Craland, Inc. v. State of California

Plaintiff Craland, Inc., appeals from the judgment of dismissal following the sustaining of a demurrer without leave to amend against its second amended complaint for fraudulent breach of contract and breach of implied warranty. We conclude plaintiff’s remedies as a purchaser at a public sale of tax-defaulted real property against defendants State of California (State) and County of Los Angeles (County) are limited to those provided by statute. Affirmed.

Background

At a January 1981 tax sale, plaintiff successfully bid on approximately 36 acres of tax-defaulted real property located in the County. Plaintiff, who intended to either develop or resell the land for a profit, paid about $312,343 for the property.

However, plaintiff filed written claims against the State and County to rescind the purchase in October 1982, alleging the land was worthless due to Subdivision Map Act violations. Plaintiff requested monetary damages of $746,100, including $405,142 in lost profits. After both governmental entities denied the claim and amended claim, plaintiff instituted this action in May 1983.

The original complaint made no reference to landslides on the property. It wás only in…