Villa Garfield, Inc. v. The City of Monterey Park CA2/2

FACTS

The Developer filed a FACC against the City setting forth causes of action for negligence, indemnification, apportionment of fault, revision of contract, and declaratory relief. According to the FACC, the Developer entered into an agreement entitled Master Agreement and Covenant Concerning Use and Resale of Residential Units (Master Agreement) which contained affordable housing restrictions on the Developer’s sale of condominium units at a project known as Villa Garfield (property). In particular, the Master Agreement provided that no unit could be sold until the City verified, inter alia, that the sale price did not exceed identified limits. Pursuant to the Master Agreement, “the City established and provided the selling prices for each unit at the [p]roperty, and [the Developer] justifiably relied on those sale prices” when making sales. In March 2011, purchasers of some of the units sued the Developer alleging that the sale prices exceeded the limits set forth in the Master Agreement. The FACC made no attempt to plead around the Government Tort Claims Act. The City demurred to the FACC on the following grounds: the first and third causes of action for negligence and…