Holloway v. Showcase Realty Agents, Inc. ( 2018 )


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  • Filed 4/5/18; Certified for Publication 4/26/18 (order attached)
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SIXTH APPELLATE DISTRICT
    BRUCE HOLLOWAY,                                                     H043492
    (Santa Cruz County
    Plaintiff and Appellant,                                   Super. Ct. No. CV180394)
    v.
    SHOWCASE REALTY AGENTS, INC. et al.,
    Defendants and Respondents.
    BRUCE HOLLOWAY,                                                     H043704
    (Santa Cruz County
    Plaintiff and Appellant,                                   Super. Ct. No. CV180394)
    v.
    GREGORY DILDINE et al.,
    Defendants and Respondents.
    The San Lorenzo Valley Water District (District) acquired real property in
    Boulder Creek, California from Gregory and Edwige Dildine (Dildines). Bruce
    Holloway is a taxpayer within District, and filed suit claiming the contract was void
    under Government Code section 1090, because one of District’s directors, Terry Vierra,
    had an interest in the contract by nature of his partial ownership in Showcase Realty
    (Showcase), the agency that facilitated the property sale, and the fact that his wife was
    the listing agent for the property.
    District and Showcase brought a successful demurrer on the ground that Holloway
    lacked standing to assert a claim for conflict of interest.
    On appeal, we consider whether Holloway had standing under Government Code
    section 1092 to bring an action for conflict of interest. We also consider whether
    Holloway was required to bring a validation action to challenge the real estate contract
    under Code of Civil Procedure section 863.
    STATEMENT OF THE FACTS AND CASE1
    Holloway filed his second amended complaint in July 2015 alleging the following:
    He is a citizen and taxpayer served by District. Vierra was a board member of District,
    and a majority shareholder of Showcase. In September 2010, District began negotiations
    to purchase real property in Boulder Creek, California from the Dildines. The contract
    was finalized and escrow closed in November 2010. When escrow closed, Vierra
    received a real estate broker’s commission of $13,050 through his ownership of
    Showcase, as well as a community property interest in his wife’s real estate commission
    for facilitating the sale. Holloway became aware that Vierra’s wife, who worked for
    Showcase, was the listing agent for the property in November 2013.
    Holloway asserted causes of action for conflict of interest against District,
    Showcase and Vierra pursuant to Government Code section 1090, and liability pursuant
    to Government Code section 91005.2 He sought a declaration that the real estate contract
    was void, and disgorgement of public monies paid to Vierra in real estate commissions,
    and the Dildines for the property sale.
    1
    Because this case is an appeal of a judgment entered following a demurrer, we
    take the facts as stated in the operative second amended complaint.
    2
    Government Code section 91005 is the liability provision encompassed in the
    Political Reform Act of 1974, as codified in Government Code sections 81000 through
    91014. Government Code section 87100 prohibits public officials from acting to
    influence a government decision in which they have a financial interest.
    2
    In September 2015, District, Showcase and Vierra filed a demurrer to the second
    amended complaint arguing Holloway lacked standing under Government Code
    section 1092,3 and the second cause of action for liability under Government Code
    section 91005 was time barred by a four-year statute of limitations as stated in
    Government Code section 91011, subdivision (b).
    The court sustained the demurrer without leave to amend as to the first cause of
    action for conflict of interest, finding Holloway did not have standing to assert the claim.
    The court overruled the demurrer as to the second cause of action, finding facts sufficient
    to justify Holloway’s delayed discovery of Vierra’s financial interest in District’s action. 4
    Holloway filed a notice of appeal of the judgment entered following the court’s
    sustaining the demurrer to his conflict of interest cause of action in the second amended
    complaint.
    DISCUSSION
    Holloway argues that the trial court erred in finding he did not have standing to
    bring a conflict of interest challenge pursuant to Government Code section 1090.5
    3
    Government Code section 1092, subdivision (a) provides, in relevant part:
    “(a) Every contract made in violation of any of the provisions of Section 1090 may be
    avoided at the instance of any party except the officer interested therein.”
    4
    Following the court overruling the demurrer to the second cause of action,
    Showcase filed a motion for judgment on the pleadings on the ground that liability under
    Government Code section 91005 could only be pursued against Vierra as the public
    official, and not against Showcase. Holloway did not oppose the motion, and the court
    entered a judgment of dismissal in favor of Showcase.
    5
    Government Code section 1090 provides: “(a) Members of the Legislature, state,
    county, district, judicial district, and city officers or employees shall not be financially
    interested in any contract made by them in their official capacity, or by any body or board
    of which they are members. Nor shall state, county, district, judicial district, and city
    officers or employees be purchasers at any sale or vendors at any purchase made by them
    in their official capacity. [¶] (b) An individual shall not aid or abet a Member of the
    Legislature or a state, county, district, judicial district, or city officer or employee in
    violating subdivision (a). [¶] (c) As used in this article, ‘district’ means any agency of the
    (continued)
    3
    In response, District and Showcase argue for the first time that the trial court
    lacked jurisdiction to consider the matter, because Holloway failed to bring a validation
    action within 60 days of District entering into the real estate contract as required by Code
    of Civil Procedure section 863.6
    Jurisdiction
    Holloway filed his complaint challenging District’s actions in 2014, four years
    after District entered into the real estate contract in 2010. District and Showcase argue
    that we should dismiss this appeal for lack of jurisdiction because Holloway’s complaint
    was filed beyond the 60-day period for validation actions as set forth in Water Code
    section 30000 et seq., and Code of Civil Procedure sections 860 and 863.
    Whether Holloway’s conflict of interest claim is encompassed within Water Code
    section 30000 et seq., and the 60-day statute of limitations set forth in the validation
    statutes is a question of law requiring our independent review. (Kaatz v. City of Seaside
    (2006) 
    143 Cal. App. 4th 13
    , 28 (Kaatz).)
    The validation statutes are found in Code of Civil Procedure sections 860 through
    870.5. A public agency may file a validation action to determine the validity of any
    matter brought within the scope of the validation statutes. (Code Civ. Proc., § 860.)
    Alternatively, any “interested person” may bring a validation action to determine the
    validity of the matter. (Id., § 863.) A validation action initiated by an “ ‘interested
    person’ ” is sometimes referred to as a “ ‘reverse validation action.’ ” 
    (Kaatz, supra
    , 143
    Cal.App.4th at p. 30, fn. 16.) If an agency does nothing, and no interested person brings
    state formed pursuant to general law or special act, for the local performance of
    governmental or proprietary functions within limited boundaries.”
    6
    Code of Civil Procedure section 863 provides, in relevant part: “If no
    proceedings have been brought by the public agency pursuant to this chapter, any
    interested person may bring an action within the time and in the court specified by
    Section 860 to determine the validity of such matter.”
    4
    suit to determine the validity of the action within 60 days, the action is deemed valid. (Id.
    at p. 19.)
    The procedures for validation actions are accelerated so the agency or interested
    persons can obtain a definitive ruling on the validity of the agency’s action. (Code Civ.
    Proc., § 860 et seq.) If the validation statutes apply, the complaint must be filed within
    60 days of the agency’s act being challenged. 
    (Kaatz, supra
    , 143 Cal.App.4th at p. 19.)
    Not all actions of a public agency are subject to validation. The validation statutes
    do not apply just because a claim or action seeks to invalidate an agency’s action.
    
    (Kaatz, supra
    , 143 Cal.App.4th at p. 19; Santa Clarita Organization for Planning &
    Environment v. Castaic Lake Water Agency (2016) 1 Cal.App.5th 1084, 1096.) The
    validation statutes themselves do not state what actions are subject to validation; rather,
    Code of Civil Procedure section 860 permits validation as to “any matter which under
    any other law is authorized to be determined pursuant to this chapter.”
    Here, District and Showcase argue that because Holloway’s complaint seeks to
    challenge a county water district’s action of entering into a contract, it is subject to Water
    Code section 30000 et seq., which provides, in relevant part, “County water districts shall
    be managed under the provisions of this division and may exercise the powers therein
    expressly granted or necessarily implied therefrom.” (Wat. Code, § 31000.) Water Code
    section 30066 further provides: “An action to determine the validity of an assessment, or
    of warrants, contracts, obligations, or evidences of indebtedness pursuant to this division
    may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of
    Part 2 of the Code of Civil Procedure.” Because Water Code section 30066 encompasses
    validation of contracts, District asserts it necessarily applies to the present case involving
    Holloway’s challenge to District’s real estate contract.
    District’s position is based on a broad reading of Water Code section 30066 to
    include all contracts entered into by a county water district being subject to the validation
    requirements. District does not address case law that interprets the term “contracts”
    5
    under both Government Code section 53511, and its nearly identical counterpart, Water
    Code section 30066, narrowly to include only those agreements that address an agency’s
    bonds, warrants or other evidence of indebtedness.
    Kaatz is one such case and was decided by this court. In Kaatz, a taxpayer
    brought an action challenging a city’s purchase and sale of residential property at a
    fraction of fair market value. The trial court dismissed the suit because a validation
    action had not been filed within the 60-day time limit. The trial court reasoned that the
    challenge to a city’s purchase and sale of property was embraced by Government Code
    section 53511’s language permitting a local agency to bring a proceeding under the
    validation statutes to “ ‘determine the validity of its bonds, warrants, contracts,
    obligations or evidences of indebtedness.’ ” 
    (Kaatz, supra
    , 143 Cal.App.4th at p. 19.)
    We reversed the decision of the trial court, finding that the term “contracts” should
    be viewed narrowly to include “only those that are in the nature of, or directly relate to a
    public agency’s bonds, warrants or other evidences of indebtedness.” 
    (Kaatz, supra
    , 143
    Cal.App.4th at p. 42.) In arriving at this conclusion, we note the Supreme Court’s
    decision in City of Ontario v. Superior Court (1970) 
    2 Cal. 3d 335
    , 341-344 (City of
    Ontario), which construed “contracts” narrowly based in part on the fact that the
    validation statutes were “ ‘made applicable only to such matters as the legality of the
    local entity’s existence, the validity of its bonds and assessments, and the validity of joint
    financing agreements with other agencies.’ ” 
    (Kaatz, supra
    , 143 Cal.App.4th at p. 40,
    quoting City of 
    Ontario, supra
    , at p. 343.)
    Moreover, in City of Ontario, the Supreme Court noted a broad reading of the term
    “contracts” would unduly burden taxpayers challenging government actions, because
    virtually all government actions would fall within the definition. As a result, nearly all
    taxpayer challenges would be subject to the 60-day time limit for validation actions.
    (City of 
    Ontario, supra
    , 2 Cal.3d at p. 342.) The court concluded that such a broad and
    sweeping definition was not part of the overarching scheme of validation statutes. (Ibid.)
    6
    In a case similar to the one at bar, the Court of Appeal considered not only the
    definition of the term “contracts” for the purpose of the validation statutes, but also
    specifically whether conflict of interest actions under Government Code section 1090 are
    subject to validation in the first instance. In Santa Clarita Organization for Planning &
    the Environment v. Abercrombie (2015) 
    240 Cal. App. 4th 300
    (Abercrombie), a wholesale
    water agency adopted a resolution authorizing an eminent domain action to acquire the
    stock of the water company. At the time, an agency board member was also serving as
    the general manager of a water company. Santa Clarita Organization for Planning and
    the Environment (SCOPE), a taxpayer organization, brought an action for conflict of
    interest pursuant to Government Code section 1090 against the board member for his
    involvement on both sides of the transaction.
    At the outset, the Abercrombie court concluded that conflict of interest actions,
    such as the present case, are not part of the validation statutes stating: “[b]ecause the
    conflict of interest claim is brought pursuant to [Government Code] sections 1092,
    subdivision (b) and 91003, neither of which are part of or subject to the validation
    statutes, SCOPE’s conflict of interest claim does not appear to be subject to the validation
    statutes’ shortened notice-of-appeal deadline.” 
    (Abercrombie, supra
    , 240 Cal.App.4th at
    p. 308.)
    The Abercrombie court went further and considered SCOPE’s complaint as a
    whole to determine if other legislation reached the conflict of interest claims.
    Specifically, the court looked at the similarity of the language of Water Code
    section 30066 (“determine the validity of an assessment, or of warrants, contracts,
    obligations, or evidence of indebtedness”) and Government Code section 53511,
    subdivision (a) (“determine the validity of its bonds, warrants, contracts, obligations or
    evidences of indebtedness”), and noted the decisions in Kaatz and City of Ontario
    narrowly construing the meaning of the term “contracts.” 
    (Abercrombie, supra
    , 240
    Cal.App.4th at p. 309.) The court found SCOPE was not challenging the agency’s use of
    7
    bonds, warrants or other evidences of indebtedness, and because “no statute declares
    SCOPE’s conflict of interest claim to be subject to the validation statutes,” the expedited
    procedural requirements of those statutes did not apply. (Id. at p. 310.)
    Here, Holloway is asserting that District’s real estate contract was tainted by a
    conflict of interest in violation of Government Code section 1090. There is no challenge
    to District’s bonds, warrants or other evidence of indebtedness. Based on the
    interpretation of the term “contracts” as set forth in Kaatz, City of Ontario, and
    Abercrombie, as well as Abercrombie’s conclusion that conflict of interest actions are not
    encompassed in the validations statutes, we find that Holloway was not required to bring
    a validation action under Water Code section 30066.
    Standing
    The trial court sustained District’s and Showcase’s demurrer on the ground that
    Holloway lacked standing to pursue a claim for conflict of interest under Government
    Code section 1090. The trial court also found Holloway lacked standing as a taxpayer
    under Code of Civil Procedure section 526a.
    We review a judgment entered following a demurrer de novo. “In reviewing the
    sufficiency of a complaint against a general demurrer, we are guided by long-settled
    rules. ‘We treat the demurrer as admitting all material facts properly pleaded, but not
    contentions, deductions or conclusions of fact or law. [Citation.] We also consider
    matters which may be judicially noticed.’ [Citation.] Further, we give the complaint a
    reasonable interpretation, reading it as a whole and its parts in their context. [Citation.]
    When a demurrer is sustained, we determine whether the complaint states facts sufficient
    to constitute a cause of action.” (Blank v. Kirwan (1985) 
    39 Cal. 3d 311
    , 318.)
    The trial court based its ruling primarily on the case of San Bernardino County v.
    Superior Court (2015) 
    239 Cal. App. 4th 679
    (San Bernardino), in which a group of
    taxpayers challenged a settlement agreement between a property owner and a county
    and flood control district. The taxpayers brought an action under Government Code
    8
    section 1090, alleging the property owner’s campaign contributions to a former county
    supervisor were illegal bribes making the settlement agreement invalid.
    The Court of Appeal found that the taxpayers lacked standing to challenge the
    settlement because they were not parties to the contract. Government Code section 1092
    provides: “[e]very contract made in violation of any of the provisions of Section 1090
    may be avoided at the instance of any party except the officer interested therein.” (Italics
    added.) The San Bernardino court stated: “Nothing in the plain language of either
    [Government Code] section 1090 or section 1092 grants nonparties to the contract, such
    as plaintiffs, the right to sue on behalf of a public entity that may bring a claim as
    provided in section 1092, but has not done so. Indeed, the Legislature’s choice of the
    word ‘party’ in section 1092—as opposed to, say ‘person’—suggests that the Legislature
    intended only parties to the contract at issue normally have the right to sue to avoid
    contracts made in violation of section 1090.” (San 
    Bernardino, supra
    , 239 Cal.App.4th
    at p. 684.)
    The court in San Bernardino also rejected the plaintiffs’ claim that they had
    taxpayer standing under Code of Civil Procedure section 526a, which allows “[a]n action
    to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or
    injury to, the estate, funds, or other property of a county, town, city or city and county of
    the State, . . . against any officer thereof, or any agent, or other person, acting in its
    behalf.” The court noted: “ ‘[t]axpayer suits are authorized only if the government body
    has a duty to act and has refused to do so. If it has discretion and chooses not to act, the
    courts may not interfere with that decision.’ ” (San 
    Bernardino, supra
    , 239 Cal.App.4th
    at p. 686.) A public agency’s decision to take legal action is generally discretionary and
    as a result, Code of Civil Procedure section 526a does not provide taxpayer standing to
    challenge an agency’s decision not to take legal action. (San 
    Bernardino, supra
    , at
    pp. 686-687.)
    9
    Since the time of the trial court’s decision in the present case, a number of cases
    have criticized the rationale in San Bernardino. The most recent case is San Diegans for
    Open Government v. Public Facilities Financing Authority of City of San Diego (2017)
    16 Cal.App.5th 1273 (review granted Jan. 24, 2018, S245996) (San Diegans),7 in which
    the court that found the taxpayer plaintiffs challenging the validity of a municipal
    ordinance that authorized the issuance of bonds to refinance construction obligations had
    standing to assert a claim under Government Code section 1090. (San 
    Diegans, supra
    , at
    p. 1285.) The court noted the important public policies embodied in Government Code
    section 1090, stating, “[p]lainly, a public official’s duty to avoid even temptation cannot
    be advanced by adopting a rule which limits civil enforcement to that public official or
    public entities controlled by the official.” (San 
    Diegans, supra
    , at p. 1284.) It went
    further, stating. “we do not agree with the limited interpretation of [Government Code]
    section 1092 adopted by the court in San Bernardino . . . the weight of authority plainly
    finds that standing to assert [Government Code] section 1090 claims goes beyond parties
    to a public contract.” (Ibid.) The court interpreted the terms “any party” within the
    meaning of Government Code section 1092 to include “any litigant with an interest in the
    subject contract sufficient to support standing.” (San 
    Diegans, supra
    , at p. 1284, review
    granted Jan. 24, 2018, S245996.)
    In arriving at its decision, the court in San Diegans considered a number of cases
    dealing with standing to pursue claims for conflict of interest, both by implication and
    directly. Of note, San Diegans discussed the Supreme Court case of Thomson v. Call
    (1985) 
    38 Cal. 3d 633
    , wherein taxpayers sued participants in a transaction in which a city
    7
    We requested further briefing from the parties on San Diegans. District’s and
    Showcase’s supplemental briefs were largely nonresponsive to our request, and instead,
    included arguments that Holloway’s claims are time-barred because he failed to bring a
    validation action. The briefs also included constitutional arguments regarding standing
    that are not raised in San Diegans. We disregard these arguments, and do not consider
    them in this opinion.
    10
    council member sold property to a third party who then transferred the property back to
    the city to fulfill a development permit issued by the city. The court focused heavily on
    the public policy inherent in Government Code section 1090, and the importance of
    avoiding even the slightest temptation of a public official to engage in self-dealing in his
    or her official capacity. (Thomson v. 
    Call, supra
    , at pp. 647-650.) The court found that
    the transaction violated Government Code section 1090 without discussing plaintiffs’
    standing. By reaching the merits, however, the Thomson court impliedly found that
    plaintiffs had standing to assert their claim. (McGee v. Balfour Beatty Construction, LLC
    (2016) 
    247 Cal. App. 4th 235
    , 248 (McGee).)
    The San Diegans court found Thomson’s implied finding of standing consistent
    with similar assumptions in four other cases: Stigall v. City of Taft (1962) 
    58 Cal. 2d 565
    ,
    570-571, Gilbane Building Co. v. Superior Court (2014) 
    223 Cal. App. 4th 1527
    , 1531
    (Gilbane), Finnegan v. Schrader (2001) 
    91 Cal. App. 4th 572
    , 579, and Terry v. Bender
    (1956) 
    143 Cal. App. 2d 198
    . In each of those cases, taxpayers were permitted to
    challenge government contracts on the grounds they violated Government Code
    section 1090. The court in Gilbane noted: “ ‘[e]very contract made in violation of any of
    the provisions of Section 1090 may be avoided at the instance of any party except the
    officer interested therein.’ (Gov. Code, § 1092.) Courts have interpreted this language to
    mean that a contract made in violation of Government Code section 1090 is void, not
    merely voidable. (Thomson v. Call (1985) 
    38 Cal. 3d 633
    , 646, fn. 15.)” 
    (Gilbane, supra
    ,
    at p. 1532.) The court further noted: “ ‘[a] taxpayer may not bring an action on behalf of
    a public agency unless the governing body has a duty to act, and has refused to do so. If
    the governing body has discretion in the matter, the taxpayer may not interfere.’ ” (Ibid.)
    In addition to considering the cases that addressed standing under Government
    Code section 1090 impliedly, the San Diegans court also discussed recent decisions that
    have directly considered standing to assert conflict of interest claims. In McGee the court
    found that taxpayers had standing to bring a conflict of interest action challenging the
    11
    validity of a lease-leaseback transaction between a school district and a construction
    company. The court distinguished San Bernardino, finding Thomson “apposite as our
    high court could not have concluded a contract was invalid in violation of [Government
    Code] section 1090 without implicitly concluding that the taxpayers challenging it had
    standing to challenge it.” 
    (McGee, supra
    , 247 Cal.App.4th at p. 248.)
    Following McGee, the Court of Appeal decided California Taxpayers Action
    Network v. Taber Construction, Inc. (2017) 12 Cal.App.5th 115, 144-145 (California
    Taxpayers), considering whether taxpayer challengers to a school district’s
    lease-leaseback transaction similar to the one in McGee had standing under Government
    Code section 1090. In distinguishing San Bernardino, the court in California Taxpayers
    found that the McGee court’s rationale applicable, stating “McGee [is] more like this case
    than San Bernardino, and the weight of authority supports permitting a taxpayer to bring
    a claim under . . . section 1090 under the circumstances here. If the lease-leaseback
    agreement in this case violates section 1090, then it is void, not merely voidable.
    Whether the lease-leaseback agreement is void is not a matter within the School District’s
    discretion.” (California 
    Taxpayers, supra
    , at pp. 144-145.)
    The San Bernardino court’s view that only those individuals who are parties to the
    challenged contract have standing to assert a claim under Government Code section 1090
    is against the weight of authority. We note in particular, McGee, California Taxpayers,
    and San Diegans that have analyzed this issue after the court decided San Bernardino,
    criticizing its rationale. Despite this, District and Showcase rely heavily on San
    Bernardino, and do not distinguish San Diegans and other subsequent cases that have
    criticized San Bernardino’s limited view of standing, despite having an opportunity to do
    so.8 Instead, District and Showcase argue that the trial court did not commit error by
    8
    See footnote 7 ante.
    12
    following San Bernardino, and that this court does not have the authority to reverse San
    Bernardino.
    District and Showcase also argue that Holloway lacks taxpayer standing under
    Code of Civil Procedure section 526a, because District had discretion to challenge the
    real estate contract, and was not required to do so. “Taxpayer suits are authorized only if
    the government body has a duty to act and has failed to do so. If it has discretion and
    chooses not to act, the courts may not interfere with that decision.” (Daily Journal Corp.
    v. County of Los Angeles (2009) 
    172 Cal. App. 4th 1550
    , 1557-1558 (Daily Journal).)
    According to District and Showcase, because District’s actions were discretionary,
    Holloway has no standing to challenge the contract under Code of Civil Procedure
    section 526a.
    District’s and Showcase’s argument does not take into account that “[a] contract in
    which a public officer is interested is void, not merely voidable.” (Thomson v. 
    Call, supra
    , 38 Cal.3d at p. 646, fn. 15.) Moreover, “[w]hether the contracts are void is not a
    matter within the District’s discretion.” 
    (Gilbane, supra
    , 223 Cal.App.4th at p. 1533.)
    Here, Vierra was a District director who had a personal financial interest in the real estate
    contract, making the contract “void, not merely voidable,” and District had a duty to act
    to avoid it. (Thomson v. 
    Call, supra
    , at p. 646, fn. 15.)
    Our Supreme Court has specifically stated that taxpayers have standing to sue
    under Code of Civil Procedure section 526a to set aside void or illegal contracts. In
    Crowe v. Boyle (1920) 
    184 Cal. 117
    , the court stated: “In this state we have been very
    liberal in the application of the rule permitting taxpayers to bring a suit to prevent the
    illegal conduct of city officials, and no showing of special damage to the particular
    taxpayer has been held necessary.” (Id. at p. 152.)
    Moreover, in Weatherford v. City of San Rafael (2017) 2 Cal.5th 1241, 1252, our
    Supreme Court held that a plaintiff may assert standing under Code of Civil Procedure
    section 526a, if “she or he has paid, or is liable to pay, to the defendant locality a tax
    13
    assessed on the plaintiff by the defendant locality.” In his second amended complaint,
    Holloway alleged: “Plaintiff is assessed for and is liable to pay and within one year
    before the commencement of this action, paid a tax or fee to the SLVWD.”
    We find that Holloway has taxpayer standing under Code of Civil Procedure
    section 526a to challenge the contract. (See Daily 
    Journal, supra
    , 172 Cal.App.4th at
    p. 1557.) We also find that Holloway has standing to assert a conflict of interest claim
    under Government Code section 1090. We are persuaded by the weight of authority
    favoring standing to assert conflict of interest claims. In particular, we note the San
    Diegans court’s definition of “any party” within the meaning of Government Code
    section 1092 to include “any litigant with an interest in the subject contract sufficient to
    support standing.” (San 
    Diegans, supra
    , 16 Cal.App.5th at p. 1284, review granted
    Jan. 24, 2018, S245996.)
    DISPOSITION
    The judgment is reversed. Costs on appeal are awarded to Holloway.
    14
    Premo, J.
    WE CONCUR:
    Elia, Acting P.J.
    Grover, J.
    Holloway v. Showcase Realty Agents, Inc. et al.
    H043492
    Holloway v. Dildine et al.
    H043704
    Filed 4/26/18
    CERTIFIED FOR PUBLICATION
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SIXTH APPELLATE DISTRICT
    BRUCE HOLLOWAY,                                             H043492
    (Santa Cruz County
    Plaintiff and Appellant,                            Super. Ct. No. CV180394)
    v.                                                ORDER FOR PUBLICATION
    SHOWCASE REALTY AGENTS, INC. et al.,
    Defendants and Respondents.
    BRUCE HOLLOWAY,                                             H043704
    (Santa Cruz County
    Plaintiff and Appellant,                            Super. Ct. No. CV180394)
    v.
    GREGORY DILDINE et al.,
    Defendants and Respondents.
    BY THE COURT:
    The written opinion which was filed on April 5, 2018, has now been certified for
    publication pursuant to rule 8.1105(b) of the California Rules of Court, and it is therefore
    ordered that the opinion be published in the official reports.
    _____________________________
    Premo, Acting P.J.
    _____________________________
    Elia, J.
    Grover, J.
    Trial Court:                                      Santa Cruz County Superior Court
    Superior Court No. CV180394
    Trial Judge:                                      Hon. Paul P. Burdick
    Case No. H043492
    Counsel for Plaintiff and Appellant:              Redenbacher & Brown
    Bruce Holloway                                    Gary Redenbacher
    Counsel for Defendants/Respondents:               Shannon B. Jones Law Group
    Showcase Realty Agents, Inc.                      Shannon B. Jones
    Terry Vierra                                      Mark V. Isola
    Case No. H043704
    Counsel for Plaintiff and Appellant:              Redenbacher & Brown
    Bruce Holloway                                    Gary Redenbacher
    Counsel for Defendants/Respondents                In Pro. per.
    Gregory and Edwige Dildine,
    Counsel for Defendants/Respondents                Nossaman
    San Lorenzo Valley Water District                 Gina R. Nicholls
    Atkinson-Farasyn
    Marc G. Hynes
    Colantuono, Highsmith & Whatley
    Michael G. Colantuono
    Leonard P. Aslanian
    Holloway v. Showcase Realty Agents, Inc. et al.
    H043492
    Holloway v. Dildine et al.
    H043704
    

Document Info

Docket Number: H043492

Filed Date: 4/26/2018

Precedential Status: Precedential

Modified Date: 4/26/2018