Kahan

*727 Tobias Kahan purchased property in Richmond, California at a foreclosure sale. Shortly before the sale, the City of Richmond (City) had recorded a "special assessment" lien against the property for unpaid garbage collection fees, pursuant to a municipal ordinance. When Kahan later sold the property, he had to pay the delinquent garbage fees as well as administrative charges and escrow fees to obtain a release of the City's lien.

Kahan filed a class action lawsuit alleging the City's practice of recording liens for unpaid garbage collection fees violates and is preempted by state law. Kahan contends the City has no authority to levy "special assessments" for garbage collection charges that are "user fees" under state law, and argues the ordinance purporting to authorize such assessments violates state laws on lien priority. He further contends that even if the practice is allowed, the City's action violated its own ordinance because a garbage lien may not attach where a "bona fide encumbrancer for value" has placed a lien on the property at any time before the garbage lien is recorded.

The trial court sustained general and special demurrers to each of the causes of action in…