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Prescott v. Rady Children's Hospital-San Diego
265 F. Supp. 3d 1090
S.D. Cal.
2017
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Background

  • Plaintiff Katharine Prescott sued Rady Children’s Hospital, San Diego (RCHSD) on behalf of her deceased child, Kyler Prescott, alleging discrimination and mistreatment while Kyler was a psychiatric inpatient at RCHSD in April 2015.
  • Kyler was a transgender boy who had socially transitioned and been receiving gender‑affirming care; RCHSD staff allegedly repeatedly referred to him with female pronouns despite being informed of his male identity.
  • During a 5150 psychiatric hold at RCHSD’s CAPS unit, misgendering by staff allegedly increased Kyler’s distress; his mother reported staff blocked her calls and staff conduct contributed to his early discharge.
  • Kyler died by suicide about six weeks after discharge; Prescott asserts causes of action under ACA §1557, the Unruh Act, Cal. Gov. Code §11135, the UCL, and California’s False Advertising Law (FAL), seeking damages and equitable relief.
  • RCHSD moved to dismiss and to stay pending challenges to HHS regulations; the court addressed statutory interpretation, standing for various remedies, survival of emotional‑distress damages, and whether a stay was warranted.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does ACA §1557 prohibit discrimination against transgender persons for the conduct alleged (pre‑2016)? §1557’s text incorporates sex‑discrimination law and covers gender identity discrimination; claim rests on statute not HHS regulation. Transgender protections derived from HHS regulation effective in 2016 and cannot be applied retroactively. Court holds §1557 (as interpreted via Title IX/Title VII principles) covers gender‑identity discrimination here; claim survives without relying on the 2016 HHS regulation.
Standing for injunctive and declaratory relief under §1557 Seeks prospective relief to stop discriminatory care. No likelihood of future harm; lack of redressability for decedent’s injuries. Court dismisses plaintiff’s request for injunctive and declaratory relief under §1557 for lack of standing.
Can plaintiff recover non‑economic (pain and suffering) damages for decedent under §1557? Federal common law governs and permits emotional‑distress damages. California survival statute bars pre‑death emotional‑distress damages. Court applies federal common law and permits emotional‑distress damages under §1557.
Standing to bring Unruh Act claim on behalf of decedent As Kyler’s personal representative under Cal. survivorship statutes, Prescott can sue on his behalf. Reliance on non‑applicable organizational‑standing authorities; challenges representative posture. Court allows Unruh claim to proceed; Prescott may sue as Kyler’s personal representative.
Claim under Cal. Gov. Code §11135 (state funding anti‑discrimination) — available remedies Seeks relief for sex and disability discrimination under §11135. Remedies under §11135 are limited to equitable relief; plaintiff lacks standing for equitable relief (no likely future harm). Court dismisses §11135 claim for lack of standing to pursue equitable remedies; leave to amend narrowly allowed.
UCL and FAL claims — standing and reliance Alleges misrepresentations on RCHSD website about transgender care; Prescott incurred economic harms and relied on statements. Argues no commercial speech, lack of reliance, and web statements not tied to CAPS unit. Court permits UCL claim (fraudulent prong as to plaintiff individually and unlawful/unfair prongs for decedent); permits FAL claim for plaintiff but dismisses FAL as to Kyler for failure to allege reliance.
Motion to stay pending challenges to HHS regulation and Supreme Court guidance N/A (defendant seeks stay until higher‑court resolution). Sought stay pending Gloucester Ct y. and Franciscan Alliance injunctions. Court denies stay: Gloucester remanded; this case does not depend on the HHS regulation’s constitutionality.

Key Cases Cited

  • Schwenk v. Hartford, 204 F.3d 1187 (9th Cir.) (Title VII sex discrimination analysis includes gender/nonconformity)
  • Price Waterhouse v. Hopkins, 490 U.S. 228 (Sup. Ct.) (sex stereotyping is actionable sex discrimination)
  • Franklin v. Gwinnett Cnty. Pub. Sch., 503 U.S. 60 (Sup. Ct.) (Title IX remedies discussion)
  • Whitaker v. Kenosha Unified Sch. Dist. No. 1, 858 F.3d 1034 (7th Cir.) (gender‑identity discrimination actionable under Title IX framework)
  • Glenn v. Brumby, 663 F.3d 1312 (11th Cir.) (discrimination against transgender persons is sex discrimination)
  • Leyva v. Certified Grocers, 593 F.2d 857 (9th Cir.) (stay of proceedings pending resolution of related actions)
  • Landis v. North American Co., 299 U.S. 248 (Sup. Ct.) (moving party’s burden to show hardship for stay)
  • Lyons v. City of Los Angeles, 461 U.S. 95 (Sup. Ct.) (injunctive‑relief standing requires likelihood of future harm)
  • Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (Sup. Ct.) (plausibility pleading standard)
  • Ashcroft v. Iqbal, 556 U.S. 662 (Sup. Ct.) (pleading standard and inference of misconduct)
Read the full case

Case Details

Case Name: Prescott v. Rady Children's Hospital-San Diego
Court Name: District Court, S.D. California
Date Published: Sep 27, 2017
Citation: 265 F. Supp. 3d 1090
Docket Number: Case No.: 16-cv-02408-BTM-JMA
Court Abbreviation: S.D. Cal.