Judge: David J. Cowan, Case: 23STCP00882, Date: 2023-12-21 Tentative Ruling
Case Number: 23STCP00882 Hearing Date: February 20, 2024 Dept: 200
LOS ANGELES
SUPERIOR COURT
WEST DISTRICT -
BEVERLY HILLS COURTHOUSE
DEPT. 200
TENTATIVE REVISED
RULING ON MOTION FOR LEAVE TO INTERVENE
Matrix Oil Corp. et
al. v. County of Los Angeles, et al., Case No. 23STCP00882 (related to Case Nos.
23STCP00884, 23STCP00893 and 23STCV11422)
Hearing Date: February
20, 2024, 8:30 a.m.
INTRODUCTION
The amended petition in this case and
in the related cases filed by certain oil drilling companies, as well as two
oil industry associations, seek generally to challenge and set aside based on alleged
violations of the California Environmental Quality Act (“CEQA”) a County
ordinance enacted in January 2023 banning in unincorporated parts of the County
of Los Angeles (“the County”) new oil wells and requiring existing wells to
cease operations within 20 years (the “Ordinance”). Allegedly, the Ordinance
may affect some fifteen hundred wells. Petitioners argue also that the Ordinance
is preempted by state law. In addition, the petitions seek a determination that
the Ordinance constitutes a taking without just compensation. The
administrative record has not yet been filed. Briefing of issues will not
commence until 30 days after the County certifies the record.
On November 21, 2023, Proposed
Intervenors Black Women for Wellness, Center for Biological Diversity (“CFBD”),
Natural Resources Defense Council (“NRDC”), Physicians for Social
Responsibility – Los Angeles, Rising Communities, Sierra Club and Strategic
Concepts in Organizing and Policy Education (“SCOPE”) (together referred to as “Intervenors”)
filed the above-referenced motion for leave to intervene in this case, supported
by numerous declarations of persons representing each of the Intervenors.[1] In
addition, Intervenors filed the identical motion in the three related cases. They
assert, inter alia, that they represent communities residing close to
drill sites, that these communities are mostly low income and comprised of
persons of color, and that they have borne a disproportionate amount of the
health burdens from pollution emanating from the drilling. They also assert
that they have been very involved in advocating that the County take actions
against drilling and in fact are responsible for the County enacting a stronger
ordinance than it had earlier proposed. As
a result, they contend that they have a significant interest in upholding the
legality of the Ordinance and in assuring that local governments across the
state adopt similar health protective measures. The declarations filed in
support of the motion detail how each of the seven parties which seek to
intervene have been involved in this process and how their members are now
impacted.
On December 6, 2023, petitioners
Matrix Oil Corp., RMX Resources and Royale Energy, as well as respondents the County
and Board of Supervisors of the County, filed opposition to the motion.
Petitioners and Respondents in each of the three related cases also filed largely
identical papers in opposition to the motion filed in those cases. The County
requests the Court take judicial notice of a Dept. of Regional Planning Dept, Statement.
On December 12, 2023, Intervenors
filed a Consolidated Reply Brief for this case and the three related cases, as
well as a Supplemental Declaration of Damon Nagami, the So. Cal. Ecosystems
Project at NRDC.[2]
In advance of the December 21, 2023
hearing, the Court issued a tentative ruling. The Court then heard extended
oral argument (for which there was no record.) In summary, the Court had the
following concerns that the Tentative Ruling had not addressed: First, whether
the applicable standard for potential injury to Intervenors was the same for
permissive intervention as it is for mandatory intervention. Second, how Intervenors’
potential role in the takings part of this case might unduly complicate
handling of this case. The Court therefore permitted the parties and Intervenors
to further brief those issues and continued the hearing.
On January 26, 2024, the Court
received a joint brief from Petitioners (one filed in each case), as well as
briefs from the County and Intervenors. As discussed further below, the parties
(both Petitioners and the County) argued in summary that Intervenors had not
shown a “direct and immediate” interest in the action, relying principally on City
and County of San Francisco v. State of Calif. (2005) 128 Cal.App.4th
1030 (“SF”), and in turn that Intervenors’ participation with regard to the
takings aspect of this case in particular would “unduly complicate” these cases,
warranting denial of the motion consistent with the ruling in South Coast
Air Quality Mgm’t District v. City of Los Angeles (2021) 71 Cal.App.5th
314. Conversely, Intervenors argue that SF, supra, is not on point where
the intervenors there did not allege, as here, that they would suffer any
tangible harm from an adverse judgment. In turn, they argue that their
involvement as a party to at least the initial part of the takings aspect of
the case would be appropriate but that, if necessary, they would be willing to
forego their involvement in that part of the case if they can still participate
in the earlier phases.
By this revised ruling, the Court again
addresses the motions in all four cases.
STATEMENT OF CONTENTIONS
Intervenors argue they are entitled
to intervene based upon both the mandatory provisions under Code of Civil
Procedure (“CCP”) sec. 387(d)(1)(b), as well as under the permissive provisions
of sec. 387(d)(2).
As to mandatory intervention, the
Court shall grant a timely request for intervention if (1) the proposed
intervenor “claims an interest relating to the property or transaction that is
the subject of the action,” (2) “the disposition of the action may impair or
impede the proposed intervenor’s ability to protect that interest (see People
ex rel. Rominger v. County of Trinity (1983) 147 Cal.App.3d 655) and (3)
existing parties do not adequately represent that interest. (Carlsbad Police
Officers Ass’n v. City of Carlsbad (2020) 49 Cal.App.5th 135,
148)
Intervenors contend they have four
significantly protectible interests: 1. Public health protections the Ordinance
offers. 2. The environmental benefits of the Ordinance. 3. Their having played
a pivotal role in advocating the enactment of the Ordinance. 4. Preserving
local governments’ authority across the state to enforce similar phaseout
measures.
Intervenors assert two reasons why
the County would not adequately represent their interests: First, the County
must balance a broader set of concerns than the community members who are the Ordinance’s
direct beneficiaries. (See Simpson Redwood Co. v. State (1987)
196 Cal.App.3d 1192, 1203-1204 (interests of a conservation organization
“probably cannot be adequately served by the State’s sole participation) and Utah
Ass’n of Counties v. Clinton, 255 F.3d 1246, 1254-1256 (10th
Cir, 2001) (County is obligated to balance a wide spectrum of policy goals) Second,
Intervenors have an interest in retaining local governments’ authority to limit
oil drilling across the state, whereas the County is focused on defending its
own jurisdiction. Intervenors argue this is salient here where the County
originally did not intend to enact as strong an ordinance as it did ultimately.
(The burden to show inadequate representation is minimal. It is satisfied if
the intervenor shows representation of its interests “may be” inadequate. Lewis
v. County of Sacramento (1990) 218 Cal.App.3d 214, 219) Intervenors argue
their interests may diverge as regards settlement, pursuing an appeal or as
concerns consequences outside the County.
As to discretionary
intervention, the court has discretion to permit intervention upon a timely
application if (1) the proper procedures have been followed, (2) the nonparty has
a direct and immediate interest in the action, (3) intervention will not
enlarge the issues in the litigation and (4) the reasons for intervention
outweigh any opposition by the parties presently in the action. (Id.) Intervenors assert that they will not
introduce new legal or factual issues or otherwise enlarge the issues herein. They
will coordinate with the County to minimize duplication.
Sec. 387 is to be liberally construed
in favor of intervention to promote fairness by involving all parties
potentially affected by the judgment to participate in the litigation. (Lincoln
Nat’l Life Ins. Co. v. State Bd. Of Equalization (1994) 30 Cal.App.4th
1411, 1423)
The County argues it and Intervenors
have the same interest in the litigation – to defend the Ordinance against
legal challenge – to protect the public health, safety and welfare of County
residents.
For purposes of mandatory
intervention, the County argues the motion must be denied as the County
adequately represents Intervenors’ interest in these cases. (There is a general
presumption that the government adequately represents the interests of an
intervenor with the same objective. San Juan Co., Utah v. U.S., 503 F.3d
1163, 1204 (10th Cir. 2007)[3]) Intervenors
failed to identify with any specificity how they would better represent the
County’s residents than the County itself or how the County would be reluctant
to pursue all necessary issues. Whether intervention is proper is a fact-specific
inquiry. (Rominger, supra, 147 Cal.App.3d at 660) Contrary to
Intervenors’ claim, this case is not just about the jurisdiction of the County;
it is also about preemption.[4] Finally,
Intervenors have not shown how there might be a divergence of interests between
the County and Intervenors.
For purposes of permissive
intervention, the County argues Intervenors fail to establish that the reasons
for intervention outweigh any opposition by existing parties. No original party
supports intervention. The proposed addition of seven additional parties would
further complicate case management, result in duplicative briefing and
needlessly increased costs. There are already four cases (with multiple causes
of action) addressing the ordinance – making coordination difficult. The
parties have, however, already entered a stipulated case management order to
streamline litigation by bifurcating different issues. In balancing the
interests of those affected, the Court should look to the number of attorneys
already, the complexity of the cases and likelihood of duplication of work. (South
Coast, supra, 71 Cal.App.5th at 320) There is no showing that
the County lacks motivation to defend approval of the ordinance and thus it
would be reasonable for the court to find Intervenors’ participation would
unduly complicate an already complicated case. (Id., 71 Cal.App.5th
at 321) In turn, Intervenors have not shown how the litigation would benefit
from their participation.
Petitioners argue for purposes of
mandatory intervention that Intervenors have the burden of proof. (Hausman
v. Farmers Ins. Exchange (1963) 213 Cal.App.2d 611, 615) Intervenors have not
shown a “significant protectible interest” in the operation and effect of the
ordinance. An organization’s general political interest in protecting a legal
enactment (including its own efforts supporting enactment of the ordinance) is
not sufficient to justify intervention. (Rominger, supra, 147 Cal.App.3d
at 662) The interest must be protectable under some law and there be a
relationship or nexus between that interest and the claims at issue. (Citizens
for Balanced Use v. Montana Wilderness Ass’n, 647 F.3d 893, 897 (9th
Cir. 2011)) Where an existing party and intervenor have the same objective and
interest, and a governmental interest is acting already to protect those
interests, there must be a “very compelling showing to the contrary.” (Arakaki
v. Cayetano, 324 F.3d 1078, 1086 (9th Cir. 2003)
The eleven declarations filed with
the motion of members of the various organizations reference oil wells or
fields not affected by the Ordinance: The Baldwin Hills Oil Field and adjacent park
areas are specifically excluded from the Ordinance due to a discretionary
permit from the County. The Murphy / Allenco drill sites are in the City of Los
Angeles and therefore not affected by the Ordinance – the scope of which is
only as to unincorporated portions of the County. The Las Virgenes Canyon
preserve is in Ventura County (and hence not covered) and those wells nearby
have been deserted and are already subject to separate state abandonment
procedures. The Ordinance does not govern abandoned wells. The hiking areas in
Malibu and Calabasas near the Pugh-Miller drill site and the Hoyt well again
concern deserted wells and therefore are not covered by the Ordinance. The
Sawtelle Field is within land of the U.S. Veterans Administration (“VA”) and
again is excluded based on a discretionary County permit. References to other
wells in Watts (in the City of Los Angeles) and in other cities are again not
unincorporated areas of the County. Finally, Sierra Club and SCOPE members
reside in unincorporated County land but do not identify proximity to any
wells.
Further, Intervenors have no interest
related to the vested rights / inverse condemnation claims.[5] Finally,
Intervenors cannot establish the County will inadequately represent their
interests.
Petitioners argue for purposes of
discretionary intervention that Intervenors do not have a direct and immediate
interest in this matter and that litigating the case without Inventors’
involvement outweighs the reasons for intervening. The Court must balance the
interest of the original parties in pursuing this case unburdened by others against
the interests of those affected by a judgment. (South Coast, supra, 71
Cal.App.5th at 320) Courts can permit intervention where (1) the intervenor has
a direct and immediate interest in the litigation, (2) intervention will not
enlarge the issues and (3) the reasons for intervention outweigh opposition by
existing parties. (Hinton v. Beck (2009) 176 Cal.App.4th 1378,
1382-83) Petitioners argue this case is like South Coast, supra, where
the denial of intervention was upheld notwithstanding that the union intervenor
had a distinct interest in the port but that union participation would be
largely “cumulative” and “unduly complicate an already complicated case.” (South
Coast, supra, 71 Cal.App.5th at 321) Were the Court to accept
Intervenors’ logic, all those living near a well might be able to intervene
also.
Intervenors argue in reply that they
qualify as of right based upon impairment of significantly protectable
interests:
They dispute the contention of Petitioners’
opposition that members of the various organizations do not live or “recreate”
close to affected wells in unincorporated areas. They also argue that the Ordinance
covers an “idle” well, i.e., that “deserted” wells are still subject to the
ordinance unless the State Oil & Gas Supervisor has determined them to be “orphaned.”
Further, they indicate that the
Inglewood Field wells are also impacted because the County is seeking to reach
an agreement as to those facilities that would be consistent with the Ordinance.
They claim that the issues involved here
go beyond the County and suggest that the filing of these actions may have a “chilling
effect” on agencies seeking to avoid the threat of unanticipated financial
liability. Finally, they explain how even the takings issues may impact
implementation of the Ordinance going forward, as well as related matters
including the Inglewood Field.
They also argue that they met their
minimal burden to show the County may not adequately represent their interests:
Having the same goal as one side of the “v” cannot alone defeat intervention. For
example, a court allowed a labor union to intervene as of right to defend a wage
law where its interests were narrower than the interests of the public at
large. (Allied Concrete & Supply v. Baker, 904 F.3d 1053 (9th Cir.
2018)) Intervenors do not have to anticipate at this stage specific differences
in strategy that might create divergence. (Sw. Ctr for Bio. Diversity v.
Berg, 268 F.3d 810, 824 (9th Cir. 2001)) They instead focus on
the fact that a different decision on whether to appeal a decision may be
grounds to show inadequate representation. (County of Fresno v. Andrus,
622 F.2d 436, 439 (9th Cir. 1980) Similarly, governmental policies
may change over time, thereby creating a need for Intervenors.
Alternatively, Intervenors argue they
should be “permitted” to intervene: They have a direct and immediate interest
in the legality of the Ordinance, intervention will not enlarge the issues
herein and the reasons for intervention outweigh opposition by existing
parties. They contend the claims of added complication are exaggerated and that
those whose interests are most impacted should not be marginalized in the interests
of streamlining litigation. (U.S. v. City of Los Angeles, 288 F.3d 391,
404, 9th Cir. 2002)
DISCUSSION
The Court grants County’s request for
judicial notice of a County summary of the Ordinance (“RJN, Ex. A”). The Court
overrules the Objections of Bridgeland to the Supplemental Declaration of Damon
Nagami, finding it to be largely rebuttal and therefore permissible.
The request to intervene is timely. The
administrative record has not been filed yet and briefing has not begun.
MANDATORY INTERVENTION
Intervenors need to show (1) they
claim an interest relating to the property or transaction that is the subject
of the action, (2) the disposition of the action may impair or impede their
ability to protect that interest and (3) existing parties do not adequately
represent that interest.
As set forth below, the Court finds
that Intervenors meet the first element but do not meet the second and third
elements.
Initially, the Court finds Intervenors
have a “significant protectible interest” in the subject matter of the
litigation. The Court recognizes that Petitioners were able to point out that some
of those who submitted declarations did not in most cases live or work very
close to an affected well. However, the declarants are not would-be class
representatives where it is necessary that they have standing or a pecuniary or
property interest per se in the litigation. The Court is not convinced that
each of these organizations do not have some members who live or work close to
an affected well. These organizations exist after all to protect those members’
interests. It is not the declarant who is the intervenor. It is based upon the direct
impact to members that allowance of an organization to intervene is premised. (Rominger,
supra, 147 Cal.App.3d at 662-663. These members’ interests are not “remote
or consequential.” Id.)
Further, there appears to be some
controversy over which wells are in fact covered by the Ordinance. For example,
it is not clear to the Court, as further discussed below, whether if there is a
County lease this impacts coverage under the Ordinance. From Ex. A to the RJN,
it is hard to determine whether the Ordinance also reaches still to be taken
actions vis-à-vis wells that are pursuant to a discretionary permit, e.g.,
Sawtelle. The Court cannot rule on that issue on this motion without being
provided further relevant detail.
At the same time, Intervenors have
not shown why hiking in the Santa Monica mountains gives hikers some special
protected right over other residents who do not do so. Ultimately, however,
even assuming County residents do have a right to “recreate” there safely, for
sake of argument, this motion does not turn on this element.
The Court is not convinced that
disposition of this action may impede their ability to protect those interests
where relatedly the Court finds no good reason that the County will not now adequately
represent that interest. The County, after all, enacted the Ordinance and has
appeared herein to defend it. It has also secured outside counsel. The Court
sees no divergence of interest at this time between those most affected by the wells
and the position of the County that it is seeking to protect the health and
welfare of all its residents, including those represented by Intervenors. While
the Court recognizes the authorities that place a minimal burden on Intervenors
in this regard, the Court still finds the arguments Intervenors present as
reasons why there might be divergence to be speculative at this point. This
case has just begun. The County has no reason to now consider whether it might appeal
from a judgment against it herein where the judgment may be in its favor. Put
another way, Intervenors have not rebutted the presumption that a governmental
agency will represent the interests of all those under its jurisdiction. Their
burden is a “very compelling” showing that a governmental agency would not
protect that interest.
That it is not disputed that
Intervenors played an advocacy role in lobbying the County to pass the
ordinance (and to make it stronger than it had been) still does not mean that
the County will not stand by the ordinance it ultimately enacted.[6] Likewise,
no showing was made that the County is not “invested” in the Ordinance or that
it will not strongly defend the Ordinance.
The Court rejects Intervenors’
“strawman” argument that the County is only interested in “defending its
jurisdiction,” whatever that may mean. Intervenors have not provided any
evidence to suggest that the County is not interested in the health and welfare
of its residents. As in Oakland Bulk, et al., v. City of Oakland, 960
F.3d 603, 620 (9th Cir. 2020), Intervenors have not shown how the
County was “neither positioned nor willing” to make arguments of proposed
environmental intervenors. In turn, the concern of the Court in Simpson
Redwood, supra, in allowing leave to intervene was that there was a
divergence of interest between the State and landowner intervenor whether the
land should remain protected if the State sold the land. That divergence does
not exist here. Likewise, unlike in Calif. Dump Truck Owners v. Nichols,
275 F.R.D. 303 (E.D. Cal. 2011), there is no evidence here that the agency is
willing to compromise or eviscerate the ordinance in a way harmful to
Intervenors.
That Intervenors have a state-wide
interest in this matter in terms of consequences elsewhere also does not by
itself render the County’s representation inadequate.
Similarly, even assuming the County
may have had to balance competing interests in adopting the Ordinance,
Intervenors have not shown how that is true in now defending the Ordinance
against legal challenge.
The Court also does not find any
evidence to support the claim that the County’s alleged “resource constraints,”
if any, might result in it not adequately representing the interests of those
in frontline communities. The County is likely better funded to support the
defense of the ordinance than Intervenors.
Finally, and most significantly, Intervenors’
concerns are the same as those of the County – defending the Ordinance – and
will therefore largely be cumulative.
For these reasons, Intervenors fail
to meet the requirements under CCP sec. sec. 387(d)(1)(b).
DISCRETIONARY INTERVENTION
Intervenors need to show (1) the
proper procedures have been followed, (2) the nonparty has a direct and
immediate interest in the action, (3) intervention will not enlarge the issues
in the litigation and (4) the reasons for intervention outweigh any opposition
by the parties presently in the action.
Initially, the Court recognizes that both
sides of the litigation agree this motion should be denied – which is a factor the
Court has considered.
That said, as set forth below, the
Court finds that Intervenors meet all four elements:
There is no real claim that
Intervenors have not followed the proper procedures except that they might have
brought this motion sooner. Existing parties, however, have shown no resulting
prejudice. As discussed below, the issue with Bridgeland cannot be put at Intervenors’
plate.
As to whether Intervenors have a direct
and immediate interest in the action, the Court now recognizes that this
level of interest differs to some degree from the more generalized interest “relating
to the property or transaction that is the subject of the action,” that is in
question for purposes of mandatory intervention. Hence, for discretionary
intervention purposes, the Court will not follow the more “lenient” Rule 24 of
the Federal Rules of Civil Procedure, as it did for mandatory intervention (consistent
with the cases approving courts doing so), but rather will apply the “stricter”
test under CCP sec. 387(a). (SF, supra, 128 Cal.App.4th at
1043) The Court finds, however, that even now following this higher level of
scrutiny that Intervenors still meet this requirement.
That interest is principally the harm
to the health of Intervenor members resulting from the alleged effects of the
pollution they assert emanates from the wells at issue – that would ensue were
the Ordinance invalidated. Intervenors have sufficiently identified the “concrete”
harm they might suffer for these purposes, as in Rominger, supra. This
harm is not merely “consequential” and is “capable of determination” herein. (SF,
supra, 128 Cal.App.4th at 1037) The declarations specify what
that alleged harm would be. Indeed, Intervenors argue the harm that they would directly
and immediately suffer would be more than others in the County. Though the
parties argue that if the Ordinance were invalidated Intervenors would merely
return to the status quo and therefore have not lost any “legal right,” that ignores
that were the Ordinance kept in place that alleged injury might have been
alleviated.
Petitioners argue also that Intervenors’
alleged injury is remote to the wells in question, many wells referenced would
not be impacted by the Ordinance, certain wells are inactive and new wells are
unlikely. The level of showing, however, required of Intervenors is relatively
low (see Rominger, supra, 147 Cal.App.3d at 663 (“a substantial
probability” their relevant interest will be affected)) and even if the harm
may not be as severe as claimed, for sake of argument, that still does not take
it out of the “direct and immediate” category and into the “consequential”
category. The harm alleged here is the whole point of the Ordinance. That harm
is not just about having to hike near an abandoned well.
Hence, the cases here are not like SF,
supra, where Intervenors did not allege that they would suffer tangible
harm from an adverse judgment. In turn, consistent with SF, supra, the
Court recognizes that the further harm Intervenors assert, i.e., their efforts
in lobbying for enactment of this ordinance, is not a form of harm that
would be a basis for direct and immediate harm.
As to whether intervention will
enlarge the issues in the litigation; initially, the Court still reaches the
same conclusion as it did previously as to the preemption and CEQA phases of
these cases that intervention would not enlarge the issues: Intervenors assure
the Court they will seek to coordinate among themselves and with existing
parties to avoid extra work. In turn, the Court finds that is possible here
where the issues over the four cases seem essentially the same at this
point.
The recent briefing addresses how the
inverse condemnation aspect of these cases would unfold: Intervenors do not
seek a role in any jury trial calculating what “just compensation” or damages should
be if the court were to find beforehand that the ordinance was a taking, as
would be necessary. (Weiss v. People ex rel. Dept. of Transp. (2020) 9
Cal.5th 840, 853, Regency Outdoor Adv. v. City of Los Angeles
(2006) 39 Cal.4th 507, 516) This concession addresses the Court’s
earlier stated concern that Intervenors’ involvement in front of a jury might
be unduly prejudicial to Petitioners where Intervenors have no direct interest
in what any such compensation or damages would be and have no responsibility
for paying any such amounts.[7] (It
appears undisputed a jury would be required in a second phase of the inverse
condemnation part of the case if there were a finding of a taking.) That said,
the initial aspect of the inverse condemnation part of trial would be a bench
trial (or potentially even a motion (see Healing v. Calif. Coastal
Comm’n (1994) 22 Cal.App.4th 1158, 1169)) - much like the earlier
phases of these cases - where it would not appear that Intervenors filing an
additional brief would so enlarge the issues at stake to warrant denial of
permissive intervention.
Though the parties assert that because
inverse condemnation is a fact-specific inquiry, Intervenors may not be able to
file a single brief and may pursue discovery, this would not necessarily be their
fault. Whether the effect of the Ordinance on a particular property amounts to a
taking would already be potentially subject to a property-by-property analysis.[8]
Moreover, the Court retains its right to control the proceedings, including restricting
briefing and issuing a protective order, if necessary, concerning discovery. The
Court will endeavor to assure all concerned that these cases proceed in an
appropriate way.
Intervenors established a basis for why
their involvement in this part of the case is justified – even if they do not
claim any interest in Petitioners’ vested rights: Presumably Intervenors will
argue why the effect of the Ordinance on the use of a particular property or as
to a petitioner’s vested rights would not be a taking. In turn, Intervenors
indicate that the County might seek to rescind the Ordinance if the court were
to find the Ordinance was a taking. This would give Intervenors some “legal
right” to be involved in this part of the cases.[9] While,
as the County argues, the decision whether to rescind the Ordinance in whole or
in part would be for decision by the Board of Supervisors, not this Court, citing
Jones v. People ex rel Dept. of Transp. (1978) 22 Cal.3d 144, 154, Intervenors
argue that their defending against these challenges may avoid that potential
situation. Further, they point to Termo and Bridgeland’s stated intent to try
to rescind the Ordinance through this Court issuing a writ. For these reasons,
the Court again finds Intervenors’ involvement as limited here would not unduly
complicate these cases.
In terms of the fourth element, the
Court exercises its discretion to permit intervention - solely by CFBD and NRDC
- to thereby address the opposition asserted by the parties presently in the
action as to the number of proposed Intervenors. The Court reaches this
conclusion consistent with how CCP sec. 387 is to be liberally construed in
favor of allowing participation. (Lincoln Nat’l Life, supra)
In balancing the arguments for and
against intervention, the Court has concern that though lawyers for two entities
represent all seven intervenors, it has no assurance that each intervenor may
not have a different (or even possibly conflicting) view about actions to take
here – even taking account of counsel stating they are not seeking to have each
client directly involved. Further, as Petitioners argue, still more residents
who live close to the wells might seek to intervene.
While the Court recognizes the
enhanced concerns of “frontline” groups, the Court does not find that they will
necessarily assist the Court in determining the legality or scope of the Ordinance
over and above what the County will argue on their and others’ behalf as the
responsible governmental authority. To the extent their counsel believes issues
they bring to the table are pertinent, they can raise them as counsel for their
own organizations that seek to protect those who may suffer more from any oil
well derived pollution than others.
On the other
hand, CFBD and NRDC are likely - as compared to the other five intervenors - to
have the most to contribute knowledge-wise concerning the technical environmental
and legal issues the Court will need to decide. They have demonstrated already that
whether wells are subject to the Ordinance may be the subject of controversy
and have therefore added to the information the Court will likely need to
assess.[10]
Further, given these organizations’ role in strengthening the Ordinance from an
earlier version (at least from their perspective), their input may be useful
concerning the issues surrounding likely future issues as to how to apply the Ordinance
in a way that preserves Petitioners’ vested rights (during a later phase of
this case.)
As Intervenors
argue, the cost of the Court finding a taking and the potential financial consequences
may impact how the County chooses to proceed. Petitioners in the lead case alone
have alleged that they expected to generate more than $1.3 billion in net future
revenue over the next fifty years. In addition, as discussed above, Termo
apparently seeks to rescind the ordinance on takings grounds. Further, there
may yet still be a further issue about construing the Ordinance in a way that
mitigates against a taking. Therefore, as the County implies, it is at least
conceivable that if the Court were to find a taking that it might assert that the
costs of going forward are unduly prohibitive, or seeks to proceed in a more
limited fashion, but Intervenors contend otherwise.
Permitting
intervention of these two parties may also avoid a multiplicity of additional proceedings
since Intervenors might otherwise elect to bring some further proceedings if
they are dissatisfied with the outcome herein. Should the Court find that the Ordinance
is not entitled to a CEQA exemption, for example, and must issue a writ for the
County to perform some form of further environmental review, as Petitioners
contend, arguendo, it will be preferable to have all potential issues (and
Intervenors’ input into those issues) considered by the County at one time instead
of seriatim, with the resulting inevitable delay.[11] This
way Intervenors will be bound based on all applicable input. However much the
additional burden on the undersigned, it may still avoid another judge having
to wade through these same issues.
Moreover, this
case is not litigation between private parties but rather addresses an issue of
significant public interest of consequence to many constituents, as similarly
noted in Rominger, supra, 147 Cal.App.3d at 665.[12] Continued
public involvement is likely depending on how the case develops, whether the
Ordinance is upheld or otherwise: The potential costs alone for this ordinance
and how that might impact the County’s ability to perform other services
presumably has to be a relevant discussion point. See State Water
Board Cases (2023) __ Cal.App.5th __, 316 Cal.Rptr.3d 170 (“The purpose of
intervention is ‘to obviate delay and multiplicity of actions by creating an
opportunity to those directly interested in the subject matter to join in an
action already instituted’ (Citation omitted)”)
The Court believes
the foregoing considerations are important but also wants to avoid making this
case impossible to manage or unduly costly to the existing parties.
Existing
parties though have not shown how Intervenors’ representation that they would
not enlarge the issues would not be true. The Court does not believe that two
additional parties, with counsel seemingly specializing in this area, will
likely unduly interfere with the proceedings.[13] While
requiring the input of two additional counsel adds to the work involved, the
Court does not find that such extra work is inconsistent with the stakes
involved in this litigation. Issues requiring agreement of all parties will be
easier to secure with just two additional parties than the seven contemplated. Though
the issues in these cases will likely be complex, the Court does not find that
the addition of these two entities – by continuing to jointly file pleadings
(or at least combining their positions if not identical in one pleading) - should
make those issues more difficult. Their expertise – as well as that of counsel
for existing parties – may in fact assist the Court in being able to focus on
what is truly at issue. Should CFBD and NRDC significantly and unnecessarily expand
the issues herein, contrary to what they represented, the Court may reconsider
this order.[14]
The Court
finds that the reasons for intervention, as limited here to these two parties, as
to matters to be decided by the Court, outweigh those in opposition. Where this
analysis is specific to the facts here, the Court finds those to be different
from those in South Coast, supra, where a union’s interest in
environmental issues was found “cumulative.”
For these reasons, the Court finds
that at least CFBD and NRDC meet the requirements under CCP sec. 387(d)(2).
CONCLUSION
For these reasons, the Court grants
the motion in part, based on permissive intervention, as to CFBD and NRDC only,
and then only as to matters to be decided by the Court as opposed to by a jury,
and denies the motion as to the other Intervenors based on both mandatory and
discretionary intervention requirements.
DATED:
_________________________________
DAVID J. COWAN
Judge of the Superior Court
[1] The seven putative parties are represented by
attorneys at two of the intervenors, CFBD and NRDC. These organizations are
involved in environmental advocacy nationwide.
[2] On December 14, 2023, Bridgeland filed Objections to
the Supplemental Declaration, asserting that it was improperly raising new
matters in a reply to which Bridgeland could not respond.
[3] In assessing these requirements, California courts
routinely refer to federal law for guidance. (Edwards v. Heartland Payment
Sys.(2018) 29 Cal.App.5th 725, 732)
[4] The County also disputes that Intervenors have a
significantly protectible interest in the ordinance.
[5] Those claims are however not solely for just
compensation but also for the ordinance to be applied in a way that preserves
Petitioners’ vested rights.
[6] In any event, a general political interest in
upholding a statute, including an organization’s active support of the
enactment of that statute, is an insufficient basis for intervention. (Rominger,
supra, 147 Cal.App.3d at 662)
[7] A court has discretion to limit intervention to
“discrete phases of the litigation.” (Carlsbad, supra, 49 Cal.App.5th
at 152)
[8] Intervenors in any event disclaim any interest in how
the Ordinance is applied and are seeking only to defend its facial validity. (See
Supp. Brief, pp. 14-15 and Motion, p. 7, n. 2)
[9] Petitioners rely on a string of cases on pp. 7-8 of
their brief for the proposition that a person needs to have an ownership
interest in a property to be a party in an inverse condemnation case may be
true for purposes of seeking just compensation; however, that is not why
Intervenors are seeking to intervene; namely, to defend the Ordinance. By
contrast, Accurso v. In-N-Out Burgers (2023) 94 Cal.App.5th
1128, 144, n. 13, cited by Intervenors, indicates intervention does not require
a “legally enforceable” interest. See also Exxon Mobil v. Santa
Barbara Co. Bd. Of Supervisors (2022) WL 1788601 and GHP Mgmt v. City of
Los Angeles, 339 F.R.D. 621, 624 (C.D. Cal. 2021) where U.S. District Courts
allowed intervention by public interest groups in takings cases.
[10] This is already material: Bridgeland and the County
had submitted a stipulation to a proposed order that the well at the VA (the
Sawtelle Field) was not subject to the Ordinance because of a discretionary
lease issue. The Court deferred entering that order pending the outcome of this
motion. Intervenors indicate they will not disturb that stipulation. However, the
Court now sees there may be an issue as to whether a discretionary lease
would be a reason a well would not be governed by the Ordinance. See
Reply, p.5. If so, this might impact more than just the VA facility and
significantly reduce the numbers of wells governed by the Ordinance. The Court
wishes to ensure that any orders it makes are consistent as to wells governed
by the same considerations – as indicated by the Ordinance. As noted in Ex. A
to the RJN, the Ordinance is apparently just one in a series of planned actions
by the County, including pursuing modifications to discretionary permits.
Similarly, Intervenors point out that
an idle well may be subject to the Ordinance, even if deserted. The Court does
not reach the merits of either issue on this motion but appreciates the input
on these subtleties.
[11] Relevant to delay, it is also worthy to note that an
order denying leave to intervene would be an appealable order.
[12] Moreover, at least petitioner oil industry
associations – which filed their own action – and likely do not have the same
direct pecuniary interests as the petitioner oil companies, may not be heard to
complain that Intervenor organizations (which likewise have impacted members) should
not be able to be heard herein. In many ways, they have similar roles here representing
affected persons on each side of the debate.
[13] While there are numerous lawyers involved already,
the Court notes that one law firm (Manatt) represents the petitioners in two of
these cases. Further, counsel have worked well together to date in stipulating
to a case management order setting forth a schedule pursuant to which issues
can be decided. The overall issues in all cases appear to be largely identical
at this point.
[14] The Court may place reasonable conditions in
permitting discretionary intervention. (Carlsbad, supra, 49 Cal.App.5th
at 150-155)