Rancho Palo Verde HOA v. Coffman CA4/1

INTRODUCTION

Rancho Palo Verde Homeowners Association (Rancho) sued Palo Verde Ranch

Homeowners Association (Palo) and Thomas Coffman, Emil Zuccaro, and Valerie Royal

(collectively, respondents). Respondents were members of Palo's board of directors and of

a joint facilities committee (committee) Rancho and Palo created to manage shared

recreation facilities, including a clubhouse. Rancho sought declaratory relief against Palo

and respondents to resolve a dispute over whether there were permitting and compliance

issues with the clubhouse and whether the cost of remedying the issues could be charged to

the committee. Respondents demurred to Rancho's first amended complaint (complaint) on

multiple grounds. The trial court sustained the demurrer without leave to amend, finding

Rancho could assert its declaratory relief claim against Palo, but not respondents. The

court subsequently dismissed respondents from the action and granted their motion for

reciprocal contractual attorney fees.

Rancho appeals, contending the court erred in sustaining respondents' demurrer

without leave to amend because respondents were properly subject to Rancho's…