Opinion

GHP Management Corporation v. City of Los Angeles

Court
District Court, C.D. California
Filed
Nov 22, 2021
Cited by
0 cases
Authority
More cited than 18.0%

“[T]he independent jurisdictional grounds requirement does not apply to 27 proposed intervenors in federal-question cases when the proposed intervenor is not raising new claims.”

How later courts described this case

  • “[T]he independent jurisdictional grounds requirement does not apply to 27 proposed intervenors in federal-question cases when the proposed intervenor is not raising new claims.”

Written by the judges who cited it.

The opinion

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8 UNITED STATES DISTRICT COURT

9 CENTRAL DISTRICT OF CALIFORNIA

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11 GHP MANAGEMENT CORPORATION, ) Case No. CV 21-06311 DDP (JEMx)

)

12 Plaintiff, )

) ORDER GRANTING MOTION TO

13 v. ) INTERVENE

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14 CITY OF LOS ANGELES, )

) [Dkt. 20]

15 Defendant. )

)

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17 Presently before the court is a Motion to Intervene as

18 defendants filed by three nonprofit organizations: Alliance for

19 Community Empowerment (“ACCE”); Strategic Actions for a Just

20 Economy (“SAJE”); and Coalition for Economic Survival (“CES”)

21 (collectively, “Proposed Intervenors”). Having considered the

22 submissions of the parties, the court grants the motion and adopts

23 the following Order.1

24 I. Background

25 At the outset of the COVID-19 pandemic, Defendant City of Los

26 Angeles (“the City”) enacted Ordinance No. 186585, which was later

27 updated by Ordinance No. 186606 (collectively, the “Eviction

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1 Moratorium” or “Moratorium”). Plaintiffs allege that the Eviction

2 Moratorium “effectively precludes residential evictions.”

3 (Complaint ¶ 45.) The Moratorium prohibits landlords from

4 terminating tenancies due to COVID-related nonpayment of rent, any

5 no-fault reason, certain lease violations related to additional

6 occupants and pets, or removal of rental units from the rental

7 market. (Complaint ¶ 46.) The Moratorium further allows tenants

8 who have missed rent payments a one-year period to pay delayed

9 rent, starting from the end of the ongoing local emergency period.

10 (Id.) Tenants may sue landlords and seek civil penalties for

11 violations of the Moratorium. (Id. ¶ 49.)

12 Plaintiffs, comprised of (1) thirteen limited liability

13 corporations or limited partnerships that own apartment buildings

14 and (2) the management company that manages the buildings, own or

15 manage nearly five thousand apartment units in Los Angeles.

16 Plaintiffs allege that the Moratorium constitutes an uncompensated

17 taking of private property in violation of the Fifth Amendment’s

18 Takings Clause, as well as the California Constitution’s Takings

19 Clause. Plaintiffs’ Complaint seeks an award of “just

20 compensation,” costs, and attorney’s fees, but does not seek to

21 invalidate or enjoin enforcement of the Moratorium.

22 Proposed Intervenors now seek to intervene as defendants.

23 ACCE is an organization engaged in “ground-up organizing to build a

24 strong people’s movement to create transformative community

25 change.” (Declaration of Joseph Delgado ¶ 2.) ACCE’s housing

26 justice campaigns focus “on helping families stay in their homes,

27 preserving affordable housing, and pushing for equitable housing

28 practices across California, including in Los Angeles.” (Id.)

1 ACCE organizes in low and very low-income neighborhoods, and its

2 Los Angeles membership is “predominately Black and Brown, including

3 a significant number of undocumented Angelenos.” (Id. ¶ 3.) Most

4 of ACCE’s members are severely rent burdened. (Id. ¶ 4.) Demand

5 for ACCE’s eviction defense clinics has more than doubled during

6 the pandemic. (Id. ¶ 7.)

7 SAJE “serves predominantly low-income and very low-income

8 people of color in [] South Central Los Angeles,” and advocates for

9 “tenant rights, healthy housing, and equitable development in South

10 Los Angeles.” (Declaration of Cynthia Strathmann ¶¶ 2,4.) Like

11 ACCE, SAJE has seen a “substantial uptick” in demand for its tenant

12 assistance services since the onset of the pandemic. (Id. ¶ 8.)

13 CES is a “grassroots community-based organization dedicated to

14 organizing low and moderate-income people to win economic and

15 social justice throughout the greater Los Angeles Area.”

16 (Declaration of Larry Gross ¶ 2.) Since the pandemic began, CES,

17 too, has seen a “marked uptick” in the number of people seeking

18 assistance tenants’ rights assistance, specifically with respect to

19 inability to pay rent, harassment from landlords, and landlords’

20 refusal to maintain habitable dwellings. (Id. ¶¶ 3-4.)

21 Proposed Intervenors seek to defend the Moratorium, without

22 which, Intervenors posit, their members and other tenants would be

23 forcibly displaced from their homes. (Motion at 2:6-9.)

24 II. Legal Standard

25 Under Federal Rule of Civil Procedure 24, a court must allow

26 intervention by any movant who “claims an interest relating to the

27 property or transaction that is the subject of the action, and is

28 so situated that disposing of the action may as a practical matter

impair or impede the movant’s ability to protect its interest,

unless existing parties adequately represent that interest.” Fed.

3H R. Civ. P. 24(a) (2). An applicant meets these criteria, and may

intervene as of right, if (1) the motion is timely; (2) the

5} applicant has a “significant protectable” interest relating to the

action; (3) disposition of the action may, as a practical matter,

7! impair or impede the applicant’s ability to protect that interest;

(4) the applicant’s interest is inadequately represented by the

parties to the action. California ex rel. Lockyer v. United

States, 450 F.3d 436, 440 (9th Cir. 2006). When evaluating these

requirements, courts are guided by “practical and equitable

considerations,” and generally construe the Rule to apply “broadly

in favor of proposed intervenors.” Wilderness Soc. v. U.S. Forest

Serv., 630 F.3d 1173, 1179 (9th Cir. 2011) (quoting United States

15}}v. City of Los Angeles, 288 F.3d 391, 397 (9th Cir. 2002)

(internal quotation omitted).

17 Alternatively, when an intervenor cannot satisfy the four-part

18] test for intervention as of right, courts may allow anyone who “has

19]/a claim or defense that shares with the main action a common

question of law or fact” to intervene. Fed. R. Civ. P.

211 24 (b) (1) (B).

22 In evaluating motions to intervene, courts must “take all

well-pleaded, nonconclusory allegations in the motion to intervene,

24] the proposed complaint or answer in intervention, and declarations

supporting the motion as true.” Sw. Ctr. for Biological Diversity

26|/v. Berg, 268 F.3d 810, 820 (9th Cir. 2001)

IIIT. Discussion

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1 At the outset, it must be noted that Plaintiffs are not the

2 first to challenge the Eviction Moratorium. Soon after the

3} implementation of the Moratorium, the Apartment Association of Los

Angeles, an organization that advocates on behalf of rental

property owners such as Plaintiffs, brought a constitutional

challenge to the Moratorium, including claims under the Takings

Clause. See Apartment Ass’n of Los Angeles Cty., Inc. v. City of

Los Angeles, No. CV2005193DDPJEMX, 2020 WL 4501792, at *1 (C.D.

Cal. Aug. 5, 2020) (“AAGLA’”). Two of the Proposed Intervenors

here, ACCE and SAJE, sought, and were permitted, to intervene as

defendants in AGGLA. In AAGLA, ACCE and SAJE asserted an interest

12}/in defending tenants’ “legally protected property interest in

remaining in their homes.” AGGLA, 2020 WL 4501792 at *2. In

allowing intervention as of right, this Court determined that the

City would not necessarily adequately represent or defend that

interest. Id. at *3.

17 Here, proposed Intervenors make arguments similar to those

raised in AAGLA. Proposed Intervenors assert an “interest in the

19] ongoing applicability of the Ordinances’ protections, which

20] directly impact many of their tenant members.” (Mot. at 13:8-10.)

With respect to the practical effect of a disposition in this

22\|}matter, Proposed Intervenors contend that a declaratory judgment in

Plaintiffs’ favor could be used by other landlords to obtain

injunctive relief, or compel the City to, in the face of

overwhelming liability for compensatory payments, end the emergency

declaration and terminate the Moratorium earlier than COVID and its

27} attendant economic effects would otherwise dictate. (Mot. at

28 14:21-28.) The result, Proposed Intervenors argue, would be an

“outbreak of eviction proceedings,” a rise in homelessness, and

increased risk of the spread of COVID-19. (Mot. at 15:6-18.)

Proposed Intervenors argue further that, as in AAGLA, the City (1)

does not share Proposed Intervenors’ interests, especially insofar

5if}as the City seeks solutions that would benefit Plaintiffs

themselves, and (2) does not have the knowledge or information

necessary to adequately represent Proposed Intervenors’ low-income

8]}/members and clients’ interests.

9 Plaintiffs here raise arguments that were also raised, and

rejected, in AAGLA. Plaintiffs argue, for example, that Proposed

Intervenors have failed to show that the City is incapable of

representing Proposed Intervenors’ interests because “[t]here is an

assumption of adequacy when [a] government is acting on behalf of a

constituency that it represents.” Arakaki v. Cayetano, 324 F.3d

1078, 1086 (9th Cir. 2003). At the same time, however, “[t]he

burden on proposed intervenors in showing inadequate representation

17}/is minimal, and would be satisfied if they could demonstrate that

representation of their interests ‘may be’ inadequate.” Id.

Courts, including the Ninth Circuit, “have permitted intervention

20 on the government’s side in recognition that the intervenors’

interests are narrower than that of the government and therefore

may not be adequately represented.” Id. at 1087 (collecting

23 || cases).

24 Oakland Bulk & Oversized Terminal, LLC v. City of Oakland is

25]/not to the contrary. As explained in AAGLA, the Oakland Bulk court

26|| concluded only that the proposed intervenors there had not met

their burden to demonstrate that the governmental entity would or

28 || could not represent the intervenors’ narrow set of interests.

1 Oakland Bulk, 960 F.3d 603, 620 (9th Cir. 2020); AGGLA, 2020 WL

2 4501792 at *3 n.1. Here, in contrast, Proposed Intervenors have

3 submitted evidence that their interests and the City’s diverge. As

4 an initial matter, Proposed Intervenors’ very existence is premised

5 on the notion that governmental policies have failed to secure

6 economic or social justice, including housing stability, for

7 Proposed Intervenors’ members. (Delgado Decl. ¶ 2; Strathmann

8 Decl. ¶ 2; Gross Decl. ¶ 2.) Furthermore, with respect to the

9 specific ordinances at issue here, although Plaintiffs are correct

10 that Proposed Intervenors’ interests coincide with those of the

11 City to the extent that both have some desire to maintain some

12 level of eviction protections, this Court cannot agree that

13 Proposed Intervenors share the same “ultimate objective” as the

14 City in light of evidence that ACCE, SAJE, and over 300 other

15 organizations advocated for broader COVID-19 emergency protections

16 that the City refused to adopt. (Delgado Decl. ¶ 5; Gross Decl. ¶

17 5.)

18 Attempting to distinguish this case from AAGLA, Plaintiffs

19 largely rely upon the fact that their Complaint, unlike the AAGLA

20 plaintiff’s complaint, does not seek injunctive relief invalidating

21 or enjoining enforcement of the Eviction Moratorium. Therefore,

22 Plaintiffs suggest, disposition of this matter would not

23 necessarily have any broader effect beyond the small number of

24 private property owners who are party to this suit, and thus this

25 case does not implicate any significant interest Proposed

26 Intervenors may possess. This argument is disingenuous. Although

27 Plaintiffs’ opposition suggests that Plaintiffs are bringing an as-

28 applied challenge to the Moratorium, none of Plaintiffs’

1 allegations appears particular to Plaintiffs. Indeed, Plaintiffs

2 themselves assert that “[t]he takings litigation is coming, not

3 just from Plaintiffs in this action, but from landlords throughout

4 the City.” (Opposition at 5 n.1). The fourteen Plaintiffs here,

5 who own or manage approximately five thousand of the hundreds of

6 thousands of rental units in Los Angeles, alone seek “an amount in

7 excess of $100,000,000.” (Complaint ¶ 8.) To contend, therefore,

8 as Plaintiffs do, that a declaratory judgment that the Moratorium

9 constitutes an unconstitutional taking would do nothing more than

10 give rise to a “hyper-speculative” fear that the City might make

11 adjustments to the Moratorium is naive, at best. Any argument that

12 this matter presents a limited question pertaining only to a small

13 number of litigants is not well-taken. See Fed. R. Civ. P.

14 24(a)(2) (permitting intervention as of right where “disposing of

15 the action may as a practical matter impair or impede the movant’s

16 ability to protect it’s interest”) (emphasis added). Proposed

17 Intervenors have adequately shown that this matter could affect the

18 viability of the Moratorium’s eviction protections.

19 IV. Conclusion

20 For the reasons stated above, Proposed Intervenors’ Motion to

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1 Intervene as defendants is GRANTED.2

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5 IT IS SO ORDERED.

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8 Dated: November 22, 2021

DEAN D. PREGERSON

9 United States District Judge

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2 Even if Proposed Intervenors could not intervene as of

right, this Court would grant permission to intervene pursuant to

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Fed. R. Civ. P. 24(b)(1)(B). See Spangler v. Pasadena City Bd. of

Ed., 552 F.2d 1326, 1329 (9th Cir. 1977); Freedom from Religion

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Found., Inc. v. Geithner, 644 F.3d 836, 844 (9th Cir. 2011) (“[T]he

independent jurisdictional grounds requirement does not apply to

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proposed intervenors in federal-question cases when the proposed

intervenor is not raising new claims.”)

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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