ASHLEIGH CAVEY v. POLICARPIO TACAS TUALLA, JR., et al.
No. F080153
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA, FIFTH APPELLATE DISTRICT
Filed 9/24/21
CERTIFIED FOR PUBLICATION; Super. Ct. No. 18CECG01104
APPEAL from a judgment of the Superior Court of Fresno County. Kimberly A. Gaab, Judge.
Berglund & Johnson Law Group and Stephen M. Johnson for Plaintiff and Appellant.
Weakly & Arendt, James D. Weakley and Ashley N. Reyes for Defendants and Respondents.
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District‘s theory of untimeliness is based on its July 19, 2017 notice rejecting a claim presented without plaintiff‘s authorization by a chiropractic firm that was treating her injuries. District contends the rejection notice started the statute of limitations and, as a result, the six-month period expired on January 19, 2018—well before plaintiff filed her complaint in April 2018. Plaintiff alleges the claim submitted by the chiropractic firm was not authorized by her and, based on that allegation, argues the claim was not presented “by a person acting on her behalf” for purposes of
FACTS
On May 8, 2017, plaintiff was a passenger in a vehicle hit by a truck driven by Policarpio Tacas Tualla, Jr. and registered to District (collectively, defendants). The collision occurred near the corner of Buttonwillow and Parlier Avenues in Fresno County. Plaintiff alleges Tualla fell asleep while driving, which caused the collision and her injuries.3
Plaintiff notes that Graham‘s complaint alleged (1) the vehicle driven by Tualla was a 2007 GMC 2500 truck owned by District; (2) the California Highway Patrol‘s traffic collision report indicated Tualla has a medical condition of continued epilepsy and takes medication for it; (3) District was aware of Tualla‘s medical condition and the likelihood of injury to others it presents; (4) Tualla has been involved in at least three motor vehicle accidents while working for District; and (5) in July 2016, Tualla was charged with hit and run in Fresno County Superior Court criminal case No. M16924192.
The First Claim
After the traffic accident, plaintiff received treatment for some of her injuries from Lark Chiropractic, which had her sign several forms. Those forms included a one-page document labeled “CLAIM FOR DAMAGES” with the date “06/01/17” written to the right of plaintiff‘s signature. The claim stated plaintiff‘s injuries occurred on Monday, May 8, 2017, at 12:30 p.m.; identified the accident location; stated plaintiff was a passenger in a car hit by a work truck driven by Tualla; asserted the collision occurred because Tualla fell asleep; identified the California Highway Patrol report number for the accident; and listed plaintiff‘s injuries as “concussion, bruised shoulder,
Plaintiff‘s June 2018 declaration explained her signature on the claim form by stating: “I signed several documents given to me by [Lark Chiropractic], some of which were similar to lien forms. I understood that I had to sign those forms in order to receive medical treatment. I did not know I signed a government claim form. I did not know or understand at the time that it was necessary for a claim to be [presented to] a government entity in connection with my accident.”
On June 5, 2017, Lark Chiropractic sent the claim signed by plaintiff to District by facsimile transmission (fax).4 The only address set forth in that claim was plaintiff‘s post office box in Frazier Park. Plaintiff‘s declaration states she “did not know that Lark Chiropractic had [presented] a government claim form on [her] behalf.”
On June 13, 2017, plaintiff retained the law firm of Berglund & Johnson to pursue her personal injury claim against defendants. Plaintiff‘s declaration states she did not tell Berglund & Johnson “that I had signed a government claim form or that one had apparently been [presented] for me by Lark Chiropractic as I was unaware of it being done.” About a week after being retained, Berglund & Johnson provided a copy of plaintiff‘s designation of them as her attorneys to Melissa Reynolds, an adjuster at Schools Insurance Authority. The designation informed Reynolds that the firm was representing plaintiff.
Notice of Rejection of Claim
On July 19, 2017, Reynolds signed a notice of rejection of claim on behalf of Schools Insurance Authority and mailed it to Berglund & Johnson at the firm‘s address in Woodland Hills. The rejection notice was not sent to the post office box listed in the claim presented by Lark Chiropractic. The notice of rejection included a line immediately below the Berglund & Johnson‘s address stating: “RE: Ashleigh Cavey.” The body of the notice stated that “NOTICE IS HEREBY GIVEN that the claim which your client presented to District dated June 1, 2017 and received on June 5, 2017 was rejected by operation of law on July 19, 2017” and included the statutorily required
The rejection notice did not attach a copy of the claim presented by Lark Chiropractic. As a result, the rejection notice did not provide Berglund & Johnson with details about the contents of the rejected claim, such as the factual basis for the claim, the damages sought, or who submitted it. The law firm‘s initial reaction to the notice of rejection is described in Johnson‘s declaration: “At the time, [Plaintiff‘s] counsel was (still) unaware of the claim submitted by Lark Chiropractic on the Plaintiff‘s behalf, and assumed that the rejection letter related to claims of other claimants involved in the same accident.”
The Second Claim
On September 18, 2017, Berglund & Johnson completed a “CLAIM FOR DAMAGES” form. The claim stated the time, date and location of the collision; asserted Tualla caused the collision when he fell asleep while driving; identified Graham, Cerpa and Ayon as witnesses; listed plaintiff‘s injuries as “head, neck, left shoulder, left chest [and] mouth“; set forth the California Highway Patrol report number for the accident; and stated the total amount claimed was $250,000. Thus, the law firm‘s claim provided District with more information than the claim previously presented by Lark Chiropractic because it listed witnesses, stated the total amount claimed, and included plaintiff‘s left chest and mouth among her injuries. Daniel Johnson, in his capacity as plaintiff‘s attorney, signed the claim and entered his firm‘s address in Woodland Hills.
On September 20, 2017, Berglund & Johnson mailed one copy of the claim to District and another copy to Jason Flores, District‘s director of transportation. The cover letter for the claim sent to Flores stated: “Our office represents Ashleigh Cavey for her injuries received in an accident on May 8, 2017 involving a vehicle registered to Kings Canyon Unified School District. [\P] Enclosed is Claim for Damages on behalf of Ashleigh Cavey. This Claim was also sent to Kings Canyon Unified School District at 1801 10th Street, Reedley, CA 93654. Please advise if there is another location to file this Claim.” The letters were sent by certified mail. The return receipt for the letter sent to the District shows it was delivered on September 22, 2017. The return receipt for the letter sent to Flores shows it was delivered on October 2, 2017 and stamped “RECEIVED” on October 4, 2017. Thus, both claims mailed by Berglund & Johnson were received by District less than 150 days after the accident—well within the six-month period for timely presenting a claim. (
PROCEEDINGS
On April 2, 2018, Berglund & Johnson filed a complaint for damages on behalf of plaintiff. The complaint named Tualla and District as defendants and alleged a single cause of action for negligent operation of a motor vehicle.
The complaint was filed less than five months after the November 2017 deemed rejection date of the claim presented by Berglund & Johnson and approximately 11 months after the date of the traffic accident. Thus, in the absence of the claim presented by Lark Chiropractic, it is undisputed that (1) the claim presented by Berglund & Johnson was timely presented within six months of the accrual of the negligence claim on the date of the collision and (2) the lawsuit was filed within six months of the deemed rejection of the claim.
On April 18, 2018, Berglund & Johnson e-mailed a courtesy copy of the summons and complaint to Reynolds, the adjuster at Schools Insurance Authority, and asked her to confirm receipt. Six minutes later, Reynolds replied in an e-mail stating: “The Notice of Rejection of Claim was mailed to your office on July 19, 2017; the statute ran on January 19, 2018. It doesn‘t appear that this suit was filed prior to January 19, 2018.”
In July 2018, plaintiff filed a petition for order permitting a late claim against District (
In October 2018, defendants filed a demurrer to the complaint on the ground that plaintiff‘s cause of action was barred by the six-month statute of
In April 2019, plaintiff filed a first amended complaint, which is the operative pleading in this appeal. The first amended complaint included allegations about the claim presented by Lark Chiropractic without authorization from plaintiff, District‘s rejection of the unauthorized claim, the claim subsequently presented by Berglund & Johnson with plaintiff‘s authorization, and District‘s rejection of the authorized claim by the passage of time without a response. Paragraph eight of that pleading alleged Lark Chiropractic “filed a Claim for Damages on Plaintiff‘s behalf, without her understanding, knowledge or permission inasmuch as Plaintiff thought she was signing medical lien forms.” Paragraph 16 alleged Berglund & Johnson “are, and have been, the only persons authorized or given permission by the Plaintiff to file a government claim on her behalf.”6
Defendants filed another demurrer, again contending the lawsuit was time-barred by the six-month statute of limitations. After an opposition and reply were filed, the trial court issued a tentative ruling to sustain the demurrer without leave to amend.
In July 2019, the trial court heard argument on the demurrer, filed a minute order adopting its tentative ruling, and entered a judgment of dismissal. Plaintiff appealed.
DISCUSSION
I. BASIC LEGAL PRINCIPLES
A. Demurrers and Standard of Review
Under
In
Generally, an order sustaining a demurrer on statute of limitations grounds is subject to de novo review on appeal. (Committee for Green Foothills v. Santa Clara County Bd. of Supervisors (2010) 48 Cal.4th 32, 42.) The untimeliness of the lawsuit must clearly and affirmatively appear on the face of the complaint and matters judicially noticed before an appellate court will affirm an order sustaining the demurrer. (Committee for Green Foothills, supra, at p. 42.) Under this standard, allegations in the complaint or judicially noticed materials showing the claim might be barred are not enough. (Marshall v. Gibson, Dunn & Crutcher (1995) 37 Cal.App.4th 1397, 1403.)
The allegations in a complaint must be given a liberal, but reasonable, construction. (
B. Government Claims Act
The Government Claims Act was enacted in 1963 to provide a comprehensive statutory scheme governing the liabilities and immunities of public entities and public employees for torts. (Quigley v. Garden Valley Fire Protection Dist. (2019) 7 Cal.5th 798, 803 (Quigley).) The Legislature relied on a series of recommendations from the California Law Revision Commission when it adopted the Government Claims Act. (Ibid.; see, e.g., Recommendation Relating to Sovereign Immunity, No. 1—Tort Liability of Public Entities and Public Employees (Jan. 1963) 4 Cal. Law Revision Com. Rep. (1963) pp. 801-886 (1963 Recommendation No. 1).) As a result of this reliance, the Law
The foregoing rule of liability reflects the Law Revision Commission‘s determination it would be harsh and unjust to deny compensation to all persons injured by the wrongful or negligent acts of public employees. The Law Revision Commission stated:
“Government operates for the benefit of all; hence, it is reasonable to expect that all should bear some of the burden of the injuries that are wrongfully inflicted by the government. The basic problem is to determine how far it is desirable to permit the loss distributing function of tort law to apply to public entities without unduly frustrating or interfering with the desirable purposes for which such entities exist.” (1963 Recommendation No. 1, supra, p. 810.)
To address this basic problem, the Law Revision Commission considered “how the interest of the public in effective governmental administration should be balanced against the need for providing compensation to those injured by the activities of government” in various areas of potential liability, including the operation of motor vehicles. (1963 Recommendation No.1, supra, p. 811.) To summarize, the balance struck by the Law Revision Commission and by the Legislature in enacting
The liability imposed on local public entities and their employees by the Government Claims Act is subject to the condition that “all claims for money or damages against local public entities” be “presented in accordance with Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910).” (
When a personal injury is involved, the written claim for damages must be presented to the public entity “not later than six months after the accrual of the cause of action.” (
“(a) The name and post office address of the claimant. [\P] (b) The post office address to which the person presenting the claim desires notices to be sent. [\P] (c) The date, place and other circumstances of the occurrence or transaction which gave rise to the claim asserted. [\P] (d) A general description of the ... injury, damage or loss incurred so far as it may be known at the time of presentation of the claim. [\P] (e) The name or names of the public employee or employees causing the injury, damage, or loss, if known. [\P] (f) The amount claimed if it totals less than ten thousand dollars ($10,000) as of the date of presentation of the claim, including the estimated amount of any prospective injury, damage, or loss, insofar as it may be known at the time of presentation of the claim, together with the basis of computation of the amount claimed. If the amount claimed exceeds ten thousand dollars ($10,000), no dollar amount shall be included in the claim. However, it shall indicate whether the claim would be a limited civil case.” (
§ 910 .)
The presentation of a written claim to the public entity serves at least three purposes. First, it provides the public entity with sufficient information to enable it to perform an adequate investigation of the claim and, if appropriate, settle it without the expense of litigation. (Stockett v. Association of Cal. Water Agencies Joint Powers Ins. Authority (2004) 34 Cal.4th 441, 446; see Recommendation Relating to Sovereign Immunity, No. 2—Claims, Actions and Judgments Against Public Entities and Public Employees (Jan. 1963) 4 Cal. Law Revision Com. Rep. (1963) p. 1008 [objectives of claim presentation procedure] (1963 Recommendation No. 2).) Second, the written claim informs the public entity of potential liability so it can better prepare for the upcoming fiscal year. (Munoz v. State of California (1995) 33 Cal.App.4th 1767, 1776.) Third, in certain situations, the claim provides the public entity an opportunity to address a dangerous condition or practice and avoid
2. Public Entity‘s Consideration of Claims
The Government Claims Act also defines the local public entity‘s responsibilities once it receives a written claim for money or damages. The governing board of the local public entity may act on a claim by rejecting it, allowing it, or compromising it. (
Regardless of whether the public entity acts or chooses not to act on a claim, the Government Claims Act requires written notice to the claimant or the claimant‘s representative.
3. Timeliness of a Lawsuit
Questions about the timeliness of a lawsuit against a public entity for money or damages can arise because the suit was filed too early or too late. A lawsuit is too early if it is filed before a written claim has been presented to and rejected by the public entity. (
Plaintiff‘s arguments of reversible error are based on two different limitations periods. First,
II. THE CLAIM PRESENTED BY LARK CHIROPRACTIC
The parties dispute the consequences that flow from Lark Chiropractic‘s presentation of a claim and District‘s subsequent rejection of that claim. This dispute raises several issues, including questions of statutory interpretation not explicitly resolved in a published opinion.
A. Overview
1. Statutory Text
Our analysis begins with the statutory text addressing the presentation of a claim to a public entity.
Here, it is undisputed that the claim presented by Lark Chiropractic was signed by plaintiff. Consequently, that claim satisfied the signature requirement in
The Government Claims Act does not define what it means for a third person to act on the claimant‘s behalf. Also, it does not specify the legal
2. Other Sources
Those other sources include the Law Revision Commission‘s reports because they are entitled to substantial weight in construing the Government Claims Act. (Farmers, supra, 11 Cal.4th at p. 1003, fn. 6.) We, like the parties, located no discussion in those reports of
Another source is “the leading treatise on the Government Claims Act.” (J.M. v. Huntington Beach Union High School Dist. (2017) 2 Cal.5th 648, 655.) The treatise acknowledges that
“Because [sections] 910 and 910.2 do not expressly limit third party signatories to those the claimant preauthorized to sign the claim, this can lead to attorneys and other third parties signing claims on behalf of the claimant without the claimant‘s permission.” (1 Van Alstyne et al., Cal. Government Tort Liability Practice (Cont.Ed.Bar 4th ed. 2020) § 6.7, p. 6-7, italics added.)
The treatise does not specifically address what it means for a claim to be presented by a third party “acting on [the claimant‘s] behalf,” which reflects the absence of a statutory definition and the dearth of case law addressing that specific issue of statutory interpretation. The treatise discusses claims presented without the claimant‘s preauthorization by stating:
“If a claimant later disavows the claim, the unauthorized claim may not bind the claimant. See Draper v City of Los Angeles (1990) 52 C[al.]3d 502, 508 (plaintiff who was comatose and brain-damaged during claim-filing period not bound by claim that attorney filed with wrong agency). If a claimant does not repudiate an unauthorized claim, or seek leave to present a late claim, the claimant is bound by the claim. See County of Los Angeles v. Superior Court, [supra,] 127 C[al.App.]4th 1263, 1271 (if claimant does not repudiate unauthorized claim filed on her behalf, or seek leave to present her own late claim, she is bound by claim and must file complaint within 6 months of its denial).” (1 Van Alstyne et al., Cal. Government Tort Liability Practice, supra, § 6.7, p. 6-7.)
Next, we discuss in detail the cases cited in the treatise.
In Draper v City of Los Angeles, supra, 52 Cal.3d 502 (Draper), our Supreme Court considered a trial court‘s denial of a plaintiff‘s application for relief from the Government Claims Act‘s claim presentation requirements. Specifically, the court addressed “whether plaintiff, physically unable to [present] a claim against a governmental entity within 100 days of an accident (
In Draper, the defendant city contended the plaintiff failed to show her disability caused her failure to present a timely claim—the second element required by
In addition to its factual analysis of the evidence pertaining to the authorization issues, the court in Draper considered a statutory construction of
To summarize the relevance of Draper to the instant appeal, the court‘s interpretation of
4. County of Los Angeles
The other case involving a claimant‘s assertion that a lawyer was not authorized to present a claim on her behalf is County of Los Angeles, supra, 127 Cal.App.4th 1263. There, the plaintiff, N.L., alleged she was sexually assaulted in late July and early August of 2001 by a county employee while housed in a juvenile facility. (County of Los Angeles, supra, at p. 1266.) N.L. was 17 years old at the time and turned 18 in October 2001. After her release from the facility, N.L. left the country and had no contact with her mother for about six months. Exactly six months after the first assault, a lawyer presented a claim to the county at the direction of N.L.‘s mother. The lawyer
N.L.‘s main argument as to the timeliness of the lawsuit was that
Of interest to the present appeal is N.L.‘s argument that she was not bound by the lawyer‘s unauthorized presentation of a claim. (County of Los Angeles, supra, 127 Cal.App.4th at p. 1271.) The Second District assumed the unauthorized claim “was a nullity” and analyzed whether other actions by or on behalf of N.L. had complied with the claim presentation requirement of the Government Claims Act. Because an authorized claim was not presented within the six months specified in
As an alternate ground for rejecting N.L.‘s argument that she was not bound by the unauthorized claim, the court stated that at no time did N.L. repudiate the claim “by seeking leave to [present] a late claim. Instead, N.L. filed a complaint, albeit an untimely one, in which she effectively ratified [the lawyer‘s] conduct by alleging that she was required to comply with the claims statute and in fact had done so.” (County of Los Angeles, supra, 127 Cal.App.4th at p. 1272.) Based on this conclusion about repudiation and ratification, the court did not reach the county‘s argument “that nothing in the [Government Claims] Act requires the claimant to authorize the claim or be aware that a claim has been presented on her behalf.” (County of Los Angeles, supra, at p. 1272, fn. 5.)
concluded that allegations in a complaint could ratify the presentation of a previously unauthorized claim.
5. Lacy
In Lacy v. City of Monrovia (1974) 44 Cal.App.3d 152 (Lacy), the plaintiffs filed a lawsuit against a city alleging police officers illegally entered their home and terrorized them. (Id. at p. 154.) The police were attempting to arrest a suspect and mistakenly entered the wrong house. (Id. at p. 153, fn. 1.) The husband submitted a claim for damages to the city, describing the injuries to himself, his wife, and their minor children. (Id. at pp. 153–154.) The city moved for summary judgment on the wife‘s and children‘s causes of action, contending only the husband had properly presented a claim. (Id. at p. 154.) The trial court concluded the claim presented was sufficient to support the causes of action by the husband and the minors, but not the wife. (Ibid.) The issue on appeal was limited to whether the claim presented by the husband was sufficient to support the wife‘s causes of action. (Ibid.)
The court identified the relevant statutory text by stating former “section 910 provides that a claim shall be presented by a claimant or ‘by a person acting on his behalf’ and [former] section 910.2 provides that the claim shall be signed by claimant or ‘by some person on his behalf.’” (Lacy, supra, 44 Cal.App.3d at p. 155.) The court did not discuss the meaning of the phrase “on his behalf.” It simply concluded that, based on the wording of the claim presented by the husband, it was clear that the claim was presented to the city “on his own behalf and on the behalf of his wife and children.” (Lacy, supra, 44 Cal.App.3d at p. 155.)
The court also analyzed whether the claim presented by the husband accomplished the principal purposes of the claims presentation requirements, which it identified as giving notice to the public entity to afford it a timely opportunity to (1) investigate the claim and determinate the facts and (2) avoid unnecessary litigation by settling meritorious claims. (Lacy, supra, 44 Cal.App.3d at p. 155.) The court concluded the contents of the claim gave the city all the notice and knowledge it needed about the wife‘s claim and stated the absence of a separate claim form was of no consequence. (Ibid.) The court noted that the claims requirement “was not intended to be used as a trap for the unwary” and that requiring the family members to present separate claims “would not serve the intended purposes of the claim statute and would result in unfairly precluding a determination of [the wife‘s] claim on its merits.” (Id. at p. 156.)
Lacy is distinguishable from Draper, County of Los Angeles, and this appeal because the public entity in Lacy contended the claim was not presented on behalf of a claimant. In contrast, Draper, County of Los Angeles, and this appeal involves a claimant asserting that a claim was not presented on her behalf. Lacy is useful here because, although it did not explicitly discuss the meaning of the relevant statutory text, it set forth that text and stated the court‘s conclusion that the claim presented by the husband was “on the behalf of his wife and children.” (Lacy, supra, 44 Cal.App.3d at p. 155.) Thus, Lacy provides an example of how to satisfy section 910‘s requirement that a claim be presented by a person acting on the claimant‘s behalf.
B. Statutory Interpretation
The foregoing overview establishes the legal context for the particular issues of statutory construction related to the application of
1. Existence of Ambiguity
The process of statutory construction begins with the words of the statute itself, giving them their usual and ordinary meaning. (Mejia v. Reed (2003) 31 Cal.4th 657, 663.) A court‘s inquiry into the usual and ordinary meaning of the words raises the threshold legal question of whether the words are ambiguous—that is, reasonably susceptible to more than one interpretation. (Merced Irrigation Dist. v. Superior Court (2017) 7 Cal.App.5th 916, 926.) The inquiry into ambiguity is focused, asking only whether the text is ambiguous in its application to the facts of the case, not whether the text is ambiguous in the abstract. (Verdugo v. Target Corp. (2014) 59 Cal.4th 312 [generally, courts resolve questions of statutory construction presented on the factual record and did not address abstract questions of meaning].)
The statutory language in question requires the claim to “be presented by the claimant or by a person acting on his or her behalf.” (
Based on the foregoing, we conclude the words in
2. The Claimant‘s Intent Controls
When construing an ambiguous statute, a court‘s primary goal is to adopt the interpretation that best effectuates the legislative intent or purpose. (Gutierrez v. Carmax Auto Superstores California (2018) 19 Cal.App.5th 1234, 1250; see Lacy, supra, 44 Cal.App.3d at p. 155 [claim presented accomplished the purposes of the claims statute].) Our Supreme Court has identified one of the legislative purposes of the Government Claims Act as the removal of traps for the unwary previously contained the labyrinth of claims statutes. (Viles v. State (1967) 66 Cal.2d 24, 31.) The court also acknowledged that “[t]he 1963 legislation is remedial and should be liberally construed.” (Ibid.) The Supreme Court has addressed section 946.6, which authorizes trial courts to grant relief to claimant where the public entity has rejected an application to file a late claim, and stated that particular provision is a remedial statute intended to provide relief from technical rules that otherwise would trap unwary claimants and identified the primary policy underlying that section as the policy favoring trial on the merits. (Bettencourt v. Los Rios Community College Dist. (1986) 42 Cal.3d 270, 275–276 (Bettencourt).)
Here, we conclude an interpretation of
We first consider the closeness of the connection between these three purposes of the claim presentation requirements and the issue of whether a claim was presented on the claimant‘s behalf. There appears to be little connection because the notice function is fulfilled by the timing and contents of the claim, not whether it is deemed to be presented on the claimant‘s behalf. The timing and contents of a claim are addressed in detail in
Before addressing the impact of those general policies on the interpretation of
Consequently, we interpret
claimant to ratify a claim (1) provides flexibility to claimants without compromising the specific purposes of the claim presentation requirement and (2) promotes the general policies of the Government Claims Act.
3. Legal Effect of Unauthorized, Unratified Claims
Another question of statutory interpretation arising from the facts of this case is whether an unauthorized, unratified claim has any legal effect. If such a claim has no legal effect, a rejection notice from the public entity also would have no effect and, thus, would not start the six-month statute of limitations. As stated earlier, the Government Claims Act does not address the subject of claims that are presented by someone who is not acting on the
Treating an unauthorized, unratified claim as a nullity would not, in our view, undermine the three purposes served by requiring prompt notice of a claim. If the unauthorized claim has no force or effect, the claimant remains obligated to comply with the claim presentation requirements in the Government Claims Act. Accordingly, the claimant still must present an authorized claim within six months from the accrual of the cause of action or, alternatively, obtain leave to present a late claim. Thus, for claimants who comply by timely presenting an authorized claim, treating an unauthorized claim as a nullity would result in the public entity being notified twice. It is self-evident that doubling the notice received by a public entity would not hinder its ability to (1) adequately investigate the claim, (2) budget for the potential liability, or (3) remedy a dangerous condition or practice. (See pt. I.B.1., ante.) Also, treating the unauthorized, unratified claim as a nullity eliminates potential traps for the unwary and promotes the resolution of claims on their merits.
The possibility that unusual situations might arise where public entities are harmed by this statutory interpretation can be addressed by applying California‘s doctrine of equitable estoppel. It is well settled that equitable estoppel may be applied against the public entity in the government claims context. (John R. v. Oakland Unified School Dist. (1989) 48 Cal.3d 438, 445.) We have identified no compelling reason to exempt claimants from the doctrine. Thus, equitable estoppel will protect public entities that have relied on an unauthorized claim to their injury when the other estoppel elements are satisfied. (See J.M. v. Huntington Beach Union High School Dist., supra, 2 Cal.5th at p. 656 [elements of equitable estoppel].)
To summarize, we interpret the Government Claims Act to mean that an unauthorized, unratified claim has no legal effect. Furthermore, the public entity‘s notice of rejection of an unauthorized, unratified claim has no legal effect and, thus, does not trigger the six-month statute of limitations.
C. Application of Statutory Interpretation to the Facts
The parties dispute whether Lark Chiropractic presented the claim on plaintiff‘s behalf for purposes of
District contends the claim was presented on plaintiff‘s behalf because she signed it, she is an adult, and adults are responsible in the eyes of the law for their actions. District argues plaintiff‘s signature authenticated the claim and, therefore, the claim is valid.
Plaintiff contends authenticating a claim and authorizing a third party to present the claim are two distinct acts. This distinction is recognized in the structure and text of the Government Claims Act. The signature requirement is addressed in
Applying the principle that pleadings are given a reasonable construction in favor of the pleader, we cannot infer that plaintiff knowingly and intentionally authorized the claim to be presented to District by Lark Chiropractic merely because she signed it. Such an inference about plaintiff‘s actual intent is contradicted by her allegations that Lark Chiropractic presented the claim “without her understanding, knowledge or permission” and that her attorneys were “the only persons authorized” by her to present a claim on her behalf. We accept the truth of these allegations and, under the principles governing demurrers and appellate review, conclude plaintiff did not knowingly and intentionally authorize—either expressly or impliedly10—Lark Chiropractic to present the signed claim to District on her behalf.
District‘s argument seems to urge the creation of a rule of law stating that when a claim satisfies the signature requirement in
2. Ratification of the Presentation of the Claim
We next consider the question of whether plaintiff expressly or impliedly ratified the claim after it was faxed to District. In this context, ratification is the claimant‘s voluntary election to adopt as his or her own an act another person‘s presentation of a claim covering the claimant‘s injuries. (See Rakestraw v. Rodrigues, supra, 8 Cal.3d at p. 73 [definition of ratification].) Thus, like authorization, ratification must be done knowingly and intentionally.
The first amended complaint did not explicitly mention whether or not the claim presented by Lark Chiropractic was ratified by plaintiff. Also, the first amended complaint did not effectively ratify that claim by relying on it to allege compliance with the claim presentation requirement. (See County of Los Angeles, supra, 127 Cal.App.4th at p. 1272 [claimant “effectively ratified [the lawyer‘s] conduct by alleging that she was required to comply with the claims statute and in fact had done so”].) Paragraph 16 of the first amended complaint did allege Berglund & Johnson “are, and have been, the only persons authorized or given permission by the Plaintiff to [present] a government claim on her behalf.” Applying a liberal yet reasonable interpretation to the allegation about the “only persons authorized” to present a claim on plaintiff‘s behalf, we infer plaintiff‘s words or conduct did not ratify the claim after it was presented by Lark Chiropractic. Stated another way, based on what clearly and affirmatively appears on the face of the complaint and matters judicially noticed (Committee for Green Foothills, supra, 48 Cal.4th at p. 42), the question of ratification cannot be resolved against plaintiff at the pleading stage.
3. Repudiation of the Claim
Our statutory interpretation that an unauthorized, unratified claim has no legal effect necessarily leads to the conclusion that a claimant does not need to repudiate such a claim. (See pt. II.B.3., ante.) Nevertheless, because County of Los Angeles and the leading treatise discuss repudiation of an
Here, Berglund & Johnson presented an authorized claim to District “not later than six months after the accrual of the cause of action.” (
Next, we consider what constitutes undue prejudice. We further conclude that, in the context of the claim presentation requirements, undue prejudice is detriment to the public entity‘s ability to defend on the merits or to fulfill the legislative purposes underlying the claim presentation requirements. As stated earlier, claims are designed to provide early notice and allow the public entity to (1) perform an adequate investigation of the claim and, if appropriate, settle it without the expense of litigation; (2) take the potential liability into account in its budgeting process; and (3) address a dangerous situation and avoid further injuries and litigation. (See pt. I.B.1., ante.) Undue prejudice to the ability to defend might arise due to the loss of evidence or the unavailability of a witness. We reject District‘s argument that the loss of a statute of limitations defense is a type of prejudice that should preclude the repudiation of an unauthorized claim in cases such as this one where an authorized claim was presented within the six-month claim period.
Consequently, where the legislative purposes underlying the claim presentation requirements are fulfilled and the public entity‘s defense on the merits has not been compromised, there is no undue prejudice from a claimant‘s repudiation of an unauthorized claim. District‘s broad approach to prejudice would bar claimants who have fallen into a trap from pursuing meritorious claims despite the fulfillment of the legislative purposes underlying the claim presentation requirements.
4. Summary
We conclude the claim Lark Chiropractic faxed to District on June 5, 2017, was not a claim presented “by a person acting on [plaintiff‘s] behalf” for purposes of
In comparison, the claim prepared by Berglund & Johnson was presented on plaintiff‘s behalf and was timely—that is, it was submitted to District within the applicable six-month presentation period. Therefore, that claim was valid and is the only operative claim for purposes of this lawsuit. We assumed for purposes of analyzing the application of the six-month statute of limitations in
III. DISTRICT‘S DEFECTIVE NOTICE OF REJECTION
Alternatively, plaintiff contends her lawsuit is timely even if the claim presented by Lark Chiropractic was valid because District‘s rejection notice was not given in the manner prescribed by
The claim submitted by Lark Chiropractic did not state an address to which desired notices should be sent. As a result, the mailing address required by statute was “the address ... of the claimant as stated in the claim.” (
Defendants argued in the trial court that they were precluded from communicating directly with plaintiff once she retained counsel and, therefore, they could not mail the notice of rejection to her post office box. The trial court‘s ruling and the respondent‘s brief cite no authority to support this interpretation of
During oral argument, counsel for District did not refer the court to any other authority. Instead, he represented that Reynolds was member of
We reject District‘s interpretation of the mailing requirement in
Based on the Supreme Court‘s approach to interpreting the Government Claims Act and the Legislature‘s directive in
We conclude that District‘s written rejection notice was not given in accordance with
DISPOSITION
The judgment is reversed. The trial court is directed to vacate its order sustaining the demurrer without leave to amend and to enter a new order overruling the demurrer. Plaintiff shall recover her costs on appeal.
FRANSON, ACTING P. J.
WE CONCUR:
MEEHAN, J.
SNAUFFER, J.
Notes
We have not referred to the principles of agency law in