CA Appeals Court Denies Petition for Writ of Mandate Challenging Conditional Use Permit for Failure to Exhaust Administrative Remedies

This post was authored by Matthew Loescher, Esq.

Appellant Muskan Food & Fuel, Inc. filed a petition for writ of mandate to challenge the City of Fresno’s approval of a conditional use permit for the development of a neighborhood shopping center across the street from Muskan Food’s gas station and convenience store. The proposed development included a specialty grocery store with a license to sell beer, wine and distilled spirits for consumption off the premises. The area had a high concentration of businesses selling alcohol and Muskan Food contended City misapplied the municipal ordinance restricting permits for new establishments selling alcohol in such areas. The superior court denied the petition, holding the City did not misinterpret the ordinance and substantial evidence supported City’s decision to approve the conditional use permit.

On appeal, Muskan Food alleged that the relevant Municipal Code provisions describing the procedures for appealing the approval of a conditional use permit were vague, the procedures required were minimal, and it met those procedural requirements and thereby exhausted its administrative remedies. Muskan Food’s vagueness argument focused on the use of the word “petition” and the absence of an explanation of how one petitions or what a petition is. The court concluded the word “petition” was ambiguous as to the level of formality required.

The court found that the interpretation of the general statements in the e-mails submitted to the mayor as not constituting a petition was consistent with the policies underlying the exhaustion doctrine. The court reasoned that allowing generalized statements of concern to impliedly fulfill the Municipal Code’s requirement would encourage end-runs, undermine judicial efficiency, and undermine the city council’s autonomy as the elected body with the ultimate authority over land use decisions. Here, Muskan Food’s failure to exhaust administrative remedies frustrated the policy of promoting administrative autonomy as it applied to the interpretation and application of the Municipal Code provisions governing location restrictions on establishments licensed to sell alcohol. Based on the failure to exhaust administrative remedies, the court held that the superior court correctly denied Muskan Food’s petition for writ of mandate.

Muskan Food & Fuel Inc. v City of Fresno, 2021 WL 4398417 (CA App. 9/27/2021)