California city ordered to pay affordable housing group $3.5 million in legal fees

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A state court ruled the city must reimburse the Kennedy Commission for its litigation costs over the city’s former housing plan.

Thursday’s appeals court ruling stems from a three-way legal fight that occurred from 2015-20 between the city, the Kennedy Commission and state leaders.

Newly elected Gov. Gavin Newsom, who campaigned on a plan to increase housing in California, announced in January 2019 that the state was joining the fight with a lawsuit of its own.Huntington Beach leaders amended their 2013-21 housing planBut the Kennedy Commission sued for legal fees under the “catalyst theory,” arguing its 2015 lawsuit was “a substantial factor” in the city’s decision to revise its earlier housing plan.

A trial court sided with the Kennedy Commission, and on Thursday, the appeals court upheld that ruling. Kennedy Commission Executive Director Cesar Covarrubias hailed the ruling as a victory, adding that it’s a warning that future housing litigation isn’t likely to have a different outcome.

 

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