Facts

The City of Newport Beach sued defendants for allegedly operating a boarding house violating the city's zoning provisions, which prohibits houses located within a single-family area to be subdivided. The operator Leason owns three houses on a residential street zoned for single-family uses located in the East Santa Ana Heights neighborhood of the City. The City's zoning provisions require that residents of a house live together as a "single housekeeping unit." This lawsuit followed numerous failed administrative efforts by the City to obtain compliance.

In addition to the allegations of violating the City's zoning code, the City also alleged violations under California's Unfair Competition Law pursuant to Business & Professions Code Section 17200. The City sought restitution.

The City asserted that the operator subdivided each of the houses into "multiple dwelling units" and would advertise room vacancies as "studios." Each of the three houses would have up to six "studios." Various residents on the same street posted signs protesting the "studios," which are essentially apartment buildings in the middle of a street lined with single-family houses.

Defendant Lu settled before trial with assistance of her counsel.

Result

The City and the operator through their counsel entered into a settlement and stipulated to the settlement terms before Judge Monroe on June 28, 2010. The operator, Leason, thereafter pro per, refused to sign the settlement document, and the City successfully brought a motion before the judge to reduce the settlement to judgment. The Court ordered the operator to pay $3,000 to the City in sanctions. The judgment further compelled the operator to pay an additional $22,500 to the City, as well as to return the houses to single-family uses. Also, if the operator will be renting any of the houses, the operator is required to maintain that house as a "single housekeeping unit" solely through a single written lease.

Other Information

The case was published lacking essential information about Defendant Leason going pro per when he changed his mind about the settlement.