REBECCA OSBORNE, Plaintiff and Appellant, v. BRUCE YASMEH et al., Defendants and Respondents.
No. B262043
Court of Appeal, Second District, Division Four, California
July 28, 2016
1 Cal.App.5th 1118
Consolidated with KODY MESSMER et al., Plaintiffs and Appellants, v. BRUCE YASMEH et al., Defendants and Respondents, No. B265530
Glenn A. Murphy for Plaintiffs and Appellants.
Courtney M. Coates for Defendants and Respondents.
OPINION
COLLINS, J.—
INTRODUCTION
Plaintiffs John Flowers, Rebecca Osborne, Seth Messmer, and Kody Messmer (collectively, plaintiffs) allege that they visited a hotel owned and managed by defendants Bruce Yasmeh, Alfred Yasmeh, American Property Management, and INE Capital Holdings.1 Flowers is paraplegic and employs the use of a service dog. Osborne is Flowers’s wife, and the Messmers are Flowers’s stepsons. Plaintiffs allege that they visited defendants’ hotel, but management refused to rent them a room unless they first paid a nonrefundable cleaning fee relating to the dog. They allege that the charge for the room was $80, and the nonrefundable cleaning fee was $300. Plaintiffs left the hotel without paying the fee or checking in as guests.
Plaintiffs sued defendants in two separate lawsuits, one brought by Osborne and one brought by Flowers and the Messmers. In both actions, plaintiffs alleged violations of the Unruh Civil Rights Act (
While we agree with the result in Surrey, we find that its bright-line rule is not applicable to the facts of this case.
FACTUAL AND PROCEDURAL BACKGROUND
Plaintiff Rebecca Osborne3 filed her complaint on November 8, 2013, alleging a violation of the Unruh Civil Rights Act and
In July 2014, shortly before trial, defendants moved for judgment on the pleadings. Defendants argued that according to the rule articulated in Surrey, where a plaintiff alleges a defendant charged a discriminatory fee, the plaintiff must “tender the purchase price for a business’s services or products” in order to establish standing under the Unruh Civil Rights Act. (Surrey, supra, 168 Cal.App.4th at p. 416.) Because Osborne did not allege that she paid the fee and rented a hotel room, defendants argued, she did not establish standing.
When they filed their complaint, Flowers and the Messmers also filed a notice of related cases, alerting the superior court to the pending Osborne case. For reasons unclear to us, the trial court deemed the cases not related,5 and the Flowers/Messmer case was assigned to superior court department 69 before Judge William F. Fahey.
In Osborne’s case, Judge Fruin granted defendants’ motion for judgment on the pleadings in August 2014. Judge Fruin held that under Surrey, Osborne was required to allege that she paid the fee to establish standing. The court granted Osborne leave to amend her complaint.
Osborne filed a first amended complaint on August 18, 2014. She added an allegation that “Plaintiff, through a family member, offered to pay the deposit, but it was refused since the hotel did not want a dog in the hotel and the hotel manager claimed the hotel had a right of refusal.” She also alleged that “Defendant’s managing agent was told, and clearly understood since it was obvious, that the husband of Plaintiff was disabled in a wheelchair and had with him a service dog to assist in managing his disability.” Osborne also alleged that they were refused service not only because of the cleaning fee, but also because no dogs were allowed at the hotel. She alleged that defendants’ managing agent “spoke loud enough so that the other guests could clearly hear and understand that Plaintiffs were being ejected, and this conduct was intentionally done to embarrass and publicly humiliate Plaintiffs and their family. . . .” She added that the “supposed requirement for a deposit was a trick and subterfuge and used by Defendants as a way of refusing a
Defendants moved for summary judgment and demurred to Osborne’s first amended complaint. Because the motion for summary judgment was deemed moot when the trial court sustained defendants’ demurrer without leave to amend, we focus on the demurrer. In their demurrer, defendants again argued that Osborne lacked standing due to the Surrey rule that a plaintiff must pay the allegedly discriminatory fee to establish standing under the Unruh Civil Rights Act, and the expanded allegation that a family member attempted to pay the fee was insufficient to meet this requirement. Defendants also argued that the first amended complaint was a sham pleading. They argued that Osborne changed her allegations, maintaining in the amended complaint that defendants refused to provide her with a hotel room not because of the cleaning fee, as previously alleged, but simply because they did not want dogs in the hotel. Referencing Osborne’s deposition testimony, discovery responses, and other documents, defendants argued that Osborne made clear that she never attempted to pay the alleged additional fee, and the amended complaint therefore “directly contradicts judicial admissions made in the original complaint, deposition testimony, and prior sworn admissions.” Osborne opposed the demurrer.
On December 5, 2014, Judge Fruin sustained defendants’ demurrer to Osborne’s amended complaint without leave to amend. The court held that Osborne’s new allegations did not cure the defect in the original complaint, because Surrey requires a plaintiff to pay the discriminatory fee to establish standing. The court considered Osborne’s previous complaint and statements in her deposition that the family was refused accommodation at the hotel because of the cleaning fee, and contrasted these allegations with her allegations in the first amended complaint that the hotel simply did not want dogs in the hotel. The court also held that because Osborne’s allegations and statements in discovery focused on the fee rather than an outright refusal to allow dogs, the new factual allegations in the first amended complaint were “clearly sham pleading.” The court did not address Osborne’s cause of action for intentional infliction of emotional distress.
A week later, on December 12, 2014, defendants demurred to the Flowers/Messmer complaint.6 Defendants argued that plaintiffs did not have standing under the Unruh Civil Rights Act pursuant to Surrey. In addition,
Judgment was entered following each demurrer order. Plaintiffs timely appealed each judgment. On our own motion, we consolidated the cases for purposes of oral argument and decision.
STANDARD OF REVIEW
“ ‘We independently review the sustaining of a demurrer and determine de novo whether the complaint alleges facts sufficient to state a cause of action or discloses a complete defense.’ ” (Valbuena v. Ocwen Loan Servicing, LLC (2015) 237 Cal.App.4th 1267, 1271 [188 Cal.Rptr.3d 668].) “ ‘We treat the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law. [Citation.] We also consider matters which may be judicially noticed.’ (Serrano v. Priest (1971) 5 Cal.3d 584, 591 [96 Cal.Rptr. 601, 487 P.2d 1241, 41 A.L.R.3d 1187].)” (Blank v. Kirwan (1985) 39 Cal.3d 311, 318 [216 Cal.Rptr. 718, 703 P.2d 58].) Where a plaintiff has standing to bring the action, and each count in the complaint sufficiently states a cause of action, a general demurrer should be overruled. (TracFone Wireless, Inc. v. County of Los Angeles (2008) 163 Cal.App.4th 1359, 1368 [78 Cal.Rptr.3d 466].)
“As a general principle, standing to invoke the judicial process requires an actual justiciable controversy as to which the complainant has a real interest in the ultimate adjudication because he or she has either suffered or is about to suffer an injury of sufficient magnitude reasonably to assure that all of the relevant facts and issues will be adequately presented to the adjudicator.” (Holmes v. California Nat. Guard (2001) 90 Cal.App.4th 297, 314-315 [109 Cal.Rptr.2d 154].) “The prerequisites for standing to assert statutorily based causes of action are determined from the statutory language,
DISCUSSION
A. Plaintiffs have established standing under the Unruh Civil Rights Act in both actions
The Unruh Civil Rights Act states, “All persons within the jurisdiction of this state are free and equal, and no matter what their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status are entitled to the full and equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever.” (
In California, “[t]wo overlapping laws, the Unruh Civil Rights Act (
Standing under the Unruh Civil Rights Act is broad. When “any person or group of persons is engaged in conduct of resistance to the full enjoyment of any of the rights described in this section . . . any person aggrieved by the conduct may bring a civil action . . . .” (
The parties discuss the two principal cases that address standing under the Unruh Civil Rights Act, Angelucci and Surrey. The Supreme Court in Angelucci primarily focused on what constituted discrimination under the Unruh Civil Rights Act. In that case, the male plaintiffs alleged they visited a nightclub on several occasions and were charged admission fees higher than the fees charged to women. (Angelucci, supra, 41 Cal.4th at p. 165.) The defendant argued that because the plaintiffs never asked to be charged the same rates as women, they could not recover under the Unruh Civil Rights Act. (Angelucci, at p. 165.) The Supreme Court held that a plaintiff instituting an Unruh Civil Rights Act lawsuit was not required to establish as a condition “that the defendant[s] have been given notice and an opportunity to correct the asserted violation.” (Angelucci, at p. 168.) The court also briefly touched on standing in the opinion, stating, “According to their allegations, each of the plaintiffs was subjected to, and paid, defendant’s gender-based price differential. Accepting plaintiffs’ factual allegations as true, as we are required to do in reviewing a judgment entered on the pleadings, plaintiffs must be considered ‘person[s] denied the rights provided in Section 51.’ (§ 52(a).)” (Id. at pp. 175-176.)
The Court of Appeal expanded on Angelucci in Surrey, supra, 168 Cal.App.4th 414. In that case, the plaintiff visited a matchmaking website with the intent of using its services. (Id. at p. 416.) When he discovered that
Defendants argue that under Angelucci and the bright-line rule articulated in Surrey, plaintiffs did not establish standing under the Unruh Civil Rights Act: “Plaintiffs lack standing to sue because they do not and cannot allege that they actually paid the alleged discriminatory fee for the Defendants’ hotel room and registered as . . . guest[s].” We think this argument takes Surrey’s bright-line rule too far and contradicts California’s established antidiscrimination case law.
California has long barred discrimination based on physical characteristics. Early common law decisions created a duty to serve all customers on reasonable terms without discrimination. (See In re Cox (1970) 3 Cal.3d 205, 212 [90 Cal.Rptr. 24, 474 P.2d 992] (Cox).) “The California Legislature, in 1897, enacted these common law doctrines into the statutory predecessor of the present Unruh Civil Rights Act [also codified as
The application of
In Evans v. Fong Poy (1941) 42 Cal.App.2d 320 [108 P.2d 942], a couple went into a café and ordered drinks and sandwiches, but they were refused service. (Id. at 321.) “The testimony introduced by plaintiffs showed that they were told by the bartender and the floor manager that they could not be served at the bar because they were colored people.” (Id. at p. 321.) The Court of Appeal affirmed the judgment in favor of the plaintiffs, and held that the action properly fell under
In Stone v. Board of Directors (1941) 47 Cal.App.2d 749 [118 P.2d 866], the petitioners, who were “members of the Negro race, citizens, residents and qualified electors of the city of Pasadena,” sought a writ of mandamus under
In the 1950s, a string of cases held that certain businesses, such as a cemetery, a dentist’s office, and a private school, were not “places of public accommodation or amusement,” and therefore were not subject to the provisions of
Following the change in the law, the Supreme Court decided Burks v. Poppy Construction Co. (1962) 57 Cal.2d 463 [20 Cal.Rptr. 609, 370 P.2d 313], in which the plaintiffs alleged that the “defendants maintained a policy and practice of refusing to sell housing in the tract to Negroes and, because of plaintiffs’ race and color, defendants refused to sell any house in the tract to plaintiffs upon conditions offered to non-Negroes.” (Id. at p. 468.) The Supreme Court held that the plaintiffs had stated a cause of action under the Unruh Civil Rights Act, and offered no suggestion that the plaintiffs were required to purchase a house at a higher price or otherwise show monetary damages in order to establish standing. (Burks, at p. 471.) The same day, the Supreme Court also held that a demurrer was improperly sustained where a “plaintiff requested defendants to procure possession of the premises for him
In the habeas corpus proceeding in Cox, the petitioner stopped in a shopping center parking lot to chat with his friend, a “young man, who wore long hair and dressed in an unconventional manner.” (Cox, supra, 3 Cal.3d at p. 210.) The shopping center security officer asked the men to leave. They refused, stating their intent to make a purchase, but the security officer called police and they were arrested. (Id. at p. 210.) The Supreme Court considered whether the petitioner’s ejection from the premises ran afoul of the Unruh Civil Rights Act. The court held that the act was not limited to racial discrimination; “both its history and its language disclose a clear and large design to interdict all arbitrary discrimination by a business enterprise. That the act specifies particular kinds of discrimination—color, race, religion, ancestry, and national origin—serves as illustrative, rather than restrictive, indicia of the type of conduct condemned.” (Cox, at p. 212.) The court noted that a “business establishment may, of course, promulgate reasonable deportment regulations that are rationally related to the services performed and the facilities provided.” (Id. at p. 217.) However, “a business generally open to the public may not arbitrarily exclude a would-be customer from its premises and, upon the customer’s refusal to leave, subject him to criminal conviction.” (Id. at p. 216.) Although the petitioner in Cox made a purchase on the premises before being arrested, the Supreme Court gave no indication that his rights under the Unruh Civil Rights Act attached as a result of that purchase.
In 1985, the Supreme Court considered whether the Unruh Civil Rights Act prohibited sex-based discounts in Koire, supra, 40 Cal.3d 24. There, a male plaintiff visited nightclubs and car washes that offered discounts to women on certain days. The plaintiff requested the same discounts offered to women and the defendants refused. The plaintiff sued. The defendants argued “that the Unruh Act prohibits only the exclusion of a member of a protected class from a business establishment.” (Id. at p. 29.) Because the plaintiff was not excluded, but charged only different prices at certain times, the defendants argued that the Unruh Civil Rights Act did not apply. The Supreme Court rejected this argument: “The Act guarantees ‘full and equal accommodations, advantages, facilities, privileges, or services . . . .’ (§ 51.) The scope of the statute clearly is not limited to exclusionary practices. The Legislature’s choice of terms evidences concern not only with access to business establishments, but with equal treatment of patrons in all aspects of the business.” (Koire, at p. 29.) The court also stated, “The Act’s proscription is broad
The first case to directly examine standing under the Unruh Civil Rights Act appears to be Midpeninsula Citizens for Fair Housing v. Westwood Investors (1990) 221 Cal.App.3d 1377 [271 Cal.Rptr. 99] (Midpeninsula). In that case, Midpeninsula Citizens for Fair Housing (MCFH), “a nonprofit corporation which works to eliminate discriminatory housing practices and to secure equal housing opportunities for all people,” sued the owners and managers of an apartment complex called the Westwood. (Id. at p. 1380.) MCFH alleged that the Westwood’s one-person-per-bedroom policy violated the Unruh Civil Rights Act because it discriminated against families with multiple children, and it had a discriminatory impact on certain minority groups who tend to have larger families. (Midpeninsula, at p. 1381.) MCFH argued that it had standing to sue under the Unruh Civil Rights Act because it was “aggrieved” after spending time and resources investigating discrimination at the Westwood: “Westwood’s rental policy caused a drain on its limited resources, thus diverting needed funds from important educational and counseling services.” (Midpeninsula, at p. 1382.) The Court of Appeal noted that “the state Legislature has specifically conferred standing to sue under the Unruh Act upon the victims of the discriminatory practices and certain designated others, i.e., district or city attorneys or the Attorney General. [Citations.]” (Id. at p. 1386.) The court concluded, “[W]e reject MCFH’s contention that the Legislature intended, by adding the language ‘a person aggrieved by the pattern or practice,’ to confer standing upon an expanded class of plaintiffs whose civil rights had not been personally violated.” (Id. at p. 1384.)
In 2007 the Supreme Court discussed the Koire holding in Angelucci, discussed above. In Koire the plaintiff specifically requested, and was denied, the sex-based discounted prices. In Angelucci, the male nightclub patrons did not establish that they had requested that the women’s discounted nightclub prices be extended to them. The court clarified that the plaintiffs were not required to demand lower admission fees and be refused in order to establish an Unruh Civil Rights Act violation: “[T]he Act does not contain express language requiring that before a legal action may be filed, the victim of the asserted discrimination must have demanded equal treatment and have been
The Court of Appeal relied on Angelucci in Surrey, also discussed above. The plaintiff in Surrey alleged that sex-based discounts for an online dating service were discriminatory. The court noted that the plaintiff’s request for injunctive relief was moot because the discount program had already terminated. (Surrey, supra, 168 Cal.App.4th at p. 417.) In determining the plaintiff’s standing for his remaining claims, the court noted, “The focus of the standing inquiry is on the plaintiff, not on the issues he or she seeks to have determined; he or she must have a special interest that is greater than the interest of the public at large and that is concrete and actual rather than conjectural or hypothetical.” (Id. at p. 417.) The court said, “The mere fact that Surrey became aware TrueBeginnings was offering a discount policy for women subscribers at the time he accessed its [website] did not constitute a denial of his antidiscrimination rights under those statutes.” (Id. at p. 418.) The court specifically considered the holding in Angelucci: “[T]he California Supreme Court’s acknowledgement in Angelucci that ‘a plaintiff cannot sue for discrimination in the abstract, but must actually suffer the discriminatory conduct’ is fatal to Surrey’s position here. (Angelucci, supra, 41 Cal.4th at pp. 165, 175.) Because he did not attempt to or actually subscribe to TrueBeginnings’s services, Surrey did not suffer discrimination in any sense other than ‘in the abstract.’ Thus, in accordance with Angelucci itself, he lacks standing to seek relief (whether damages or injunctive relief) for violations of the Act . . . .” (Id. at p. 420.)
We agree with the reasoning in Surrey and Midpeninsula that a plaintiff who only learns about the defendant’s allegedly discriminatory conduct, but has not personally experienced it, cannot establish standing. Neither MCFH in Midpeninsula nor the plaintiff in Surrey experienced the denial of full and equal treatment by the defendants in those cases. Moreover, because the discount program in Surrey already had terminated, the plaintiff was not in a position to seek injunctive relief.
We do, however, find that the articulated bright-line rule in Surrey is not appropriate on the facts before us. Surrey stated that “a person must tender the purchase price for a business’s services or products in order to have standing to sue it for alleged discriminatory practices relating thereto.” (Surrey, supra, 168 Cal.App.4th at p. 416.) Neither the language of the Unruh Civil Rights Act nor its history supports application of this bright-line rule here. The history of the Unruh Civil Rights Act and the cases interpreting it make clear that when a person presents himself or herself to a business
This holding comports with the history and intention of the Unruh Civil Rights Act. The cases discussing discrimination under
Moreover, this case involves accommodation for a disability. As we noted last year in a case also involving Flowers, “denying a disabled person access to a public accommodation due to that person’s service dog constitutes a potential violation of the ADA.”8 (Flowers v. Prasad (2015) 238 Cal.App.4th 930, 937 [190 Cal.Rptr.3d 33].) “In 1992 . . . the Legislature amended section 51 to, among other changes, add the paragraph that became subdivision (f), specifying that ‘[a] violation of the right of any individual under the Americans with Disabilities Act of 1990 (Public Law 101-336) shall also constitute a violation of this section.’ (Stats. 1992, ch. 913, § 3, pp. 4283, 4284; see Stats. 2000, ch. 1049, § 2 [adding subdivision designations].)” (Munson, supra, 46 Cal.4th at p. 668.) “The general intent of the legislation was expressed in an uncodified section: ‘It is the intent of the Legislature in enacting this act to strengthen California law in areas where it is weaker than the Americans with Disabilities Act of 1990 (Public Law 101-336) and to retain California law when it provides more protection for individuals with disabilities than the Americans with Disabilities Act of 1990.’ (Stats. 1992, ch. 913, § 1, p. 4282.)” (Id. at p. 669.) Requiring disabled
We therefore depart from Surrey’s bright-line rule and hold that tender of payment of a discriminatory fee is not required to establish standing under the Unruh Civil Rights Act where a disabled individual has personally experienced discriminatory treatment at a business establishment. Plaintiffs were therefore not required to allege that they tendered the fee relating to Flowers’s service dog to establish standing under the Unruh Civil Rights Act and
B., C.*
*See footnote, ante, page 1118.
DISPOSITION
The trial court judgments are reversed and the matters are remanded with directions to vacate the orders sustaining the demurrers and enter new orders overruling the demurrers. Appellants shall recover their costs on appeal.
Epstein, P. J., and Willhite, J., concurred.
