Reuben, Raucher & Blum: Cal. Supreme Court nixes lower courts' public hearings loophole

LOS ANGELES, Dec. 23, 2021 /PRNewswire/ -- The California Supreme Court reversed an appellate panel ruling that would have created a loophole making it easier for local governments to avoid scrutiny of assessments for business improvement districts by requiring property owners to detail the basis for their challenges at a public hearing.

In a precedent-setting decision, the state's high court found in favor of Hill RHF Partners L.P. (Hill RHF), represented by the Los Angeles-based civil litigation firm Reuben, Raucher & Blum. Hill RHF's litigation stems from a dispute over the validity of business improvement district assessments imposed on Hill RHF under the California constitution.

The California Court of Appeal previously held that, although it had voted against the assessments, Hill RHF had failed to raise its objections at an appropriate public hearing, which represented a failure to exhaust its administrative remedies. Accordingly, the panel refused to consider the merits of Hill RHF's objections.

Reversing this ruling in a unanimous opinion authored by Chief Justice Tani Cantil-Sakauye, the state's Supreme Court found that while public comments must be received, the statutory scheme does not require that they actually need not be resolved by the City Council. This was fatal to the claim that administrative exhaustion applied.

"Unless there is clear legislative direction to the contrary, a process proffered as an administrative remedy does not have to be exhausted when its dispute resolution procedures are so meager that it cannot fairly be regarded as a remedy at all," wrote Cantil-Sakauye.

The case now will go back down to the Court of Appeal for a hearing on the substance of Hill RHF's initial challenge. Stephen L. Raucher, an attorney at Reuben, Raucher & Blum leading the petitioner's case, said he was pleased with the court's thoughtful analysis of the administrative exhaustion doctrine.

"The Court's decision recognizes reality: that a City Council meeting is not an appropriate forum to adjudicate the complicated issues that arise in connection with assessments like this. Nor is an additional administrative exhaustion obstacle consistent with the stated purpose of the original initiative, which was to make it harder for local governments to impose assessments," said Raucher. "The ruling will benefit not only non-profits like Retirement Housing Foundation, but all commercial property owners concerned about paying these kinds of assessments.

Reuben Raucher & Blum has earned widespread recognition as a boutique litigation firm representing a broad spectrum of clients. The firm has an outstanding track record in resolving complex disputes for its clients through mediation and other settlement methods, but also has obtained multi-million dollar verdicts, as well as total vindication and recovery of attorney's fees when representing the defense.

SOURCE Reuben Raucher & Blum

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