property when it conveyed that property to defendants' predecessors.  Read more.

California Continues Trend of Not Recognizing Historic Subdivision Parcels
July 18, 2009

Abernathy Valley, Inc. v. County of Solano (2009) 2009 DJDAR 5497, is the most recent of a series of California court rulings limiting the application of certificates of compliance. Read more.

Mechanics Liens Apply to Demolition Work
July 14, 2009

In United Rentals Northwest, Inc. v. Snider Lumber Products, Inc., 174 Cal.App. 4th 1479 (2009), California's Fifth Appellate District recently held that an equipment lessor who provided equipment used to demolish lumber drying kilns at a sawmill in Tuolumne County could utilize the mechanics' lien remedy. Read more.

Appellate Court Rules on 'Usable Space' Under Commercial Leases
March 5, 2009

In Muzzi v. Bel Air Mart (2009) 2009 DJDAR 2590, the appellate court found that Bel Air's storage of bread racks and other items in parking spaces was not permissible under lease provisions permitting the loading and unloading of merchandise. Read more.

Court Provides New Interpretation of Exclusive Easements
February 19, 2009

In the recent decision of Gray v. McCormick, 167 Cal. App. 4th 1019 (2008), the Court of Appeal ruled that any use of the surface area of an easement by the servient tenement was inconsistent with the “exclusive” rights granted to the dominant tenement. Read more.

Drafting Error Leads to Invalidating Purchase Agreement Under Subdivision Map Act
February 19, 2009

In Sixells, LLC v. Cannery Business Park, 170 Cal. App. 4th 648 (2009), the appellate court found a real estate purchase contract to have violated the Subdivision Map Act because it allowed the purchaser to either complete a subdivision map creating a four-acre parcel, or alternatively to waive the recording of the map and complete the purchase without the creation of the separate legal parcel. Read more.

Caution for Landlords on Permissible CAM Charges
February 10, 2009

Commercial landlords who wish to pass through to tenants as common area maintenance ("CAM") charges the gross receipts fees payable for their limited liability companies should carefully review their leases to determine whether that is permissible.  Read more.

California Reforms Subcontractor Defense Obligations in Residential Construction
January 26, 2009

Assembly Bill 2738, which was signed into law by Governor Schwarzenegger on September 27, 2008 and took effect on January 1, 2009, provides new protection for subcontractors with respect to their defense obligations for construction defects in residential construction.  Read more.

Insurance Subrogration Waivers: Potential Trap for Landlords
January 26, 2009

In a caution to landlords about the importance of ensuring their tenants' compliance with insurance provisions in lease documents, a court recently held, in Fireman's Fund Insurance Company v. Sizzler USA Real Property, Inc., that a commercial lease's subrogation waiver provision barred the landlord's insurance company's subrogation claim against the subtenant, even though the subtenant failed to comply with the insurance requirements set forth in the lease. Read more.

2008 Alerts

Appellate Court Limits Recognition of Older Subdivisions
August 27, 2008

It was once thought that California's Subdivision Map Act's grandfather clause gave legal recognition to any lot depicted on an old subdivision map so long as that map complied with, or was exempt from, the subdivision laws in effect at the time. That belief is no longer true as in recent years the courts have narrowed the scope of the Map Act's grandfather clause.

 Read more.

California Extends Life of Subdivision Maps
July 18, 2008

Senate Bill 1185, signed into law on July 15, 2008, extends the expiration date of any approved tentative or vesting tentative subdivision map or parcel map set to expire on July 15 or later by one year. The bill also gives local governments the discretion to extend the life of tentative maps for an additional year beyond the automatic extension.  Read more.

California Enacts New Foreclosure Protection Law
July 14, 2008

On July 8, 2008, Governor Schwarzenegger signed into law Senate Bill 1137. The new law, effective immediately, substantially changes the procedures lenders and servicers are required to follow prior to foreclosing on mortgages on owner-occupied residences made between January 1, 2003 and December 31, 2007. Read more.

2007 Alerts

Holdover Tenants May Be Liable To Incoming Tenants
April 20, 2007

A recent ruling potentially adds a new layer of protection for landlords. Read more.

Challenge to California Taxes on Limited Liability Companies
January 29, 2007

A recent California Superior Court decision found that California’s taxes on the gross receipts of limited liability companies is unconstitutional. Read more.

Care in Drafting Contracts to Comply with State Map Act
January 22, 2007

Developers intending to enter purchase and sales agreements for portions of land not already subdivided must take great care in the drafting of those agreements.  Read more.

2006 Alerts

Branciforte Heights v. Santa Cruz: City May Deny Open Space Credit Against Parkland Dedication Requirements
May 25, 2006

In what will come as a surprise to many California developers, the Court of Appeal for the Sixth District ruled last month that the Quimby Act’s provision that private open space “shall be eligible” for a credit against parkland dedication is only discretionary, not mandatory, with the local agency charged with implementing the Act. Branciforte Heights, LLC. v. City of Santa Cruz, 138 Cal.App.4th 914 (2006). Read more.

Supreme Court Limits Developer’s Remedies in Challenge to Building Permit Fees
April 19, 2006

The California Supreme Court issued its decision in Barratt American, Inc. v. City of Rancho Cucamonga, 37 Cal. 4th 685 (2005), a case closely watched by the building industry, in which a home builder sued a city for charging excessive fees for building permits and inspections.  Read more.

2005 Alerts

Supreme Court Removes Obstacle to Land Use Challenges
November 18, 2005

In Travis v. County of Santa Cruz, 33 Cal. 4th 757 (2004), the California Supreme Court removed a significant procedural obstacle to developers attempting to challenge certain development conditions or exactions. Read more.