Martin v. Bridgeport Community Association
(2009) 173 Cal.App.4th 1024
COUNSEL
Law Offices of David L. Hoffman and David L. Hoffman for Plaintiffs and Appellants.
Kulik, Gottesman, Mouton & Siegel, Leonard Siegel, Francesca Dioguardi and Thomas Ware for Defendant and Respondent.
OPINION
JACKSON, J.—
tiffs James A. Martin and his wife, RaeAnn, appeal from a judgment
against them, including the award of attorney's fees and costs, entered
after the trial court sustained a demurrer in favor of defendant
Bridgeport Community Association. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND fn. 1
Richard and Rachel Peterson (the Petersons) purchased a home constructed
by Richmond American Homes (Richmond) in a planned development
community named Bridgeport in Santa Clarita at 23944 Windward Lane, lot
33 (the Property). The Bridgeport Community Association (BCA) was the
homeowners association responsible for managing the common areas and
enforcing the Master Declaration of Covenants, Conditions, and
Restrictions for Bridgeport (the CC&Rs) and Rules and Regulations
(the R&Rs) for the community.
Pursuant to an arrangement with the Petersons, James Martin and his
wife, RaeAnn (the Martins), agreed that the Martins would live at the
Property and [173 Cal.App.4th 1028] pay all the costs involved
with the Property, including the mortgage payments. RaeAnn Martin is the
Petersons' daughter. They also agreed that the Martins would deal
directly with BCA on any issues regarding the Property. The Petersons
executed a power of attorney to that effect, which was accepted by BCA.
The Petersons agreed to assign all their rights, title, and interest in
their causes of action stated in the FAC to the Martins.
During construction of the home on the Property, the Petersons and the
Martins observed that the size of lot 33 where the construction was
occurring was smaller than represented in the purchase transaction.
Richmond agreed to move the northern property line 10 feet to include
approximately 5593 square feet within the lot 33 lot lines (Adjustment
Area). This required two separate lot line adjustments (Lot Line
Adjustment #1 and Lot Line Adjustment #2). Before either adjustment
could be completed, Richmond transferred the Adjustment Area to BCA as
part of the common area.
As the result of negotiations with BCA by the Martins on behalf of the
Petersons, BCA agreed to deed the Adjustment Area to the Petersons under
certain terms and conditions (BCA Lot Line Agreement), as shown by a
May 8, 2004 letter from Nancy O'Neil on behalf of the BCA Board of
Directors and an August 10, 2004 letter from the attorney for BCA. fn. 2
Both letters were addressed to the Martins. The Martins accepted the
terms of the agreement proposed by BCA on behalf of themselves and the
Petersons. Both letters represented that the BCA board had agreed to
completing the Lot Line Adjustment #2 and the transfer of land, subject
to the conditions that the homeowners would pay BCA's attorney's fees to
prepare and execute the necessary documents and the homeowners would
pay for the relocation of the common area sprinklers from the Adjustment
Area.
After receiving notice of BCA's agreement, the Martins invested money
for fencing, landscaping and the importation of dirt on the Adjustment
Area. The Martins also represented that the Petersons were not able to
landscape and hardscape their front yard because they did not yet have
ownership of the Adjustment Area and thus lost use of the yard for more
than four years.
After lengthy delays, the City of Santa Clarita (City) approved Lot Line
Adjustment #1. When BCA did not thereafter cooperate in order to begin [173 Cal.App.4th 1029]
the required City-approval process for Lot Line Adjustment #2, the
Martins sought specific performance of the BCA Lot Line Agreement by
filing the instant lawsuit on October 20, 2006. The original complaint
named the Petersons and the Martins as the plaintiffs and BCA as the
defendant. BCA filed a demurrer to the complaint, in part on the ground
that the Martins lacked standing.
Then the Martins filed the FAC, the operative complaint in this action.
The FAC named only the Martins as the plaintiffs. The first cause of
action was for damages for breach of, and the second cause of action was
for specific performance of, the BCA Lot Line Agreement. As a part of
the allegations, the Martins requested that the court order BCA "to
transfer title and cooperate in the approval and transfer of title to
the property regarding Lot Line Adjustment #2 to Plaintiffs [the
Martins]."
The third cause of action was for breach of the R&Rs of, and the
fourth cause of action was for breach of the CC&Rs of, the
Bridgeport Community. The fifth cause of action was for violation of
Civil Code section 1363 et seq. fn. 3
The sixth cause of action was for intentional infliction of emotional
distress. In part, the Martins alleged BCA took certain actions "in
order to punish, and retaliate against, the Plaintiffs [the Martins] for
enforcing their rights with respect to the Property."
The seventh cause of action was for negligence arising from the duty of
BCA to the Martins, "as residents and members of the BCA," to use
reasonable care in maintaining the common areas. The eighth cause of
action was for negligence per se for violation of sections 1363 and
1364.
At the hearing on July 16, 2007, the trial court ruled that the demurrer
to the FAC was sustained with leave to amend as to the first through
the fifth, and the seventh and eighth causes of action, on the ground
that the Martins lacked standing. With regard to the scope of the leave
to amend, the trial court stated: "I am going to allow [plaintiffs'
counsel] leave to amend to bring in the Petersons, and I will give
[counsel] one last shot at seeing if there's any other claims the
Martins have that can be pled." As to the sixth cause of action, the
trial court sustained the demurrer without leave to amend, on the ground
that the facts did not support a finding of sufficiently outrageous
conduct as is necessary for recovery based upon intentional infliction
of emotional distress. fn. 4 [173 Cal.App.4th 1030]
The second amended complaint (SAC) was filed on August 6, 2007. The
Petersons were the only named plaintiffs. They alleged only four causes
of action: first cause for breach of the R&Rs, second cause for
breach of the CC&Rs, third cause for violation of sections 1363 and
1364, and fourth cause for negligence per se based on the violation of
the same statutes.
BCA filed a demurrer to the SAC. After hearing on December 10, 2007, the
trial court sustained the demurrer with leave to amend as to the first,
second and third causes of action on the ground of failure to allege
sufficient facts to support the causes of action. The court sustained
the demurrer to the SAC without leave to amend as to the fourth cause of
action.
The Petersons filed the third amended complaint on January 4, 2008. Only the Petersons were named as plaintiffs.
Also on January 4, 2008, BCA filed a request that the court enter
judgment against the Martins in favor of BCA. The request represented
that on July 16, 2007, the trial court granted BCA's demurrer to the FAC
"without leave to amend," except leave to amend to substitute the
Petersons, as the real parties in interest, for the Martins as
plaintiffs, and the Petersons filed the SAC.
BCA also filed a motion for an award of attorney's fees pursuant to
sections 1354, subdivision (c), and 1717, subdivision (a). The trial
court granted BCA's motion for award of attorney's fees in the amount of
$29,371.39 for defense against the Martins. The trial court entered
judgment in favor of BCA against the Martins and included the award of
attorney's fees and costs to BCA. fn. 5
DISCUSSION
The Martins contend that trial court erred in sustaining BCA's demurrer
on the ground that they lacked standing to assert the first through
fifth, seventh and eighth causes of action. They claim they had standing
as to all the causes of action, in that the Petersons assigned "all of
their rights, title, and interest in their causes of action stated in
the First Amended Complaint . . . to the Martins." As to individual
causes of action, the Martins also [173 Cal.App.4th 1031] present
other grounds upon which they contend they have standing. The Martins
further claim that the trial court erred in including in the judgment an
award of attorney's fees and costs pursuant to section 1354. We
disagree and affirm the judgment.
I. Standard of Review
When a demurrer is sustained by the trial court, we review the complaint
de novo to determine whether, as a matter of law, the complaint states
facts sufficient to constitute a cause of action. (Zelig v. County of Los Angeles (2002) 27 Cal.4th 1112,
1126.) Reading the complaint as a whole and giving it a reasonable
interpretation, we treat all material facts properly pleaded as true. (Ibid.)
The plaintiff has the burden of showing that the facts pleaded are
sufficient to establish every element of the cause of action and
overcoming all of the legal grounds on which the trial court sustained
the demurrer, and if the defendant negates any essential element, we
will affirm the order sustaining the demurrer as to the cause of action.
(Cantu v. Resolution Trust Corp. (1992) 4 Cal.App.4th 857,
879-880.) We will affirm if there is any ground on which the demurrer
can properly be sustained, whether or not the trial court relied on
proper grounds or the defendant asserted a proper ground in the trial
court proceedings. (Id. at p. 880, fn. 10.)
A trial court has discretion to sustain a demurrer with or without leave to amend. (Zelig v. County of Los Angeles, supra,
27 Cal.4th at p. 1126.) If we determine that the plaintiff has met its
burden to demonstrate that a reasonable possibility exists that the
defect can be cured by amendment of the pleading, then the trial court
has abused its discretion in denying leave to amend and we reverse the
denial. (Ibid.) Otherwise, we affirm the judgment on the basis that the trial court has not abused its discretion. (Ibid.)
[1] Standing is the threshold element required to state a cause of
action and, thus, lack of standing may be raised by demurrer. (Buckland v. Threshold Enterprises, Ltd. (2007) 155 Cal.App.4th 798, 813; Blumhorst v. Jewish Family Services of Los Angeles (2005) 126 Cal.App.4th 993,
1000.) To have standing to sue, a person, or those whom he properly
represents, must "'have a real interest in the ultimate adjudication
because [he] has [either] suffered [or] is about to suffer any injury of
sufficient magnitude reasonably to assure that all of the relevant
facts and issues will be adequately presented.' [Citation.]" (Schmier v. Supreme Court (2000) 78 Cal.App.4th 703,
707.) Code of Civil Procedure section 367 establishes the rule that
"[e]very action must be prosecuted in the name of the real party in
interest, except as otherwise provided by statute." [2] A real party in
interest is one who has "an actual [173 Cal.App.4th 1032] and
substantial interest in the subject matter of the action and who would
be benefited or injured by the judgment in the action." (Friendly Village Community Assn., Inc. v. Silva & Hill Constr. Co. (1973) 31 Cal.App.3d 220, 225.) Upon review of action on a demurrer, we review the determination of standing de novo.
II. Standing
The Martins' causes of action relate to BCA's actions with regard to, or
duties with respect to, the Property, that is, lot 33 owned by the
Petersons, as part of a planned development subject to the
Davis-Stirling Act. The causes of action other than the first and second
seek either the enforcement of governing documents of the development,
including its CC&Rs and R&Rs, or redress for violations of the
Davis-Stirling Act. The Martins did not claim to have, and the record
does not show that the Martins ever had, any ownership interest in the
Property. As we explain below, ownership in the Property is a
prerequisite to standing to assert each of the causes of action as each
seeks redress for violations of rights of the owners of the Property,
for which the causes of action are not assignable to the Martins.
[3] The Martins contend they have standing on the basis that the
Petersons assigned to them all the Petersons' interests in the causes of
action pursuant to section 954, fn. 6
which permits an owner of a chose in action to assign it to another
person where it arises "out of the violation of a right of property, or
out of an obligation." Such types of choses in action include, for
example, breach of contract or damage to personal or real property. (Curtis v. Kellogg & Andelson (1999) 73 Cal.App.4th 492,
504; 1 Witkin, Summary of Cal. Law (10th ed. 2005) Contracts, § 720, p.
805.) Exceptions to the general rule of assignability under section 954
are choses in action for wrongs done to the person, the reputation or
the feelings of the injured party, and to contracts of a purely personal
nature, like promises of marriage. (Fireman's Fund Ins. Co. v. McDonald, Hecht & Solberg (1994) 30 Cal.App.4th 1373, 1381.)
Assignability under section 954 is limited to "a thing of action," a
term defined in section 953 as "a right to recover money or other
personal property by a judicial proceeding." By definition, "[t]he words
'personal property' include money, goods, chattels, things in action,
and evidences of debt," and do not include "lands, tenements, and
hereditaments," which instead are "real property." (§ 14.) [173 Cal.App.4th 1033]
A. First and Second Causes of Action
The first cause of action for breach of the BCA Lot Line Agreement and
the second cause of action for specific performance of the Agreement
involve a right to recover an ownership interest in real property and
not "a right to recover money or other personal property." (§ 953.)
Thus, contrary to the Martins' contentions, the first and second causes
of action were not choses of action assignable under section 954. They
could be brought only by the real parties in interest, the Petersons.
(Code Civ. Proc., § 367.)
The Martins also claim they had standing as parties to, or third party beneficiaries of, the BCA Lot Line Agreement. fn. 7
They rely on the facts that they negotiated the agreement and lived on
the property which was affected, and "accepted the terms of the
agreement . . . on behalf of themselves and the Petersons." Also, they
claim that the letters from the BCA board of directors' representative
and BCA's attorney show they were parties, in that the letters were
addressed to them and phrased as if they were parties.
In the FAC, however, the Martins admitted that the Petersons were the
owners of the Property and the parties to be bound by the Agreement, and
that the Martins' related actions were "on behalf of the Petersons." In
the first cause of action, the Martins state that BCA "agreed in
writing to accept the offer made by the [Martins] on behalf of the
Petersons at a board meeting[] . . . , to have [BCA] deed the property
contained in Lot Line Adjustment #1 and Lot Line Adjustment #2, to the
Petersons (collectively, the 'BCA Lot Line Agreement') under certain
terms and conditions. . . . The Martins accepted the terms of the
agreement . . . on behalf of themselves and the Petersons." As a result
of BCA's actions, "the Petersons were not able to landscape and
hardscape their front yard . . . and side yard because they do not yet
have their ownership of" the Adjustment Area. "As a result they have
lost usage of their usable yard for more than four years . . . ."
As the quoted material from the FAC shows, the Martins also admitted
that specific performance would require BCA to deed the Adjustment Area
to the Petersons, not to the Martins. Thus, they had no standing to
assert a cause of action, as they did, seeking specific performance of
the Agreement "to transfer title and cooperate in the approval and
transfer of title to the property . . . to Plaintiffs [i.e., the
Martins]." [173 Cal.App.4th 1034]
[4] The same facts that show that the Martins were not parties to the
Agreement also show that the Martins were not intended to be third party
beneficiaries of the Agreement. In order to qualify as third party
beneficiaries, the Martins were required to plead and prove that the
Agreement was made for their benefit. (Schonfeld v. City of Vallejo (1975) 50 Cal.App.3d 401,
420.) "'The test in deciding whether a contract inures to the benefit
of a third person is whether an intent to so benefit the third person
appears from the terms of the agreement . . . .' [Citation.]" (Ibid.)
The fact that a third party is incidentally named in the contract, or
that the contract, if carried out according to its terms, would inure to
his benefit, is not sufficient to entitle him to enforce it. (Jones v. Aetna Casualty & Surety Co. (1994) 26 Cal.App.4th 1717,
1724-1725.) Reading the agreement as a whole in light of the
circumstances under which it was made, the terms of the agreement must
clearly manifest an intent to make the obligation inure to the benefit
of the third party. (Id. at p. 1725; Schonfeld, supra, at p. 421.)
The Martins did not attach a signed written Agreement to the FAC.
Neither did they quote the terms of the Agreement in the body of the
FAC. Even if we assume that the facts pleaded were sufficient to allege
an enforceable contract, as we previously discussed, the facts pleaded
by the Martins were that the BCA Lot Line Agreement was made in order to
require the BCA to deed the Adjustment Area to the Petersons, and the
Martins' role was to negotiate the Agreement on behalf of the Petersons.
Given their role, there is no significance to the fact that the letters
from BCA's board and attorney were addressed to the Martins. (See Jones v. Aetna Casualty & Surety Co., supra,
26 Cal.App.4th at pp. 1724-1725.) The letter from BCA's board stated
that the board approved the request for the "corner of your lot to be
deeded over to you [i.e., the Petersons]" on the condition that the
"homeowners" would bear the financial responsibility for costs of legal
fees and moving the common area sprinklers from the lot to the common
area. The references to "your lot," "deeded over to you," and the
"homeowners" could only be intended to be to the Petersons, in that the
Martins owned no lot and were not homeowners in the Bridgeport
Community. Assuming that the letter correctly reflects the content of
the Agreement, there is nothing in its terms that clearly manifests an
intent by BCA or the Petersons to make the obligation inure to the
benefit of the Martins. We conclude that the facts pleaded do not
support a determination that the Martins are third party beneficiaries
of the BCA Lot Line Agreement. (Id. at p. 1725; Schonfeld v. City of Vallejo, supra, 50 Cal.App.3d at p. 421.)
[5] The Martins further contend that "[w]hether or not the property of
[Lot Line Adjustment] #2 could be deeded to the Martins, they were
entitled to at least receive an assignment of the damages." As the
Martins assert, a [173 Cal.App.4th 1035] claim for damages to real property may be assigned without transferring title or possession of the damaged property. (Stapp v. Madera Canal & Irr. Co.
(1917) 34 Cal.App. 41, 46.) In their prayer for relief, the Martins
included a general request for damages as to all causes of action, but
in the first and second cause of action, however, the Martins did not
allege that the Petersons suffered monetary damages. fn. 8
B. Third Through Fifth, Seventh and Eighth Causes of Action
The third through fifth, seventh and eighth causes of action are
premised on duties BCA owed to the Petersons under the Bridgeport
governing documents or the Davis-Stirling Act pertaining to rights and
restrictions incident to ownership of real property. These are mutual
among all of the lot owners in Bridgeport. (Werner v. Graham
(1919) 181 Cal. 174, 183-184.) What is at issue is the right of
enforcement of the governing documents and the Davis-Stirling Act.
The Martins contend that, under the CC&Rs and sections 1351, 1354
and 1363 et seq., they are "bound parties" and, as such, have standing
to enforce the CC&Rs and R&Rs. fn. 9
They argue that, under the CC&Rs definitions, "bound parties"
include "all occupants, guests and invitees of any Unit," and therefore,
the CC&Rs allow enforcement by them in their capacity as occupants.
(See CC&Rs, art. III, § 3.1(e).) They assert that their standing to
enforce the CC&Rs is also shown by the fact that the CC&Rs
require the owner of a Unit to provide his or her lessee with copies of
the governing documents. (See CC&Rs, art. III, § 3.1(c).) In support
of their contention, they cite legal authority only for the proposition
that CC&Rs are interpreted like a contract. (Cebular v. Cooper Arms Homeowners Assn. (2006) 142 Cal.App.4th 106, 119.)
We agree that the Martins are "bound parties" as defined in the
CC&Rs. They are subject to compliance with the restrictions in the
governing documents. That status is different from being an owner of a
separate interest who, by virtue of his ownership, is also a BCA member.
Section 1354 provides that CC&Rs "in the declaration shall be
enforceable equitable servitudes, unless unreasonable, and shall inure
to the benefit of and bind all [173 Cal.App.4th 1036] owners of
separate interests in the development. Unless the declaration states
otherwise, these servitudes may be enforced by any owner of a separate
interest or by the association, or by both." (Id., subd. (a).)
Subdivision (b) of section 1354 provides that "[a] governing document
other than the declaration may be enforced by the association against an
owner of a separate interest or by an owner of a separate interest
against the association." Section 1351, subdivision (l)(3) provides that "[i]n a planned development, 'separate interest' means a separately owned lot . . . ."
[6]In the instant case, as owners of lot 33, the Petersons qualify as
"an owner of a separate interest" entitled to enforce the CC&Rs, the
R&Rs and other governing documents of Bridgeport. (§§ 1351, subd. (l)(3),
1354, subds. (a), (b).) The Martins do not qualify. What is bound by an
equitable servitude enforceable under CC&Rs is a parcel, a lot, in a
subdivided tract, not an individual who has no ownership interest in
the lot. (See § 1354, subd. (a).) "'[W]hen the owner of a subdivided
tract conveys the various parcels in the tract by deeds containing
appropriate language imposing restrictions on each parcel as part of a
general plan of restrictions common to all the parcels and designed for
their mutual benefit, mutual equitable servitudes are thereby created in
favor of each parcel as against all the others.' [Citation.]" (Nahrstedt v. Lakeside Village Condominium Assn. (1994) 8 Cal.4th 361,
379-380.) Accordingly, the right of enforcement is inextricable from
ownership of real property--a parcel, a lot--in a planned development
such as Bridgeport and, thus, cannot be assigned absent a transfer of
ownership of the parcel to which it applies.
[7] The Petersons' Property and their membership in BCA, and
consequently the rights of enforcement and duties they are owed, are
indivisible interests under applicable law and Bridgeport governing
documents. Section 1358, subdivision (c), provides that, in a planned
development, any transfer of a separate interest includes the undivided
interest in the common areas and any transfer of the separate interest
owner's lot also includes membership in the association. Under the
CC&Rs, an owner is not allowed to subdivide a Unit or change its
boundary lines. (CC&Rs, art. III, § 3.1(d).) The CC&Rs state
that "[e]very Owner shall be a Member of [BCA]. There shall be only one
membership per Unit," regardless of the number of co-owners of the Unit.
(CC&Rs, art. VI, § 6.2; see also Corp. Code, § 7312.)
[8] The fifth and eighth causes of action are for relief based upon the
violation of provisions of the Davis-Stirling Act, sections 1363 and
1364. Section 1363 provides that a common interest development such as
Bridgeport must be managed by an association such as BCA and sets forth
duties and powers of the association. As previously explained,
membership in the association is limited to owners of separate
interests. Section 1364 [173 Cal.App.4th 1037] apportions
responsibilities for maintenance of the common interest development
between the association and owners of separate interests. As we
previously concluded, the Petersons' rights, including membership in
BCA, and the duties of BCA to the Petersons as owners of a separate
interest, lot 33, are not assignable, whether set forth in the
Bridgeport governing documents or in the Davis-Stirling Act.
The Martins cite no provision in the Davis-Stirling Act that authorizes
an owner or a member to assign any right or obligation to any third
party. The Martins mistakenly argue that section 1351 does not
specifically define the term "owner," which is used in section 1363 et
seq., and, therefore, they have standing to seek redress for violations
of sections 1363 and 1364. The references in section 1364, subdivisions
(a) through (c), however, are to an owner of a "separate interest,"
which is defined as noted in section 1351. Section 1364 clearly
differentiates between an owner and residents such as the Martins.
Section 1364, subdivision (e), states: "For purposes of this section,
'occupant' means an owner, resident, guest, invitee, tenant, lessee,
sublessee, or other person in possession on the separate interest."
Section 1364 primarily deals with the association's rights and
responsibilities, including notifying "occupants," with respect to the
presence of wood-destroying pests or organisms. (§ 1364, subds. (b),
(d).)
In the seventh cause of action for negligence, the Martins claimed that
BCA had a duty to them, "as residents and members," which BCA breached
by improper use and maintenance of the watering system, which caused
water damage to the Property. As previously discussed, they are not and
do not qualify as members of the BCA. By law under the Davis-Stirling
Act and equitable servitude principles applicable to the CC&Rs, only
owners are members of the BCA.
Citing Frances T. v. Village Green Owners Assn. (1986) 42 Cal.3d 490,
the Martins contend that BCA had a common law duty "to exercise due
care for the residents' safety in those areas under [the association's]
control," similar to a duty a landlord owes to his tenants. (Id.
at p. 499.) The duty they pleaded as being breached, however, was BCA's
duty to maintain the common grounds. That duty arises out of the
Davis-Stirling Act and the CC&Rs, not out of common law principles
of negligence. Thus, as we previously concluded, it is a duty owed only
to members of BCA, i.e., the owners.
The Martins argue that they suffered damages to their vehicle, personal
injury, loss of work, clean up due to the excess water, interference
with their peaceful enjoyment of the Property and loss of use and
enjoyment of the Property, and, therefore, have standing to bring
negligence claims against [173 Cal.App.4th 1038] BCA on the basis of nuisance and trespass under section 3479, the statutory definition of nuisance, and related law. fn. 10
These were not the elements the Martins pleaded as negligence, however.
The damage they asserted was to the Property owned by the Petersons due
to breach of a duty BCA owed to the Petersons.
Not being owners and, therefore, having no authority to enforce the
CC&Rs as equitable servitudes arising under the CC&Rs, the
Martins are not the real parties in interest for the seventh cause of
action and do not have standing to maintain the cause of action. (§
1354, subd. (a); Code Civ. Proc., § 367.)
[9] In summary, the causes of action are not assignable and the
Petersons, as owners of the Property, are the real parties in interest.
The Martins failed to establish standing under any of the other
arguments they advanced. Given that the causes of action are incidents
of the Petersons' ownership of the Property, and the Martins have no
ownership in the Property, we conclude that none of the causes of action
can be reasonably amended to give the Martins standing. Accordingly,
the court's action in sustaining the demurrer was proper.
The Martins were given leave to amend the complaint to state some other
cause of action for which the Martins may have had standing and to
substitute the Petersons as real parties in interest for the causes of
action at issue in this appeal. The SAC was filed, but the Martins did
not take the opportunity to state any such causes of action. Thus they
forfeited the right to do so and remain a part of the action. (Reynolds v. Bement (2005) 36 Cal.4th 1075, 1091.) Accordingly, the trial court properly entered judgment against the Martins in favor of BCA.
III. Attorney's Fees and Costs
[10] The Martins contend that the trial court erred in awarding
attorney's fees and costs to BCA. Section 1354, subdivision (c), states:
"In an action to enforce the governing documents, the prevailing party
shall be awarded reasonable attorney's fees and costs." The Martins
contend that, nevertheless, if the trial court's finding that they did
not have standing was based on the fact that they had no ownership in
the Property and the CC&Rs as well as the R&Rs are enforceable
only by the Property's owners under section 1354, [173 Cal.App.4th 1039]
then there was no basis for the fees and costs award. The mandatory
attorney's fees and costs award under section 1354, subdivision (c),
applies when a plaintiff brings an action to enforce such governing
documents, but is unsuccessful because he or she does not have standing
to do so. (Farber v. Bay View Terrace Homeowners Assn. (2006) 141 Cal.App.4th 1007,
1014.) Accordingly, we conclude that the trial court properly awarded
attorney's fees and costs to BCA for defense against the complaints in
which the Martins were named plaintiffs. (Ibid.)
DISPOSITION
The judgment, including the award of attorney's fees, is affirmed. BCA is to recover its costs on appeal.
Perluss, P. J., and Woods, J., concurred.
FN 1.
In reviewing the propriety of sustaining a demurrer, we "'treat the
demurrer as admitting all material facts properly pleaded, but not
contentions, deductions or conclusions of fact or law.'" (Blank v. Kirwan (1985) 39 Cal.3d 311,
318.) Accordingly, the statement of facts is based on the factual
allegations in the first amended complaint (FAC), which was the subject
of the demurrer at issue here.
FN 2.
The letter from the BCA board's representative stated: "The Board
considered your request for the additional parcel of land that includes
the triangle-shaped piece of land on the northwest corner of your lot to
be deeded over to you. The Board granted your request with the
following conditions: [¶] 1. The homeowners will be financially
responsible for the legal fees of [BCA's] attorney to prepare and
execute the necessary documents. [¶] 2. The homeowners will be
financially responsible for the cost of moving the common area
sprinklers to the common area by [BCA's] landscape maintenance company."
FN 3.
Section 1363 et seq. is a part of the Davis-Stirling Common Interest
Development Act (Davis-Stirling Act) codified in the Civil Code
beginning at section 1350. Further statutory references are to the Civil
Code, unless otherwise identified.
FN 4. The Martins do not challenge the trial court's ruling as to the sixth cause of action.
FN 5.
We deny the Martins' request for judicial notice of "the fact that
[BCA] filed an action on November 27, 2007, after the demurrer on the
FAC was decided by the Trial Court finding that the Martins lacked
standing. [Citation.] [¶] The new action is against the Martins as well
as the Petersons to enforce the Governing Documents (Los Angeles
[County] Superior Court Case No. PC 041756, Bridgeport Community
Association, Inc. v. James A. Martin et al.)." A copy of the
then-current civil case summary for the lawsuit was attached as an
exhibit to the request. Our review is limited to the trial court's
judgment against the Martins in the instant action. We will not consider
evidence offered on appeal which was not before the trial court in
connection with the judgment. (In re Zeth S. (2003) 31 Cal.4th 396, 405.)
FN 6.
Section 954 states: "A thing in action, arising out of the violation of
a right of property, or out of an obligation, may be transferred by the
owner."
FN 7.
We render no opinion as to the existence or terms and conditions of the
alleged BCA Lot Line Agreement. For the purposes of reviewing the trial
court's action on the demurrer only, for which we are required to
assume the material facts pleaded to be true, we assume the Agreement
existed.
FN 8.
In the first cause of action, the Martins allege that the Petersons
lost the use of part of their yard due to BCA's breach, but they do not
allege that the Petersons incurred monetary damages.
FN 9.
With no legal authority cited, the Martins mistakenly assert that,
given that the FAC states that BCA engaged in improper enforcement
against the Martins, "this must be accepted as true." We must accept as
true only the material facts alleged in the FAC for the purpose of
reviewing the trial court's demurrer ruling. (Zelig v. County of Los Angeles, supra,
27 Cal.4th at p. 1126.) "Improper enforcement" is an alleged conclusion
of law, however, and we are not required to accept such conclusions as
true. (Ibid.)
FN 10. The Martins also cite White v. Cox (1971) 17 Cal.App.3d 824
as authority for the proposition that negligently maintaining a
sprinkler system in a common area may serve as the basis of a claim for
negligence. The plaintiff in that case, however, was a member of the
common interest association and, thus, the case does not support the
Martins' claim as to standing. (Id. at p. 831.)