Wins

GMSR’s clients own multiple residential properties in Oakland.  The City of Oakland sued them, alleging building code violations and seeking civil penalties and a permanent injunction under the Oakland Municipal Code.  The trial court found code violations at five properties and granted the City’s requests to award $4 million in civil penalties, a 5-year permanent injunction, and $2.3 million in attorney fees.

On appeal, GMSR argued that the trial court lacked jurisdiction to award civil penalties under the two Municipal Code sections that the trial court had invoked.  The Court of Appeal agreed.  It found that the first code section only authorized administrative penalties via an administrative process rather than a lawsuit, and the second section did not authorize civil penalties at the time the violations occurred.  The court affirmed the injunction, vacated 95% of the civil penalties, and ordered the trial court to reconsider attorney fees following the near-elimination of civil penalties.

Click here to read the Court of Appeal opinion:  People v. DODG Corporation (Aug. 21, 2024, No. A163757) 2024 WL 3886055 [First District, Division Four].