Justia California Court of Appeals Opinion Summaries

Under the Government Claims Act, a public entity is not liable for injury except as otherwise provided by statute; a public entity may be vicariously liable for injury caused by an act or omission of its employees acting within the scope of their employment. If a public entity may be sued under a liability statute, the Act also includes immunity provisions that prevail in specified circumstances.Doe alleged that, when she was a minor and ward of the state confined at Napa State Hospital, she was sexually assaulted by a Department counselor between 1997-1999. She claimed that the Department knew or should have known that the counselor had previously engaged in unlawful sexual conduct with other minors and that he continued to do so with Doe. She alleged negligence, negligent supervision/training/hiring/retention, sexual battery, assault, and statutory civil rights violations.The trial court dismissed all except the claim of negligent supervision/training/hiring/retention, with leave to amend, holding that section 815.2 provides minimum personnel standards and triggered the immunity exception. The court of appeal ordered the dismissal of the entire complaint without leave to amend. Doe failed to demonstrate that she can allege the Department’s violation of any minimum standard sufficient to form the basis for liability under Government Code 855(a). View "State Department of State Hospitals v. Superior Court of Napa County" on Justia Law

In 2008, California enacted a Property Assessed Clean Energy program (PACE) as a method for homeowners to finance energy and water conservation improvements. A PACE debt was created by contract and secured by the improved property. But like a tax, the installment payments were billed and paid as a special assessment on the improved property, resulting in a first-priority tax lien in the event of default. The named plaintiffs in these putative class actions were over 65 years old and entered into PACE contracts. The defendants were private companies who either made PACE loans to plaintiffs, were assigned rights to payment, and/or administered PACE programs for municipalities. The gravamen of the complaint in each case was that PACE financing was actually, and should have been treated as, a secured home improvement loan. Plaintiffs alleged that defendants engaged in unfair and deceptive business practices by violating consumer protection laws, including Civil Code section 1804.1(j), which prohibited taking a security interest in a senior citizen’s residence to secure a home improvement loan. Generally, a taxpayer could not pursue a court action for a refund of property taxes without first applying to the local board of equalization for a reduction and then filing an administrative claim for a refund. Here, defendants demurred to the complaints on the sole ground that plaintiffs failed to allege they first exhausted administrative remedies. The trial court agreed, sustained the demurrers without leave to amend, and entered a judgment of dismissal in each case. On appeal, plaintiffs primarily contend they were not required to pursue administrative remedies because they have sued only private companies and do not challenge “any aspect of the municipal tax process involved.” The Court of Appeal found that despite their assertions to the contrary, plaintiffs did challenge their property tax assessments. And although they did not sue any government entity, the “consumer protection statutes under which plaintiffs brought their action cannot be employed to avoid the limitations and procedures set out by the Revenue and Taxation Code.” Thus, the Court concluded plaintiffs were required to submit their claims through the administrative appeals process in the first instance. "Their failure to do so requires the judgments to be affirmed." View "Morgan v. Ygrene Energy Fund, Inc." on Justia Law

The Department of Alcoholic Beverage Control (Department) revoked a nightclub’s liquor license after the club’s owner, GC Brothers Entertainment LLC dba The Palms (Petitioner), failed to respond to an accusation alleging several violations of California statutes and regulations. Petitioner appealed the Department’s decision to the Alcoholic Beverage Control Appeals Board (Appeals Board), which affirmed it, and now seeks a writ of mandate directing the Department to vacate its decision.   The Second Appellate District granted the writ. The court held that the licensing scheme and strong state policy in favor of resolving cases on the merits grant an ALJ discretion to issue an OSC when he or she receives even an arguably deficient motion for relief from default. It thus runs contrary to the spirit of the licensing scheme to insist that a licensee present its complete and best case for relief within seven days of service of a notice of default. Here, the ALJ not only apparently believed he had no discretion to liberally construe Respondent’s motion for relief, but also found that Respondent’s failure to establish an irrelevant issue—proper service—constituted a failure to show good cause for relief. The ALJ’s failure to appreciate the scope of his discretion and application of an improper standard requires that we remand the matter to afford the ALJ an opportunity to exercise his discretion in the first instance and, applying the proper standard, determine whether Petitioner has shown good cause for relief from default. View "GC Brothers Entertainment v. Alcoholic Beverage Control etc." on Justia Law

The Council for Education and Research on Toxics (CERT) brought these actions under Proposition 65 (Prop. 65) against Respondents, dozens of companies that roast, distribute, or sell coffee. CERT claimed that Respondents had failed to provide required Prop. 65 warnings for their coffee products based on the presence of acrylamide. While the litigation was pending, the Office of Environmental Health Hazard Assessment (the Agency) adopted a new regulation providing that “exposures to chemicals in coffee, listed on or before March 15, 2019, as known to the state to cause cancer, that are created by and inherent in the processes of roasting coffee beans or brewing coffee do not pose a significant risk of cancer.”   CERT moved for summary adjudication, challenging the regulation’s validity on various grounds. In opposing summary judgment, CERT also contended that regardless of the regulation, triable issues remained regarding the presence of acrylamide resulting from additives. CERT challenged the trial court’s grant of summary judgment for Respondents, its denial of its motion for fees, and its award of section 998.   The Second Appellate Court affirmed the trial court’s orders granting summary judgment and denying attorney fees. The court reversed the order denying CERT’s motion to tax costs. The court explained that Respondents’ assertion ignores claims beyond the scope of CERT’s actions that were to be released under the offers. Given that the proposed releases in section 998 offers covered this and other potential claims, the trial court could not have determined that the offers were more favorable than the judgment. Thus, the offers were invalid for purposes of section 998. View "Council for Education and Research etc. v. Starbucks Corp." on Justia Law

G.I. Industries, doing business as Waste Management (WM), provided solid waste management for the City of Thousand Oaks (City). The City was considering entering into a new exclusive solid waste franchise agreement with Arakelian Enterprises, Inc. doing business as Athens Services (Athens). A supplemental item was posted giving notice of the staff’s recommendation that the City find the agreement to be exempt from CEQA. Prior to the commencement of litigation under the Brown Act, WM sent the City a “cure and correct” letter. WM petitioned the trial court for a writ of mandate directing the City to vacate both its approval of the franchise agreement and its finding that the project is exempt from CEQA. Athens was joined as the real party in interest. The trial court sustained the demurrer without leave to amend. The court agreed with WM that the CEQA exemption is an item of business separate from the approval of the franchise agreement. The court also concluded that the Brown Act does not apply.   The Second Appellate District reversed the finding that the trial court erred when it entered judgment. Section 54954.2 of the Brown Act, requires this CEQA finding of exemption to be listed on the agency’s agenda for its public meeting. The purpose of section 54960.1, subdivision (b) is to give the local agency notice of an alleged violation of the Brown Act so that it can avoid litigation by curing the violation. Here, the City council voted that the project is exempt, without the public notice required by the Brown Act. WM’s cure and correct letter adequately stated that point. View "G.I. Industries v. City of Thousand Oaks" on Justia Law

Plaintiffs K.M., H.R., and M.L. sued the Grossmont Union High School District (the District) for negligence based on alleged sexual abuse by their high school drama teacher, James Chatham. They also asserted sexual harassment claims under California Civil Code section 51.9, to which the District successfully demurred. The District made Code of Civil Procedure section 998 offers, which Plaintiffs did not accept. The case proceeded to a jury trial, where the trial court excluded certain evidence and mistakenly included Plaintiffs in an oral jury instruction regarding apportionment of fault. Plaintiffs prevailed, and the jury assigned 60 percent of fault to Chatham, and 40 percent to the District, with resulting damage awards lower than the section 998 offers. The parties moved to tax each other’s costs. The trial court ruled the offers were invalid, granted Plaintiffs’ motion, and denied the District’s motion in pertinent part. Both parties appealed. The California Legislature later enacted Assembly Bill No. 218 which amended Code of Civil Procedure section 340.1, to reduce procedural barriers for childhood sexual abuse claims, and to allow treble damages for a claim involving a prior cover- up of abuse. Plaintiffs sought a new trial, contending they were entitled to pursue treble damages, and that the trial court erred by sustaining the demurrers to their sexual harassment claims, excluding certain evidence, and giving the erroneous oral jury instruction. The District argued the trial court wrongly determined its Code of Civil Procedure section 998 offers were invalid. The Court of Appeal concluded the treble damages provision in Code of Civil Procedure section 340.1 was neither retroactive, nor applicable to public school districts. The Court further concluded Plaintiffs did not establish they could pursue sexual harassment claims against the District under Civil Code section 51.9. The parties do not establish reversible error on the other asserted grounds, either. Therefore, the Court affirmed the trial court's judgment and postjudgment orders. View "K.M. v. Grossmont Union High School Dist." on Justia Law

The City of Los Angeles (City) entered into a contract with defendant and respondent PricewaterhouseCoopers, LLC (PWC) to modernize the billing system for the Los Angeles Department of Water and Power (LADWP). PWC filed a motion for sanctions under Code of Civil Procedure sections 2023.010 and 2023.030 of the Civil Discovery Act nine months after the case was dismissed with prejudice, seeking monetary sanctions for egregious misuse of the discovery process while the litigation was pending. The trial court awarded $2.5 million in sanctions. On appeal from the postjudgment order, in response to a letter from this court inviting additional briefing pursuant to Government Code section 68081, the sanctioned party contends the Discovery Act does not authorize the trial court to award monetary sanctions under section 2023.030 alone or together with section 2023.010.   The Second Appellate District reversed the postjudgment order and remanded the matter for the trial court to enter a new and different order on the issue of monetary sanctions based on discovery provisions authorizing the imposition of sanctions in this case. The court explained that although the trial court had jurisdiction to entertain PWC’s motion for sanctions and discretion to find it was timely filed, the order awarding sanctions must be reversed and remanded to allow the trial court to award PWC’s reasonable expenses incurred as a result of sanctionable conduct under provisions of the Discovery Act other than sections 2023.010 and 2023.030. View "City of L.A. v. PricewaterhouseCoopers, LLC" on Justia Law

LAD-T, LLC, dba Toyota of Downtown Los Angeles (LAD-T), and its parent company Lithia Motors Inc. (Lithia; collectively, Defendants) appeal from an order denying their motion to compel arbitration of Plaintiff’s claims brought under the California Fair Employment and Housing Act (FEHA). Defendants contend the trial court erred in finding Business and Professions Code section 17918 barred them from enforcing an arbitration agreement made in the name of an unregistered fictitious business, DT Los Angeles Toyota.   The Second Appellate District vacated the order denying Defendants’ motion to compel arbitration remanded for the trial court to address whether Defendants have waived their right to compel arbitration. The court ruled that if the trial court finds waiver, it should again deny the motion to compel arbitration; if it finds no waiver, it should grant the motion. The court explained that it agrees with Plaintiff that Defendants failed to act diligently in filing their fictitious business name statement. Accordingly, in the interests of justice the court vacated the court’s order denying the motion to compel arbitration and direct the court to again consider the motion to compel arbitration limited to the narrow issue of whether Defendants have waived their right to compel arbitration by their delay in filing the fictitious business name statement. View "Villareal v. LAD-T, LLC" on Justia Law

Plaintiff George Sheetz challenged a $23,420 traffic impact mitigation fee (TIM fee or fee) imposed by defendant El Dorado County (County) as a condition of issuing him a building permit for the construction of a single- family residence on his property in Placerville. Sheetz appealed the judgment entered after the trial court sustained the County’s demurrer without leave to amend and denied his verified petition for writ of mandate. To the Court of Appeal, he contended reversal was required because the TIM fee was invalid under both the Mitigation Fee Act and the takings clause of the United States constitution, namely the special application of the “unconstitutional conditions doctrine” in the context of land-use exactions established in Nollan v. California Coastal Comm’n, 483 U.S. 825 (1987) and Dolan v. City of Tigard, 512 U.S. 374 (1994). Finding no error, the Court of Appeal affirmed. View "Sheetz v. County of El Dorado" on Justia Law

The California Commission on Teacher Credentialing (Commission) and the Committee of Credentials of the Commission on Teacher Credentialing (Committee) appealed a judgment and peremptory writ of prohibition directing them to discontinue certain investigative proceedings against present and former public school administrators Kathy Little, Simone Kovats, and Debra Sather (together, the administrators). The Committee commenced an initial review of the administrators’ fitness to continue as credential holders in 2019. Nonparty John Villani was a special education teacher employed by the District between 2011 and 2014. Villani sued the District in 2016 alleging the District unlawfully retaliated against him after he reported that a teacher-aide, David Yoder, was “grooming” and paying inappropriate attention to some of the minor students in his care. Yoder was subsequently charged and convicted of several felony sex offenses against minors, including an offense against one of the aforementioned students. As relevant here, Villani’s lawsuit also alleged the administrators ignored his concerns about Yoder. The Commission learned about Villani’s lawsuit from a news article; the Commission thereafter launched its investigation. The administrators objected to the manner in which the Commission had obtained documents and information from Villani and argued the Committee had not established jurisdiction to review their credentials. The administrators demanded the Commission cease the investigation and the Committee drop the scheduled meetings. The Commission and Committee argued the trial court erred in ruling the administrators were excused from exhausting administrative remedies and misinterpreted Education Code section 44242.5, which defined the scope of the Committee’s jurisdiction. Finding no error, the Court of Appeal affirmed the judgment and writ. View "Little v. Com. on Teacher Credentialing" on Justia Law