Adoption of JOSHUA S., a Minor.
Annette F., Plaintiff and Respondent,
v.
Sharon S., Defendant and Appellant.
Supreme Court of California.
*373 Blatchley & Blatchley, William E. Blatchley, San Diego; John L. Dodd & Associates and John L. Dodd, Tustin, for Defendant and Appellant.
Luce, Forward, Hamilton & Scripps and Charles A. Bird. San Diego, for Plaintiff and Respondent,
Jennifer C. Pizer. Brian Chase, Shannon Minter and Courtney Joslin, for Children of Lesbians and Gays Everywhere, Family Pride Coalition, Los Angeles Gay & Lesbian Center, Lambda Legal Defense & Education Fund, Lesbian & Gay Lawyers Association *374 of Los Angeles, National Center for Lesbian Rights, Our Family Coalition, Pop Luck Club, San Diego Family Matters and Tom Homann Law Association as Amid Curiae on behalf of Plaintiff and Respondent.
Rosen, Bien & Asaro, Andrea G. Asaro and Amy Whelan, San Francisco, for American Civil Liberties Union, Bay Area Lawyers for Individual Freedom, Legal Services for Children, Western Center on Law & Poverty, Youth Law Center and Protection & Advocacy, Inc., as Amici Curiae on behalf of Plaintiff and Respondent.
Shute, Mihaly & Weinberger, Ellison Folk, Robert S. Perlmutter, San Francisco, and Jenny K. Harbine, for Planning and Conservation League, Natural Resources Defense Council and Baykeeper as Amici Curiae on behalf of Plaintiff and Respondent.
Manning & Marder, Kass, Ellrod, Ramirez, Scott Wm. Davenport and Jason J. Molnar, San Diego, for Los Angeles County Bar Association and Beverly Hills Bar Association as Amici Curiae on behalf of Plaintiff and Respondent.
Judith E. Klein, La Mesa, for Minor.
MORENO, J.
In Sharon S. v. Superior Court (2003)
As explained below, we do not decide whether the trial court abused its discretion in determining that the extent and scope of the litigation transcended Annette's personal stake in its outcome. Rather, we hold that section 1021.5 does not authorize an award of attorney fees against an individual who has done nothing to adversely affect the rights of the public or a substantial class of people other than raise an issue in the course of private litigation that could establish legal precedent adverse to a portion of the public, and that therefore fees should not be awarded in the present case. As elaborated below, both the language and legislative history of section 1021.5 support this interpretation. We therefore affirm the judgment of the Court of Appeal on that basis.
I. STATEMENT OF FACTS
The facts are for the most part undisputed. Sharon and Annette were in a committed relationship from 1989 through mid-2000. In 1996 Sharon was artificially inseminated and gave birth to Zachary. While retaining her parental rights, Sharon consented to Annette's adoption of the *375 child. (Sharon S., supra,
In 1999, Sharon was again artificially inseminated by the same sperm donor and gave birth to Joshua. Sharon and Annette made the same agreement allowing Annette to adopt Joshua while Sharon retained her parental rights. Thereafter the relationship between Sharon and Annette deteriorated and Annette left the family home. Annette filed a motion for an order of adoption. Sharon moved for court approval to withdraw her consent to adopt and to dismiss Annette's petition. Sharon relied on several arguments, including that the form of second parent adoption sought was unlawful. (Sharon S., supra, 31 Cal.4th at pp. 422-424,
The trial court denied the motion to dismiss the adoption. Sharon filed and the Court of Appeal granted a petition for writ of mandate, holding that the form of second parent adoption sought by Annette was without statutory basis. We granted Annette's petition for review and reversed, finding that second parent adoptions like that sought by her were lawful. We remanded the matter for resolution of factual issues related to Sharon's claim that her consent to the adoption had been gained by fraud and duress and to ensure that the relevant administrative and statutory requirements of the second parent adoption had been satisfied. (Sharon S., supra, 31 Cal.4th at pp. 445-446,
Before the resolution of the other issues, Annette moved for an award of attorney fees in the amount of $138,939.78 pursuant to section 1021.5. Annette sought the fees for legal services provided by her counsel, Charles Bird of the firm Luce, Forward, Hamilton and Scripps (Luce), in the Court of Appeal and Supreme Court leading to the decision in Sharon S.
Annette's supporting papers noted that although the matter was not yet fully resolved, Annette had prevailed in the Supreme Court on the second parent adoption issue, an issue of benefit to a large class of persons, and argued that she was therefore entitled to an award of fees pursuant to the private attorney general provisions of section 1021.5 for that portion of the case.
Bird, Annette's attorney, filed a declaration stating that he was initially approached in August of 2001 by someone who had written an amicus curiae brief or letter brief on Annette's behalf, when the matter was pending in the Court of Appeal, out of concern that the outcome of the case may have a far-reaching, detrimental effect. Bird eventually decided to represent Annette, and argued on her behalf in the Court of Appeal. When the Court decided against Annette solely on the ground that second parent adoption was without statutory basis, Bird prepared an unsuccessful petition for rehearing and then a successful petition for review in this court. He prepared the briefs and argued the case in this court, which included extensive analysis of the legislative history of the relevant statutes, a brief responding to the various amici curiae, an answer to Sharon's petition for rehearing and an answer to Sharon's petition for a writ of certiorari in the United States Supreme Court.
Bird's declaration further stated that Annette and Luce had entered into a written engagement agreement providing for payment of a fee at a described rate and for the reimbursement of expenses, with an estimation that the cost of oral argument in the Court of Appeal was likely to ran between $8,000 and $10,000. He discussed with Annette that if she lost in the Court of Appeal, the fees from continuing the litigation would likely outstrip her ability *376 to pay, but that he would continue to represent her on the second parent adoption issue because of his concern for the law made by the case. He explained that his firm would take the chance of prevailing and potentially recovering attorney fees based on the public benefit resulting from the work.
The trial court awarded $92,049.15 in attorney fees to Annette. The court found the Supreme Court's decision conferred a significant nonpecuniary benefit on a large class of persons and resolved an important issue of law. The trial court also concluded, for reasons elaborated below, that notwithstanding the fact that Annette had a personal stake in the outcome of the litigation, the cost of the litigation was out of proportion to that stake.
The Court of Appeal reversed. While not disputing that the litigation conferred significant benefits on a large class of persons and resolved an important issue of law, the court concluded that Annette's personal stake in the litigation, i.e., the vindication of her rights as an adoptive parent, were so large that a private attorney general award under section 1021.5 was not justified. In so concluding, the court rejected Annette's argument that nonpecuniary interests such as hers were not to be counted among the personal interests that could defeat a section 1021.5 award.
We granted review and subsequently sought the supplemental briefing described above.
II. DISCUSSION
A. The Necessity and Financial Burden Requirement
Eligibility for section 1021.5[2] attorney fees is established when "(1) plaintiffs' action `has resulted in the enforcement of an important right affecting the public interest,' (2) `a significant benefit, whether pecuniary or nonpecuniary has been conferred on the general public or a large class of persons' and (3) `the necessity and financial burden of private enforcement are such as to make the award appropriate.'" (Woodland Hills Residents Assn., Inc. v. City Council (1979)
There is no question that the litigation here did yield a substantial and widespread public benefit. In Sharon S., supra,
As this court has elaborated with respect to this third requirement (hereafter sometimes referred to as the necessity and financial burden requirement): "`An award on the "private attorney general" theory is appropriate when the cost of the claimant's legal victory transcends his personal interest, that is, when the necessity for pursuing the lawsuit placed a burden on the plaintiff "out of proportion to his *377 individual stake in the matter." [Citation.]'" (Woodland Hills, supra,
The above method assumes that a plaintiff has a pecuniary interest in the litigation that is more or less quantifiable. What happens when a plaintiff has no pecuniary interest? Annette argues that when no pecuniary interest is present, a plaintiff as a matter of law meets the necessity and financial burden requirement. She points to language in Press v. Lucky Stores, Inc. (1983)
Sharon disagrees with this interpretation of Press, and points to several Court of Appeal cases holding that private, nonpecuniary interests of some kind can disqualify a party from eligibility for section 1021.5 attorney fees. (See Punsly v. Ho (2003)
Although Annette argues that nonpecuniary interests may not disqualify a party from eligibility for section 1021.5 attorney fees, her defense of her own attorney fee award does not depend on that proposition being categorically true. Rather, the trial court in the present case, while not ruling out that Annette's personal interest could render her ineligible for section 1021.5 fees, instead concluded that the cost of the litigation transcended those interests. Admitting the difficulty if not impossibility of estimating the monetary value of Annette's personal interests in her children, it observed that Annette's attorney, Charles Bird, offered to represent her because of the public significance of the litigation and the importance of second parent adoptions for families and children throughout California. It also noted that prior to Bird's entry in the case, Annette had produced only letter briefs that were inadequate for addressing the second parent adoption issue. The Court of Appeal, on the other hand, held, and Sharon now argues, that Bird's motivation is not relevant, and that *378 Annette's considerable personal interests in vindicating her parental rights disqualifies her from attorney fees.
We need not decide whether the trial court abused its discretion in holding that the costs of the present litigation transcended Annette's personal interests. As discussed below, we conclude that even if the trial court was within its discretion in so holding, section 1021.5 attorney fees may not be awarded in the present case for a different reason: Sharon is not the type of party on whom private attorney general fees were intended to be imposed.
B. Sharon's Litigation Is Not Within the Scope of Section 1021.5
Sharon contends that section 1021.5 attorney fees should not be imposed on parties such as herself, an individual who has only engaged in litigation to adjudicate private rights from which important appellate precedent happens to emerge, but has otherwise done nothing to compromise the rights of the public or a significant class of people. We agree.
In evaluating Sharon's claim, we are mindful that section 1021.5 is an exception to the general rule in California, commonly referred to as the American rule and codified in section 1021, that each party to a lawsuit must ordinarily pay his or her own attorney fees. (Trope v. Katz (1995)
Although not explicit in either the statute or case law, it may be supposed that one unspoken justification for departing from the American rule in the case of section 1021.5 private attorney general fees is that it is equitable to impose public interest attorney fees on parties that have done something to adversely affect the public interest. Indeed, although no case has explicitly addressed the matter, our review of the case law reveals that in virtually every published case in which section 1021.5 attorney fees have been awarded, the party on whom the fees have been imposed had done something more than prosecute or defend a private lawsuit, but instead had engaged in conduct that in some way had adversely affected the public interest. In Woodland Hills, for example, the plaintiff was requesting attorney fees for successfully blocking the City of Los Angeles's unlawful approval of a subdivision. (Woodland Hills, supra, 23 Cal.3d at pp. 926-927,
*379 To determine whether there is in fact an implicit requirement that the party on whom attorney fees are imposed be responsible for adversely affecting the public interest, we first look first to the words of the statute, "`because they generally provide the most reliable indicator of legislative intent.'" (Murphy v. Kenneth Cole Productions, Inc. (2007)
We also find support for this interpretation in the legislative history. According to one legislative history document, "the purpose of [section 1021.5] is to provide statutory authority for an award of attorneys' fees in public interest litigation." (Sen. Com. on Judiciary, Rep. on Assem. Bill No. 1310 (1977-1978 Reg. Sess.) as amended (May 18, 1977) p. 1.) Testimony before the Senate Committee on the Judiciary on behalf of section 1021.5 affirmed that the statute would "effectuate the enforcement of laws enacted by the legislature of the state in the public interest." (Sen. Com. on Judiciary, Hearing on Assem. Bill No. 1310 (1977-1978 Reg. Sess.), testimony of John R. Phillips, p. 15 (Aug. 14, 1977).) As these passages suggest, the Legislature was focused on public interest litigation in the conventional sense: litigation designed to promote the public interest by enforcing laws that a governmental or private entity was violating, rather than private litigation that happened to establish an important precedent.
This conclusion is also consistent with our recent holding in Connerly v. State Personnel Bd. (2006)
This is not to say that a party cannot be held liable for section 1021.5 attorney fees for engaging in litigation. When a party initiates litigation that is determined to be detrimental to the public interest, attorney fees have been imposed. In Wal-Mart Real Estate Business Trust v. City Council of San Marcos (2005)
In contrast, Sharon was a private litigant with no institutional interest in the litigation, and the judgment she sought in the present case would have settled only her private rights and those of her children and Annette. She simply raised an issue in the course of that litigation that gave rise to important appellate precedent decided adversely to her.[4]
Annette suggests that a requirement that an individual liable for private attorney general fees must have done something to compromise the rights of the public is inconsistent with the well-established principle that a showing of bad faith is not necessary for an award of section 1021.5 fees. (See, e.g., Citizens Against Rent Control v. City of Berkeley, supra,
Of course, whether litigation generates important appellate precedent is a factor courts may consider in determining whether the litigation can be said to enforce an important right affecting the public interest. (See Los Angeles Police Protective League, supra,
III. DISPOSITION
The judgment of the Court of Appeal is affirmed.
WE CONCUR: GEORGE, C.J., KENNARD, BAXTER, WERDEGAR, CHIN and CORRIGAN, JJ.
NOTES
Notes
[1] All statutory citations are to this code unless otherwise indicated.
[2] Section 1021.5 provides in pertinent part: "Upon motion, a court may award attorneys' fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest if: (a) a significant benefit, whether pecuniary or nonpecuniary, has been conferred on the general public or a large class of persons, (b) the necessity and financial burden of private enforcement, or of enforcement by one public entity against another public entity, are such as to make the award appropriate, and (c) such fees should not in the interest of justice be paid out of the recovery, if any."
[3] (See, e.g., Harbor v. Deukmejian (1987)
[4] The one case that arguably deviates from this rule is Hammond, supra,
Hammond is distinguishable insofar as election law litigation inherently implicates public rights. We need not decide whether Hammond is correct that a suit between political rivals that results in significant election law precedent may give rise to section 1021.5 fees.
[5] In light of our disposition of the case, we need not address the constitutional and other issues raised by Sharon.
