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Market Lofts Community Association v. 9th Street Market Lofts, LLC.

California Court of Appeals, Second District, Second Division

January 7, 2014

MARKET LOFTS COMMUNITY ASSOCIATION, Plaintiff and Appellant,
v.
9TH STREET MARKET LOFTS, LLC et al., Defendants and Respondents.

Order File Date February 4, 2014

APPEAL from a judgment of the Superior Court of Los Angeles County, No. BC472621 Richard Edward Rico, Judge.

Freeman, Freeman & Smiley, Todd M. Lander and Tracy R. Daub for Plaintiff and Appellant.

Law Offices of Stephen D. Marks, Stephen D. Marks; Katten Muchin Rosenman, Gregory S. Korman, Andrew J. Demko and Johanna R. Bloomfield for Defendants and Respondents.

ORDER MODIFYING OPINION AND DENYING PETITION FOR REHEARING

THE COURT:[*]

It is ordered that the opinion filed herein on January 7, 2014, be modified as follows:

On page 9, the first full paragraph, beginning “With respect to the other causes of action” is deleted and the following paragraph is inserted in its place:

With respect to the other causes of action, the HOA has standing to sue as a representative of the individual homeowners. Code of Civil Procedure section 382 provides in part that “when the question is one of a common or general interest, of many persons, or when the parties are numerous, and it is impracticable to bring them all before the court, one or more may sue or defend for the benefit of all.” “There are two forms of representative actions: those that are brought as class actions and those that are not.” (Arias v. Superior Court (2009) 46 Cal.4th 969, 977, fn. 2.) The Developers argue that the HOA must, and cannot, meet the requirements for a class action in bringing the sixth cause of action for unfair business practices. The Developers rely on the companion cases of Arias, supra, at page 980 and Amalgamated Transit Union, Local 1756, AFL-CIO v. Superior Court (2009) 46 Cal.4th 993, 998, which analyzed Proposition 64’s amendment of the unfair competition law and concluded that representative actions brought under this law must qualify as class actions. But the Developers did not raise the issue of class action requirements as a ground for their demurrer to this cause of action. Indeed, in their reply brief to the demurrer, the Developers asserted that it was “unclear whether Plaintiff actually intends this to be a class action.” We therefore offer no opinion on whether the HOA has or can meet the requirements of a class representative.

There is no change in the judgment.

Respondent’s petition for Rehearing is denied.

ASHMANN-GERST, J.

A homeowner’s association appeals from the judgment of dismissal following the sustaining of a demurrer without leave to amend its second amended complaint (SAC). The trial court sustained the demurrer on the ground that the association lacked standing both on its own behalf and as a representative of the homeowners to assert claims against the developers relating to contractual parking rights. We reverse the judgment of dismissal.

FACTUAL AND PROCEDURAL BACKGROUND

The Parties

Appellant is Market Lofts Community Association (HOA), which is the homeowner’s association for the condominium owners at a mixed-use upscale development called Market Lofts, located at the corner of 9th and Flower Streets in downtown Los Angeles, adjacent to the Staples Center. Retail spaces are located on the street level and 267 residential condominium units are located above. Respondents are essentially two sets of developers—the developer of Market Lofts (referred to as 9th Street) and the ...


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