Lacher

Petitioners Clyde and Maurine Lacher seek review of an order sustaining a demurrer, without leave to amend, to causes of action for fraud and negligent misrepresentation in an action arising out of a residential development being built near their home. They allege the developer fraudulently induced their support and acquiescence to obtain the required governmental approval for the project. We conclude the trial court erred in holding *1043 the facts alleged in the first amended complaint failed to establish the developer owed a duty of care to petitioners.

In addition, we reject claims by the real parties in interest that the amended complaint does not adequately allege justifiable reliance or proximate cause, and that the causes of action are barred by either the Planning and Zoning Law (Gov. Code, § 65000 et seq.), the Subdivision Map Act (Gov. Code, § 66410 et seq.), or the statute of frauds (Civ. Code, § 1624). We emphasize that, notwithstanding the repeated characterizations made by real parties and our dissenting colleague, this case involves an action based on false representations allegedly made to petitioners. It does not involve an action against any…

Dissenting. — Read my lips! No tall houses! No blocked views! That is what petitioners, the neighborhood property owners, contend Southwest promised during meetings with them to discuss Southwest’s proposed development. But, say petitioners, Southwest reneged by obtaining approval of plans to import fill dirt to raise the height of some building sites and by obtaining building permits for houses as tall as two stories. Petitioners are angry because their ocean views have been impacted to a greater degree than they expected.

The majority concludes these allegations adequately state a cause of action for a new tort which might be called “developer fraud.” I believe, however, that this tort does not exist in California and, since petitioners cannot allege justifiable reliance upon the representations of Southwest, the demurrer was properly sustained. In my view, the only remedies available to petitioners are those under the applicable land use statutes. (See Planning and Zoning Law, Gov. Code, § 65000 et seq.; Subdivision Map Act, Gov. Code, § 66410 et seq.; California Environmental Quality Act, Pub. Resources Code, § 21000 et seq.)

The county’s approval of the tentative tract map,…

Hamilton & Samuels, Paul R. Hamilton, Jeffrey S. Grider, Howard, Rice, Nemerovski, Canady, Robertson & Falk, Jerome B. Falk, Jr., Steven L. Mayer and Annette L. Hurst for Real Parties in Interest.

OPINION

MOORE, J.

Petitioners Clyde and Maurine Lacher seek review of an order sustaining a demurrer, without leave to amend, to causes of action for fraud and negligent misrepresentation in an action arising out of a residential development being built near their home. They allege the developer fraudulently induced their support and acquiescence to obtain the required governmental approval for the project. We conclude the trial court erred in holding the facts alleged in the first amended complaint failed to establish the developer owed a duty of care to petitioners.

In addition, we reject claims by the real parties in interest that the amended complaint does not adequately allege justifiable reliance or proximate cause, and that the causes of action are barred by either the Planning and Zoning Law (Gov. Code, § 65000 et seq.), the Subdivision Map Act (Gov. Code, § 66410 et seq.), or the statute of frauds (Civ. Code, § 1624). We emphasize that, notwithstanding the repeated…