Judge Kenly Kiya Kato of the Central District of California issued a mixed ruling on April 14 in K8 Investor Holdings, LLC v. City of Baldwin Park et al, granting in part and denying in part summary judgment motions from both the City of Baldwin Park and defendant Julia Sylva.
The case stems from K8 Investor Holdings' inability to obtain a Certificate of Occupancy from Baldwin Park for a cannabis facility. The company filed suit on March 31, 2023, and filed an operative First Amended Complaint on November 30, 2023, raising claims including inverse condemnation, Section 1983 violations, and intentional interference with contractual relationships. Several claims were dismissed by the court in January 2024.
The dispute involves development agreements dating back to 2017, when Kultiv8 Group filed a cannabis permit application with the city. Two development agreements were signed - one in December 2017 and another in May 2018 - though the parties dispute their validity. The May 2018 agreement was signed only by the city and was never recorded with the Los Angeles County Recorder's Office.
Despite the disputed agreements, the property owner made substantial payments to the city through March 2021, including safety fees, administrative fees, and public benefit fees totaling $1,130,000 across multiple fiscal years.
Judge Kato also granted Sylva's request for relief from a late filing, noting her counsel's "exhaustion and absent-mindedness" during the holiday season constituted excusable neglect for filing documents less than two hours late. The court criticized both sides for "needless collateral litigation" over minor procedural issues and warned of potential sanctions for future misconduct.