SCHUMAN v. IGNATIN
(2010) 191 Cal.App.4th 255
COUNSEL
John B. Murdock for Plaintiffs, Cross-defendants, and Appellants.
Williams & Kilkowski and James M. Kilkowski for Defendants, Cross-complainants, and Appellants.
Eric F. Edmunds, Jr. for Cross-defendants, Cross-complainants, and Appellants. [191 Cal.App.4th 256]
OPINION
WILLHITE, Acting P. J.-
This case involves a dispute among property owners in a general plan development of 68 homes in Los Angeles. The [191 Cal.App.4th 257] owners of one of the properties, Allan Ignatin and Janet Sobell (collectively, Ignatin), fn. 1
want to build a house that other property owners believe would violate
recorded restrictions (CC&Rs) governing the development. The owners
of a neighboring property, Philip Schuman and Margaret McNulty
(collectively, Schuman), filed a lawsuit against Ignatin, seeking to
block the proposed construction. Ignatin cross-complained against
Schuman and several other property owners, including Eric F. Edmunds,
Jr. and Debora Edmunds (collectively, Edmunds), seeking a determination
that the proposed house would not violate the CC&Rs. Edmunds, in
turn, filed a cross-complaint against Ignatin, alleging that the
proposed house would violate the CC&Rs, create a nuisance, and
violate city codes and the California Environmental Quality Act (CEQA).
During a recess after the first day of a bench trial, Ignatin for the
first time challenged the validity of a recorded amendment that
purportedly extended the duration date set forth in the original
CC&Rs, and asked the trial court to find that the CC&Rs expired
on January 1, 1999, the original expiration date. The trial court made
that finding, entered judgment in favor of Ignatin on Schuman's
complaint, and dismissed Ignatin's and Edmunds's cross-complaints as
moot. Schuman, Edmunds, and Ignatin all appeal: Schuman and Edmunds
challenge, among other things, the trial court's finding that the
CC&Rs expired, arguing that the applicable statute of limitations
bars Ignatin's assertion that the amendment of the CC&Rs was
invalid, and Ignatin challenges the dismissal of Ignatin's
cross-complaint as moot. We conclude that Ignatin's assertion of the
invalidity of the amendment is time-barred. Accordingly, we reverse the
judgment and remand the matter for retrial, at which Ignatin may present
other asserted defenses against Schuman's and Edmunds's claims and seek
the relief sought in Ignatin's cross-complaint.
BACKGROUND fn. 2
In 1965, Link Builders, owners of real property described as Lots 1
through 68 of Tract 22876 in the City of Los Angeles, recorded a [191 Cal.App.4th 258]
declaration of establishment of conditions and restrictions (the
CC&Rs) that subjected all of the lots in the general plan
development to various conditions and restrictions. Among other things,
the CC&Rs provided that no structure on any lot may be constructed
in such a manner as to obstruct the scenic view of any other lot owner.
The CC&Rs also provided that the conditions and restrictions would
run with the land, and would remain in force until January 1, 1999.
On December 31, 1998, the Brentwood Hills Homeowners Association
recorded a document entitled "Amendment to Extend Duration of
Declaration of Establishment of Conditions and Restrictions" for Tract
22876 (the Amendment). The Amendment, which was signed in mid-December
1998 by the owners of 43 of the 68 lots, stated that the owners desired
to amend the CC&Rs to provide that the restrictions and conditions
would remain in effect until January 1, 2009, and would be continued
automatically for 10 year periods unless a majority of owners recorded a
written agreement changing, modifying, or extinguishing the CC&Rs.
Schuman signed the Amendment as owner of Lot 51 (2569 Cordelia Road, a
different lot than the lot Schuman owned at the time this lawsuit was
initiated). fn. 3
Edmunds signed as owner of Parcel A (2576 Cordelia Road). Ignatin's
predecessor as owner of Lot 53 (2583 Cordelia Road, which was owned by
Alfred S. Yue at the time the Amendment was signed) also signed the
Amendment. Ignatin purchased Lot 53 in or around October 2005.
Sometime before September 2007, Schuman, Edwards, and other owners of
homes in Tract 22876 learned that Ignatin planned to construct a new,
much larger home on Lot 53. Schuman and the other neighbors believed the
new home would violate the CC&Rs, including the view protection
provisions. Some of the neighbors expressed to Ignatin their concerns
about the proposed construction, and made suggestions about how to abate
some of those concerns. When Ignatin did not respond to those
suggestions, Schuman, Edmunds, and several other neighbors sent a letter
to Ignatin on September 10, 2007, demanding that Ignatin suspend all
development of the property until the neighbors' concerns were
addressed. Ignatin responded to the letter a week later, disputing that
the proposed construction would violate the CC&Rs; Ignatin did not
challenge the validity of the CC&Rs or the Amendment. [191 Cal.App.4th 259]
On October 5, 2007, Schuman filed a complaint against Ignatin seeking a
declaration that Ignatin's proposed construction would violate the
CC&Rs, and an injunction prohibiting Ignatin from constructing any
structure or cultivating any landscaping that would interfere with
Schuman's scenic view in violation of the CC&Rs. That same day,
Schuman recorded a "joinder" in the Amendment, as owner of Lot 54.
Ignatin filed an answer -- a general denial, with several affirmative
defenses, none of which challenged the validity of the CC&Rs or the
Amendment -- and a cross-complaint for declaratory relief against
Schuman, Edmunds, and the other property owners who signed the September
10, 2007 letter to Ignatin. The cross-complaint alleged that all the
lots in Tract 22876 "are subject to recorded CC&R's," but that
Ignatin's proposed construction would not violate the CC&Rs and the
Amendment. The cross-complaint also alleged that Schuman, Edmunds, and
the other owners "may not enforce the [CC&Rs] and the Amendment,
because they have acquiesced in violations of the [CC&Rs] and the
Amendment, because they have waived their right to enforce the
[CC&Rs] and the Amendment, and because changed circumstances in
Tract 22876 render the [CC&Rs] and the Amendment obsolete and
enforcement of the [CC&Rs] and Amendment against [Ignatin]
inequitable and arbitrary." Ignatin requested a declaration that the
proposed construction "does not violate the [CC&Rs] or the
Amendment, or alternatively, that the [CC&Rs] and the Amendment may
not be enforced . . . to prevent [Ignatin's] construction of a residence
on [Ignatin's] property in accordance with the Plans."
Edmunds responded with a cross-complaint against Ignatin, seeking a
declaration that the proposed construction would violate the CC&Rs,
city codes and laws, and CEQA, and would constitute a nuisance; Edmunds
also sought an injunction prohibiting Ignatin from constructing any
structure that would interfere with Edmunds's rights.
A court trial on the matter began on June 20, 2008. In his opening
statement, Ignatin's attorney asserted the evidence would show that
Schuman allowed construction of another house that blocks Schuman's
view, that Ignatin's proposed house would not unreasonably block any
significant views, and that Schuman, Edmunds, and other neighbors cannot
enforce the CC&Rs against Ignatin because they violated the
CC&Rs themselves. There was no reference made to the possible
invalidity of the CC&Rs or the Amendment. [191 Cal.App.4th 260]
Following opening statements, Schuman presented two expert witnesses --
an architect who testified about how the proposed house would block
Schuman's view, and a real estate appraiser who testified about the
value of Schuman's property and the change in value if the proposed
house were built. Schuman then called George Marnon, an owner of one of
the lots in Tract 22876. Marnon testified that he bought his property
after the CC&Rs had been extended by the Amendment, and that the
existence of CC&Rs protecting the view was an important
consideration when he and his wife decided to buy the property; he noted
that he and his wife were aware that Tract 22876 was the only tract in
the neighborhood that chose to extend the duration of the CC&Rs. He
also testified that he and his wife had to file a lawsuit against
another neighbor to enforce the CC&Rs about five years earlier, when
the neighbor built a fence that obstructed his view. He and his wife
estimated that the value of the view was $100,000, so they were willing
to spend that much in legal fees to preserve that view. He testified
that even though Ignatin's proposed house would not interfere with his
view, he was concerned that, if Ignatin were to prevail, other property
owners would be allowed to build structures that would block his view.
Marnon was the last witness on the first day of trial. Schuman's
attorney estimated that he would call four more witnesses on the next
day of trial, and Ignatin's attorney said that he would call one or two
more witnesses before the parties and the court participated in a
viewing at the location. On the next day of trial, June 23, 2008, the
parties met with the court in chambers, after which the matter was
continued until September 29, 2008, to allow the parties to engage in
further settlement discussions and/or mediation.
On August 11, 2008, Ignatin filed a "Supplemental Trial Brief." The
stated purpose of this brief was "to address three major issues not
previously brought to the [trial] Court's attention." Ignatin argued he
was "entitled to judgment as a matter of law in this action" because (1)
the CC&Rs expired on January 1, 1999; (2) the Amendment was
ineffective to extend the CC&Rs because it was not signed by all of
the lot owners; and (3) Schuman could not enforce the CC&Rs against
Ignatin because the previous owner of Schuman's lot did not sign the
Amendment. At a status conference held on September 3, the trial court
ordered further briefing and set a hearing to address the issues Ignatin
raised. Schuman filed a response that addressed the merits of Ignatin's
arguments, but also asserted that the arguments were untimely, outside
the pleadings, and could not be tried without amendment of Ignatin's
pleadings. [191 Cal.App.4th 261]
Following argument, the trial court ruled that Ignatin did not waive the
challenge to the CC&Rs by not raising it sooner, and that the
Amendment did not extend the CC&Rs because it was not signed by all
of the lot owners. The court's ruling, set forth in a minute order,
concluded: "This Court is legally compelled to find that the CCRs
expired on January 1, 1999, that the restrictions of the CCRs are not
covenants running with the land and that the Defendants are entitled to
judgment as a matter of law. The Court is well aware of the impact of
this ruling on the plaintiffs and each of the 68 property owners and
strongly encourages the parties to take this to the Court of Appeal for
guidance."
Ignatin submitted a proposed judgment that provided that Schuman would
take nothing on the complaint, that Edmunds would take nothing on his
cross-complaint, and that Ignatin would be granted declaratory relief,
decreeing that (1) the CC&Rs expired by their terms and are of no
force and effect; (2) the Amendment did not extend the CC&Rs or
create equitable servitudes or covenants running with Ignatin's
property, and is void; and (3) neither the CC&Rs nor the Amendment
impose any restraint on Ignatin's proposed construction. The trial court
did not sign the proposed judgment, instead writing, "The Court's
ruling on the Minute Order will stand as the Judgment." In the meantime,
Edmunds filed an objection to the proposed judgment, arguing that it
was inappropriate to issue a final ruling on his cross-complaint because
the ruling did not address or resolve all issues alleged in the
cross-complaint.
Three months later, Ignatin filed a motion for entry of judgment.
Ignatin noted that there was no signed judgment because neither the
minute order nor the handwriting on the submitted proposed judgment was
signed by the court. Ignatin also pointed out that, although the minute
order disposed of all claims based on the CC&Rs and the Amendment,
it did not mention all of the cross-defendants. The motion attached two
different proposed judgments, and asked that the court sign one of them,
or any other judgment that finally adjudicated the rights of all
parties. In response to the motion, Edmunds noted that the court had not
yet ruled on his earlier objection to the proposed judgment.
At the hearing on Ignatin's motion, the court provided the parties with a
proposed judgment nunc pro tunc it had drafted. That proposed judgment
stated that Schuman "shall take nothing by way of the complaint," that
Ignatin shall recover costs from Schuman, and that Ignatin and Edmunds [191 Cal.App.4th 262]
"shall take nothing by way of their cross-complaints." Counsel for
Ignatin argued that the provision stating that Ignatin shall take
nothing on his cross-complaint was incorrect; he asserted that Ignatin
prevailed on his cross-complaint because the court found that the
CC&Rs had expired. Counsel for Schuman also pointed out that Edmunds
had filed an objection to the original proposed judgment on the ground
that the minute order did not address all of the issues in his
cross-complaint, including his allegation that Ignatin's proposed
construction would violate CEQA. fn. 4 The trial court overruled Edmunds's objection and signed the judgment nunc pro tunc, with minor changes.
Ignatin moved to vacate the judgment and enter a new judgment. Ignatin
argued that the judgment nunc pro tunc was erroneous because "the
Court's ruling in favor of [Ignatin] requires a judgment in [Ignatin's]
favor on their Cross-Complaint." (Emphasis omitted.) Ignatin also filed a
motion to tax costs, after counsel for Schuman (who also represented
all of the neighbors who were sued in Ignatin's cross-complaint) filed a
memorandum of costs seeking reimbursement of the filing fees for all of
the cross-defendants' answers. In the motion to tax costs, Ignatin
asserted that the court's ruling that the CC&Rs had expired and the
Amendment did not extend them "was precisely the relief sought in
[Ignatin's] cross-complaint. Under applicable precedent, this
constituted 'relief' to [Ignatin] and against the Cross-[defendants]."
At the hearing on both motions, the trial court found that Ignatin's
"request for declaratory relief in the cross-complaint was rendered moot
by the finding that the CC&Rs had expired and were not extended by
[the Amendment]," noting that the relief Ignatin sought in the
cross-complaint was that the planned construction did not violate the
CC&Rs or the Amendment or, alternatively, that the CC&Rs and the
Amendment could not be enforced by cross-defendants to prevent the
planned construction. The court also found that the cross-defendants on
Ignatin's cross-complaint were not entitled to recover costs because
Ignatin "obtained greater relief by prevailing on the complaint."
Schuman and Edmunds timely filed a notice of appeal from the judgment
nunc pro tunc to the extent it denied relief on Schuman's complaint and
Edmunds's cross-complaint. Ignatin also timely filed a notice of appeal
from the portion of the judgment nunc pro tunc denying relief on
Ignatin's cross-complaint and from the post-judgment order denying
Ignatin's motion for a new and different judgment. [191 Cal.App.4th 263]
DISCUSSION
Most of the arguments in the parties' briefs on appeal address the
requirements for modifying CC&Rs, or whether the CC&Rs and the
Amendment constitute equitable servitudes or covenants running with the
land as between the owners who signed the Amendment, or whether all of
the owners in Tract 22876 needed to be joined in the lawsuit. We need
not address those issues, however, because we agree with Schuman's and
Edmunds's argument that Ignatin's challenge to the validity of the
Amendment is barred by the applicable statute of limitations, and
therefore the judgment in favor of Ignatin, which was based solely on
the trial court's finding that the Amendment was invalid, must be
reversed.
A. Challenges to Recorded Amendments to CC&Rs Must Be Brought Within Four Years
Ignatin argued, and the trial court found, that the Amendment was
invalid (and therefore did not extend the duration of the CC&Rs)
because it was not signed by every lot owner in Tract 22876. Schuman and
Edmunds disagree that all lot owners were required to sign the
Amendment but they contend, relying upon a recent decision of the Fourth
District Court of Appeal, Division One (filed after judgment was
entered in this case), that in any event, the statute of limitations
bars any challenge to the validity of the Amendment made more than four
years after the Amendment was recorded.
That case, Costa Serena Owners Coalition v. Costa Serena Architectural Com. (2009) 175 Cal.App.4th 1175 (Costa Serena),
involved amendments to the Declarations of Restrictions governing the
seven phases of a planned development consisting of 724 homes. The
community was developed in the early 1970's, and separate, essentially
identical, Declarations of Restrictions were recorded for each phase. (Id.
at p. 1178, fn. 1.) Each Declaration provided that it could be amended
by a recorded instrument signed by at least 75 percent of the record
owners, and that the Declaration would expire on December 31, 2006
unless a majority of owners executed and recorded a writing extending
the restrictions. (Id. at p. 1181.)
The Declarations were amended in 1986 by documents that were signed only
by members of the unincorporated associations (the Architectural
Committees) named in the Declarations to enforce the Declarations'
provisions. (Costa Serena, supra, 175 Cal.App.4th at p.
1181.) In 1987, the Declarations were amended again to, among other
things, combine all seven phases into a single community that would be
governed by a single Unified Declaration, enforced by a single
Architectural Committee. The 1987 amendment also altered the provision
governing amendments, and [191 Cal.App.4th 264] provided that an
amendment may be signed by a majority of the members of the
Architectural Committee, certifying that the amendment had been approved
by a vote of the owners as required by the Declaration. The 1987
amendment was signed only by the members of the Architectural Committee.
(Id. at p. 1182.)
The Unified Declaration (the result of the 1987 amendment) was amended
in 1999, to provide that the Declaration could be amended or revoked by a
vote of more than 50 percent of all owners entitled to vote and casting
ballots, and that an amendment would be effective upon the recording of
a certificate of amendment executed by certain members of the
Architectural Committee, setting forth the amendment and certifying that
the voting requirements had been met. The 1999 amendment was signed by
members of the Architectural Committee, who certified that the amendment
was approved by a vote of the owners as required by the Declaration. (Costa Serena, supra, 175 Cal.App.4th at pp. 1182-1183.)
In 2006, the Architectural Committee attempted to extend the Unified
Declaration, which was to expire by its terms on December 31, 2006,
using the amendment process set forth in the 1999 amendment. A group of
owners (the Coalition) filed a lawsuit to enjoin the Architectural
Committee from proceeding with the voting process. The Coalition
contended that the seven separate declarations had not been amended into
a single Unified Declaration, and sought declaratory relief regarding
the proper interpretation of the original provisions governing
amendments. (Costa Serena, supra, 175 Cal.App.4th at pp.
1183-1184.) After the trial court issued the requested preliminary
injunction, the Architectural Committee obtained signed consents to
extension from 375 owners and recorded a document entitled "Extension of
Declaration of Restrictions." The Coalition then amended its complaint
to allege the invalidity of the extension document, and sought
cancellation of the prior amendments and the extension document. (Id.
at p. 1184.) The trial court granted summary adjudication to the
Coalition and entered a judgment declaring, among other things, that the
Declarations for all seven phases expired on December 31, 2006, and
that the 1986, 1987, and 1999 purported amendments were void ab initio. (Id. at p. 1187.)
[1] The Court of Appeal reversed, finding the Coalition's challenge to
the 1986, 1987, and 1999 amendments was untimely. The appellate court
found no support for the trial court's conclusion that the amendments
were void ab initio, observing that "[t]he trial court apparently
misapprehended the limited circumstances in which a court may conclude
that an instrument is a complete nullity, as opposed to being voidable
pursuant to a timely challenge by a party, due to a deficiency in the
instrument's creation." (Id. at p. 1191.) The Court of Appeal explained that a [191 Cal.App.4th 265]
challenge to an amendment on the ground that it was enacted in a manner
that failed to conform to the requirements of the provision governing
amendments would render the amendment voidable, not void ab initio. (Id. at p. 1193, citing Peyton v. Cly (1960) 184 Cal.App.2d 193,
196 ["A contract not executed in conformity with the provisions of the
statute of frauds is not void but merely voidable"].) Because the
amendments were voidable, rather than void ab initio, the court
concluded the Coalition's challenge was barred by Code of Civil
Procedure section 343, the four-year statute of limitations applicable
to claims seeking to set aside all kinds of instruments, which began to
run as to each amendment when it was recorded. (Costa Serena, supra, 175 Cal.App.4th at p. 1196.)
B. The Statute of Limitations Bars Ignatin's Challenge
In the present case, the Amendment extending the CC&Rs was recorded
in December 1998. Ignatin first sought to challenge the validity of the
Amendment in August 2008. Under Costa Serena, Ignatin's challenge is barred by the statute of limitations. (Costa Serena, supra, 175 Cal.App.4th at p. 1196.) Ignatin argues, however, that his challenge is not barred because (1) Costa Serena conflicts with the rule stated in Taormina Theosophical Community, Inc. v. Silver (1983) 140 Cal.App.3d 964 (Taormina)
and should not be followed, (2) Schuman and Edmunds did not plead the
statute of limitations in their answers to Ignatin's cross-complaint and
therefore waived that affirmative defense, and (3) the statute of
limitations does not bar Ignatin from asserting the invalidity of the
Amendment as a defense. We disagree.
1. Costa Serena does not conflict with Taormina
Ignatin argues that Costa Serena should not be followed because
it allows amendments that clearly do not conform to the amendment
procedure set forth in the CC&Rs to become binding after four years.
Ignatin contends the better rule is stated in Taormina, in which
the Court of Appeal found that an amendment to CC&Rs that was not
made in accordance with the procedures established in the CC&Rs was
void and not enforceable. (Taormina, supra, 140 Cal.App.3d at p. 970.) But as the court in Costa Serena observed, "Taormina
supports only the limited proposition that amendments to CC&R's . .
. that are not made pursuant to the procedure 'established in the
provision' for modifying the restrictive covenants may be voided under
certain circumstances. [Citation.] The case does not speak to the issue
here -- i.e., whether an amendment that was not enacted pursuant to the
procedure set out in the provisions of a declaration of restrictions is
void ab initio, or merely voidable. . . . The Taormina court did not refer to the documents at issue as void ab initio, nor did it appear to reach this [191 Cal.App.4th 266] conclusion. Rather, it appears that the court was simply permitting the plaintiff to void a voidable instrument. [¶] . . . Taormina
. . . does not state that amendments to CC&R's . . . that are not
adopted in conformance with the provisions of those CC&R's . . . may
be challenged on this basis and voided at any time. The lawsuit in Taormina
was filed less than three years after the amendment in question was
recorded; there was no statute of limitations issue raised in that
case." (Costa Serena, supra, 175 Cal.App.4th at p. 1194.) In short, Taormina is not inconsistent with Costa Serena.
2. Schuman's and Edmunds's failure to plead the statute of limitations did not waive the affirmative defense
Ignatin contends that Schuman and Edmunds cannot assert the statute of
limitations because they did not plead it in their answers to Ignatin's
cross-complaint. (Citing Minton v. Cavaney (1961) 56 Cal.2d 576,
581.) Had Ignatin asserted the invalidity of the Amendment and/or
expiration of the CC&Rs in his cross-complaint, this argument might
prevail. But Ignatin's challenge was not raised in the cross-complaint.
Indeed, the cross-complaint alleged that the lots in Tract 22876 were
subject to the CC&Rs, but that Ignatin's proposed construction would
not violate the CC&Rs, or that the CC&Rs were not enforceable
for various reasons not related to their validity. In fact, Ignatin's
challenge to the validity of the CC&Rs and the Amendment was not
even raised in a motion. It was raised in a supplemental trial brief,
filed during a recess in the trial. In light of the timing and the
manner in which Ignatin's challenge was asserted, we conclude that
Schuman and Edmunds did not forfeit the statute of limitations defense
by failing to plead it.
3. Ignatin's defensive challenge sought affirmative relief, and therefore the statute of limitations applies
[2] Ignatin argues that the statute of limitations does not bar his
assertion of the invalidity of the Amendment as a defense to the claims
against him. It is true that, in many cases, statutes of limitations do
not apply to defenses. (See, e.g., Styne v. Stevens (2001) 26 Cal.4th 42, 51-52.) Those cases generally involve attempts to enforce fraudulent or illegal contracts. (Ibid.,
and cases cited therein.) But when an asserted defense "sets up an
affirmative cause of action, the adverse party may . . . show that the
attempted defense is barred by the statute of limitations." (Hermosa Beach Land & Water Co. v. Law Credit Co. (1917) 175 Cal. 493, 495 (Hermosa Beach); see also Strong v. Strong (1943) 22 Cal.2d 540,
544-545.) Thus, the Supreme Court has held that, in an action to quiet
title, the defendant's answer asking the court to require the plaintiff
to accept the defendant's tender of the balance due on a contract of
conveyance, sought [191 Cal.App.4th 267] affirmative relief that was barred by the statute of limitations. (Hermosa Beach, supra,
175 Cal. at p. 495.) And in another quiet title action, the Supreme
Court held that the defendant's answer asserting ownership of the
property at issue was actually a cause of action to avoid the
plaintiff's deed, which was barred by the applicable statute of
limitations. (Strong v. Strong, supra, "22 Cal.2d at pp. 544-545.)
In the present case, Ignatin's challenge to the validity of the
Amendment set up an affirmative cause of action. Indeed, Ignatin
repeatedly argued in the trial court -- and argues in his own appeal --
that the success of his defense required a judgment in his favor
on his cross-complaint. And, although the trial court denied Ignatin's
request for judgment in his favor on the cross-complaint, the court
agreed that Ignatin had obtained affirmative relief through his defense.
In fact, the court acknowledged that its ruling on that defense would
affect all of the property owners in Tract 22876, and that Ignatin
obtained greater relief by prevailing on Schuman's complaint than
Schuman, Edmunds, and the other cross-defendants obtained by the
dismissal of Ignatin's cross-complaint.
Because Ignatin sought, and obtained, a judgment declaring the Amendment
invalid, we conclude that his defense constituted an affirmative cause
of action to which the statute of limitations applies. Application of
the statute of limitations is particularly appropriate in this case,
because Ignatin's challenge was to a recorded Amendment to CC&Rs --
brought almost 10 years after it was recorded -- on which property
owners have relied in purchasing, selling, or retaining their property.
As the Supreme Court has observed, "'statutes of repose are in fact
favored in the law. . . . " . . . The theory is that even if one has a
just claim it is unjust not to put the adversary on notice to defend
within the period of limitation and that the right to be free of stale
claims in time comes to prevail over the right to prosecute them."
[Citation.]' [Citation.]" (Jordache Enterprises, Inc. v. Brobeck, Phleger & Harrison (1998) 18 Cal.4th 739,
756.) Because Ignatin's challenge to the validity of the Amendment was
asserted more than four years after the Amendment was recorded, it is
barred by the statute of limitations. (Code Civ. Proc., § 343; Costa Serena, supra, 175 Cal.App.4th at p. 1196.)
Although our conclusion that the statute of limitations bars any
challenge to the validity of the Amendment resolves both appeals in this
case, it does not resolve the complaint or cross-complaints. Therefore,
the matter must be remanded for trial on all other issues raised in the
complaint and cross-complaints. [191 Cal.App.4th 268]
DISPOSITION
The judgment is reversed and the matter is remanded for trial. Schuman and Edmunds shall recover their costs on appeal.
Manella, J., and Suzukawa, J., concurred.
FN 1.
Although Ignatin refers to two people, we will use the singular when
using that name (as well as other couples' names) in this opinion.
FN 2.
The trial court entered judgment mid-trial, without any dispositive
motion, based upon supplemental trial briefs and the pleadings. Our
recitation of the factual background therefore is based in large part on
the allegations of the complaint and cross-complaints and the exhibits
attached thereto.
FN 3.
Schuman owned and lived at 2601 Cordelia Road at the time the instant
lawsuit was filed. The owner of that property at the time the Amendment
was recorded was not among the owners who signed the Amendment.
FN 4.
Mr. Edmunds, who is an attorney and represented himself and his wife on
their cross-complaint, had informed the trial court that he was unable
to appear at the hearing on Ignatin's motion because he was engaged in
trial in Orange County.