Laguna Beach : Judge Reinstates Suit Against City

A judge Thursday reinstated a lawsuit challenging Laguna Beach’s authority to determine what shade of white homeowners may paint their houses.

U.S. District Judge Lawrence T. Lydick last month had dismissed the lawsuit, brought against the city by a couple who resented an ordinance requiring that houses be painted a “sandstone” hue. The dismissal came after the couple’s attorney failed to appear for a hearing and to file court documents on time.

The lawsuit, brought by Nick and Denise Karagozian, seeks $1 million in damages and asks the court to declare the ordinance unconstitutional.

It alleges that the Laguna Beach Design Review Board temporarily prevented them from moving into their new home after it ruled that its “eggshell white” color was too bright and violated city policy.

Lydick rescinded his ruling after the couple’s attorney, Eugene C. Gratz, filed a motion claiming a miscommunication and that neither of his mistakes was intentional. Lydick also ordered Gratz to pay a $2,000 penalty and sign a statement affirming that he had read and understood court rules.

“I’m a little surprised” at the judge’s reversal, Gratz said Thursday. “The judge was angry at me and he had the right to be. He was leaning on me and leaning on me hard. I will pay the sanction.”

Laguna Beach City Atty. Philip Kohn said the reversal was not unexpected. “Obviously, I would like to see the case go away . . . because it’s utterly devoid of any merit, but we are ready to proceed,” he said.

The Laguna Beach Design Review Board had found that “eggshell white” would reflect harsh sunlight and refused to permit utilities to be connected until the house was repainted “sandstone.” After the City Council upheld the board’s ruling, the Karagozians protested by striping their empty house with red, white and blue paint.

The couple and the city later compromised on “seashell white” (which edged out “cottage white”) for the home. But the Karagozians went on to file suit in federal court over the delay.