BEDSWORTH, Acting P. J.—
We venture once again into the brambled thicket of the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.)—an area of the law largely governed by the unfortunate fact that complicated problems often require complicated solutions. This case is rendered more recondite by the involvement of the California Coastal Commission's rules and procedures, effectively overlaying the enigmatic with the abstruse.
We resist the temptation to declare the dispute moot and walk away because this issue involves our environment and people's homes, and involves questions likely to reoccur. Environmental issues require light—either ours or someone else's—so we publish the opinion.
Hany Dimitry obtained from the City of Laguna Beach (the City) a coastal development permit (CDP) to demolish his Laguna Beach house. Mark Fudge challenged the permit in two fora: He appealed to the California Coastal Commission (the Commission) and he filed this action in state court attacking the merits of the City's decision to grant Dimitry a CDP. Then the Commission accepted Fudge's appeal, which meant it would hear that appeal "de novo." (See Pub. Resources Code, § 30621, subd. (a).)
The court therefore dismissed the civil action. Fudge appeals, arguing the Commission's hearing was not going to be truly "de novo" because the Commission would use different rules and procedures than the City used. His proof text is a statement made by our Supreme Court back in 1937 that a de novo hearing "contemplates an entire trial of the controversial matter in the same manner in which the same was originally heard." (Collier & Wallis, Ltd. v. Astor (1937) 9 Cal.2d 202, 205 [70 P.2d 171], italics added (Collier).) An appeal of a CDP to the Commission, says Fudge, would not be heard "in the same manner" as a city's original granting of that CDP. Specifically, he notes, while the City was required to make its decision under the California Environmental Quality Act (CEQA), the Commission would be deciding his appeal under the California Coastal Act of 1976 (the Coastal Act; § 30000 et seq.). Thus, he reasons, there must still be something left of the City's decision for him to attack in civil court—specifically the alleged deficiencies under CEQA inherent in that decision.
But, as we discuss below, when it comes to a local coastal entity's decision on a CDP, the Legislature has constructed a system in which appeals to the Commission would be heard de novo under the Coastal Act even though the original local decision was decided under CEQA. The reason, in brief, is found in section 21080.5, which is part of CEQA itself. That statute says that when the state Secretary of Resources certifies the regulatory program of a state agency requiring submission of environmental information, the submission of such information may be submitted "in lieu of" the usual environmental impact report (EIR) that might otherwise be required under CEQA. Fudge's mistake lies in his belief the Legislature was bound by the Collier court's observation about de novo hearings being conducted in "the same manner" as the original.
In April 2016, Hany Dimitry bought a house in Laguna Beach located between Pacific Coast Highway and the ocean. The house was built in 1930.
In January 2017, the City's design review board concluded the house's historic importance should at least be studied and denied the application for demolition and replacement. A few months later, the city council overturned the design review board's decision and approved a CDP for the demolition of the house.
In June 2017, Fudge and a neighbor filed an appeal of the CDP to the Commission. The next month, he filed this case in superior court petitioning for a writ of mandate to vacate the City's issuance of the CDP. In August 2017, the Commission accepted Fudge's appeal, finding the City's issuance of the CDP raised a substantial issue concerning the CDP's compliance with both the Coastal Act and the City's own local coastal program (or LCP).
While the Commission's de novo review hearing was pending, both Dimitry and the City demurred to Fudge's petition in superior court on the ground the acceptance of the appeal to the Commission mooted any possibility Fudge might be able to obtain relief against the City in civil court.
We have no rule of horizontal stare decisis in California (see, e.g., Sarti v. Salt Creek Ltd. (2008) 167 Cal.App.4th 1187, 1193 [85 Cal.Rptr.3d 506]), so we aren't bound by those decisions. Now that the case is in this court, Fudge takes dead aim at Kaczorowski and McAllister, asserting they were wrongly decided.
Meanwhile, during the pendency of this appeal, the Commission approved Dimitry's request to demolish his house, the City issued the relevant permits to allow the demolition, and the house was, in fact, demolished.
The two major pieces of land use legislation bearing on this appeal are CEQA, enacted in 1972 (see Meridian Ocean Systems, Inc. v. State Lands Com. (1990) 222 Cal.App.3d 153, 159 [271 Cal.Rptr. 445] (Meridian)) and the Coastal Act enacted in 1976 (see Greenfield v. Mandalay Shores Community Assn. (2018) 21 Cal.App.5th 896, 900 [230 Cal.Rptr.3d 827]). CEQA occupies the 21000 sections of the Public Resources Code, while the Coastal Act is found in the section 30000's. A brief comparison of the two is in order.
Like CEQA, the Coastal Act seeks to protect the environment of the state's coastline qua environment. The very first enumerated goal of the Coastal Act is to "[p]rotect, maintain, and, where feasible, enhance and restore the overall quality of the coastal zone environment and its natural and artificial resources." (§ 30001.5, subd. (a).) But the Coastal Act has an additional goal, not shared by CEQA. The Coastal Act seeks to "[m]aximize public access to and along the coast and maximize public recreational opportunities in the coastal zone consistent with sound resources conservation principles and constitutionally protected rights of private property owners." (§ 30001.5, subd. (c).)
As in ordinary land use law, the Coastal Act sets up a permit system. Under the Coastal Act, any development in the coastal zone requires a CDP in addition to any other permits that might be required. (§ 30600.) But in regard to CDP's, there is an initial delegation of labor. The Coastal Act implements a structure whereby local coastal governmental entities (such as Laguna Beach) are tasked with developing their own local coastal programs, known as LCP's. Local agencies' LCP's must implement the Coastal Act's objectives of protecting the coastline and its resources, plus maximizing public access to that coastline. (See Schneider v. California Coastal Com. (2006) 140 Cal.App.4th 1339, 1344 [44 Cal.Rptr.3d 867].) Moreover, a coastal government's LCP must be prepared in "full consultation" with the Commission (§ 30500, subd. (c)), though the precise content of that LCP is to be determined by the entity.
This, to use the metaphor one last time, is at the heart of the case before us. Fudge's attack on Kaczorowski and McAllister is complex. The argument begins with a common law definition of the words "de novo," taken from Collier. Collier was a movie industry case. The issue in Collier was whether 1913 private employment agency legislation unconstitutionally provided for the superior court to exercise appellate jurisdiction over labor commission decisions when appeals are supposed to be reserved to the Court of Appeal. The high court held the 1913 legislation wasn't unconstitutional because it provided that the "matter" decided by the Labor Commissioner would be considered "de novo" by the superior court. In the process, the Supreme Court observed: "A hearing de novo literally means a new hearing, or a hearing the second time. (18 Cor. Jur. 486.) Such a hearing contemplates an entire trial of the controversial matter in the same manner in which the same was originally heard. It is in no sense a review of the hearing previously held, but is a complete trial of the controversy, the same as if no previous hearing had ever been held." (Collier, supra, 9 Cal.2d at pp. 204-205, italics omitted.)
Relying on the "in the same manner" statement from Collier, Fudge focuses on the different rules and procedures a city might use in issuing a CDP under CEQA and the rules and procedures the Commission might use in considering a "de novo" appeal. Fudge's argument is best encapsulated in this passage from page 27 of his opening brief: "The Coastal Commission's hearing of an appeal from a local agency decision cannot satisfy Collier's requirements for a de novo hearing because the Commission does not hear `the controversial matter in the same manner in which the same was originally heard.'" (Quoting Collier, supra, 9 Cal.2d at p. 205.)
Fudge embellishes that argument by noting there is no exact fit between CEQA as used in local agency hearings on CDP's and Commission appeals.
The Legislature passed the Coastal Act four years after Buchwald. Since section 30621 uses the words "de novo" but does not use the "in the same manner" language as its predecessor, former section 27423, it seems to us to follow that when the Commission accepts an appeal, that acceptance does, indeed, nullify the lower entity's decision. Nor did the Legislature have any objection to the Commission using a different set of rules and procedures in such a de novo appeal. Section 21080.5, which is part of CEQA itself, makes that unmistakable.
Section 21080.5 allows the state Secretary of Resources to certify the regulatory program of a state agency requiring submission of environmental information. When the program is so certified—and this is important language —that submission of environmental information may be submitted "in lieu of" an EIR.
The use of one set of laws (CEQA) at one level and another set at the next level (the Coastal Act) might seem anomalous. That's usually not the way hierarchies of review work. And in that regard, Fudge stresses the distinction between "lead agencies" and "responsible agencies" under CEQA. Lead agencies are those government entities that have "the principal responsibility for carrying out or approving a project which may have a significant effect upon the environment" (§ 21067) while responsible agencies are those bodies "other than the lead agency" which have "responsibility for carrying out or approving a project" (§ 21069). For Fudge, the model proffered in Kaczorowski and McAllister is at odds with that fundamental demarcation within CEQA, particularly when one realizes that lead agencies—the City here—cannot delegate their environmental review duties to another body. (See Friends of the Eel River v. North Coast Railroad Authority (2017) 3 Cal.5th 677, 712-713 [220 Cal.Rptr.3d 812, 399 P.3d 37].) For Fudge, it just makes no sense that a "responsible" agency—which he assumes is the Commission in this analogy —has de facto first review authority instead of the "lead" agency, i.e., the City.
Moreover, the Legislature's choice was certainly rational. The alternative would be to allow project opponents to attack the original decision by a local government issuing a CDP in civil court and simultaneously attack the same
One last matter must be dealt with: Attorney fees. In yet another irony, Fudge sought his attorney fees in the trial court even though he lost. The trial court unsurprisingly denied the request. Fudge's theory derived from the idea that if his appeal to the Commission had indeed nullified the City's grant of the CDP, he had won. This is an argument of impressive agility, but little convincing force. The very fact Fudge is sufficiently aggrieved by the trial court's dismissal of the case to bring this appeal (see Code Civ. Proc., § 902) militates against characterizing the result below as a victory. The court correctly denied attorney fees.
The judgment is affirmed. Respondents shall recover their costs on appeal.
Aronson, J., and Ikola, J., concurred.
For one thing, section 30625, which provides for appeals to the Commission from grants of permits, at the very least affords such a litigant an administrative remedy against that CDP, and we can see no reason the general doctrine of exhaustion of administrative remedies should not apply in such a situation. Ironically, the case that is clearest on the need for exhaustion by a litigant in Fudge's position (and thus supports Fudge's claim to an evade-review exception to mootness) is one that Fudge elsewhere attacks as wrongly decided, McAllister. (See McAllister, supra, 147 Cal.App.4th at pp. 283-284 [claim that county's decision on CDP was null and void still did not excuse need to exhaust remedy of appealing to the Commission].)
For another, by its terms section 30625 allows third parties (such as Fudge's neighbor here) to appeal grants of CDP's to the Commission, which means it may be impossible for a litigant like Fudge to confine a challenge in civil court to what the local coastal entity did, even if he wants to.
Fudge attempts to circumvent section 21174 by saying nothing in the Coastal Act requires the Commission to review or supersede the local agency's CEQA determinations, but by now readers should know that sections 30621 and 30625 do precisely that.