Planning & Conservation League v. Castaic Lake Water Agency

In Planning & Conservation League v. Castaic Lake Water Agency (2009) 180 Cal.App.4th 210, Friends of the Santa Clara River (Friends), a nonprofit organization, filed an action challenging an environmental impact report (EIR) certified in 1999. (Id. at pp. 221, 224.) The appellate court directed the issuance of a writ vacating the certification of the EIR. It further directed the trial court to retain jurisdiction over the matter until a legally compliant EIR was certified. (Id. at p. 221.) After a second EIR was certified in 2004, the Planning and Conservation League (PCL) and the California Water Impact Network (CWIN) filed separate actions, challenging the 2004 EIR. (Id. at pp. 218, 224.) Friends then dismissed its action with prejudice. When doing so, Friends explained that while it believed that the 2004 EIR did not comply with either the writ or the law, it chose not to pursue a challenge to the 2004 EIR because of monetary constraints. The entity that had certified the EIR's filed demurrers in the consolidated actions brought by PCL and CWIN, claiming the actions were barred by the doctrine of res judicata. (Planning & Conservation League v. Castaic Lake Water Agency, supra, 180 Cal.App.4th at pp. 222, 224.) The trial court overruled the demurrers, having concluded that the doctrine of res judicata did not apply, inasmuch as PCL and CWIN were not in privity with Friends. (Id. at pp. 224, 226.) In addressing the issue of privity, the appellate court stated: "As Friends undertook its action on behalf of the public, the key question regarding privity is whether Friends adequately acted as appellants' '"virtual representative"' ." (Planning & Conservation League v. Castaic Lake Water Agency, supra, 180 Cal.App.4th at p. 230.) In determining "whether Friends asserted the common interest with adequate vigor," the court considered, inter alia, "the manner in which Friends conducted and resolved its action." (Ibid.) It stated that "when a party's conduct in an action shows a lack of incentive or resources to litigate a common interest . . . privity is not established. ." (Id. at p. 231.) It observed that ". . . Friends terminated its action through a voluntary dismissal, not through a settlement." (Ibid.) The court further observed that Friends thought the 2004 EIR was defective, but lacked the resources to challenge it. Under the circumstances, the court could not infer that the parties were in privity. (Ibid.) At the same time, the appellate court noted that there was an issue whether Friends, PCL and CWIN had colluded in forum shopping. It said that the pleadings and judicially noticed facts gave rise to conflicting inferences about Friends' motive for dismissal, and that the trial court had not resolved the conflict, which could not be resolved on demurrer. (Planning & Conservation League v. Castaic Lake Water Agency, supra, 180 Cal.App.4th at pp. 231-232.) The court declined to make the factual resolution for the first time on appeal. (Id. at p. 232.) In short, it concluded that the trial court had properly overruled the demurrers. (Id. at p. 233.)