T. L. Enterprises, Inc. v. County of Los Angeles

T. L. Enterprises, Inc., a California corporation, appeals from the judgment entered following trial to the court of its action for refund of property taxes against the County of Los Angeles. Appellant contends: “A. The damage incurred by the improvement was ‘sudden,’ if such a requirement exists. B. The legislative history of section 51, subdivision (c), requires the conclusion that the damage to appellant’s improvement is a ‘disaster, misfortune, or calamity.’ ”

This case involves a two-story, multitenant office building in Agoura, which was built in 1979. Its original design called for the upper three feet of ground elevation to be removed and replaced with a blanket of compacted fill on which the building would be constructed. The plan was later changed, and the foundation, except for the southwest corner, was placed directly on bedrock of a type which expands upon contact with moisture. The fill used at the southwest corner is even more expansive than the bedrock. As a result, the building has suffered from the differential expansion and settling of the underlying bedrock and fill.

By 1983 appellant had observed cracking of the slab, wallboard, and glass. Appellant…