Promenade at Playa Vista v. Western Pacific 11/8/11 CA2/1

SUPREME COURT CASES

Laws-info.com » Cases » California » Court of Appeal » 2012 » Promenade at Playa Vista v. Western Pacific 11/8/11 CA2/1

State: California

Court: 1st District Court of Appeal 1st District Court of Appeal

Docket No: B225086

Case Date: 01/25/2012

Preview:Filed 11/8/11

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA SECOND APPELLATE DISTRICT DIVISION ONE

PROMENADE AT PLAYA VISTA HOMEOWNERS ASSOCIATION, Plaintiff and Respondent, v. WESTERN PACIFIC HOUSING, INC., et al., Defendants and Appellants.

B225086 (Los Angeles County Super. Ct. No. BC424950)

APPEAL from an order of the Superior Court of Los Angeles County, Emilie H. Elias, Judge. Affirmed. Wood, Smith, Henning & Berman, Stephen J. Henning, Sheila E. Fix, Tracy M. Lewis, and Robert G. Amundson for Defendants and Appellants. Fenton Grant Mayfield Kaneda & Litt, Daniel H. Clifford, Joseph Kaneda and Bruce Mayfield for Plaintiff and Respondent.

___________________________________________

This appeal presents the question of whether, in response to a construction defect action brought by a condominium homeowners association, the developer can compel binding arbitration of the litigation pursuant to an arbitration provision in the declaration of covenants, conditions, and restrictions (CC&R`s). The answer is no.1 We reach this conclusion because the developer does not rely on a contract with the homeowners association to compel arbitration but instead on the arbitration provision in the CC&R`s. Yet, under California law, the provisions in the CC&R`s are equitable servitudes and can be enforced only by the homeowners association, the owner of a condominium, or both. Developers are not among those permitted to enforce CC&R`s. I BACKGROUND The facts and allegations in this appeal are taken from the pleadings, the exhibits submitted in connection with the motion to compel arbitration, and the standard procedure for creating a common interest development. Defendants Western Pacific Housing, Inc., and Playa Capital Company, LLC (Developers), constructed, marketed, and sold a 90-unit condominium complex located on West Pacific Promenade in Playa Vista, California. Before the homeowners association (Association) came into existence or a single unit was sold, the Developers drafted and recorded the CC&R`s. Only the Developers signed that document. The CC&R`s contained a mandatory arbitration provision, requiring that any disputes between the Developers, on the one hand, and the Association or a condominium owner, on the other hand, be submitted to binding arbitration. According to its terms, the provision could not be amended without the consent of the Developers.

issue is pending before our Supreme Court in Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC (2010) 187 Cal.App.4th 24, review granted November 10, 2010, S186149 (lead case).

1 This

2

The CC&R`s made the Federal Arbitration Act (FAA) (9 U.S.C.

Download Promenade at Playa Vista v. Western Pacific 11/8/11 CA2/1.pdf