San Luis Obispo Local etc. v. Central Coast Development etc.

Filed 2/3/22 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

SAN LUIS OBISPO LOCAL 2d Civ. No. B304144 AGENCY FORMATION (Super. Ct. No. CV130383) COMMISSION et al., (San Luis Obispo County)

Cross-complainants and Appellants.

v.

CENTRAL COAST DEVELOPMENT COMPANY,

Cross-defendant and Respondent.

A contract by a public agency that exceeds the agency’s statutory powers is void and will not support an award of attorney fees pursuant to Civil Code1 section 1717, subdivision (a). We reverse an award of fees against the public agency.

1 All statutory references are to the Civil Code.

FACTS I LAFCO I Central Coast Development Company (Central Coast) owns a 154-acre parcel of property within the sphere of influence of the City of Pismo Beach (City).2 Central Coast wants to construct 252 single-family residences and 60 senior housing units on the parcel. The City approved Central Coast's application for a development permit for the property. The City and Central Coast applied to the San Luis Obispo Local Agency Formation Commission (LAFCO) to annex the property. The LAFCO application signed by the City and Central Coast contained the following indemnity agreement: “As part of this application, Applicant agrees to defend, indemnify, hold harmless and release the San Luis Obispo Local Agency Formation Commission (LAFCO), its officers, employees, attorneys, or agents from any claim, action or proceeding brought against any of them, the purpose of which is to attack, set aside, void, or annul, in whole or in part, LAFCO's action on the proposal or on the environmental documents submitted to or prepared by LAFCO in connection with the proposal. This indemnification obligation shall include, but not be limited to, damages, costs, expenses, attorneys' fees, and expert witness fees that may be asserted by any person or entity, including the Applicant, arising out of or in connection with the application. In the event of such indemnification, LAFCO expressly reserves the