IN THE COURT OF APPEAL
OF THE
STATE OF CALIFORNIA
FOURTH APPELLATE DISTRICT
DIVISION TWO
SENTINEL MINING CORPORATION, a California corporation,
and PLUESS-STAUFER (CALIFORNIA), INC., a California corporation Plaintiffs and Appellants,
vs.
CRYSTAL HILLS PROPERTY OWNERS ASSOCIATION, LOU KERSHBERG,
LOYD TURNER, CAROL TURNER, TOMMY TURNER, BENTON TURNER, INC.,
a California Corporation, ED BACA, AND BILL TERRELL
Defendants and Respondents.
RESPONDENTS' BRIEF
I. INTRODUCTION
After 5 years of litigation in which Private Defendants upheld important rights of the public, Plaintiffs abruptly dismissed this case on the eve of trial.1/
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1/Throughout this brief Plaintiffs and Appellants are referred to as "Plaintiffs" and Respondents and Defendants Crystal Hills Property Owners Association, Lou Kershberg, Loyd Turner, Carol Turner, Tommy Turner, Benton Turner, Inc., a California Corporation, Ed Baca, and Bill Terrell are referred to as "Private Defendants".
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Private Defendants prevailed in a Code of Civil Procedure Section 1021.5 motion for recovery of their attorneys fees and expenses. Plaintiffs appealed that order.
II. STATEMENT OF FACTS
Plaintiffs are corporations engaged in the mining business. The Private Defendants are residents of Lucerne Valley, a property owners association and a private corporation owned by two of the named Private Defendants. (CT 2-3).
Plaintiff Sentinel Mining owns mining claims which it leases to Plaintiff Pluess-Staufer. Pluess-Staufer mines limestone from Sentinels' mining claims and hauls the ore to Pluess-Staufer's mill, using Crystal Creek Road. (CT 2-4)2/.
Crystal Creek Road runs south from the community of Lucerne Valley to the National Forest. (CT 315). The Road was developed sometime after 1917 (CT 1103) and was entered into the County maintained system in 1933. (CT 920). It is the only County maintained road which provides access to a large area South of Lucerne Valley. (CT 1334).
Since 1976, Plaintiff Pluess-Staufer has used Crystal Creek Road, under permits granted by the County3/ of San Bernardino (CT 679-905). The County waived permit fees in
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2/ All references to the Clerk's Transcript will be hereinafter "CT", the Reporter's Transcript will be "RT" the Stipulated Supplemental Clerk's Transcripts will be "Supp CT," and Appellants Brief will be "AB," each followed by the page(s) and line number(s), where necessary.
3/All references to County mean San Bernardino County.
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exchange for maintenance performed by Pluess-Staufer on Crystal Creek Road. (CT 917; 1085-1086). In 1985, Pluess-Staufer sought a Site Approval from the County for its mining claims and mill. As noted by Plaintiffs' counsel, several of the Private Defendants participated at the hearing before the County Board of Supervisors, (RT 10, May 17, 1991) expressing their concerns about the public safety and environmental impacts that would be caused by the approval of Pluess-Staufer's Site Approval Application. on November 13, 1985, the Board of Supervisors granted Pluess-Staufer's Site Approval. The Board, however, to address the concerns of Private Defendants and other members of the general public about the impact of the Site Approval, imposed sixteen conditions upon Plaintiff's Site Approval. (Supp CT 1712).
Of the sixteen conditions, eight dealt with Pluess-Staufer's use of Crystal Creek Road. The conditions required that, as Pluess-Staufer acquired right-of-way or real property south of its mill, it must realign Crystal Creek Road at its own expense so as to separate the realigned Crystal Creek Road from Pluess-Staufer's private haul road. Only upon constructing a new realigned Crystal Creek Road for public use would the original Crystal Creek Road become Plaintiffs' private haul road. (Supp CT 1710-1712).
The realigned Crystal Creek Road would be maintained by the County. Pluess-Staufer would maintain its private haul road. (Supp Ct 1712).
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On November 18, 1985, five days after the imposition of these conditions as part of the Site Approval, Plaintiffs filed this lawsuit naming only Private Defendants herein.
In their complaint, Plaintiffs sought to quiet title and obtain a prescriptive easement to Crystal Creek Road (CT 10-12) and claimed unlimited and unrestricted use of the underground water in the Crystal Hills Watershed for uses appurtenant to Plaintiffs' mining claims, notwithstanding the jurisdiction of the State of California over water. (CT 12-13). The complaint also sought over $1 million in damages alleging that each entry upon Crystal Creek Road and/or Plaintiffs' mining claims was a trespass. (CT 5-9).
On March 21, 1986, Private Defendants demurred to the complaint on various grounds, including that the County should have been joined as a party Defendant inasmuch as the roadway claimed by Plaintiffs was a County maintained road. (CT 22).
Private Defendants further demurred that the State of California must be joined as a party Defendant because Plaintiffs sought adjudication of the Crystal Hills Watershed, disputing the State's jurisdiction over that water issue. (CT 23, 25).
By stipulation, on January 14, 1987, Plaintiffs filed a First Amended Complaint which added the County as a Defendant but failed to add the State. (CT 3.1-48). The amended complaint again requested that Plaintiffs have quiet title and/or a prescriptive easement as to Crystal Creek Road and rights to unlimited water from the Crystal Hills Watershed for their mining operations.
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On March 12, 1987, Private Defendants filed another demurrer, again challenging the First Amended Complaint for its failure to name the State on the water rights cause of action. (CT 19-59). Private Defendants also took issue with the causes of action seeking quiet title and/or prescriptive easement against Crystal Creek Road on the grounds that a private party cannot acquire rights by prescription against a public road and that Crystal Creek Road was in the County-maintained system. (CT 19-59).
A hearing was held on June 10, 1987 at which the trial court sustained the demurrer in part, requiring that the State should be added as a party Defendant on the water rights cause of action. (RT 4, June 10, 1987).
As a result of these Private Defendants' demurrer, Plaintiffs chose to drop the water rights cause of action in their Second Amended Complaint, filed on August 14, 1987. (CT 60-85). Plaintiffs also amended their allegations concerning Crystal Creek Road to allege that they are owners of "primary rights" in Crystal Creek Road, that the County of San Bernardino has not taken or abrogated any of Plaintiffs rights in the Road and that public use is subject to Plaintiffs' prior rights (emphasis added). (CT 69). Plaintiffs expressly reserved the right to amend the complaint to assert a claim for quiet title and/or prescriptive easement in the future. (CT 1521-1522).
Private Defendants answered the Second Amended Complaint on July 22, 1988, affirmatively alleging that Crystal Creek
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Road was in the County-maintained road system and that Plaintiffs cannot claim title or interest therein, and that the trespass cause of action does not lie against Private Defendants for trespassing on Crystal Creek Road (CT 164-168) as Plaintiffs hold no right, title or interest therein.
Plaintiffs' Site Approval to allow development of its mining claims and mill was due to become null and void on September 13, 1988 (Supp CT 1710-1712) because all sixteen conditions had not been complied with within thirty six months of the date of original approval. (Supp CT 1710-1712). Plaintiffs made an Application for an Extension of Time dated July 28, 1988. (Supp CT 1714-1715). In that application, Pluess-Staufer stated that it had complied with all conditions except those relating to the realignment of a portion of Crystal Creek Road (Conditions 1, 2, 3, 4 and 15) and that resolution of that issue should await conclusion of the litigation. Pluess-Staufer claimed that this litigation limited its ability to respond to the requested conditions. (Supp CT 1713-1715). An extension for thirty six months was granted by the County. (Supp CT 1716-1717).
On February 2, 1989, Plaintiffs filed a Motion for Preliminary Injunction against Private Defendants. (CT 169-293). The Court denied Plaintiffs' request for the preliminary injunction (RT 14-25, July 27, 1989) but fashioned a mutual injunction which was filed on November 20, 1989. (CT 357-358).
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Three Motions for Summary Adjudication were made in 1990 by Plaintiffs and Defendants. (CT 359-1264; Supp CT 1640-1701). A significant part of the record in this appeal is devoted to those three Motions. All three Motions were denied on September 25, 1990. (CT 1265-1271).
On October 11, 1990, on the eve of trial, Plaintiffs dismissed the entire complaint in two separate Requests for Dismissal. (CT 1272-1273).
On December 20, 1990, the County Land Management Department sent a letter to Pluess-Staufer noting that the lawsuit had been settled, and requested that Pluess-Staufer submit within 30 days a report updating the County as to the status of Pluess-Staufer's completion of the conditions of its Site Approval. Pursuant to the conditions of the Site Approval, Pluess-Staufer was also required to submit regular quarterly reports to the County of its compliance with the conditions. (CT 1524).
On March 21, 1991, Private Defendants filed a Memorandum of Costs. (CT 1275-1277).
On April 9, 1991, Private Defendants filed a Motion Seeking Attorneys Fees under Code of Civil Procedure Section 1021.5. (CT 1278-1301; Supp CT 1702-1723). That Motion was heard and denied on May 17, 1991. (CT 1359-1362; RT 2-15 May 17, 1991).
On May 28, 1991, Private Defendants filed a Motion to Renew Motion for Order Granting Attorneys Fees pursuant to
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C.C.P. Section 1021.5. (CT 1323-1337; 1370-1371; 1379-1383; 1491-1530; Supp CT 1702-1884).
On June 7, 1991, the Private Defendants' Acknowledgement of Satisfaction of Costs in full was filed. (CT 1363-1365). On July 12, 1991, the trial court granted the Motion to Renew Motion for Order Granting Attorneys Fees to the Private Defendants. (CT 1531-1533; RT 16-25 July 12, 1991). The Order Awarding Attorneys Fees was filed on August 21, 1991.
Plaintiffs' appeal followed.
III. ARGUMENT
A. A TRIAL COURT RULING IS PRESUMED CORRECT
An appellate court presumes that the judgment or order appealed from was correctly decided by the trial court. Denham v. Superior Court 2 Cal.3d 557, 564, 86 Cal.Rptr. 65, 69 (1970) . It adopts all intendments and inferences to affirm the judgment unless the record expressly contradicts them. Unless the record affirmatively demonstrates error, the appellate court will presume that the evidence and findings support the judgment, Kompf v. Morrison 73 Cal.App.2d 284, 166 P2d 350 (1946), and that the trial court based its decision on appropriate findings and disregarded incorrect or insufficient ones. Brewer v. Simpson 53 Cal.2d 567, 583, 2 CR 609, 616) (1960).
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B. AN APPELLANT MUST PROVE REVERSIBLE ERROR
The presumption favoring the trial court decision places the burden of proving error on appellant. Marriage of Behrens
137 Cal.App.2d 562, 574, 187 Cal.Rptr. 200, 207 (1982).
C. A TRIAL COURT RULING CORRECT ON ANY BASIS WILL BE AFFIRMED
The appellate court is concerned with the correctness of the trial court's ruling, not with its reasoning. Bealmear v. Southern Cal. Edison Co. 22 Cal.2d 337, 139 P2d 20 (1943) . If the lower court decision was correct on any legal ground, it will be affirmed even if the reasons cited are wrong. West Pico Furniture Co. v. Superior Court 56 Cal.2d 407, 15 Cal.Rptr. 119 (1961).
D. THE APPELLATE COURT REVIEWS QUESTIONS OF LAW
The appellate court's primary function is to review questions of law. Tupman vs. Haberkern 208 C 256, 280 P. 970 (1929).
E. THE APPELLATE STANDARD OF REVIEW GOVERNS APPEALS
The term "appellate standard of review" refers to the degree of deference appellate courts grant a particular type of trial court ruling. Except for questions of law, the reviewing
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court will not reexamine an issue. Factual rulings and rulings committed to the trial court's discretion are reviewed more narrowly than questions of law. California Civil Appellate Practice 2d ed., California Cont. Ed. Bar, Section 4.13 at PP.71 (1985).
Three standards of review govern civil appeals. The three standards are: (1) Questions of law are reviewed de novo; the trial court determination of the issue is immaterial. Estate of Coate 98 Cal.App.3d 982, 986, 159 Cal.Rptr. 794, 795 (1979); (2) Sufficiency of the evidence is reviewed under the substantial evidence test; the lower court decision must be sustained if any substantial evidence supports the judgment. Ellison v. Ventura Port Dist. 80 Cal.App.3d 574, 581, 145 CR 665, 669 (1978); (3) A discretionary ruling is reviewed for abuse; unless prejudicial abuse can be demonstrated, the ruling must be sustained. Mission Imports, Inc., v. Superior Court 31 Cal.3d 921, 184 Cal.Rptr. 296 (1982).
F. THE TRIAL COURT HAD SUBJECT MATTER JURISDICTION TO
CONSIDER DEFENDANTS' MOTION TO RENEW NOTION
Plaintiffs raise a threshold jurisdictional issue by contending that the trial court lacked subject matter jurisdiction to consider Private Defendants' Motion to Renew Motion. (AB 26-27). In support, Plaintiffs cite Passavanti v. Williams, 225 Cal.App.3d 1602, 1606, 275 Cal.Rptr. 887 (1990). The issues considered by Passavanti differ from these in this
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case. In Passavanti, summary judgment was granted and judgment entered, after which a motion for reconsideration was filed and subsequently denied. More than 60 days after service of theconformed copy of the judgment, but within 30 days after the trial court denied the motion for reconsideration, plaintiff filed an appeal from the original judgment. Upon review, the court ruled that a post-judgment motion for reconsideration does not extend time to file a notice of appeal. However, because prior case law had implied that such a reconsideration motion extended the time to appeal, the court construed the motion for reconsideration to be a motion for a new trial, thus finding that the appeal was timely filed. Passavanti did not involve the jurisdiction of a trial court to reconsider a motion made pursuant to Section 1021.5 and has no bearing on this case.
Various courts have held that a request for attorneys fees under Section 1021.5 may be made after the judgment is final. A request for attorneys fees under Section 1021.5 is ancillary and collateral to a judgment. No Oil, Inc. vs. City of Los Angeles, 153 Cal.App.3d 998, 200 Cal.Rptr. 768 (App 2d Dist, 1984). The trial court has jurisdiction to award attorneys fees under Section 1021.5 after the judgment becomes final. Citizens Against Rent Control vs. City of Berkeley, 181 Cal.App.3d 213, 226 Cal.Rptr. 265 (App. 1 Dist, 1986); United Firefighters of Los Angeles vs. City of Los Angeles, 231 Cal.App.3d 1576, 283 Cal.Rptr. 8 (App 2d Dist, 1991).
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Plaintiffs' jurisdictional argument is therefore without merit.
G. RESPONDENTS WERE THE SUCCESSFUL PARTY AS REQUIRED BY
C.C.P. SECTION 1021.5
(1) The "Successful Party" Is The
"Prevailing Party".
Plaintiffs suggest that this is a case of first impression; that the definition of "a successful party" for purposes of Section 1021.5 in a voluntary dismissal context has never been established. (AB 10). Two appellate decisions, however, use the term "prevailing party" in relation to C.C.P. Section 1021.5. Residents Ad Hoc Stadium Com v. Board of Trustees 89 Cal.App.3d 274, 292, 152 Cal.Rptr. 585, 596 (1979) states:
The statutory right to attorney fees is
limited to the successful litigant ...
The provision for the recovery of
attorney fees by the prevailing party is
not susceptible to a constitutional
attack on equal protection grounds.
(emphasis added)
Sacramento v. Water Res. Control Bd., 2 CA 4th 960, 3 Cal.Rptr. 2d 643 (Cal.App. 3 Dist 1992) states:
Code of Civil Procedure Section 1021.5
permits the award of attorneys fees only
to a prevailing party (emphasis added).
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(2) Defendants Are "The Prevailing Party"
(Section 1032(a)(4).
Private Defendants are clearly the prevailing party as defined in C.C.P. Section 1032(a)(4) which states:
"Prevailing Party" includes the party
with a net monetary recovery, a defendant
in whose favor a dismissal is entered, a
defendant where neither plaintiff nor
defendant obtains any relief, and a
defendant as against those plaintiffs who
do not recover any relief against that
defendant. When any party recovers other
than monetary relief and in situations
other than as specified, the "prevailing
party" shall be as determined by the
court, and under those circumstances, the
court, in its discretion, may allow costs
or not and, if allowed may apportion
costs between the parties on the same or
adverse sides pursuant to rules adopted
under Section 1034. (Emphasis added)
In this case, a voluntary dismissal was filed in favor of Respondents, with prejudice as to the Damages, Conspiracy, Injunction Causes of Action (CT 1272) and without Prejudice on the Declaratory Relief Cause of Action. (CT 1273).
(3) Defendants Recovered Costs From Plaintiffs
As The "Prevailing Party."
Except as otherwise provided by Statute, a prevailing party is entitled as a matter of right to recover costs in any action or proceeding Section 1032(b). As the prevailing party, Private Defendants claimed (CT 1275) and recovered costs from Plaintiffs.(CT 1363-1364).
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(4) The Trial Court Correctly Found
Defendants To Be The Successful Party.
As the preceding subsections clearly reveal, Private Defendants were the "Prevailing Party", which is one and the same with term "Successful Party" used in C.C.P. Section 1021.5. Consistent with this, the trial court made a specific finding that the Private Defendants were the "Successful Party" and that the Plaintiffs were the "Unsuccessful Party." (CT 1539).
Facts supporting that finding are:
(a) Plaintiffs were prevented from acquiring either quiet title or a prescriptive easement to Crystal Creek Road. See Plaintiffs' Request for Dismissal. (CT
1273).
(b) The enforcement of the Crystal Creek Road Conditions of Pluess-Staufer's Site Approval resumed after the litigation was terminated through Private Defendants' successful defense. See Declaration of Andrew J. Rush, Associate Planner, Planning Department of San Bernardino County and letter from Randy Scott, Senior Planner, Planning Department of San Bernardino County to Pluess Staufer dated December 20, 1990. (CT 1523, 1524).
(c) But for Private Defendants' defense of the case, Plaintiffs would have obtained quiet title and/or a prescriptive easement to Crystal Creek Road by default. See prayer to Plaintiffs' original complaint filed by Plaintiffs. (CT 13-14).
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(d) But for Private Defendants' demurrer, the County would not have been added as a Co-Defendant. See Demurrer filed by Private Defendants and Declaration of Charles Scolastico. (CT 20-30; Supp CT 1702-1703)
(e) But for Private Defendants' defense, the Plaintiffs would have acquired a declaratory judgment granting them unlimited use of water from the Crystal Hills Watershed, circumventing the State's jurisdiction. See prayer to Plaintiffs' original complaint filed by Plaintiffs. (CT 14).
These results obtained by Private Defendants led to the trial courts finding that Defendants were the successful parties and Plaintiffs were unsuccessful parties. (CT 1539).
(5) Civil Code Section 1717 is Irrelevant.
Civil Code Section 1717 is cited by Plaintiffs for the proposition that a voluntary dismissal does not result in a party being a prevailing party for purposes of being awarded attorneys fees pursuant to a contract. (AB 11).
As Plaintiffs concede, that statute applies specifically to contract cases. Plaintiffs have cited no authority to apply Civil Code Section 1717 to a C.C.P. Section 1021.5 motion, thus making the entire argument of Plaintiffs on this point irrelevant and inapplicable to the present case.
(6) There Are Valid Policy Considerations In
Favor of Upholding The Trial Court's
Determination.
Upholding the trial court's determination will
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encourage defendants to defend the public's interests.
The Courts have recognized that defendants enforcing established rights are as equally entitled as Plaintiffs to recover attorneys fees under C.C.P. Section 1021.5.
Not only a plaintiff, but a defendant, other
than a public entity, forced to litigate an
action regarding an important right affecting
a public interest, is entitled to such an