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396 Investment Co. v. City of Anaheim5/17/2005
A landslide caused significant damage to numerous residential properties. The owners of those properties filed dozens of lawsuits against the developer and dozens of other parties. More than two years into the litigation, the parties discovered that a leaking reservoir in the immediate vicinity of the landslide might have been the cause. Various plaintiffs filed complaints or amended complaints against the owner of the reservoir - the City of Anaheim (Anaheim). The developer, 396 Investment Company (396), formerly known as The Fieldstone Company, filed a cross-complaint for equitable indemnity against Anaheim.
The various lawsuits were consolidated. After a multi-phase trial lasting several months, the court found that the reservoir seeped 34,164,000 gallons of water per year. This means that each year the reservoir seeped an amount that exceeded 50 percent of the reservoir's 60,000,000-gallon design capacity. The court further found the plaintiffs had established that the 34,164,000-gallon annual seepage from Anaheim's reservoir had caused the landslide and held Anaheim liable in connection with damages numerous plaintiffs had suffered to their homes. It entered fourteen judgments in favor of the owners of certain residential properties, one judgment in favor of 396, and one judgment in favor of the Vista Royale Homeowners Association (Vista Royale).
Anaheim has filed 32 notices of appeal, from those respective judgments and from various orders, including the judgment and certain orders in favor of 396. Anaheim makes hundreds of pages of argument on appeal, under 73 topic headings. Notably, it argues that even though the plaintiffs established a 34,164,000-gallon annual seepage rate, they did not establish causation. This argument does not hold water. We also reject most of Anaheim's many other arguments, including but not limited to those pertaining to design immunity, estoppel by deed, easements, exclusion of evidence, jury instructions, and sliding scale settlement agreements.
We affirm the judgment in favor of 396 except as to the amount thereof. The judgment is remanded and the court is ordered to modify the judgment in order to reduce the damages award consistent with this opinion. The attorney fees award in favor of 396 is reversed, because the requirements of Code of Civil Procedure section 1021.6, subdivision (b) are not met. The costs award in favor of 396 is affirmed. The award of prejudgment interest in favor of 396 is reversed, because the requirements of Civil Code section 3287, subdivision (a) are not met.
I. FACTS
A. OVERVIEW OF LITIGATION:
(1) Phase I
As stated in the court's Phase I statement of decision: "This litigation consists of approximately two dozen consolidated and related actions, the first of which was filed on May 3, 1996. The litigation concerns claims for damages to houses and common areas in the Peralta Pointe and Vista Royale developments in the City of Orange alleged to have arisen from (1) a failing slope located between the two developments and/or (2) defective construction. [ ] The parties include the individual plaintiffs, defendant/cross complainant, Fieldstone [now known as `396'], . . . Anaheim and others. Pursuant to the August 4, 2000, stipulation of the parties and order of the court the trial of these consolidated and related actions was severed into two or more phases. The parties also stipulated the jury and the court, in the two parts to Phase , would determine which party or parties were `legally responsible' for causing the earth movement."
The August 4, 2000 stipulation provided in pertinent part: "The court has set the trial of this matter to b
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