Court Of Appeal Confirms Applicability of Brown Act to Settlements Entered Into by Local Governments in Closed Session
The California Court of Appeal in Trancas Property Owners Association v. City of Malibu, 2006 WL 802483 (Cal.App. 2 Dist.)), upon a rehearing requested by the California League of Cities as Amicus Curiae, recently re-affirmed its decision (discussed in this blog on October 13, 2005) that the City's adoption of a settlement agreement in a closed session violated the Ralph M. Brown Act, Gov't Code section 54950 et seq. (Brown Act).
In the rehearing, the court reaffirmed its previous conclusion, holding that by entering into a settlement agreement with a developer in closed session, the City violated the Brown Act even though the agreement was to settle pending litigation. The court stated that although the Brown Act contains an implied allowance for adoption of settlements in closed session, this implied allowance is subject to limits. Specifically, the court concluded that local governments may not decide upon or adopt in closed session a settlement that accomplishes or provides for action for which a public hearing is required by law, without such a hearing.
Donna Jones is a partner in the Real Estate, Land Use and Environmental Practice Group in Sheppard Mullin's San Francisco office.
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