Meritage Homes of California v. HBT of Winters Highlands CA3

BACKGROUND

HBT is the developer of a planned residential community (the project) within the City’s boundaries. In the years leading up to the instant dispute, HBT and the City agreed that HBT was required to make sewer and storm drain improvements (improvements) in connection with the project. In October 2020, HBT sold numerous lots within the project to Meritage by a contract that was later amended multiple times, including in an August 2021 writing, a section which asserts: “Effect on Other Agreements. Nothing in this Assignment is intended to, or does, affect the status or enforceability of any other agreement entered into between [HBT] and City. [Meritage] acknowledges and agr[]ees that [HBT] has installed certain public improvements, including a sewer pump station, sewer force main and storm drain improvements, at its sole costs and expense, which improvements benefit the Assigned Property as well as other properties, and that [HBT] is entitled to be reimbursed by such benefited properties for their proportionate shares of such costs, as determined by the City Engineer.” (Boldface omitted.) We will hereinafter refer to this section of the August 2021 writing as “the…