Peninsula Guardians, Inc. v. Peninsula Health Care District

Plaintiff Peninsula Guardians, Inc. (plaintiff), an incorporated public interest group, filed suit against defendants Peninsula Health Care District (the District) and Mills-Peninsula Heath Service (MPHS) alleging (1) the District exceeded its powers under Health and Safety Code section 32126 (section 32126) by negotiating a 50-year ground lease with MPHS so that MPHS could build a new hospital on property owned by the District; and (2) the District made illegal campaign expenditures under Government Code section 54964 (section 54964) in connection with a special election held in order to secure voter approval for the hospital project.

Plaintiff’s appeal follows the trial court’s dismissal of the complaint after sustaining defendants’ demurrers on plaintiff’s section 32126 claims, granting summary judgment on plaintiff’s remaining section 54964 claim against the District, and denying plaintiff’s motion for relief from summary judgment under Code of Civil Procedure section 473 ‘(section 473). We affirm the trial court’s orders sustaining defendants’ demurrers on the section 32126 claims and granting summary judgment on the section 54964 claim. However, we reverse the…