Majority
I. BACKGROUND
Plaintiffs Barbara Lynch and Thomas Frick own adjacent oceanfront properties in Encinitas. Their homes sit on a coastal bluff that cascades
When the wooden poles showed significant decay, plaintiffs applied to the City of Encinitas (City) for authorization to replace the wooden seawall and midbluff structure with an integrated concrete wall. They also sought to rebuild the lower portion of the stairway, which would be attached to the new wall. The City approved the project in 2009, finding it consistent with the general plan and municipal code. Final approval required a coastal development permit from the Commission. While plaintiffs' application for this permit was pending, unusually heavy winter storms caused the bluff below Lynch's home to collapse, destroying part of the seawall, most of the midbluff structure, and the lower portion of the stairway.
Plaintiffs sought a new permit to demolish the old structure, construct a new tied-back seawall across both properties, and rebuild the lower stairway. Commission staff recommended approving the proposed seawall, even though the existing support under Frick's property was adequate, because the new wall would provide greater stability and visual appeal. The proposed seawall would be located eight feet inland from its current location, providing additional beach area for
II. DISCUSSION
About a year later, the Commission moved for judgment on the mandate petition, arguing plaintiffs had waived their objections by accepting the permit conditions and constructing the project. The trial court denied the motion. Plaintiffs then moved for judgment, arguing the permit's 20-year expiration date was unconstitutional and beyond the Commission's authority because it did not mitigate impacts of this particular project. In addition, plaintiffs maintained the Commission could not prohibit reconstruction of the lower stairway because that activity did not require a permit. The trial court agreed with plaintiffs and issued a writ directing the Commission to remove the challenged conditions. The Court of Appeal reversed in a split decision. The majority determined that plaintiffs had waived their claims and, in any event, both conditions were valid. The dissenting justice disagreed with all of these conclusions.
We granted review. Because we determine plaintiffs' claims have been forfeited, we do not decide the legality of the challenged conditions.
As we have explained in various contexts, " 'waiver' means the intentional relinquishment or abandonment of a known right." ( Bickel v. City of Piedmont (1997) 16 Cal.4th 1040 , 1048, 68 Cal.Rptr.2d 758 , 946 P.2d 427 ; see Waller v. Truck Ins. Exchange, Inc. (1995) 11 Cal.4th 1 , 31, 44 Cal.Rptr.2d 370 , 900 P.2d 619 .) Waiver requires an existing right, the waiving party's knowledge of that right, and the party's "actual intention to relinquish the right." ( Bickel , at p. 1053, 68 Cal.Rptr.2d 758 , 946 P.2d 427 .) " 'Waiver always rests upon intent.' " ( City of Ukiah v. Fones (1966) 64 Cal.2d 104 , 107, 48 Cal.Rptr. 865 , 410 P.2d 369 .) The intention may be express, based on the waiving party's words, or implied, based on conduct that is " 'so inconsistent with an intent to enforce the right as to induce a reasonable belief that such right has been relinquished.' " ( Savaglio v. Wal-Mart Stores, Inc. (2007) 149 Cal.App.4th 588 , 598, 57 Cal.Rptr.3d 215 ; see Waller , at pp. 31, 33-34, 44 Cal.Rptr.2d 370 , 900 P.2d 619 .)
In
When the Legislature addressed this subject, it authorized a narrow exception for challenges to permit conditions imposing a fee or similar exaction. The Mitigation Fee Act (Gov. Code, § 66000 et seq. ) establishes a procedure by which developers may proceed with a project and still protest the imposition of fees or a possessory interest in property. (See Sterling Park, L.P. v. City of Palo Alto (2013) 57 Cal.4th 1193 , 1206-1207, 163 Cal.Rptr.3d 2 , 310 P.3d 925 ( Sterling Park ).) In general, if a developer has tendered payment of the disputed fee and given written notice of the grounds for protest, local agencies cannot withhold project approval during litigation of the dispute. (Gov. Code, § 66020, subds. (a) -(b).) If the challenge is successful, the agency must refund the unlawful fees with interest. (Gov. Code, § 66020, subd. (e).)
Before the Mitigation Fee Act, developers that wished to challenge the legality of a fee had to delay construction until mandamus proceedings ended. (See McLain Western #1 v. County of San Diego (1983) 146 Cal.App.3d 772 , 776-777, 194 Cal.Rptr. 594 ; Pfeiffer , supra , 69 Cal.App.3d at p. 78, 137 Cal.Rptr. 804 .) The Mitigation Fee Act
Plaintiffs protest that imposing a forfeiture under these circumstances could put homeowners in a serious bind. The Commission approved the seawall because Lynch's blufftop home was in danger of collapsing into the sea.[4] Postponing construction until mandate proceedings had concluded would have left plaintiffs' homes at significant risk. If proceeding with a project constitutes a forfeiture, plaintiffs argue property owners under similar duress could be coerced to accept unlawful permit conditions, simply because they cannot wait months or years for litigation to conclude.
However, when safety is an issue, property owners can address imminent dangers by obtaining an emergency permit. (Pub. Resources Code, § 30624.)[5] Emergency permits generally authorize temporary improvements, needed for immediate relief when loss or damage is threatened. ( Barrie v. California Coastal Com. (1987) 196 Cal.App.3d 8 , 17, 241 Cal.Rptr. 477 .) In Barrie , for example, coastal homeowners began constructing an unpermitted seawall in anticipation of heavy storms. ( Id . at p. 12, 241 Cal.Rptr. 477 .) The Commission authorized the work under an emergency permit, though it required that the homeowners obtain a regular permit for a permanent seawall at the location. ( Id . at pp. 12-13, 241 Cal.Rptr. 477 .) Similarly, here, plaintiffs could have sought an emergency permit for a temporary seawall to protect their properties during litigation. Plaintiffs would have been aware of this option because they obtained an emergency permit to clean up debris from storm damage to the previous seawall.
Temporary erosion protection under an emergency permit would have preserved the status quo pending the outcome of litigation. Because administrative mandate proceedings are often streamlined and subject to local fast track requirements (see Smith-Chavez et al., 2 Cal. Civil Practice: Real Property Litigation (1st ed. 2005) Land Use and Zoning Litigation, § 14:42, p. 14-52 et seq.), delay of
4 Although the bluff supporting Frick's home was more stable, the Commission allowed the seawall to extend across his property because continuing erosion would likely threaten it in the near future.
5 In truly dire circumstances, immediate repairs can be made without an emergency permit. (See Pub. Resources Code, § 30611 ; Cal. Code Regs., tit. 14, § 13144.)
III. DISPOSITION
T
he judgment of the Court of Appeal is affirmed.
We Concur:
Cantil-Sakauye, C.J.
Werdegar, J.
Chin, J.
Liu, J.
Cuéllar, J.
Kruger, J.
7 The Commission also contends plaintiffs expressly agreed to accept the challenged permit conditions when they recorded deed restrictions referencing the permit. Because we conclude plaintiffs forfeited their claims by constructing the seawall project, we need not address this alternative argument.
1 We refer to this authorization as a permit, but technically it was an amendment to the coastal development permit the Commission issued for the original seawall in 1989.
Pfeiffer v. City of La Mesa (1977) 69 Cal.App.3d 74 , 137 Cal.Rptr. 804 ( Pfeiffer ) reached a similar result. There, the city issued a building permit but required the property owners to grant an easement and construct a storm drain. The owners objected to the conditions but said they would comply " 'under protest and without waiving their rights to demand compensation.' " ( Id . at p. 76, 137 Cal.Rptr. 804 ) After completing the project, they sued the city for inverse condemnation, seeking compensation for the easement and the cost of constructing the storm drain. ( Ibid . ) The court held they could not state a cause of action for inverse
Plaintiffs' position is analogous to that of the landowners in Edmonds v. County of Los Angeles (1953) 40 Cal.2d 642 , 255 P.2d 772 . The Edmonds family operated a large trailer court in violation of zoning regulations and state law. ( Id . at p. 644, 255 P.2d 772 .) Local authorities agreed to grant an exception allowing additional trailers on the property, subject to a requirement that the nonconforming use be abandoned within three years. ( Id . at pp. 645-646, 255 P.2d 772 .) Edmonds protested this limitation when it was first proposed but ultimately accepted all the benefits afforded by the conditional exception. ( Id . at pp. 646-650, 255 P.2d 772 .) For three years the exception gave the Edmonds family "definite advantages to which they were not otherwise entitled." ( Id . at p. 650, 255 P.2d 772 ) Accordingly, they could not later challenge it. ( Id . at pp. 650, 653, 255 P.2d 772 .)[3] Similarly, because plaintiffs here took advantage of their permit's benefits by building a seawall, they must now accept the permit's conditions.
Plaintiffs urge that because the objectionable permit conditions did not affect the design or construction of the seawall, it was possible to challenge the conditions while the project was being built. Noting the instability of the coastal bluffs, plaintiffs argue they should not have had to await the outcome
3 Our holding in Edmonds was phrased in terms of estoppel because the zoning authorities had "relied to their detriment" on the plaintiffs' promise to end their nonconforming use. ( Edmonds v. County of Los Angeles , supra , 40 Cal.2d at p. 653, 255 P.2d 772 .) However, the principles expressed are equally applicable in the context of equitable forfeiture.
Creating an under protest exception would also potentially swallow the general rule that landowners must take the burdens along with the benefits of a permit. Permit applicants frequently accept conditions they dislike in order to obtain a permit. "If every owner who disagrees with the conditions of a permit could unilaterally decide to comply with them under protest, do the work, and file an action in inverse condemnation on the theory of economic coercion, complete chaos would result in the administration of this important aspect of municipal affairs." ( Pfeiffer , supra , 69 Cal.App.3d at p. 78, 137 Cal.Rptr. 804 .) An exception allowing applicants to challenge a permit's restrictions after taking all of its benefits would change the dynamics of permit negotiations and would foster litigation.
One might argue the Commission could have avoided this problem by declining to issue the permit after plaintiffs filed their administrative mandate action. Plaintiffs do not stress this point, presumably because they would prefer a rule allowing projects to proceed under protest over one encouraging permits to be withheld if they have challenged conditions. Denial of the permit may not have been possible here. According to the Commission, once a landowner satisfies all pre-issuance conditions, including recording deed restrictions that expressly promise all permit conditions will be honored, issuance of the permit is a purely ministerial act that Commission staff are powerless to interrupt. Even assuming the Commission's authority could be broadened in this regard, however, we believe the better rule puts the onus on landowners to resolve their challenges before accepting the benefits of a permit. The landowner is in the best position to know how strongly he objects
Ultimately, the Commission approved a
Whether a waiver or forfeiture has occurred is often a factual question, typically reviewed for substantial evidence. ( Bickel v. City of Piedmont , supra , 16 Cal.4th at pp. 1052-1053, 68 Cal.Rptr.2d 758 , 946 P.2d 427 .) " 'When, however, the facts are undisputed and only one inference may reasonably be drawn, the issue is one of law and the reviewing court is not bound by the trial court's ruling.' " ( St. Agnes Medical Center v. PacifiCare of California (2003) 31 Cal.4th 1187 , 1196, 8 Cal.Rptr.3d 517 , 82 P.3d 727 .) Moreover, the determination whether a party's actions constitute forfeiture is essentially legal in nature, and thus subject to independent review. (Cf. Evans v. City of San Jose (2005) 128 Cal.App.4th 1123 , 1136, 27 Cal.Rptr.3d 675 [legal issues concerning administrative exhaustion are reviewed de novo].)
The relevant facts are not in dispute. During the review process, plaintiffs submitted written objections to the conditions they now challenge. After the Commission voted to approve a coastal development permit subject to the challenged conditions, plaintiffs timely filed for a writ of mandate. While the mandate action was pending, however, they satisfied all other conditions, obtained the permit, and built the seawall. The trial court concluded plaintiffs' actions did not bar their petition. It explained that, "by proceeding with the repairs," plaintiffs "have not necessarily accepted the conditions in question. No action has been taken as to the twenty year condition[,] which can be removed after review of the instant petition." In addition, plaintiffs had "not undertaken any action as to the staircase." Contrary to the trial court, we conclude plaintiffs forfeited their right to challenge the permit's conditions by complying with all pre-issuance requirements, accepting the permit, and building the seawall.
In the land use context, a landowner may not challenge a permit condition if he has acquiesced to it either by specific agreement, or by failure to challenge the condition while accepting the benefits afforded by the permit.
2 Although the court used waiver terminology, the facts are more consistent with forfeiture. The Pfeiffers objected to the permit's conditions and complained throughout that they were complying " 'under protest.' " ( Pfeiffer , supra , 69 Cal.App.3d at p. 76, 137 Cal.Rptr. 804 .) Arguably, their conduct was not an "intentional relinquishment or abandonment of a known right." ( Bickel v. City of Piedmont , supra , 16 Cal.4th at p. 1048, 68 Cal.Rptr.2d 758 , 946 P.2d 427 .)
Requiring that parties seek to invalidate permit conditions in administrative mandate proceedings before proceeding with a project "serves the salutary purpose of promptly alerting the [agency] that its decision is being questioned" and allows the government to mitigate potential damages. ( California Coastal Com. v. Superior Court (1989) 210 Cal.App.3d 1488 , 1496, 258 Cal.Rptr. 567 .) After a project has been built, it may be too late for agencies to propose alternative mitigation measures. They may be left with no practical means of addressing a project's significant impacts. Land use planning decisions entail a delicate balancing of interests. An under protest exception to the general waiver rule would upset this balance and
6 Although some amici curiae protest that an agency's notice of intent to issue a permit could expire before mandate litigation has concluded, courts can presumably address such problems by issuing appropriate stay orders. (See Code Civ. Proc., § 1094.5, subd. (g).)
Cases cited
- Bickel v. City of Piedmont 16 Cal.4th 1040 p. 475
- Waller v. Truck Insurance Exchange, Inc. 11 Cal.4th 1 p. 475
- City of Ukiah v. Fones 64 Cal.2d 104 p. 475
- Savaglio v. Wal-Mart Stores, Inc. 149 Cal.App.4th 588 p. 475
- Feduniak v. California Coastal Commission 148 Cal.App.4th 1346 p. 476
- Los Angeles County Department of Children & Family Services v. S.M. 32 Cal.4th 1287 at 1293 p. 476
- County of Imperial v. McDougal 19 Cal.3d 505 p. 477
- Rossco Holdings Inc. v. State of California 212 Cal.App.3d 642 p. 477
- Hensler v. City of Glendale 8 Cal.4th 1 p. 477
- Sterling Park, L.P. v. City of Palo Alto 57 Cal.4th 1193 p. 479
- McLain Western #1 v. County of San Diego 146 Cal.App.3d 772 p. 479
- Barrie v. California Coastal Commission 196 Cal.App.3d 8 p. 481
- Pfeiffer v. City of La Mesa 69 Cal.App.3d 74 p. 759
- Sports Arenas Properties, Inc. v. City of San Diego 40 Cal.3d 808 p. 760
- Edmonds v. County of Los Angeles 40 Cal.2d 642 p. 760
- Fogarty v. City of Chico 148 Cal.App.4th 537 p. 761
- People v. Romero 44 Cal.4th 386 p. 1089
- Saint Agnes Medical Center v. PacifiCare of California 31 Cal.4th 1187 p. 1089
- Evans v. City of San Jose 128 Cal.App.4th 1123 p. 1089
- Salton Bay Marina, Inc. v. Imperial Irrigation District 172 Cal.App.3d 914 p. 1090
- California Coastal Commission v. Superior Court 210 Cal.App.3d 1488 p. 1092