Mola Development Corp. v. City of Seal Beach

Is the mere filing of a lawsuit for administrative mandamus the same as pursuing it to decision? Mola Development Corporation argues it is, but we disagree. Mola filed an action for administrative mandamus to overturn the City of Seal Beach’s quasi-judicial decision to disapprove a vesting tentative map, but voluntarily dismissed it on the eve of trial. That dismissal precludes, we will hold, a suit for damages for a regulatory taking.

There is an obvious and fundamental distinction between initiating mandamus and obtaining a judgment. The Supreme Court tells us “[a] final administrative decision includes exhaustion of any available review mechanism.” (Hensler v. City of Glendale (1994) 8 Cal.4th 1, 12 [ 32 Cal.Rptr.2d 244 , 876 P.2d 1043 ], italics added.) By dropping mandamus, Mola allowed the administrative decision to achieve finality and issue preclusive effect. It cannot now seek damages for a regulatory taking.

We are not impressed with Mola’s claim to be exempt from the mandamus requirement because its option to develop the property expired during the pendency of the mandamus action. Hensler itself holds that private parties cannot unilaterally shorten the time…