PHILIP LE FRANCOIS еt al., Plaintiffs and Appellants, v. PRABHU GOEL et al., Defendants and Respondents.
No. S126630
Supreme Court of California
June 9, 2005
1094
COUNSEL
Robinson & Wood, Jon B. Zimmerman, Helen E. Williams and Joanna L. Mishler for Plaintiffs and Appellants.
Thomas M. Eells as Amicus Curiae on behalf of Plaintiffs and Appellants.
Reed Smith, Paul D. Fogel; Law Offices of Philip R. McCowan, Philip R. McCowan and John M. Ingle for Defendants and Respondents.
Skadden, Arps, Slate, Meagher & Flom, Raoul D. Kennedy, Davidson M. Pattiz, Douglas B. Adler and Seth M. Schwartz for Citigroup, Inc., and Salomon Smith Barney, Inc., as Amici Curiae on behalf of Defendants and Respondents.
OPINION
We conclude that
I. FACTS AND PROCEDURAL HISTORY
Plaintiffs Philip Le Francois and Eric Herald sued their former employer, Duet Technologies, Inc., and three officers of that company, claiming that the officers had made certain injurious misrepresentations and false promises. All defendants moved for summary judgment or, in the alternative, summary adjudication (hereafter simply summary judgment). The trial
Plaintiffs appealed. The Court of Appeal affirmed the judgment. It concluded that because the second motion was based on the same law and evidence as the first motion, the motion violated
We granted plaintiffs’ petition for review to decide whether the trial court had authority to consider and grant the individual defendants’ second motion for summary judgment.
II. DISCUSSION
A. Background
Two statutes are relevant here:
One court has said that cases involving repeated summary judgment motions “must be decided by the specific requirements of the summary judgment statute [
The Court of Appeal found that the second summary judgment motion at issue here was based on the same law and evidence as the first motion and hence violated
At first, the cases interpreting these statutes as amended in the 1990‘s generally held that a trial court has no authority or, as some of the cases phrased it, jurisdiction to consider a motion that violated
One of these decisions recognized problems with its conclusion that the trial court could not correct its mistakes, but felt powerless to rule otherwise. “We are not unmindful of the awkward consequences likely to flow from this holding, which will in some instances bar trial judges from correcting rulings belatedly shown to be erroneous. Judicial inefficiencies may also result from the need for an appeal that would not have been required if correction could have been made by a trial court willing to do so. These problems stem not from our holding, however, but by the 1992 amendment to
More recent cases have taken different approaches and concluded that, to some extent at least,
One line of cases concluded that the statutes limit only the parties’ ability to bring renewed motions, and they do not limit the court‘s power to reconsider its rulings on its own motion. Typical is Darling, Hall & Rae v. Kritt (1999) 75 Cal.App.4th 1148 [89 Cal.Rptr.2d 676], which found the “line of cases holding
Another line of cases rejected the distinction between a party‘s motion and the court‘s ability to act on its own motion. These cases concluded that a trial court
Thus the questions are squarely presented: May a trial court reconsider interim orders it has already made in the absence of new facts or new law? If so, may it do so only on its own motion, or may a party move for reconsideration? Because separation of power principles are pertinent to the question, we next discuss the relevant principles as they have developed in California. Then, with these principles in mind, we will turn to the correct interpretation and application of
B. Separation of powers principles
In recent years, this court has had several occasions to consider principles of separation of pоwers as they relate to the relationship between the legislative and judicial branches. (E.g., People v. Bunn (2002) 27 Cal.4th 1, 14-17 [115 Cal.Rptr.2d 192, 37 P.3d 380]; Obrien v. Jones (2000) 23 Cal.4th 40, 47-49 [96 Cal.Rptr.2d 205, 999 P.2d 95]; Superior Court v. County of Mendocino (1996) 13 Cal.4th 45, 52-59 [51 Cal.Rptr.2d 837, 913 P.2d 1046] (County of Mendocino).) The case most instructive here is County of Mendocino, supra, 13 Cal.4th 45. There, the question was whether the Legislature had impermissibly infringed on judicial powers when it enacted legislation authorizing counties to designate unpaid furlough days on which the courts must be closed. (Id. at p. 48.) We concluded the Legislature acted within its power. Largely from this case, but also from the others, we can distill the basic principles we must consider in deciding whether the Legislature impermissibly infringed on judicial powers when it amended
“From its inception, the Califоrnia Constitution has contained an explicit provision embodying the separation of powers doctrine.” (County of Mendocino, supra, 13 Cal.4th at p. 52.) That Constitution apportions the powers of state government among the three branches familiar to all students of government in this country—legislative, executive, and judicial—and states that “[p]ersons charged with the exercise of one power may not exercise either of the others except as permitted by this Constitution.” (
“At the same time, this doctrine unquestionably places limits upon the actions of each branch with respect to the other branches.” (County of Mendocino, supra, 13 Cal.4th at p. 53.) The Constitution “vest[s] each branch with certain ‘core’ [citation] or ‘essential’ [citation] functions that may not be usurped by another branch.” (People v. Bunn, supra, 27 Cal.4th at p. 14.) In County of Mendocino, we discussed several earlier cases “that addressed the subject of ‘inherent judicial power’ and the validity of legislative actions relating to the judicial branch.” (County of Mendocino, supra, at p. 53.) We quoted especially pertinent language from one of those cases: “’Of necessity, the judicial department as well as the executive must in most matters yield to the power of statutory enactments. [Citations.] The power of the legislature to regulate criminal and civil proceedings and appeals is undisputed.‘” (County of Mendocino, supra, at p. 54, quoting Brydonjack v. State Bar (1929) 208 Cal. 439, 442-443 [281 P. 1018], italics added.) But this power has limitations. “The sum total of this matter is that the legislature may put reasonable restrictions upon constitutional functions of the courts provided they do not defeat or materially impair the exercise of those functions. This power has been described as follows: “. . . [T]he mere procedure by which jurisdiction is to be exercised may be prescribed by the Legislature, unless, indeed, such regulations should be found to substantially impair the constitutional powers of the courts, or practically defeat their exercise.” [Citations.]‘” (County of Mendocino, supra, at p. 54, italics added, quoting Brydonjack v. State Bar, supra, at p. 444.)
After reviewing these earlier decisions, we stated the basic test: “[T]he Legislature generally may adopt reasonable regulations affecting a court‘s inherent powers or functions, so long as the legislation does not ‘defeat’ or ‘materially impair’ a court‘s exercise of its constitutional power or the fulfillment of its constitutional function.” (County of Mendocino, supra, 13 Cal.4th at pp. 58-59; see also People v. Bunn, supra, 27 Cal.4th at p. 16.)3 One of the core judicial functions that the Legislature may regulate but not usurp is “the essential power of the judiciary to resolve ‘specific controversies’ between
In sum, the separation of powers test applicable here can be stated quite simply: The Legislature may regulate the courts’ inherent power to resolve specific controversies between parties, but it may not defeat or materially impair the courts’ exercise of that power. With this test in mind, we next consider how to interpret and apply
C. Interpretation and application of sections 437c and 1008
Plaintiffs urge us to adopt the line of cases represented by Kerns v. CSE Ins. Group, supra, 106 Cal.App.4th 368, which holds that
We agree with the court in Kerns v. CSE Ins. Group, supra, 106 Cal.App.4th at page 389, that “by eliminating the distinction between a trial court‘s action taken sua sponte and that made in response to a litigant‘s mоtion, the more recent cases such as Remsen and Wosniak go too far toward eviscerating the clear jurisdictional language of
Whether these statutes can validly limit the court‘s authority to act on its own motion to correct its own errors presents quite a different question. Such a limitation might go too far. If interpreted to limit the court‘s ability to reconsider its own rulings, these statutes might, as one court concluded, “emasculate the judiciary‘s core power to decide controversies between parties. The legislative restriction of a court‘s ability to sua sponte reconsider its own rulings is not merely a reasonable regulation on judicial functions. Instead, such a restriсtion would directly and materially impair and defeat the court‘s most basic functions, exercising its discretion to rule upon controversies between the parties and ensuring the orderly administration of justice. Courts are empowered to decide controversies, a power derived from the state constitution. We are hard pressed to conceive of a restriction that goes more directly to the heart of a court‘s constitutionally mandated functions. Under [a strict] reading, if a court realizes it has misunderstood or misapplied the law, it is prohibited from revisiting its ruling, whether it realizes its mistake 10 minutes or 10 days later, and no matter how obvious its error or how draconian the effects of its misstep. ‘A court could not operate successfully under the requirement of infallibility in its interim rulings. Miscarriage of justice results where a court is unable to correct its own perceived legal errors . . . .‘” (Case v. Lazben Financial Co., supra, 99 Cal.App.4th at p. 185.)
But we need not decide this constitutional question. Consistent with our common practice of construing statutes, when reasonable, to avoid difficult constitutional questions (see Myers v. Philip Morris Companies, Inc. (2002) 28 Cal.4th 828, 846-847 [123 Cal.Rptr.2d 40, 50 P.3d 751]), we interpret the statutes the way many Courts of Appeal have done—as imposing a limitation on the parties’ ability to file repetitive motions, but not on the court‘s authority to recоnsider its prior interim rulings on its own motion.4
The question is a bit more complex regarding
But these circumstances are not conclusive. The deletion of the amendment in the Assembly may have implied an intent to limit the court‘s authority, but it may instead merely have reflected “an assessment that the discretionary language was superfluous.” (People v. Castello, supra, 65 Cal.App.4th at pp. 1249-1250, fn. 7.) Moreover, if
Moreover, we see no hint that the Legislature wanted to hinder the courts’ ability to act rather than merely protect them from repetitive motions, or that it intended, as one court phrased it, to “solve[] one set of problems by possibly creating another.” (Baldwin v. Home Savings of America, supra, 59 Cal.App.4th at p. 1200, fn. 10.) “[T]he stated legislative purpose behind the 1992 amendment to
This construction of the statutes also reconciles the earlier cases that had interpreted them as limiting the courts’ jurisdiction. “Significantly, all of these cases involved situations in which the disputed reconsideration, modification or reversal of a prior interim order was brought about upon the motion of a pаrty litigant, and not by the trial court acting on its own motion. [Citations.] None of these cases addressed the specific question of whether and to what extent
For these reasons, we distinguish, but do not disapprove, the early cases, beginning with Morite of California v. Superior Court, supra, 19 Cal.App.4th 485, that held that
One court found the distinction between a court‘s acting on its own motion and its acting in response to a litigant‘s motion “to be a distinction without a difference.” (Remsen v. Lavacot, supra, 87 Cal.App.4th at p. 427.) One of the commentaries is more specific: “This may be a distinction without a difference because what if the losing party simply asks the court (e.g., at a status conference) to reconsider the matter?” (Weil & Brown, Cal. Practice Guide: Civil Procedure Before Trial (The Rutter Group 2004) ¶ 9:327.8, p. 9(I)-107.) This concern is legitimate. If all that results from this distinction
is that parties merely change the name of their motion from, as
We cannot prevent a party from communicating the view to a court that it should reconsider a prior ruling (although any such communication should never be ex parte). We agree that it should not matter whether the “judge has an unprovoked flash of understanding in the middle of the night” (Remsen v. Lavacot, supra, 87 Cal.App.4th at p. 427) or acts in response to a party‘s suggestion. If a court believes one of its prior interim orders was erroneous, it should be able to correct that error no matter how it came to acquire that belief. For example, nothing would prevent the losing party from asking the court at a status conference to reconsider a ruling. (See Weil & Brown, Cal. Practice Guide: Civil Procedure Before Trial, supra, ¶ 9:327.8, p. 9(I)-107.) But a party may not file a writtеn motion to reconsider that has procedural significance if it does not satisfy the requirements of
Unless the requirements of
party‘s suggestion that the court should rеconsider a previous ruling. This procedure provides a reasonable balance between the conflicting goals of limiting repetitive litigation and permitting a court to correct its own erroneous interim orders.
III. CONCLUSION
In this case, the individual defendants filed a new motion for summary judgment that did not satisfy the requirements of
We reverse the judgment of the Court оf Appeal and remand the matter for further proceedings consistent with this opinion.
George, C. J., Baxter, J., Werdegar, J., Brown, J., and Moreno, J., concurred.
KENNARD, J., Concurring and Dissenting.—I agree with the majority‘s holding that
But I do not agree with the majority‘s disposition reversing the Court of Appeal‘s judgment, which in turn had affirmed the trial court‘s summary judgment. As the majority holds, a trial court may properly reconsider an earlier ruling denying summary judgment and make a new ruling granting summary judgment. Although the trial court here erred insofar as it purported to act on a party‘s motion rather than on its own motion, this procedural error does not affect the judgment‘s validity. A legally correct ruling will not be reversed on appeal merely because the trial court erred in its reasoning
(People v. Smithey (1999) 20 Cal.4th 936, 972 [86 Cal.Rptr.2d 243, 978 P.2d 1171]; D‘Amico v. Board of Medical Examiners (1974) 11 Cal.3d 1, 19 [112 Cal.Rptr. 786, 520 P.2d 10]), and a trial court‘s judgment may not be set aside for procedural error unless the error has resulted in a miscarriage of justice (
