Woodland Hills Homeowners Organization v. Los Angeles Community College Dist

In Woodland Hills Homeowners Organization v. Los Angeles Community College Dist. (1990) 218 Cal. App. 3d 79, a community college district entered into a long-term lease of surplus property with a religious organization, which intended to develop the property for religious, educational, and private use. An area homeowners association filed a complaint for declaratory and injunctive relief against the district contending, among other things, the lease constituted a gift of public funds and property, violated state law regarding disposition of surplus school property and violated the establishment clauses of the United States and California Constitutions. (Id. at p. 88.) The religious organization defended the suit alongside the district and prevailed on summary judgment. (Id. at p. 87.) Nonetheless, the trial court denied its application for attorney fees under Code of Civil Procedure section 1021.5 because the action " 'was brought and defended for purely selfish purposes, did not materially affect any public interest and conferred no significant benefit upon the public or upon anyone other than the parties.' " (218 Cal. App. 3d at p. 96.) In affirming, the Court of Appeal noted: "The resolution of issues raised by every legal action benefits the general public to some extent, in the sense that every judicial decision is the application, clarification or the development of the law. This is profoundly so when the issues concern such fundamental constitutional principles as the separation of church and state. However, where the result of the litigation is judicial approval of a challenged governmental action, the defense of which was in the pecuniary interest of the defendant litigating alongside the governmental entity, it is difficult to satisfy the requirement of Code of Civil Procedure section 1021.5, i.e., that the defense by the private litigant was necessary and that the financial burden resulting from its defense is appropriately shifted to the plaintiff." (Woodland Hills Homeowners Organization v. Los Angeles Community College Dist., supra, 218 Cal. App. 3d at pp. 96-97.)