Rancho
Santa Fe Assn. v. Dolan-King (2004)115 Cal.App.4th 28, -- Cal.Rptr.3d --
[Nos.
D040637, D041486.
Fourth
Dist., Div. One.
Jan.
7, 2004.]
RANCHO
SANTA FE ASSOCIATION, Plaintiff and Respondent, v. PATRICIA DOLAN-KING, Defendant and Appellant.
(Superior
Court of San Diego County, No. GIN005057, Lisa Guy-Schall, Judge.)
(Opinion
by Huffman, Acting P. J., with Nares, J., and O'Rourke, J., concurring.)
COUNSEL
Law
Offices of Robert R. Massey and Robert R. Massey for Defendant and Appellant.
Musick,
Peeler & Garrett, Michael J. Hickman; Lucas, Mullany, Boyer & Haverkamp and Richard L. Boyer for
Plaintiff and Respondent. [115 Cal.App.4th 32]
OPINION
HUFFMAN,
Acting P. J.-
Patricia
Dolan-King, a homeowner in the residential community of Rancho Santa Fe, is the defendant and appellant in this
action to enforce a protective covenant, brought by the Rancho Santa Fe Association (the Association). The
Association obtained judgment in its favor for injunctive and declaratory relief and an award of attorney fees,
based on Dolan-King's construction of a fence around her property without the appropriate permits or compliance
with other Association regulatory criteria for the definition of "major" or "minor" construction. Dolan-King
appeals, contending that the trial court erred in directing a partial verdict on the validity of certain land
use regulations enforced by the Association, and that the jury verdict resulting after the partial directed
verdict is unsupported by the evidence or the law. She also contends that attorney fees should not have been
awarded. (Civ. Code, § 1354, subd. (f).) fn.
1
Our
examination of the record leads us to conclude that the trial court was correct in finding the challenged Rancho
Santa Fe Regulatory Code provisions (the regulatory code) are valid concerning the definition of the terms
"major" and "minor" construction, and the subsequent jury verdict is supported by the evidence. We affirm the
judgment and order of attorney fees to the Association as the prevailing party.
FACTUAL
AND PROCEDURAL BACKGROUND
In
1996, Dolan-King purchased a home on an approximately three-acre lot in Rancho Santa Fe, located at 6840 El
Camino Del Norte. Property development in Rancho Santa Fe is subject to the Rancho Santa Fe Protective [115
Cal.App.4th 33] Covenant (Covenant), adopted and recorded in 1928 and amended at various times over the
years. At the time she purchased her property, there was an original three-rail corral-type fence on it.
Dolan-King originally proposed extensive remodeling plans (room addition structures) and a reconstructed fence
composed of stucco columns joined by horizontal wood beams, and sought the appropriate permits from the
Association. The Association reviewed those plans and denied permission to proceed with them. The story of that
land use application and its processing by the Association is told in a published opinion, Dolan-King v.
Rancho Santa Fe Assn. (2000)
81 Cal.App.4th 965 [97
Cal. Rptr. 2d 280] (referred to as our prior opinion or Dolan-King I).
In
that prior action, Dolan-King had sought a judicial determination of the validity and enforceability of certain
unrecorded guidelines, which provided the criteria and restrictions used by the art jury of the Association to
reject her applications as to both the room additions and the proposed fence project. (Dolan-King I,
supra, 81 Cal.App.4th at p. 973.) Although Dolan-King had prevailed at trial, on appeal the Association
obtained reversal of that judgment. This court concluded that "the relevant provisions of the protective
covenant are enforceable equitable servitudes, and, with regard to Dolan-King's improvement applications,
Dolan-King failed to meet her burden to show the Board's decisions were unreasonable and arbitrary under the
circumstances." (Id. at p. 970.)
While
that appeal was pending, Dolan-King caused to be constructed around the perimeter of her property a wrought iron
fence approximately five feet in height and 800 feet long, with posts approximately every eight feet. She
testified at trial that under her interpretation of paragraph 48 of the Covenant, she thought that this fence
constituted minor construction, pursuant to the following Covenant definition: "The building of fences, walls,
and similar structures, are divided into two classes: First, major construction; second, minor construction.
The property owner may proceed with what he definitely thinks is a minor construction without submitting
plans and specifications to the Art Jury as provided above, subject to the continuing jurisdiction of the
Association through its Board of Directors to hear complaints against said minor construction ... ." (Italics
added.)
The
Association, through its manager, sent her a letter June 3, 1999, informing her this fence was major
construction under the regulatory code, section 31.0302, and that she should seek a permit or tear down the
fence, or be subject to the imposition of a $ 500 lien for noncompliance with Covenant provisions and the
revocation of her privileges to use Association facilities.
When
she did not seek a permit or tear down the fence, the Association sent her a notice that a hearing would be held
August 5, 1999, before the [115 Cal.App.4th 34] Board regarding the revoking of her privileges to use
Association facilities and the imposition of the $ 500 assessment. (The lien was released shortly before trial.)
That hearing was held and those actions were taken by the Board. The minutes of the Board meetings state that
the fence being discussed was not the one involved in the prior litigation, such that there was any approval of
it pending that appeal.
The
Association then brought this action for injunctive and declaratory relief to have Dolan-King seek the proper
permits or remove the fence. Attorney fees were sought under section 1354. She responded with her
cross-complaint for breach of contract, breach of fiduciary duty, slander of title, and related relief.
At
trial call, various motions in limine were submitted and rulings made. As relevant here, the trial court refused
Dolan-King's offer of proof to provide traffic and safety evidence about the traffic in the area of her property
as it pertains to fencing.
At
the outset of trial, Dolan-King's attorney agreed with the trial court that the validity of the regulatory code
was subject to a ruling on its validity as a matter of law, based upon the governing documents of the
Association. He argued that the Association had exceeded its powers by enacting the portions of the regulatory
code dealing with major or minor construction, in contravention of paragraph 48 of the Covenant. Subsequently,
the trial court rendered a statement of decision rejecting this argument and upholding the validity of the
pertinent provisions of the regulatory code. This resulted in the entry of a partial directed verdict in favor
of the Association. In its order, the court explained its reasoning as follows: Based on the relevant
documentary evidence associated with this matter and the argument by the parties, the court found that the fence
erected on the Dolan-King's property was "major construction" as that term is used in the Covenant and the
regulatory code. Specifically:
"Paragraph
48 of the Rancho Santa Fe Protective Covenant provides: The building of fences, walls, and similar structures,
are divided into two classes: First, major construction; second, minor construction. The property owner may
proceed with what he definitely thinks is a minor construction without submitting plans and specifications to
the Art Jury as provided above, subject to the continuing jurisdiction of the Association through its Board of
Directors to hear complaints against said minor construction and to hear, try and determine the said complaints
upon due notice to the defending property owner. Tennis courts and swimming pools are major construction."
The
order continued, "Section 31.0301 of the Rancho Santa Fe Regulatory Code provides: Fences and Walls. All fences
and walls shall constitute 'Major [115 Cal.App.4th 35] Construction.' " (Although the court clearly
intended to cite the fence and wall provisions, it erroneously cited to section 31.0301 in this respect; the
actual language involved is not disputed and we may properly cite these provisions as shown in the record,
section 31.0302.) The trial court then referred to section 31.0302.01 as specifying that "Wooden split-rail
fences not exceeding 36 [inches] in height, and consisting of two or fewer rails, and which observe all set-back
requirements established for structures in the Protective Covenant, shall be considered minor construction."
The
trial court then concluded that pursuant to paragraph 48 of the Covenant and section 31.0302.01 of the
regulatory code, "the only fence which constitutes 'minor construction' is a wood pasture rail fence with two
rails, 36 [inches] or less in height. Based on the Court's review of the evidence and interpretation of
Paragraph 48 of the Rancho Santa Fe Protective Covenant in conjunction with Sections 31.0302 and 31.0302.01 of
the Rancho Santa Fe Regulatory Code, the subject fence constructed by defendant Patricia Dolan-King constituted
'major construction.' "
The
remaining issues of the complaint and cross-complaint, concerning compliance with the Covenant, were then
submitted to the jury. It heard testimony and evidence about the Association's procedures used to respond to the
building of this wrought iron fence, and Dolan-King's own testimony and expert testimony to support her belief
that the fence constituted minor construction. Dolan-King also presented evidence that another landowner
(Cloverlane Associates) had received a hearing in 2001 pursuant to paragraph 48 of the Covenant, when objections
to a fence it built were raised. She argues that she had been subject to disparate treatment, because the
Cloverlane fence issues had been dealt with more formally.
After
deliberations, the jury returned a verdict in favor of the Association, finding it had not breached the Covenant
provisions as alleged, and against Dolan-King on her cross-complaint. The special verdict provided that the
cross-complaint was dismissed, and:
"2.
The fence erected by defendant on or about Memorial Day 1999 ('Subject Fence') is 'major construction' within
the meaning of that term in the Rancho Santa Fe Protective Covenant ('Covenant') and the Rancho Santa Fe
Regulatory Code ('Regulatory Code').
"3.
The Subject Fence could not be constructed consistent with the Covenant and the Regulatory Code without first
obtaining a permit from the Rancho Santa Fe Association in accordance with the procedures set forth in the
Covenant and the Regulatory Code.
"4.
The Subject Fence was constructed without obtaining a permit from the Rancho Santa Fe Association.
[115
Cal.App.4th 36] "5.
The construction of the Subject Fence without a permit was a violation of the Covenant.
"6.
The Subject Fence remains on the property of defendant Patricia Dolan-King as of the date of the jury verdict
herein.
"7.
In order to comply with the Covenant, defendant Patricia Dolan-King must remove the Subject Fence."
At
further proceedings, the Association submitted a proposed form of judgment in the alternative, that Dolan-King
should seek the appropriate permits or remove the fence. She objected that an alternative form of judgment was
inappropriate. The judgment signed by the trial court ordered that she was "permanently enjoined from
maintaining the Subject Fence on the 'Property' ... To that end, defendant Patricia Dolan-King is enjoined and
ordered to remove the Subject Fence from the Property within 30 days of the date of entry of this Judgment."
In
subsequent proceedings, the Association's motion for attorney fees was granted in the amount of $ 318,293.50.
The ruling stated that "the overall average hourly rate for the Association's attorneys in the amount of $ 221
is reasonable in light of the nature of the litigation, the difficulty of the litigation, the skill required and
employed by the Association's attorneys, and the success of the Association in this litigation." Also, an award
of fees was included to reflect the amount of $ 12,007 for paralegal time, as necessary for the support of the
Association's attorneys.
Dolan-King
appeals the judgment and order.
DISCUSSION
We
first discuss the partial directed verdict which upheld the validity of the challenged regulatory code
provisions, in light of the standards set out in prior litigation arising under this Covenant. (Pts. I & II,
post.) We will then turn to Dolan-King's arguments that the application of these regulations was
unreasonable, as reflected in the jury verdict. We also evaluate the judgment in terms of the injunctive relief
ordered and the attorney fees ordered. (Pt. III, post.)
I
APPLICABLE
STANDARDS GLEANED FROM PRIOR LITIGATION
Much
of the groundwork for this appeal has been laid by our prior opinion, Dolan-King I, which dealt with the
validity of parallel provisions enacted by [115 Cal.App.4th 37] the Association, the unrecorded
guidelines followed by the Association's art jury. Here, the issues concern the unrecorded regulatory code, but
much of the same basic analysis is appropriate, as we next explain.
First,
however, we must acknowledge the guidance provided by another prior opinion issued by this court, Ticor Title
Insurance Co. v. Rancho Santa Fe Assn. (1986) 177 Cal. App. 3d 726 [223 Cal. Rptr. 175] (Ticor
Title). This case established the principle that the Association's power to "interpret" the Covenant does
not grant its board any power to enact more stringent specific regulations than those expressly contained in the
Covenant (e.g., setback regulations), unless appropriate amendment procedures have been followed as set forth in
the Covenant: "The power to interpret, however, is not unlimited. The Board's construction of its interpretation
powers leads to an extraordinary and unjust result. Under this construction, the Board is unlimited in its power
to interpret the Covenant as it sees fit even if, as in the instant case, it involves ignoring express language
in the Covenant and denigrating the voting rights of the property owners. We do not believe the covenanting
parties intended the Board to have such unfettered powers by the process of 'interpretation.' " (Id. at
pp. 733-734.)
Also
in Ticor Title, supra, 177 Cal. App. 3d 726, this court rejected the Association's argument that because
the Covenant, paragraph 14, granted authority to the Association to adopt regulations for the "general welfare,"
a more extensive action, such as "a change or modification of existing provisions in the Covenant," could be
accomplished outside of the amendment provisions set forth in the Covenant, paragraph 165. In that case, the
setback restriction was not one of the basic restrictions contained in the Covenant, and hence the amendment
provisions of paragraph 165 applied. (In our case, a basic restriction found in paragraph 48 is involved, hence
the amendment provisions of paragraph 164 would apply if an "amendment, change, modification or termination" of
a restriction is to be accomplished, by a required two-thirds vote of property owners.) Dolan-King is claiming
the limits outlined in Ticor Title on the Association's power were exceeded when the Board adopted and
enforced these portions of the regulatory code.
In
order to examine this argument, we turn to the extensive guidance provided by the Supreme Court regarding the
standards that apply in evaluating the validity of the challenged land use regulations, in this context of a
governing land use covenant and subsequent, related regulations. In Lamden v. La Jolla Shores Clubdominium
Homeowners Assn. (1999)
21 Cal.4th 249,
264 [87 Cal. Rptr. 2d 237, 980 P.2d 940] (Lamden), the Supreme Court discussed its prior opinion,
Nahrstedt v. Lakeside Village Condominium Assn. (1994)
8 Cal.4th 361 [33
Cal. Rptr. 2d 63, 878 P.2d 1275] (Nahrstedt), which set forth the general rule, "[W]hen an association
determines that a [115 Cal.App.4th 38] unit owner has violated a use restriction, the association must do so
in good faith, not in an arbitrary or capricious manner, and its enforcement procedures must be fair and applied
uniformly." (Id. at p. 383.) Restrictions found in a governing land use covenant "are evaluated for
reasonableness in light of 'the restriction's effect on the project as a whole,' not from the perspective of the
individual homeowner. [Citations.] Accordingly, courts do not conduct a case-by-case analysis of the restrictions
to determine the effect on an individual homeowner; we must consider the reasonableness of the restrictions by
looking at the goals and concerns of the entire development." (Dolan-King I, supra, 81 Cal.App.4th at p.
975.)
To
expand upon the nature of the various rules that may be used to create use restrictions in such developments,
the Supreme Court sought in Lamden to clarify the "distinction between originating CC&R's and
subsequently promulgated use restrictions. Specifically, we reasoned in Nahrstedt that giving deference
to a development's originating CC&R's 'protects the general expectations of condominium owners "that
restrictions in place at the time they purchase their units will be enforceable." ' [Citations.] Thus, our
conclusion that judicial review of a common interest development's founding CC&R's should proceed under a
deferential standard was, as plaintiff points out, at least partly derived from our understanding ... that the
factors justifying such deference will not necessarily be present when a court considers subsequent, unrecorded
community association board decisions." (Lamden, supra, 21 Cal.4th at p. 264.)
Accordingly,
in Dolan-King I, this court applied the rules developed in Nahrstedt, supra, 8 Cal.4th 361, and
Lamden, supra, 21 Cal.4th 249, to such "subsequently promulgated use restrictions" that have not been
recorded as running with the land. (Id. at p. 264.) In Dolan-King I, this court was concerned with
the unrecorded guidelines followed by the Association's art jury, as opposed to here, the issues concerning the
unrecorded regulatory code. In either case, "such unrecorded restrictions are not accorded a presumption of
reasonableness, but are viewed under a straight reasonableness test 'so as to "somewhat fetter the discretion of
the board of directors." ' [Citations.] We understand this distinction to primarily impact the respective
burdens of proof at trial." (Dolan-King I, supra, 81 Cal.App.4th at p. 977.) fn.
2 [115 Cal.App.4th 39]
Before
we examine the decision of the trial court to uphold the validity of the subject regulatory code provisions
dealing with major versus minor construction, as applied to fence work, it is useful to compare the nature of
the guidelines analyzed in Dolan-King I to the regulations at issue here. We noted previously that "[t]he
Guidelines themselves do not purport to be strict restrictions on improvements or land use. They are intended to
'disseminate[] the site and design standards which the community holds as necessary to preserve community
character; articulate[] the policies and goals by which the Association judges and regulates land use; and
give[] a clear indication of those site and design principles which increase the probability of the issuance of
Association permits.' " (Dolan-King I, supra, 81 Cal.App.4th at p. 978.) Accordingly, even though the
guidelines were not formalized as recorded equitable servitudes, we found there was "nothing inherently
unreasonable about the Guidelines in and of themselves. They are the Association's attempt to give property
owners guidance, by way of detailed examples and explanation, on the criteria used by the Art Jury and Board in
reviewing proposed improvements and exercising their broad discretion under the Covenant. The Board's desire to
give property owners more concrete examples of how the Art Jury is likely to exercise its broad discretion is
entirely legitimate and fair, even though the Guidelines are not binding restrictions. That Dolan-King lacked
notice of the Guidelines does not affect their reasonableness, but may influence our determination of whether
the Board fairly and reasonably relied upon them to deny Dolan-King's fence application ... ." (Ibid.)
In
this case, by comparison, section 31.03 of the regulatory code provides examples of various structures,
improvements and grading that substantially affect community character and that therefore are deemed to
constitute major construction. Section 31.0302 generally provides, "All fences and walls shall constitute 'Major
Construction.' " However, section 31.0302.01 of the code specifically provides: "Exception: Split-Rail Fences.
Wooden, unpainted split-rail fences not exceeding 36 [inches] in height, and consisting of two or fewer rails
shall be considered minor construction." Another exception is provided for, i.e., garden walls that do not
exceed 32 inches in height and that are composed of dry-laid materials, and which observe all set-back
requirements established for structures in the protective Covenant, are considered to be minor construction.
(Regulatory code, § 31.0302.02.)
[1]
For all practical purposes, the regulatory code is similar to the guidelines with respect to its unrecorded
character, but its undisputed availability to interested Association homeowners for purposes of putting them on
notice of the standards to be applied in evaluating development proposals. The same straight reasonableness test
should be applied to the code as to the guidelines, with attention to whether any basic restrictions of the
Covenant are actually amended, changed, modified or terminated by the code, within the meaning of the amendment
provisions of the Covenant, paragraph 164. The question [115 Cal.App.4th 40] here is whether the code
accomplishes such a substantive amendment, etc., of basic restrictions, as opposed to defining any terms left
undefined by the Covenant, such as major and minor construction. (Covenant, P 48.)
II
VALIDITY
OF REGULATIONS: PARTIAL DIRECTED VERDICT
Following
the above described approach, we examine the trial court's grant of the partial directed verdict upholding the
subject regulatory code provisions to decide if the court correctly applied the "straight reasonableness test
[designed] 'to "somewhat fetter the discretion of the board of directors." ' [Citations.]" (Dolan-King I,
supra, 81 Cal.App.4th at p. 977.) Where, as here, the decisive underlying facts (the nature of the fence and
the actions taken by the Association), are undisputed, then the validity of the subject regulatory code
provisions may be decided as a matter of law: "In such a case, in reviewing the propriety of the trial court's
decision, we are confronted with questions of law. [Citations.] Moreover, to the extent our review of the
court's declaratory judgment involves an interpretation of the Covenant's provisions, that too is a question of
law we address de novo." (Dolan-King I, supra,
81 Cal.App.4th 965,
974.)
Dolan-King
challenges the ruling in the Association's favor chiefly by contending that the regulatory code effectively
modifies, changes, or amends the controlling Covenant provision, paragraph 48, but without the necessary
compliance with paragraph 164, to submit the matter to a vote of homeowners. She is arguing that the Covenant
expressly protects a subjective right of the property owner to have a belief that a subject fence is minor
construction, and to act accordingly by having it installed without the need for any permits or Association
approval. (Covenant, P 48 ["The building of fences, walls, and similar structures, are divided into two classes:
First, major construction; second, minor construction. The property owner may proceed with what he definitely
thinks is a minor construction without submitting plans and specifications to the Art Jury as provided
above, subject to the continuing jurisdiction of the Association through its Board of Directors to hear
complaints against said minor construction ... ." (italics added)].) Although paragraph 49 provides a procedure
for the homeowner to submit plans to the art jury in case there is doubt about whether the contemplated work is
a major or minor construction, she had no such doubt.
Further,
Dolan-King argues that the powers of the Association and its board under the Covenant are primarily limited to
promoting the general welfare of the community, and that this power should not allow aesthetic [115
Cal.App.4th 41] considerations to override safety and traffic control considerations. (Covenant, P 14.) She
contends that the trial court erroneously read the Association's articles of incorporation and bylaws, together
with the Covenant language, as allowing the code to define these terms with such specificity, when paragraph 48
of the Covenant is more general in nature.
The
Association is granted the power in its governing documents to adopt regulations. The articles of incorporation,
article II, section 1, and the bylaws, article IV, section 6(e) allow regulations to be enacted as authorized by
the Covenant and the articles of incorporation and bylaws. Paragraph 37 of the Covenant gives the Association
regulatory power to carry out the provisions of the Covenant and governing documents. Paragraph 14 of the
Covenant authorizes the Association to adopt rules and regulations promoting the health, safety and general
welfare of the residents.
The
fallacy of Dolan-King's argument is that it focuses mainly upon her subjective beliefs as a homeowner, while
failing to account for the well-accepted power of an association operating under the land use covenant to
clarify and define its terms, so long as it is operating within the straight reasonableness standard. Both as to
the governing Covenant and subsequently enacted restrictions, the inquiry should be whether their provisions are
reasonable "in light of 'the restriction's effect on the project as a whole,' not from the perspective of the
individual homeowner. [Citations.] Accordingly, courts do not conduct a case-by-case analysis of the
restrictions to determine the effect on an individual homeowner; we must consider the reasonableness of the
restrictions by looking at the goals and concerns of the entire development." (Dolan-King I, supra, 81
Cal.App.4th at p. 975.)
[2]
We disagree with Dolan-King that regulatory code sections 31.03 et seq. effectively amend or modify paragraph 48
of the Covenant. Rather, these code sections operate to define the terms "major" and "minor" construction, with
respect to fencing. They preserve the right of a homeowner to proceed with minor construction without seeking
permits, while permissibly defining the parameters of what should reasonably be considered minor construction.
The Covenant section is properly subject to objective clarification of its terms, which are not defined in that
document. It is not unreasonable for the Association to refer to the historical nature of low-lying split rail
fences in the area as minor construction, thus preserving that category of the Covenant definition, while
defining other types of fencing as major construction. So long as some fences may still constitute minor
construction, the Covenant provision referring to minor construction has not been substantively modified or
amended, changed, or terminated by this regulatory code. (Covenant, P 164.)
[3]
Moreover, paragraph 48 itself reserves power to the Association, through its board of directors, "to hear
complaints against said minor construction and [115 Cal.App.4th 42] to hear, try and determine the said
complaints upon due notice to the defending property owner," even when the property owner proceeded with what he
definitely thought was "minor construction," without submitting plans and specifications. (Ibid.) This
presupposes Association control to some extent over the definitions of those terms. Also, paragraph 49 provides
a procedure for the homeowner to submit plans to the art jury in case there is doubt about whether the
contemplated work is major or minor construction. Based upon this reserved power in the Association to hear, try
and determine complaints about any construction, it is not unreasonable for the Association and its board to
enact regulations that seek to define such terms as minor construction in order to give notice to homeowners of
readily discoverable, objective standards for interpretation of the Covenant. The trial court correctly granted
the partial directed verdict on this basis.
Because
Dolan-King is primarily relying upon her subjective understanding of what constitutes minor construction, the
main thrust of her challenge to the regulatory code is found in the application of those provisions to her, in
an allegedly unreasonable manner. We now turn to those arguments.
III
APPLICATION
OF REGULATIONS AT TRIAL: JURY VERDICT
Dolan-King
has two main challenges to the jury verdict in the Association's favor that determined it had not breached the
terms of the Covenant through its dealings with her fence construction. She first argues that even assuming the
regulatory code is valid, as discussed above, the evidence nevertheless demonstrates that the Association did
not follow its own procedures in dealing with her construction, and she was subject to disparate treatment in
light of the more specifically referenced hearing that the Cloverlane Associates homeowners received, concerning
paragraph 48. Thus, she claims the Association waived its right to enforce these regulations and they are
unreasonable as applied to her.
Alternatively,
she appears to be arguing that the trial court erroneously excluded her evidence about traffic and safety
concerns surrounding her property, and that the judgment should be reversed because she was not allowed to fully
present her case that this was minor construction. She mainly relies on case authority as follows: " 'A judgment
may not be reversed on appeal, ... unless "after an examination of the entire cause, including the evidence," it
appears the error caused a "miscarriage of justice." [Citation.] ... [W]here the error results in denial of a
fair hearing, the error is reversible per se. Denying a party the right to testify or to offer evidence is
reversible [115 Cal.App.4th 43] per se. [Citations.]' " (Kelly v. New West Federal Savings
(1996)
49 Cal.App.4th 659,
677 [56 Cal. Rptr. 2d 803].)
A
Reasonableness
of Procedures
[4]
Because this issue was resolved upon disputed evidence, including challenges to the credibility of the
Association witnesses, a substantial evidence standard of review should apply. (Toigo v. Town of Ross
(1999)
70 Cal.App.4th 309,
317 [82 Cal. Rptr. 2d 649].) We accordingly disagree with appellant that this portion of the analysis must be
conducted de novo, as pure documentary interpretation, in light of the parties' submission to the jury of disputed
facts. (See Davies Machinery Co. v. Pine Mountain Club Inc. (1974) 39 Cal. App. 3d 18, 23 [113 Cal. Rptr.
784].)
[5]
In ruling for the Association, the trial court impliedly made findings that the letters that the Association
sent to Dolan-King in June 1999 referred to the regulatory code and therefore gave her adequate notice that a
hearing would be held regarding whether there was noncompliance with the Covenant building restrictions and
related regulations, and whether her membership privileges should be suspended and a lien recorded against her
property as a consequence. It was not disputed that the only basis that existed for considering the suspension
of her membership privileges was the subject fence construction without appropriate permits.
[6]
Dolan-King argues that proper procedures were not followed, because the record does not contain any homeowner
complaints against her, as contemplated by paragraph 48 of the Covenant, and that therefore the Association
should not have proceeded to enforce the regulatory code. However, the trial court could reasonably conclude
that the June 3, 1999 Association manager's letter referring to the code and notifying her of her noncompliance
constituted a "complaint" within the Covenant definitions. [7] The trial court also determined that the notice
given of the upcoming hearing was appropriate, even though the Association did not label the proposed hearing to
be one held specifically under paragraph 48. Again, this was a reasonable interpretation of the documentary
evidence. When Dolan-King was notified that a hearing would be held August 5, 1999 before the Board regarding
the revoking of her privileges to use Association facilities and the imposition of a $ 500 lien assessment, she
had already been placed on notice that the stated basis of that proposed action was noncompliance with the
Covenant regarding the subject fence. Accordingly, the fact that the hearing was not labeled to be a proceeding
under paragraph 48 was not dispositive. Dolan-King failed to make any convincing showing that the Association's
dealings with her in [115 Cal.App.4th 44] 1999 in that manner were measurably unfair when compared to the
Association's dealings in 2001 with another homeowner, Cloverlane, whose fence construction was opposed as not
in compliance with Covenant standards, and where paragraph 48 was more expressly invoked.
The
record also demonstrates that the subject fence was constructed while an appeal was pending from the earlier
judgment arising from the original application for a fence permit and its denial, and that Dolan-King was
knowledgeable about permit requirements for fences and had the advice of an attorney on the subject. She clearly
understood the distinction between her original application to build the fence, and her claim that no
application was necessary to build this fence. Accordingly, she has failed to show any impropriety in the notice
and hearing given on the minor construction issue.
Dolan-King's
backup position is that under any definition, the fence she built should be considered minor construction,
because it was installed in a few days, was of relatively low cost, and was of a type that was relatively easy
to install and remove. However, she has not shown that these criteria necessarily led to an objective conclusion
that this fence was minor construction. The trial court had in evidence photographs and measurements about the
subject fence and the original fence it replaced, along with testimony presented by Dolan-King's construction
expert that some definitions were necessary as to "major" and "minor" construction, because those terms were not
universally used one way or the other in the construction industry. It was not a foregone conclusion that only
minor construction was involved here, when all the evidence was considered.
On
the whole record, we cannot say that the trial court erred in deciding that the Association had not breached the
Covenant through its utilization of the complaint and hearing procedure, nor had it waived its right to enforce
these regulations. Dolan-King failed to show that she met any accepted standards about what was minor
construction of a fence, such that any different result was required.
B
Fairness
of Trial Proceedings
To
evaluate the claims that the traffic and safety evidence was erroneously excluded, we refer to well-established
authority that "an appellate court applies the abuse of discretion standard of review to any ruling by a trial
[115 Cal.App.4th 45] court on the admissibility of evidence. [Citations.] Speaking more particularly, it
examines for abuse of discretion a decision on admissibility that turns on the relevance of the evidence in
question. [Citations.] That is because it so examines the underlying determination as to relevance itself.
[Citation.] Evidence is relevant if it has any tendency in reason to prove a disputed material fact.
[Citation.]" (People v. Waidla (2000)
22 Cal.4th 690,
717 [94 Cal. Rptr. 2d 396, 996 P.2d 46].)
Dolan-King's
argument in this respect appears to be a claim that there should be a traffic and safety exception to the
requirement that a permit be obtained for other than minor construction. She bases this argument upon public
policy concerns, such as a right to privacy and to protect her home and family, and a theory that the burden of
these regulations outweighs any benefit that is received from them.
[8]
While these arguments are appealing in the abstract, we cannot say that Dolan-King's efforts to present this
evidence had any support in the language of the Covenant, its subsequently enacted regulations, or the
Association's governing documents, in light of our conclusions above that the validity of the regulatory code
could be addressed as a question of law, as agreed to in the trial proceedings. There is no express traffic or
safety exception to the permit requirement. The Covenant includes concerns about the general welfare of the
homeowners in the area, and the Association is given regulatory powers to promote them. [9] Moreover, the same
traffic concerns were addressed in the previous litigation that led to the Dolan-King I opinion, and the
trial court here was of the belief that to allow traffic evidence to be introduced would be to retry that
previous case. Under all the circumstances, we can find no abuse of discretion in the in limine rulings that
excluded traffic and safety evidence about this particular property.
[10]
Finally, although Dolan-King now argues there was no adequate showing of irreparable harm to the Association to
support the issuance of injunctive relief, she cannot be heard to complain about the form of relief ordered.
This is because she objected to an alternative form of judgment, which would have allowed her to apply for a
permit for the fence, or tear it down. The fence had been in place approximately three years by the time of
trial, and she had never sought a permit due to her argument that none was required for minor construction. Once
that issue was determined against her, and based upon her objection to allowing the permit procedure to be
further pursued, any error in the issuance of the injunctive relief was either invited error or harmless. (7
Witkin, Cal. Procedure (4th ed. 1997) Judgment, § 22, p. 558.) [115 Cal.App.4th 46]
On
the record before us, we cannot find Dolan-King showed that the Association's procedures as applied to her were
unreasonable, nor that the trial proceedings were unfair.
IV
ATTORNEY
FEE AWARD
Dolan-King
appeals the trial court's order granting an award of attorney fees to the Association under section 1354,
subdivision (f). The order authorized an award in the amount of $ 318,293.50, based on an overall average hourly
rate for the Association's attorneys in the amount of $ 221, and an award for paralegal time.
Although
Dolan-King has provided a copy of the order, she has not provided the moving and opposing papers on the fees
matter. The only argument made in the opening brief is that this large award will have a chilling effect on
discouraging legitimate opposition to the Association's business practices, which she labels as questionable.
(Blue Lagoon Community Association v. Mitchell (1997)
55 Cal.App.4th 472,
476-478 [64 Cal. Rptr. 2d 81].)
The
party seeking to challenge an order on appeal has the burden to provide an adequate record to assess error.
(Maria P. v. Riles (1987)
43 Cal.3d 1281,
1295-1296 [240 Cal. Rptr. 872, 743 P.2d 932].) Where the party fails to furnish an adequate record of the
challenged proceedings, his claim on appeal must be resolved against him. (Ibid.; also see Ketchum v.
Moses (2001)
24 Cal.4th 1122,
1140-1141 [104 Cal. Rptr. 2d 377, 17 P.3d 735].)
[11]
Ordinarily, an award of attorney fees under a statutory provision, such as section 1354, subdivision (f), is
reviewed for abuse of discretion. The Association remains the prevailing party here. We have been presented with
no support for Dolan-King's claims of abuse of discretion with respect to the time expended, the hourly rate
billed, or the nature of the costs assessed after the motion to tax was ruled upon. Accordingly, the proper
course is to uphold the award. (Vo v. Las Virgenes Municipal Water District (2000)
79 Cal.App.4th 440,
447 [94 Cal. Rptr. 2d 143].) The respondent's brief does not seek an award of attorney fees on appeal. The ordinary
costs on appeal will be awarded to the Association, however. [115 Cal.App.4th 47]
DISPOSITION
The
judgment and order are affirmed. Costs on appeal to the Association.
Nares,
J., and O'Rourke, J., concurred.
A
petition for a rehearing was denied January 28, 2004, and appellant's petition for review by the Supreme Court
was denied April 28, 2004. Werdegar, J., did not participate therein.
FN 1. All
further statutory references are to the Civil Code unless noted.
FN 2. The
Supreme Court has granted review in a case further examining the standards which govern the validity of a land use
restriction in a common interest development, i.e., one that was adopted and recorded by an association after the
purchase of the unit in the development. (Villa de Las Palmas Homeowners Association v. Terifaj, review
granted Sept. 25, 2002, S109123.) That case is fully briefed but has not been set for oral argument. It is
factually distinguishable because the challenged regulations in our case are unrecorded (the regulatory code.)
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