South Bay Senior Housing Corp. v. City of Hawthorne

In South Bay Senior Housing Corp. v. City of Hawthorne (1997) 56 Cal.App.4th 1231, a developer of low-income senior citizen housing sued the City of Hawthorne for anticipatory breach of a lease and development agreement that had been unanimously approved by the city council. (South Bay, supra, 56 Cal.App.4th at pp. 1233-1234.) On appeal from a jury verdict in favor of the developer, the city argued there was no enforceable contract unless it was signed by the mayor in accordance with section 40602. The Court of Appeal agreed, rejecting the developer's argument that section 40602 did not apply to Hawthorne because it was a general law, as opposed to a charter, city. The South Bay court observed, "It follows that, by the plain language of the statutes, the City's power to make a contract is limited to the prescribed method and, by necessary implication, that any other method is prohibited--which means that, unless it was signed by the Mayor, the contract with South Bay is void and no implied liability can arise under that contract." (South Bay, at p. 1236.)