De Anza Santa Cruz Mobile Estates Homeowners Ass'n v. De Anza Santa Cruz Mobile Estates

In this action by a mobile-home homeowners association against the owners of the mobilehome park, a jury awarded punitive damages in the amount of $6 million after the trial court instructed the jury that it was “an established fact” that defendants had violated Civil Code section 798.41, causing actual damages of $36,401.85, which had already been paid. The trial court subsequently awarded plaintiff attorney’s fees pursuant to Civil Code section 798.85, in the amount of $700,000. On appeal defendants raise the following arguments:

1) The superior court’s jurisdiction is preempted by the Public Utilities Commission;

2) Plaintiff is not entitled to punitive damages for a violation of section 798.41, because the statutory remedies contained in Civil Code section 798.86 are the exclusive remedies for violations of provisions of the Mobilehome Residency Law;

3) The punitive damages award impermissibly punished defendants for defending an arguable position on a complex legal issue, for pursuing authorized remedies in the courts and before other tribunals, and for their attorney’s “hardball” litigation tactics;

4) The punitive damages award was excessive as a matter of law;…