204 Cal. App. 4th 1403
Cal. Ct. App.2012Background
- Thornton was Board chair and later became an ALJ for the Board; the Board approved the ALJ hire over Thornton’s input; an Auditor’s report flagged the hiring as potentially conflicting with state conflict laws; referrals were made to the DA and Attorney General; Thornton incurred attorney fees and expenses in responding to investigations; she sought reimbursement under Gov. Code 996.4 and Lab. Code 2802, which the trial court denied after a demurrer.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether investigations fall within civil action or proceeding for reimbursement. | Thornton argues investigations are civil proceedings. | Board contends only formal civil actions/proceedings trigger reimbursement. | No; investigations do not qualify as civil actions or proceedings. |
| Whether Government Code sections 995/996.4 apply to public employees in prelitigation investigations. | Thornton contends the statutes cover investigations. | Board argues only litigation triggers defense/reimbursement. | No; those sections apply to defense/reimbursement only in civil proceedings. |
| Whether Labor Code 2802 provides reimbursement for investigation costs. | Thornton argues 2802 covers defense costs in investigations. | Board: 2802 applies mainly to third-party suits; not to public employees facing investigations by authorities. | No; 2802 does not govern here, and Gov. Code 996.4 controls. |
Key Cases Cited
- Douglas v. Los Angeles Herald-Examiner, 50 Cal.App.3d 449 (Cal. Ct. App. 1975) (indemnity for third-party suits under Lab. Code 2802; not applicable to public entities)
- Los Angeles Police Protective League v. City of Los Angeles, 27 Cal.App.4th 168 (Cal. Ct. App. 1994) (specific Gov. Code defense provisions control over Lab. Code 2802 for public employees)
- Cassady v. Morgan, Lewis & Bockius LLP, 145 Cal.App.4th 220 (Cal. Ct. App. 2006) ( Lab. Code 2802 indemnity when third-party suit; not applicable to public agency defense)
- Yartz (People v. Yartz), 37 Cal.4th 529 (Cal. 2005) (defines civil action; context for Gov. Code term 'civil action or proceeding')
- Greenfield v. Superior Court, 106 Cal.App.4th 748 (Cal. Ct. App. 2003) (concepts of civil proceedings and related terms)
- Los Angeles Police Protective League v. City of Los Angeles, 27 Cal.App.4th 168 (Cal. Ct. App. 1994) (Gov. Claims Act interpreted as exclusive for defense of public employees)