467 P.3d 184
Cal.2020Background
- Orange County District Attorney sued Abbott and related pharma companies under California's Unfair Competition Law (UCL), alleging reverse‑payment agreements delayed generic Niaspan and caused higher statewide payments by consumers and public entities.
- Complaint sought injunctions, restitution, and civil penalties (including enhanced penalties for seniors/disabled); alleged some violations occurred in Orange County (venue proper).
- Abbott moved to strike references to "California," arguing a district attorney may not seek restitution or civil penalties for violations occurring outside the county.
- The trial court denied the motion to strike; the Court of Appeal issued writ relief directing the trial court to grant Abbott’s motion and strike statewide monetary allegations.
- The Supreme Court granted review limited to whether a district attorney may seek restitution and civil penalties under the UCL for conduct occurring outside the county; it reversed the Court of Appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Geographic scope of a district attorney's UCL authority: can DA seek restitution and civil penalties for violations outside the county? | DA may seek statewide injunctive and monetary relief under the UCL; statute's text/history support broad authority. | DA authority is territorially limited; civil penalties/restitution must be confined to county borders. | DA may, in a properly pleaded case, seek restitution and civil penalties for violations occurring both inside and outside the county. |
| Is Attorney General consent required before a DA pursues statewide UCL monetary relief? | No statutory consent requirement; AG has supervisory power but consent not prerequisite. | DA should obtain AG consent to bind state interests and avoid conflicts. | UCL contains no requirement that a DA obtain AG consent before bringing statewide monetary claims. |
| Do constitutional provisions (AG as chief law officer / supervisory role) bar DAs from seeking statewide relief? | Constitution allows Legislature to authorize overlapping enforcement; AG retains supervisory and takeover powers. | The hierarchical prosecutorial structure and AG's duty to ensure uniform enforcement preclude decentralized statewide authority. | Constitutional text does not preclude the Legislature from authorizing DAs to seek statewide relief; AG can intervene or take over if public interest requires. |
| Procedural relief by striking statewide references at pleading stage — was the Court of Appeal correct to direct striking? | Denial of strike was not an abuse; limiting discovery/relief at pleading stage was premature and AG involvement possible. | Strike was appropriate to focus case and limit exposure. | Supreme Court reversed the Court of Appeal’s writ relief; DAs may plead statewide claims and the Court of Appeal erred in directing the strike. |
Key Cases Cited
- Safer v. Superior Court, 15 Cal.3d 230 (1975) (district attorney lacks authority to intervene in private civil litigation absent statutory authorization)
- People v. McKale, 25 Cal.3d 626 (1979) (UCL statutory provisions authorize district attorneys to bring civil UCL actions)
- Pitts v. County of Kern, 17 Cal.4th 340 (1998) (district attorney’s criminal prosecution authority is territorially limited)
- People v. Superior Court (Olson), 96 Cal.App.3d 181 (1979) (framework for counting violations and penalties across multi‑county advertising)
- People v. Superior Court (Humberto S.), 43 Cal.4th 737 (2008) (district attorney has no plenary civil power absent statutory authorization)
- Hy‑Lond Enterprises, Inc. v. Superior Court, 93 Cal.App.3d 734 (1979) (district attorney cannot, via settlement, extinguish powers of AG or other public agencies)
- Cel‑Tech Communications, Inc. v. Los Angeles Cellular Telephone Co., 20 Cal.4th 163 (1999) (UCL’s scope is broad and borrows violations from other laws)
- In re Tobacco II Cases, 46 Cal.4th 298 (2009) (injunctive relief under UCL serves to prevent future harm and may be statewide)
