Facts

Congregation Etz Chaim filed a suit against the City of Los Angeles for declaratory, injunctive and monetary relief for violation of its Federal Civil Rights of religious freedom arising from the City's denial of the Congregation's application for a Conditional Use Permit ("CUP"). The Congregation is a small group of Chassidic Orthodox Jewish residents of Hancock Park, who, for nearly fifty years, have gathered together in one of two residences in Hancock Park for communal prayer in accordance with the dictates of their religion.

In 1996, after the Hancock Park Homeowners' Association expressed concerns over the congregation's use of a South Highland Ave. residence, the congregation applied for a CUP, but was denied by the City. The congregation then filed a suit against the City (Case No. CV 97-5042), which resulted in a settlement agreement in 2001, which allowed the congregation to hold prayer services in accordance with their faith, subject to certain restrictions.

In 2003, a group of Hancock residents called the League of Residential Neighborhood Advocates (LRNA) sued the City, challenging the validity of the settlement agreement on a number of federal and state law grounds. In 2004, the Court rejected LRNA's claims. In 2007, the 9th Circuit reversed the district court, finding that absent a finding that federal law was violated or would be violated, the district court could not approve a settlement agreement that authorized the City to disregard its own zoning ordinances. The Court concluded that since no such finding was made, the settlement agreement was invalid and unenforceable.

The congregation submitted a second CUP application seeking the same use the City allowed in the settlement agreement. The City once again denied its application and the Central Area Planning Commission denied its appeal.

The congregation then brought this action seeking damages and to enjoin the City from enforcing the zoning ordinance against it and that the City's denial of the CUP be voided under RLUIPA.

Result

The City agreed to pay $950,000 in attorney fees and costs to settle the matter. The parties also agreed not to further pursue their respective appeals of the judgment. In May, U.S. District Judge Christina A. Snyder issued an injunction, permitting the congregation from using the residence under the terms initially set by the settlement agreement, finding that the denial of the CUP violated federal law. The Court, however, denied the Congregation's claim for damages.