Dunex, Inc. v. City of Oceanside

MEMORANDUM

Dunex, Inc. and Cavalier Mobile Estates (collectively, “Dunex”) appeal the district court’s order granting the City of Oceanside’s (“Oceanside”) Rule 12(b)(1) and (6) motion to dismiss. The district court determined that Dunex’s state court action, in which it brought a writ of mandate challenging the denial of its request for an increase in its rent ceiling, precluded Dunex from asserting federal claims in federal court because those claims were all based on the same “primary right” as asserted in the state action. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

Dunex argues that the district court misapplied California law in concluding that Dunex’s federal claims were barred by res judicata. The res judicata question in this case is squarely addressed by our decision in Manufactured Home Communities Inc. v. City of San Jose (“MHC”), 420 F.3d 1022 (9th Cir.2005), which applied California law. MHC makes clear that if “[Dunex’s federal] claims all relate to a single Ordinance and [the City of Oceanside’s] application of that Ordinance to [Dunex’s] petition for a rent increase,” 420 F.3d at 1031-32 , and if Dunex already litigated its right to a rent…