Hoffman v. Smithwoods Rv Park, LLC

Decision Date23 October 2009
Docket NumberNo. H033464.,H033464.
Citation179 Cal.App.4th 390,102 Cal. Rptr. 3d 72
PartiesDAVID HOFFMAN, Plaintiff and Appellant, v. SMITHWOODS RV PARK, LLC, Defendant and Respondent.
CourtCalifornia Court of Appeals Court of Appeals

Greene, Chauvel, Descalso, & Minoletti, Paul G. Minoletti and Susan J. Bayerd for Plaintiff and Appellant.

Law Office of Anthony C. Rodriguez and Anthony C. Rodriguez for Defendant and Respondent.

OPINION

McADAMS, J.

This appeal follows a judgment of dismissal, entered after the trial court sustained defendant's demurrer without leave to amend. At issue is whether defendant engaged in actionable conduct when it refused to permit the installation of a new mobilehome in its mobilehome park, to replace an older one that plaintiff had inherited. As alleged in the complaint, defendant's refusal to approve the replacement home violated the Mobilehome Residency Law (Civ. Code, § 798 et seq.), breached the rental agreement to which plaintiff had succeeded, and interfered with the economic relations between him and the purchaser who had contracted to buy the older mobilehome.

On appeal, plaintiff contends that the court erred by failing to treat his well-pleaded factual allegations as true, by failing to recognize the preemptive effect of the Mobilehome Residency Law, and by justifying defendant's actions on the basis of its internal rules, which were not promulgated according to law. Plaintiff further contends that the trial court abused its discretion in failing to grant him leave to amend.

We conclude that the complaint fails to state a cause of action. Moreover, we find no abuse of discretion in failing to grant leave to amend. We therefore affirm the judgment of dismissal.

FACTUAL BACKGROUND1

The parties to this action are plaintiff David Hoffman and defendant Smithwoods RV Park, LLC. Defendant owns and operates the San Lorenzo Mobile Home Park in Santa Cruz County.

Following the death of his mother, plaintiff inherited her mobilehome (the older mobilehome). The older mobilehome is located in defendant's park, at space 37.

Rental Agreement

Plaintiff's mother occupied space 37 pursuant to a rental agreement with defendant, which had a one-year term commencing December 1, 2006. By its express terms, the rental agreement binds and benefits the contracting parties' heirs, successors, and assigns. An exhibit to the rental agreement sets forth the park's rules and regulations.

Purchase Contract

In March 2007, plaintiff entered into a contract to sell the older mobilehome to "Wallace Homes or Assigns." Shortly thereafter, an escrow was opened, which identified the buyers as Wallace Homes Association and Thomas E. Rotter. The purchase contract provides that the sale is "contingent on park approval to replace old mobile with new one at no cost to seller." According to the complaint, defendant knew of the purchase contract and of the buyer's "intent ... to install a new home," though the complaint does not specify when defendant gained that knowledge.

Buyers' Installation Request; Defendant's Response

In April 2007, acting as the buyer, Rotter sought defendant's signature on a plot plan and mobilehome installation permit, as required by California's Department of Housing and Community Development (HCD). According to the complaint: "Except for certifying that the lot lines contained in the Plot Plan and Installation Permit are correct," applicable law "does not require, or allow, the park owner to grant or withhold ... approval for the placement of the mobilehome on its lot or for the issuance of the ... HCD permit to occupy the mobilehome...." The complaint further asserts that "HCD has promulgated the exclusive statewide setback and siting standards for the placement of mobilehomes on their lots ... throughout California."

By letter dated June 7, 2007, attached as an exhibit to plaintiff's complaint, the buyers' attorney told defendant that its "installation requirements" were "unlawful." In the words of the letter: "You are not permitted to attempt to implement your own stricter standards nor are you permitted to require that the installation of the mobilehome go through your own approval process, as you have attempted."

In mid-June 2007, the complaint alleges, defendant "wrote a letter refusing to sign Rotter's mobile home Plot Plan and Installation Permit Application" and "instead setting forth new `Park Rules'. The Park Rules ... contain setback or placement requirements that are in addition to, exceed, or are more stringent" than those provided in pertinent HCD regulations.

Meanwhile, between March 22, 2007 (the date of the purchase contract), and June 7, 2007 (the date of the attorney's letter), defendant's agent contacted a competitor of the buyers "in an attempt to gain her assistance to purchase the old mobile home ... from plaintiff, for defendant's sole benefit and profit" at a lower price than the buyers had offered. Defendant's intent was to prevent "anyone else but defendant from purchasing the old mobile home at space #37 from plaintiff by imposing unreasonable `new' rules and regulations on any prospective purchaser if other than defendant."

In January 2008, the complaint alleges, "defendant began erecting a 12 foot tall fence adjacent to plaintiff's mobilehome at space #37 in the Park in order to strip plaintiff of the view and desirability of the common area open space adjacent to space #37."

PROCEDURAL HISTORY
Complaint

In February 2008, plaintiff filed his complaint in this action. It enumerates six causes of action: (1) "Breach of Statute (the California Mobilehome Residency Law)"; (2) injunctive and declaratory relief that defendant cannot usurp HCD's exclusive authority; (3) injunctive and declaratory relief that defendant cannot enforce setback or size regulations that conflict with HCD regulations; (4) "Intentional Interference With Economic Relationship"; (5) "Negligent Interference With Economic Relationship"; and (6) "Breach of Contract (Breach of Duty of Good Faith and Fair Dealing)."

Demurrer; Judicial Notice Requests; Response

In April 2008, defendant demurred to the complaint on the ground that it failed to state a cause of action. Defendant also asked the court to take judicial notice of four documents. The first two represent the results of title searches, which show that plaintiff holds title to two mobilehomes in the park: the older mobilehome at space 37 and another one at space 33. The other two documents in defendant's judicial notice request are HCD regulations.

Plaintiff opposed the demurrer. He did not object to the request for judicial notice, however. Nor did he seek leave to amend his complaint.

Defendant replied to plaintiff's opposition. Defendant also submitted a supplemental request for judicial notice of three documents from a "companion" suit against defendant arising out of the same transaction, brought by the buyer, Rotter. In addition, defendant filed a "notice of exhibits" in opposition to any request by plaintiff for leave to amend. Appended to that document were three letters purportedly exchanged between the parties.

Plaintiff objected both to the supplemental request for judicial notice and to the notice of exhibits.

Hearing and Decision

In May 2008, the court conducted a hearing on the demurrer. The court announced that its "tentative ruling would be to sustain the demurrer without leave to amend." The court explained its reasons in some detail.

The court also addressed defendant's requests for judicial notice. The court first noted that defendant's initial request was unopposed. It granted that request. The court then took up defendant's supplemental request for judicial notice of documents from the companion case. The court denied that request, but it nevertheless commented that the subject documents "could be utilized for determining whether ... leave to amend[] should be granted or not."

After discussing the judicial notice requests, the court entertained argument on the demurrer. Thereafter, the court adopted its tentative ruling, sustaining the demurrer without leave to amend.

In June 2008, the court filed a formal order consistent with its oral ruling, sustaining the demurrer without leave to amend. In July 2008, the court entered a judgment of dismissal.

Appeal

This appeal followed. As noted above, plaintiff makes four appellate claims: (1) the court erred by failing to treat his well-pleaded factual allegations as true; (2) the court erred by failing to recognize the preemptive effect of the Mobilehome Residency Law; (3) the court erred in relying on defendant's internal rules, which were not promulgated according to law; and (4) the court abused its discretion in failing to grant leave to amend.

DISCUSSION

To establish the proper framework for our analysis, we begin by summarizing the pertinent statutory issues and the law governing demurrers. We then apply those principles to the case before us.

I. Legal Principles
A. Mobilehome Law

Various statutory and administrative provisions govern mobilehomes and mobilehome tenancies.

1. Mobilehome Parks Act: Statute and Regulations

Mobilehome park construction and operation is governed by the Mobilehome Parks Act (MPA), which is codified at Health & Safety Code section 18200 et seq. (County of Santa Cruz v. Waterhouse (2005) 127 Cal.App.4th 1483, 1489 .)

The HCD has promulgated regulations under the MPA, which are found in title 25 of the California Code of Regulations (Title 25) at section 1000 et seq. One of the regulations addresses approval for new mobilehome installation, stating in pertinent part: "Park operator approval is required with all applications for a permit to install an MH-unit, or to alter an MH-unit located in a park, if the alteration would affect the electrical, fuel gas or plumbing system of the park." (Cal. Code Regs., tit. 25, § 1032, subd. (d).) Another regulation provides for...

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