California Attorneys, Administrative Law Judges, & Hearing Officers in State Employment v. Brown
195 Cal. App. 4th 119
| Cal. Ct. App. | 2011Background
- Governor issued Executive Order No. S-16-08 directing a two-day monthly furlough for represented state employees; State Fund employees were included after the Director indicated application to CASE and others.
- CASE filed a petition for writ of mandate prohibiting furloughs of State Fund employees on the ground that Ins. Code § 11873 prohibits it.
- Trial court granted the writ; Governor and Director appealed; trial court later denied a stay and upheld the writ.
- Supreme Court's decision in Professional Engineers guided reconsideration, but appellate court reaffirmed the judgment against furloughs of State Fund personnel.
- State Fund is a quasi-governmental, self-funded entity with a board of directors; State Fund exemptions are governed by Ins. Code § 11873, particularly subdivision (c).
- Interpretation of § 11873(c) controls whether Governor may authorize furloughs for State Fund employees and whether the Governor can override State Fund’s board.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §11873(c) exempts State Fund staff from furloughs by the Governor | CASE: §11873(c) prohibits furloughs for State Fund employees | Governor/Director: exemption not intended to bar furloughs | Governor lacks authority; writ affirmed. |
| Whether exclusive concurrent jurisdiction and stay apply to this action | CASE argues need for stay; exclusive jurisdiction concerns | StateFund/Controller: stay inappropriate | Trial court acted within discretion; stay denial affirmed. |
| Whether the court properly interpreted §11873(c) in light of legislative history | CASE: specific exemption authorizes protection of State Fund staffing | Governor/Director: broader reading possible | Statutory language and scheme support trial court’s interpretation; Governor barred. |
Key Cases Cited
- P. W. Stephens, Inc. v. State Compensation Ins. Fund, 21 Cal.App.4th 1833 (Cal. Ct. App. 1994) (State Fund as self-operating, unique; board controls administration)
- Stone Street Capital, LLC v. California State Lottery Com., 165 Cal.App.4th 109 (Cal. Ct. App. 2008) (Specific provision controls over general conflicting provisions)
- Tricor California, Inc. v. State Compensation Ins. Fund, 30 Cal.App.4th 230 (Cal. Ct. App. 1994) (State Fund structure; quasi-governmental status)
- Gordon’s Cabinet Shop v. State Comp. Ins. Fund, 74 Cal.App.4th 33 (Cal. Ct. App. 1999) (Statutory scheme; State Fund profits and liabilities)
- Professional Engineers in California Government v. Schwarzenegger, 50 Cal.4th 989 (Cal. 2010) (Supreme Court guidance on furlough authority and funding)
- Tirapelle v. Davis, 20 Cal.App.4th 1317 (Cal. Ct. App. 1993) (Director’s role in personnel with respect to bargaining)