Plaintiff occupants appealed a judgment from the Superior Court of Los Angeles County (California), which sustained a demurrer in favor of defendant homeowners association on causes of action arising from a lot line dispute and awarded attorney fees and costs to the homeowners association.
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The occupants did not have any ownership interest in the property. They claimed that the owners had assigned to them all of the owners’ interests in the causes of action pursuant to Civ. Code, § 954. The court held that the occupants lacked standing as to claims for breach of contract and specific performance because the occupants were not intended to be third party beneficiaries of an agreement between the owners and the association regarding the lot line and, therefore, were not real parties in interest under Code Civ. Proc., § 367. The occupants had no right to enforce duties owed under the association’s governing documents pursuant to Civ. Code, § 1354, because they did not own a separate interest as defined in Civ. Code, § 1351, subd. (l)(3), and because the owners’ enforcement rights were not assignable as indicated in Civ. Code, § 1358, subd. (c). Causes of action under Civ. Code, §§ 1363, 1364, were not assignable. The award of attorney fees and costs to the homeowners association was mandatory under Civ. Code, § 1354, subd. (c), which applied when an action to enforce the governing documents was unsuccessful because of lack of standing to do so.
The court affirmed the judgment and affirmed the award of attorney fees.