Pettitt

The disposition of this lawsuit depends upon the application of the absolute privilege stated in Civil Code section 47, subdivision 2, to the factual allegations in the first amended complaint. The trial court determined the privilege to be applicable and sustained defendants’ demurrer to the first amended complaint without leave to amend.

For the purpose of testing the question of law raised, all material issuable facts properly pleaded in the complaint are assumed to be true. (3 Witkin, Cal. Procedure (2d ed. 1971) Pleading, § 800, p. 2413.)

Plaintiffs were the owners of the real property and buildings located thereon at 3115-3117 North Wilson Avenue, Fresno. In 1964 they learned 3117 North Wilson had a nonconforming right of use for C-l retail commercial. In August 1964 they sought and obtained a building permit from the city for the purpose of altering the premises, both at 3115 and 3117 North Wilson, for use as a beauty salon, and thereafter invested approximately $20,000 in the remodeling-conversion job. The permit for 3115 North Wilson was apparently issued in error.

On May 11, 1967, a Fresno city inspector ascertained that the two buildings had been connected…