Justia California Court of Appeals Opinion Summaries

Turley sued multiple defendants, alleging that he has an asbestos-related disease caused by exposure to asbestos-containing products, including valve gaskets, during his 36-year employment at PG&E. Interrogatory responses stated that Turley was exposed to asbestos-containing pipe products supplied by Familian, including “asbestos cement transite pipe, pipe collars, gaskets, elbows, pipe-repair products and other asbestos products.” Familian moved for summary judgment. arguing that plaintiffs could not show exposure to asbestos in a Familian-related product. Turley submitted a declaration from a third-party witness, Scott, who had not been deposed. The court allowed Scott to be deposed. Familian used portions of the deposition in its reply. The court concluded that the deposition testimony “conclusively negates” Scott’s declaration testimony as to exposure, refused to consider it, and granted summary judgment. The court of appeal reversed, stating that ambiguity in the evidence should be resolved at trial. Scott’s testimony established that Familian-supplied asbestos-containing gaskets were frequently used at Turley’s worksite and that Turley used them. That Familian was not the only supplier did not warrant the conclusion that Turley did not establish exposure. There was no direct contradiction between Scott’s declaration and his deposition testimony with respect to several areas, so his testimony should not have been disregarded. View "Turley v. Familian Corp." on Justia Law

Plaintiff Mahmoud Alzayat, on behalf of the People of the State of California, filed a qui tam action against his employer, Sunline Transit Agency, and his supervisor, Gerald Hebb, alleging a violation of the Insurance Frauds Prevention Act (IFPA or the Act). (Ins. Code, sec. 1871 et seq.) Alzayat alleged Hebb made false statements in an incident report submitted in response to Alzayat’s claim for workers’ compensation, and Hebb repeated those false statements in a deposition taken during the investigation into Alzayat’s claim for compensation. Hebb’s false statements resulted in Alzayat’s claim being initially denied. Defendants filed motions for judgment on the pleadings contending: (1) this lawsuit was based on allegedly false and fraudulent statements Hebb made in connection with a workers’ compensation proceeding and was, therefore, barred by the litigation privilege under Civil Code section 47(b); and (2) Alzayat’s claim was barred by the workers’ compensation exclusivity rule. The superior court concluded the workers’ compensation exclusivity rule was inapplicable, but ruled the litigation privilege barred Alzayat’s claim. Alzayat appealed, contending the litigation privilege only applied to tort claims and not to statutory claims such as an action under the IFPA, and the IFPA was a specific statute that prevailed over the general litigation privilege. The Court of Appeal agreed with Alzayat that his lawsuit was not barred by the litigation privilege. Furthermore, the Court concluded this lawsuit was not barred by the workers’ compensation exclusivity rule. The trial court erred by granting judgment on the pleadings for defendants, so we reverse the judgment. View "California ex rel. Alzayat v. Hebb" on Justia Law

The Court of Appeal issued a peremptory writ of mandate directing the respondent court to vacate its order overruling the demurrer and issue a new order sustaining the demurrer without leave to amend. In this case, seven businesses filed suit to recover damages for purely economic loss resulting from a massive natural gas leak at a SoCalGas. SoCalGas filed a demurrer to the causes of action based on negligence because plaintiffs' complaint lacked allegations of personal injury, property damage, or the requisite transaction. The respondent court held that SoCalGas should bear all costs its accident caused and there was no recovery for purely economic loss under negligence theories when the precipitating event was a mass tort. Without personal injury, property damage or a special relationship, the general rule that precludes business plaintiffs from recovering for pure economic losses under a negligence theory remains viable. The court held, as a matter of law, that SoCalGas did not owe a duty to prevent plaintiffs' economic loss based on negligent conduct. Accordingly, the court granted the petition for a peremptory writ and vacated the temporary stay. View "Southern California Gas Co. v. Superior Court of Los Angeles County" on Justia Law

Respondent Denise Duncan sued Wal-Mart Stores, Inc. (Wal-Mart) for personal injuries she sustained at one of Wal-Mart’s stores while acting within the course and scope of her employment with Acosta, Inc. (Acosta). The trial court entered judgment finding Wal-Mart liable for Duncan’s injuries. Under Labor Code sections 3852 and 3856, appellant Hartford Accident & Indemnity Company (Hartford) applied for a lien on Duncan’s judgment to obtain reimbursement for the workers’ compensation benefits it paid Duncan, including medical expenses and temporary disability payments for lost wages. Although the judgment included compensation for Duncan’s medical expenses, it did not include compensation for Duncan’s lost wages because she did not seek those damages at trial. The court granted Hartford a lien on Duncan’s judgment, but reduced the lien amount to exclude the indemnity payments for lost wages. Hartford appealed the trial court’s postjudgment order, arguing the court exceeded its authority by reducing the lien amount for any item other than reasonable attorney fees and costs. The Court of Appeal agreed because section 3856’s plain language and the case law applying it granted Hartford a first lien on the judgment in the amount it paid Duncan for worker’s compensation benefits. Duncan’s choice not to seek lost wages at trial did not diminish Hartford’s lien rights under the workers’ compensation statutory scheme. View "Duncan v. Wal-Mart Stores, Inc." on Justia Law

Plaintiffs-respondents Virgil and Glenda Jensen contended they suffered damages caused by a negligently maintained rental truck, rented by his supervisor, Charles Scannell, which blew a tire while Virgil was driving it. Defendant-appellant U-Haul Co. of California (UHCA) appealed the trial court’s denial of its motion to compel arbitration. UHCA contended plaintiffs were bound by the arbitration agreement in the rental contract, even though neither plaintiff was a party to that contract. The Court of Appeal’s review of plaintiffs’ complaint showed that plaintiffs did not rely or depend on the terms of the rental in asserting their claims, and none of their allegations were in any way founded in or bound up with the terms or obligations of that agreement. UHCA, citing to general principles and cases that it contended were analogous, argued that plaintiffs were bound to arbitrate their claims, even though they are not signatories to the agreement between Scannell and UHCA, on any of three theories: third-party beneficiary, agency, or estoppel. The Court of Appeal was not persuaded and affirmed the trial court. View "Jensen v. U-Haul Co. of California" on Justia Law

The Court of Appeal reversed the trial court's determination that equitable estoppel did not apply to LAUSD's assertions of noncompliance with the Government Claims Act. In this case, plaintiffs filed suit against LASPD when an LASPD vehicle ran a red light and struck them. Upon learning that the vehicle was insured by LAUSD, plaintiffs amended their complaint to add LAUSD as a defendant. LAUSD moved for summary judgment, arguing that plaintiffs failed to comply with the requirements of the Government Claims Act because no government claim was ever filed with LAUSD. The court held that plaintiffs presented evidence sufficient to permit a finding that LAUSD was estopped from asserting noncompliance with the Government Claims Act as a defense. View "Santos v. Los Angeles Unified School District" on Justia Law

A third party can not sue a merchant for negligence in breaching duties when the merchant sells a high-end sports car to its customer and the customer pays for most of the car with two checks the third party made out to the merchant. A customer's payment with a check not in the customer's own name, by itself, is not a red flag. Accordingly, the Court of Appeal affirmed the trial court's grant of summary adjudication dismissing the third party's negligence and related claims against the merchant. View "QDOS, Inc. v. Signature Financial, LLC" on Justia Law

Oregon State University (Oregon State) petitioned for a peremptory writ of mandate to direct the superior court to vacate an order overruling Oregon State's demurrer to George Sutherland's first amended complaint and to enter a new order sustaining the demurrer without leave to amend. Sutherland's complaint asserted causes of action for negligence and negligent misrepresentation against Oregon State. Sutherland was severely injured when a crane he was operating tipped over. At the time, he was using the crane to load a stack container owned by Oregon State onto a vessel owned by his employer, the Scripps Institution of Oceanography, a department of the University of California, San Diego. The stack container's weight was not displayed on its exterior and was not accurately recorded on the bill of lading provided by Oregon State. Oregon State contended the challenged order violated the federal Constitution's full faith and credit clause because the complaint did not and could not allege Sutherland's compliance with the Oregon Tort Claims Act's 180-day claims notice provision. Sutherland maintained the Clause did not require his compliance with the provision because requiring compliance would violate California's public policy by effectively depriving him of a remedy against Oregon State. Alternatively, Sutherland argued if the Clause does require compliance with the provision, he could amend the complaint to plead facts showing compliance. The California Court of Appeal agreed the superior court should have sustained Oregon State's demurrer because the Oregon Tort Claims Act's claims notice provision was entitled to full faith and credit in California. The provision does not conflict with or violate California's public policy and declining to give the provision full faith and credit would evince an impermissible policy of discriminatory hostility to the provision. Sutherland demonstrated he could plead facts showing compliance with the provision, so the Court granted the petition in part and directed the superior court to vacate its order overruling Oregon State's demurrer and enter a new order sustaining the demurrer with leave to amend. View "Oregon State University v. Superior Court" on Justia Law

After plaintiffs' vehicle entered into a dark intersection and was struck by another car, they filed a negligence suit against the entity responsible for maintaining the battery backup unit for the traffic signal that was out. The Court of Appeal reversed the trial court's grant of summary judgment for defendant, holding that whether the duty question was analyzed under either Biakanja v. Irving, (1958) 49 Cal.2d 647, or Rest.2d Torts, 324A criteria, defendant failed to establish as a matter of law the absence of a duty to plaintiffs. View "Lichtman v. Siemens Industry Inc." on Justia Law

In this case, we deny relief on a petition for review of an award of benefits made by the Workers' Compensation Appeals Board (WCAB). In 2006, while working at Pearson Ford, Leopoldo Hernandez accidentally slammed the trunk of a car on his left hand and crushed one of his fingers. Although no bones in his hand were broken, he was unable to continue working at Pearson Ford because of continuing pain in his hand and shoulder. Hernandez applied for and received workers' compensation benefits. Pearson Ford's workers' compensation carrier retained the services of a private investigator, who conducted video surveillance of Hernandez following each of the three visits to his doctor in early 2010. Following each visit, Hernandez was observed taking off his sling, using his left hand to get in and out of his truck or a car, using his left hand to steer his truck or car, and on one occasion stopping at a grocery store and using his left hand to carry a bag of groceries. After the investigator witnessed other instances of Hernandez using his allegedly injured left hand, the carrier notified the district attorney, who in turn, commenced its own investigation. In specified circumstances, a worker who engages in criminal fraud in attempting to recover workers' compensation benefits and is convicted of doing so is thereafter barred from recovering benefits growing out of the fraud. However, in given circumstances where, independent of any fraud, a worker is able to establish his or her entitlement to benefits, benefits may be awarded. Here, the WCAB found evidence, independent of a worker's fraud, that he had suffered a compensable injury and was entitled to benefits. In doing so the WCAB relied on the determination of a medical expert. The Court of Appeal found no error in the WCAB's determination the workers' claim was not barred by the eventual misdemeanor conviction for workers' compensation fraud and in the WCAB's adoption of the expert's finding of a permanent disability. The Court denied the petitioner any relief on its petition asking that it vacate the WCAB's award. View "Pearson Ford v. Workers' Comp. Appeals Bd." on Justia Law