FOR IMMEDIATE RELEASE

SUPREME COURT DENIES REVIEW IN RANCHO PALOS VERDES
LANDSLIDE MORATORIUM CASE

Rancho Palos Verdes, Los Angeles County
December 17, 2008

            The California Supreme Court today denied a Petition for Review by the City of Rancho Palos Verdes in a case challenging the coastal city’s long-standing moratorium on construction in its landslide hazard zones, which include the Abalone Cove Landslide and the Portuguese Bend Landslide.  Owners of 16 lots sued to set aside the moratorium, arguing that the City was “taking” their property by refusing to allow home construction.  The City responded by saying any property owner could obtain an exemption from the moratorium and obtain building permits upon showing the development of a property would be safe and could satisfy a well-established geologic “factor of safety” that is commonly used by governmental entities in California. 

            A trial court agreed with the City and dismissed the property owners’ lawsuit.  However, on October 1, 2008, the Court of Appeal, in an opinion by Presiding Justice Robert Mallano, reversed the trial court judgment and commanded the City either to permit the development of the property owners’ lots or else pay compensation for the “taking” of their properties.  The appellate court concluded that it would have been futile for the property owners to pursue an exemption from the moratorium, and that there was no other economically viable use for the properties, other than the construction of homes. 

            The City filed a Petition for Review in the California Supreme Court on November 10, 2008, which was supported by the California Attorney General, on behalf of the California Coastal Commission. 

            Rancho Palos Verdes Mayor Larry Clark said, “We are quite disappointed that the Supreme Court did not take this case.  The City’s position has been that we cannot allow development in a landslide hazard zone unless the property owner can prove that it would be safe to do so.  The Court of Appeal has now said the City cannot do that without paying compensation to the property owner.”

            At trial, the plaintiffs claimed that the value of their properties was in excess of $32 million.  Council Member Douglas Stern, an attorney, stated, “The City Council will have to determine what action to take in order to comply with the Court of Appeal’s decision.  The options include allowing the plaintiffs to build in the landslide area, or purchasing the plaintiffs’ properties.  But it is clear that the City does not have the reserves on hand to pay the plaintiffs what they claim their properties are worth.”

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FOR FURTHER INFORMATION CONTACT:

Carolyn Lehr, City Manager (310) 544-5202

Mayor Larry Clark (310) 544-5205

Council Member Doug Stern (310) 999-9352

Carol W. Lynch, City Attorney (213) 626-8484