Government Code Sections 56383 And 66016 Dictated The Result.
San Luis Obispo Local Agency Formation Commission v. City of Pismo Beach, Case No. B296968 (2d Dist., Div. 6 Mar. 3, 2021) (published) is an indemnity agreement fee clause dispute between a local agency formation commission and a city/developer as to the responsibility for fees after an annexation application was denied and the local agency formation commission eventually prevailed, with the commission seeking over $400,000 in fees and costs against the city and developer. The trial court granted a judgment on the pleadings in favor of city and developer in a suit seeking fees/costs by the local agency formation commission based on the indemnity provision in an annexation application which mentioned fees and costs.
The 2/6 DCA affirmed the judgment which did not award fees and costs under the indemnity provision. The problem here was that Government Code sections 56383 and 66016 did not allow recovery of such and fees costs for post-administrative decision court proceedings; as such, the indemnity provision had no consideration such that the lower court got it right in denying fees and costs in a very unique annexation application context.
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