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Zoning Bulletin November 10, 2018 I Volume 12 I Issue 21 <br />Citation: Black v. City of Rancho Palos Verdes, 26 Cal. App. 5th 1077, <br />237 Cal. Rpti: 3d 663 (2d Dist. 2018) <br />CALIFORNIA (09/06/18)—This case addressed the issue of whether <br />landowners had established a futility exception to the exhaustion of <br />administrative remedies requirement prior to bringing a legal action in <br />court that challenged a municipal zoning decision. <br />The Background/Facts: Since 1978, the City of Rancho Palos Verdes <br />(the "City") had a building moratorium on an area of land because of the <br />resurgence of an ancient landslide. In 1993, a City geologist proposed <br />that the moratorium area be divided into eight zones for purposes of <br />discussing remediation efforts and residential development. Relevant to <br />this case, that geologist identified "Zone 2"—a 130-acre area, consisting <br />of "[s]ubdivided land unaffected by large historic landslides" —as an <br />area that "could be developed without adversely affecting the stability of <br />the large ancient landslide." In January 2009, the City amended the <br />moratorium to allow some projects in Zone 2 to qualify for a "landslide <br />moratorium exception permit only if all applicable requirements of [the <br />City] code are satisfied" and only after those particular project applicants <br />submitted to the City any geological or geotechnical studies required by <br />the City to demonstrate that the proposed project would not aggravate <br />the existing landslide instability. <br />In November 2015, the owners of eight lots in Zone 2 (the "Landown- <br />ers") sued the City. Those Landowners asked the court to order certain <br />actions regarding undeveloped lots in Zone 2, and alleged a single cause <br />of action for inverse condemnation. <br />The trial court held that the Landowners failed to demonstrate that the <br />moratorium constituted an unlawful taking. The trial court found that the <br />Landowners failed to demonstrate that the moratorium "on its face, <br />prevented] all economic use of properties located in Zone 2." Impor- <br />tantly, the trial court further found that the Landowners needed to <br />"exhaust administrative remedies before the [trial court could] determine <br />whether, as applied to the [ landowners'] properties and their intended <br />uses for the properties, there is an unlawful taking." (The record in the <br />litigation revealed that as of February 2017, no applications for exclu- <br />sions from the moratorium had been filed.) <br />The Landowners appealed. On appeal, they challenged the constitu- <br />tionality of the moratorium, and argued that they were excused from <br />exhausting their administrative remedies because to do so would be <br />futile. <br />DECISION: Judgment of Superior Court affirmed. <br />The Court of Appeal, Second District, Division 1, California, held <br />that the Landowners had failed to establish the futility exception to the <br />exhaustion of remedies requirement applied in this case. The court <br />explained that before challenging a land use regulation in court, land- <br />© 2018 Thomson Reuters 3 <br />