Government,
Civil Litigation,
California Courts of Appeal
Jun. 8, 2020
Cities take note: Development agreements are to protect developers
A recent opinion should serve as a warning to cities and counties that development agreements are meant to provide protection to developers. Giving in to public outrage may look good to a politician but the result can be quite costly for a city.
As a practical matter, the vested rights doctrine protects developers from changes in the law. In 1976 the California Supreme Court adopted a late vesting rule in AVCO Community Developers, Inc. v. South Coast Regional Commission, holding that a developer's rights vested only when the developer had substantially relied in good faith on a validly issued permit. An earlier court of appeal case, cited with approval in AV...
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