San Luis Obispo Local Agency Formation Commission v. City of Pismo Beach
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After the San Luis Obispo Local Agency Formation Commission (LAFCO) denied the city and developer's application to annex a parcel of real property to the city, the city and developer filed suit challenging the action. LAFCO prevailed and brought this action to recover attorney fees under an indemnity agreement contained in the annexation application.
The Court of Appeal affirmed the trial court's grant to the city and developer judgment on the pleadings because LAFCO has no authority to require attorney fees. The court explained that Government Code section 56383 does not apply to post-administrative matters, such as the action that generated the fees at issue here. Therefore, LAFCO has given no consideration in exchange for the indemnity agreement.
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