Hunt Ortmann Palffy Nieves Darling & Mah, Inc. recently achieved a major victory on behalf of its client in the California Court of Appeal, Fourth District. In the case of A.D. Improvements, Inc. v. Department of Transportation, the Court of Appeal reversed and remanded the lower court’s decision against Hunt Ortmann’s client. Given the importance of this decision, and that the case was one of first impression for the California Courts of Appeal, the Court certified the decision for publication. The Hunt Ortmann team, at trial and on appeal, was comprised of Dustin Lozano and Emily Zung Manninger.
This case addresses the proper application of Streets and Highways Code section 118.1, which establishes the California Department of Transportation’s mandatory duty to dispose of excess land. “Excess land,” for purposes of the statute, is State-owned land that is no longer needed for State use. On appeal, the main issue was the proper interpretation and application of the word “acquired” within the statute. The Department of Transportation argued the use of “acquired” imposes a specific requirement that real property be used commercially at the time the State purchases it for Section 118.1 to apply, and that because the property in this case was used residentially when the State took ownership, Section 118.1 was thus not invoked.
Hunt Ortmann argued Section 118.1 only requires real property to be used commercially at the time the State deems it excess (not at the time the State acquires it), as corroborated by the surrounding statutory framework; canons of statutory construction; and the Department’s own excess real property procedures. The Court of Appeal agreed. As a result, Hunt Ortmann’s client is now entitled to a right of first refusal to purchase the land it is leasing from the Department of Transportation.
The facts of the case and the holding are detailed in the Court of Appeal’s ruling, found here.
Primarily known as a longstanding and premier construction law firm, Hunt Ortmann has also had much success over the years representing its clients on appeal and in other practice areas including business litigation and transactions, labor and employment, real estate, insurance, and nonprofit organizations.
