Concerned Citizens of So. Central LA v. City of LA
Plaintiff Concerned Citizens of South Central Los Angeles (Concerned Citizens) appeals from a December 22, 2009 judgment in favor of defendant the City of Los Angeles (the city) after a bench trial. The trial court ruled that Concerned Citizens could not exercise its option to buy the City's interest in certain property under a November 20, 2001 agreement with the City for the following reasons: (1) the option was contingent on Concerned Citizen's completion of a youth recreation facility and provision of services to very low and low income individuals; (2) Concerned Citizens' failure to complete the youth recreation facility was a breach of the contract; and (3) under the agreement's reversion of assets provision, the property reverted back to the city because Concerned Citizen's use of the property did not meet any of the objectives required by the United States Department of Housing and Urban Development (HUD) for community development block grants. Concerned Citizens contends the trial court's ruling was erroneous and also appeals the award of $127,600 in attorneys' fees to the city.
We apply principles of contract interpretation to construe the reversion of assets and service payback provisions contained in the agreement. Our independent review of the language of the agreement leads us to conclude that Concerned Citizens is entitled to exercise its option to purchase the city's interest. The reversion of assets provision does not require Concerned Citizens to reimburse the city the fair market of the property after disposition because that provision itself provides that such reimbursement is not required five years after the January 31, 2002 expiration date of the agreement. Accordingly, we reverse and vacate the trial court's judgment.
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