Opinion
The judgment on appeal arises from two actions brought by tenants in a residential hotel against a landlord who engaged in a disrup
The consolidated cases went to trial on May 9, 1988. After 20 days of testimony, the jury was instructed on a wide range of theories of liability presented by the pleadings and the evidence, including viоlation of section 37.9 of the San Francisco Administrative Code. The jury returned a general verdict awarding damages to 23 plaintiffs in the total sum of $1,481,690. In answers to special interrogatories, the jury also found repeated violations of Civil Code section 789.3, subjecting appellants to additional statutory penalties, and stated that its general verdict rested in part on findings of liability for breach of the covenant of quiet enjoyment, breach of the implied warranty of habitability, negligent infliction of severe emotional distress, and intentional infliction of emotional distress.
In a judgment filed on June 21, 1988, the trial court trebled the damages in the general verdict under San Francisco Administrative Code section 37.9, subdivision (f), and awarded the plaintiffs statutory damages under Civil Code section 789.3. The judgment was later amended to include a further award of $261,000 in attorney’s fees, bringing the total amount of the judgment to $4,842,470.
After the trial court denied their motion for new trial and for judgment notwithstanding the verdict, appellants filed a timely notice of appeal. They subsequently reached a settlement with all except one of the prevailing plaintiffs, Stephen Bartula (hereafter Bartula). Bartula received a judgment of $136,000, consisting of actual damages of $43,250, trebled to the sum of $129,750, plus statutory damages of $6,250 under Civil Code section 789.3.
Other assignments of error, which attack the trebling of the damage award, present a threshold question of statutory interpretation. As we have
San Francisco Administrative Code section 37.9, subdivision (f), authorizes a tenant to recover “actual damages” from a landlord for an eviction or attempted eviction in violation of the ordinance. The trial court construed the term to include damages for mental anguish. This interpretation is indeed consistent with accepted legal usage.
The phrase “actual damages” is ordinarily synonymous with compensatory damages which may include damages for mental suffering. Analyzing a jury instruction on damages,
Merlo
v.
Standard Life & Acc. Ins. Co.
(1976)
Relying on this legal usage of the term “actual damages,” another division of this court has recently upheld the trebling of an award for mental suffering under section 37.9 of the San Francisco Administrative Code.
(Beeman
v.
Burling
(1990)
We note first that the adjective “actual” in the phrase “actual damages” is superfluous unless it has some restrictive meaning; the modifier is not needed to distinguish the damages recoverable under San Francisco Administrative Code section 37.9, subdivision (f) from some other category of damages such as punitive, nominal, liquidated, or statutory damages. Secondly, as used in three other parts of the rent control ordinance, the adjective “actual” does not refer to any legal concept but appears intended merely to attach a more restrictive meaning to the modified noun. Section 37.4, subdivision (h) provides that a member of the Residential Rent Stabilization and Arbitration Board “may receive reimbursement for actual expenses incurred in the course and scope of the member’s duties.” Section 37.9, subdivision (a)(l 1) provides that a landlord who temporarily removes a unit from housing used to carry out improvements “shall pay the tenant actual costs up to $1,000 for moving and relocation expenses . . . .” Section 37.9A, subdivision (e)(1) dealing with tenant rights in certain displacements provides that the “owner shall be liable to any tenant or lessee who was displaced from the property for actual damages which were the proximate result of that displacement, . . .”
An interpretation of “actual damages” as referring narrowly to out-of-pocket expenses is most сonsistent with the legislative purpose underlying the treble damage provision of the section. As explained in
Kelly
v.
Yee
(1989)
This legislative purpose has a much clearer application to damages based on a tenant’s economic losses than to those based on mental suffering. As the present case illustrates, damages for mental anguish may well provide sufficient economic incentive to bring suit without any trebling. The assessment of damages for mental suffering, of course, involves considerable variability, but only verdicts at the lower end of the spectrum are likely to be so modest as to call for trebling in order to compensate the plaintiff for the expense of bringing suit.
In light of the ambiguity of the phrase, we think that the decisive considerations in construing the term “actual damages” in section 37.9 relate to constitutional issues. It is well established “ ‘that a court, when faced with an ambiguous statute that raises serious constitutional questions, should endeavor to construe the statute in a manner which
avoids
any doubt concerning its validity.’ ”
(Young
v.
Haines
(1986)
Although treble damage awards are not generally vulnerable to constitutional attack, the trial court’s interpretation of San Francisco Administrative Code section 37.9 departs from the general pattern of treble damage statutes. Very few treble damage statutes offer the possibility of recovering treble damages for mental anguish.
2
Moreover, the mandatory trebling of damages, as section 37.9 requires under our decision in
Kelly
v.
Yee, supra,
If we were to approve the trial court’s construction of section 37.9 as providing for the mandatory trebling of damages for mental suffering, the statute would give rise to seriоus issues of substantive due process under
Hale
v.
Morgan
(1978)
The California Supreme Court held that, as applied to the defendant, section 789.3 resulted in “the assessment of arbitrary, excessive and unreasonable penalties” exceeding the constitutional limits imposed by due process. (
The
Hale
court observed at pagе 401 that the potentially “harsh impact, approaching confiscation” of section 789.3 was “wholly inconsistent with
In view of these considerations, the Supreme Court held that “section 789.3 may, under circumstancеs such as those herein presented, produce constitutionally excessive penalties.” The court could not “conclude, however, that all applications of section 789.3’s penalty formula would be unconstitutional.” (
In
Kinney
v.
Vaccari
(1980)
Although the ordinance under review here merely permits the trebling of damages—a limitation that the
Hale
court considered a saving feature of similar statutes—it nonetheless presents some of the constitutional defects elucidated in the
Hale
and
Kinney
decisions. We will consider (1) the potential for arbitrariness inherent in trebling a large award of damages based on mental suffering, (2) the disproportion between the size of the
A principal vice of the statute invalidated in Hale lay in the potential of imposing arbitary sanctions by multiplying penalties by a nondiscretionary mathematical factor, i.e., the days of violation. The trebling of damages also involves application of a mathematical multiplier, but such a small multiplier will ordinarily produce easily calculable results, obviously contemplated by the Legislature, that lie well within the side of constitutionality. The problem here lies only in the trebling of damаges for mental suffering. The multiplication of such damages may serve to magnify—by a factor of three—the uncertainties already present in the determination of the damages. 3
The appropriate compensation for mental anguish cannot be determined by any objective standard capable of consistent and predictable application. “In a very real sense, the jury is asked to evaluate in terms of money a detriment for which monetary compensation cannot be ascertained with any demonstrable accuracy. As one writer on the subject has said, ‘Translating pain and anguish into dollars can, at best, be only an arbitrary allowance, and not a process of measurement, and consequently the judge can, in his instructions, give the jury no standard to go by; he can only tell them to allow such amount as in their discretion they may consider reasonable ....’”
(Beagle
v.
Vasold
(1966)
The variability inherent in determining the proper amount of an award for mental anguish is not a valid argument for refusing to award the damages. “[T]he detriment, nevertheless, is a genuine one that requirеs compensation . . . .”
(Capelouto
v.
Kaiser Foundation Hospitals
(1972)
More fundamentally, the trebling of damages for mental suffering must be evaluated in light of the legislative purpose of San Francisco Administrative Code section 37.9. The Hale court’s examination of comparable statutes reflects its effort to evaluate the relationship of the statutory penalties to a proper legislative goal. Treble damage statutes fall into two categories. The trebling of damages often serves to deter antisocial conduct; in other cases, involving claims that are ordinarily small in amount, the trebling is intended simply to provide sufficient economic incentive for aggrieved persons to bring suit. (E.g., Civ. Code, §§ 1716, 1710.1, and 1739.4; Bus. & Prof. Code, §§ 10146 and 18451; Lab. Code, § 1697.1.)
As we have noted, the legislative purpose of San Francisco Administrative Code section 37.9 falls into the latter category.
4
The question is, then, whether the trebling of damages for mental anguish serves an end that is “reasonably related” to the “legitimate governmental purpose” of providing aggrieved tenants sufficient economic incentive to contest violations of the rent control ordinance.
(Wilke & Holzheiser, Inc.
v.
Dept. of Alcoholic Bev. Control
(1966)
The decision in
Kinney
v.
Vaccari, supra,
Again, the present case illustrates that the trebling of damages for mental anguish may produce awards in excess of these constitutional limitations. The judgment here was much larger than would be permitted by the remedy of punitive damages, which will seldom exceed 10 percent of the defendant’s net worth.
(Devlin
v.
Kearny Mesa AMC/Jeep/Renault, Inc.
(1984)
In summary, the mandatory trebling of damages for mental suffering may under unusual circumstances, such as those of the present case, “produce constitutionally excessive penalties.” The present case represents, of course, an extreme result in applying an anomalous and awkwardly drafted ordinance. Under
Hale,
the issue of constitutionality must be decided on a case-by-case basis; an award may be invalidated only if it “ ‘clearly, positively, and unmistakably’ ” reveals constitutional defects. (
We are reluctant to depart from a recent decision of another division of this court, but we note that, in dismissing a plainly meritless procedural objection, the court in
Beeman
v.
Burling, supra,
The judgment is reversed, and the case remanded to the trial court for proceedings consistent with the view herein expressed. Costs to appellants.
Racanelli, P. J., and Stein, J., concurred.
Respondents’ рetition for review by the Supreme Court was denied March 28, 1991. Mosk, J., Broussard, J., and Kennard, J., were of the opinion that the petition should be granted.
Notes
See footnote, ante, page 686.
In pertinent part, the decision states: “He [appellant] asserts that because respondent did not include damages for mental anguish among the ‘actual and special damages’ listed in paragraph 19 of his complaint the $20,000 awarded for pain and suffering ought to have been excluded from the sum trebled under section 37.9(0 °f the Rent Ordinance, because that section provides for the trebling оf‘actual damages.’ This argument is meritless. []|] First, ‘actual damages consist of both general and special damages.’ (Black’s Law Dict. (5th ed. 1979).)9 Thus, under the express language of the Rent Ordinance both general and special damages may be trebled.” In footnote 9 the court quoted again from Black’s Law Dictionary: “Actual
The recovery of damages for mental or emotional injury is either inherently unlikely in view of the nature of the subject matter (e.g., Civ. Code, § 1812.123 [contracts for discount buying services]; Code Civ. Proc., § 733 [trespass on trees or timber]; Lab. Code, § 1697.1 [misrepresentation as to necessity of fee for transportation to farm worksite]) or is expressly precluded by the definition of recoverable damages. (E.g., Civ. Code, §§ 1716 and 1710.1; Gov. Code, § 6109; Bus. & Prof. Code, §§ 14438 and 18451.)
The due process problem bears some analogy to
McHugh
v.
Santa Monica Rent Control Bd.
(1989)
Violations of the rent control ordinance do not always involve reprehensible conduct; they may have a technical character, or, as in
Kelly
v.
Yee, supra,
It is not clear to what extent the damage award in the
Marshall
decision was based on mental suffering, but, unlike the present case, the decision concerned a treble damage statute (Lab. Code, § 1054) reflecting a legislative purpose of deterring a form of inherently wrongful conduct—the misrepresentation by an employer of a former employee’s employment rec
See footnote, ante, page 686.
