Court of Appeal Holds Developer Cannot Sue City for Violations of CEQA and Constitutional Law Where City Rejects Project Before Completing EIR

In a significant published CEQA and land use decision, the Court of Appeal, Second Appellate District, rejected a developer’s challenge to the City of Los Angeles’ decision to reject the annexation and approval of a large development project without completing CEQA review.

The City had spent several years preparing an EIR under CEQA before the City made a policy decision to reject the project. The developer sued the City, alleging that the City was prohibited from making this policy determination and rejecting the project until it completed the EIR. The developer also alleged claims for violation of procedural and substantive due process and equal protection under the State and Federal Constitutions and sought $100 million in damages. The trial court sustained the City’s demurrer.

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