City of Walnut Creek v. Leadership Housing Systems, Inc

In City of Walnut Creek v. Leadership Housing Systems, Inc. (1977) 73 Cal.App.3d 611, the city placed a bond issue on the ballot that specifically named a piece of property. The court therein held that the governmental body has the right to plan for acquisition of property and calling for a bond election and that urging passage to secure funds does not amount to unreasonable precondemnation activity giving rise to an action for inverse condemnation. The court held that relief is properly denied where plaintiff's option expired prior to the filing of a condemnation action. However, that case would not necessarily preclude an option holder from showing that these were unreasonable precondemnation activities while he held the option. In City of Walnut Creek it was stated that there was no improper act of the city that led to the abandonment of the option (73 Cal.App.3d at p. 623). By inference from that language, if a plaintiff can show that he abandoned his option because of the improper precondemnation conduct of the city, he should not be precluded from obtaining damages because he no longer holds the option. If the city's improper precondemnation activities constitute a de facto taking during the period that the option was valid, the date of the taking in condemnation is not the date of filing, but the date of the improper conduct that amounted to the de facto taking. The City of Walnut Creek case merely held that that city's actions did not amount to a de facto taking during the option period. That case did not hold that a city's actions could not amount to conduct under any other circumstances.