PACIFIC GAS AND ELECTRIC COMPANY, Petitioner, v. THE SUPERIOR COURT OF SAN MATEO COUNTY, Respondent; ZACHARY ROWE, a Minor, etc., et al., Real Parties in Interest.
No. A146495
First Dist., Div. Two.
Apr. 5, 2017.
563
Horvitz & Levy, Robert H. Wright, Jeremy B. Rosen; Pacific Gas & Electric Company, Barbara J. Damlos; Sedgwick and Gregory C. Read for Petitioner.
No appearance for Respondent.
Rouda, Feder, Tietjen & McGuinn, Timothy G. Tietjen; Law Office of Gerald Clausen and Gerald Clausen for Real Parties in Interest.
OPINION
STEWART, J.—
Twelve-year-old Zachary Rowe suffered catastrophic injuries during a camping trip with his family to San Mateo County Memorial Park, when a 75-foot tree fell on his tent at 5:00 a.m. as he lay sleeping. Petitioner Pacific Gas and Electric Company (PG&E) owns and maintains an electricity
Here, we are asked to decide whether PG&E retains its immunity under
We reject that interpretation of
BACKGROUND
In the summer of 2012, Zachary and his family went camping in San Mateo County Memorial Park. Zachary‘s mother paid a $50 fee to the County for their five-night campsite rental.
An electrical line runs adjacent to the campsite they rented, which delivers electricity to nearby restrooms. PG&E owns and maintains the electrical line,
At approximately 5:00 in the morning on July 23, 2012, a 75-foot-tall tree fell and struck the tent at campsite D-1 that Zachary occupied with his mother. The tree was located approximately 30 to 40 feet from PG&E‘s power line, within striking distance of the line had it fallen in that direction. Zachary suffered catastrophic injuries.
Zachary, through his guardian ad litem, brought suit against PG&E, the County and others. He asserted a single cause of action against PG&E for negligence, alleging PG&E “was responsible for maintaining its electrical lines and adjacent areas in a safe condition,” but “negligently inspected and maintained the trees in proximity to the electrical lines adjacent to [the campsite] where [Zachary] was severely injured,” and failed to warn him and his mother “of the dangerous conditions presented by the diseased and rotten trees adjacent to the electrical lines and [his] campsite.”
PG&E moved for summary judgment on the ground that it owed Zachary no duty of care as a matter of law pursuant to
DISCUSSION
I. Overview
”
The third paragraph of
The consideration exception appears in the statute‘s fourth paragraph, which sets forth three “limitations on, or exceptions to, the landowner immunity it has granted.” (Klein, supra, 50 Cal.4th at p. 78.) It states: “This section does not limit the liability which otherwise exists (a) for willful or malicious failure to guard or warn against a dangerous condition, use, structure or activity; or (b) for injury suffered in any case where permission to enter for the above purpose was granted for a consideration other than the consideration, if any, paid to said landowner by the state, or where consideration has been received from others for the same purpose; or (c) to any persons who are expressly invited rather than merely permitted to come upon the premises by the landowner.” (
The principles governing our interpretation of this provision are set forth in Klein, supra, 50 Cal.4th 68, the Supreme Court‘s most recent decision to construe
II. The Statute by Its Terms Does Not Grant Any Immunity Where Consideration Is Paid for Recreational Use of Property.
At issue here, as noted, is the meaning of the phrase, “for injury suffered in any case where permission to enter for the above purpose was granted for a consideration other than the consideration, if any, paid to said landowner by the state, or where consideration has been received from others for the same purpose.” (
Turning first to the statutory text,
Nor are we at liberty to add terms to the statute, which in effect PG&E asks us to do. PG&E urges us to construe the statutory text as if it read: “for injury suffered in any case where permission to enter for the above purpose was granted for a consideration paid to the property owner invoking this section other than the consideration, if any, paid to said landowner by the state, or where consideration has been received from others for the same purpose.” In interpreting
In arguing for a construction that would narrow the operation of
PG&E‘s sole support for its position rests on a misreading of the Supreme Court‘s decision in Klein, which PG&E asserts “construed” the term “landowner” “as shorthand for the owner of a possessory or nonpossessory interest
PG&E similarly misplaces reliance on Johnson v. Unocal Corp. (1993) 21 Cal.App.4th 310, 316 [26 Cal.Rptr.2d 148] (Johnson) for the proposition that there must be an “‘actual payment of an entrance fee to the defendant.‘” (Italics added by PG&E.) Johnson did not address whether the consideration exception applies only to a party who receives payment of consideration; rather, it addressed what constitutes consideration for purposes of the exception. There the plaintiff, injured during a game of horseshoes at a company picnic on the defendant‘s land, argued his employer‘s execution of a hold harmless agreement in favor of the defendant constituted consideration within the meaning of the consideration exception to statutory immunity. (Johnson, at p. 312.) The court disagreed, holding “such a remote, potential ‘benefit‘” to the owner did not constitute consideration. (Id. at p. 315.) “The mere potential for reimbursement [by the employer] for defense costs incurred if a suit were filed is neither current payment for entry nor a benefit currently received for entry.” (Id. at p. 316.) Nothing in Johnson aids PG&E‘s argument.8
There are two possible meanings of the term “landowner” as used in the consideration exception in
III. Statutory Purpose
Our interpretation is consistent with the statutory purpose underlying the recreational immunity statute. In Delta Farms, supra, 33 Cal.3d at pages 707-708, which held
As Delta Farms indicates, the immunity conferred by
The statutory exceptions to the immunity must be understood in this context. The immunity was provided for a purpose, and the exceptions reflect situations in which the Legislature did not think “governmental encouragement” in the form of immunity was necessary to achieve that purpose. (See Calhoon v. Lewis (2000) 81 Cal.App.4th 108, 114 [96 Cal.Rptr.2d 394] [exception for those who are personally invited reflects Legislature‘s understanding that “[p]roperty owners do not need governmental encouragement to permit personal guests to come onto their land“].)
Regarding the consideration exception in particular, as Zachary states in his brief, “[o]nce permission to enter for a recreational purpose is conditioned upon the payment of a consideration, the property is no longer open to the public to recreate ‘free of charge‘” and so “[t]he reason for the immunity evaporates.” And, like the other exceptions, the consideration exception may reflect a legislative determination that “[p]roperty owners do not need governmental encouragement to permit [paying] guests to come onto their land” (cf. Calhoon v. Lewis, supra, 81 Cal.App.4th at p. 114), and that charging for entry means excluding those who do not pay, contrary to the legislative goal of broad public access. In any event, we agree with Zachary that in this situation, it would be illogical to retain immunity for some holders of property interests (i.e., nonpossessory interest holders who did not receive the consideration) when no purpose with which the Legislature was concerned would be served.
PG&E responds that allowing “one property owner‘s unilateral action [to] waive the immunity of all owners of the same property, private landowners would once again be compelled to bar their land to the public to avoid the threat of tort liability for all property owners.” That would happen, it argues, because the “uncertainty” and potential liability that would result “would create conflict among private landowners and increase the pressure on all landowners to bar their land to the public for recreational uses to avoid the threat of tort liability to any landowner.” But PG&E posits not a single, real-world example of how that might come to pass, and we are hard-pressed
For this reason, a construction of
PG&E also argues this construction would give the County “the unilateral power to abrogate PG&E‘s immunity” under
Furthermore, PG&E views this issue solely from the perspective of a property owner but that is too solipsistic a lens. The Legislature was concerned with recreational users too, and sought to strike “a fair balance” between the interests of parties on both sides of the equation. (Klein, supra, 50 Cal.4th at p. 82.) The means by which
We are not unmindful, as PG&E urges, that
IV. Legislative History
There is nothing in the statute‘s legislative history suggesting the Legislature intended that anomalous result. On the contrary, what little history there is confirms the Legislature remained focused solely on ensuring public recreational access to property.
The statute‘s legislative history is sparse. (Klein, supra, 50 Cal.4th at p. 82.) Enacted in 1963,
As originally enacted, the consideration exception itself was structurally identical to its present form but more narrow in scope. It specified that, “This section does not limit the liability which otherwise exists (b) for injury suffered in any case where permission to take fish and game, camp, hike or sightsee was granted for a consideration other than the consideration, if any, paid to said landowner by the State....” (Stats. 1963, ch. 1759, § 1, pp. 3511-3512.) The Legislative Counsel‘s digest described the exception as applying “where compensation is paid for the use of land.” (See Legis. Counsel‘s Dig., Sen. Bill. No. 639 (1963 Reg. Sess.) Stats. 1963, ch. 1759, Summary Dig., p. 63.) In 1978, the consideration exception was expanded to its present form, through an amendment adding the phrase, “or where consideration has been received from others for the same purpose.” (Stats. 1978, ch. 86, § 1, p. 221.) The Legislature did this at the same time it broadened the statute to extend to “any recreational purpose” and added a number of specified activities. (Stats. 1978, ch. 86, § 1, p. 221.)
As we see it, the critical juncture for purposes here came after that, in 1980 when the Legislature amended
It is clear that in doing so, the Legislature sought only to achieve parity for the holders of licenses, easements and other nonpossessory interests, to make their immunity commensurate with that of other landowners. For example, a report by the Assembly Judiciary Committee states: “Proponents argue that the distinction made between owners of possessory interests and owners of nonpossessory interests leads to anomalous results. They cite the situation in which the landowner avoids liability to a recreational user whereas the owner of an easement over the land cannot do so. Moreover, according to proponents, some easement or license owners would be liable to recreational users on land actually owned by another party even though such easement or license owners would not be liable in similar circumstances on their own land.” (Assem. Com. on Judiciary, Bill Digest of Assem. Bill No. 1966 (1979-1980 Reg. Sess.) as amended Feb. 11, 1980, p. 3.) Similarly, a Senate Judiciary Committee report pointed out “anomalous distinctions” the bill was intended to rectify.13 (Sen. Com. on Judiciary, Rep. on Assem. Bill No. 1966 (1979-1980 Reg. Sess.) as amended Feb. 11, p. 3.) According to that Senate report, “Proponents of this bill feel that it is anomalous to allow only owners of possessory interests in land to have the immunity of Sec. 846. Thus, the owner who grants an easement to another is protected, but the easement grantee is not. [¶] ... [¶] Proponents argue that those who come onto a landowner‘s property for construction, logging or other operations have no control over recreational users who may enter the property, yet will be liable for injuries. If those with nonpossessory interests are not afforded immunity, they say, numerous private landholdings in California will be closed to recreational users and the public policy behind Sec. 846 will be thwarted.” (Id. at pp. 3-4.) Other legislative history material reflects similar comments. (See Dept. of Fish and Game, Enrolled Bill Rep. on
There appears to have been no discussion of the consideration exception when the Legislature enacted this crucial amendment, which left the exception itself unchanged. Yet there is no indication in the legislative history the 1980 amendment was intended to grant license or easement holders greater immunity than that of a landowner, as would be true if the payment of an entrance fee abrogated only a landowner‘s immunity from suit but not that of anyone with lesser, nonexclusive rights in the land. For example, nothing in the legislative history evinces any intention by the Legislature to protect the easement holder who built the bridge in Darr from liability had the property owner relinquished its own immunity from suit by charging the plaintiff a fee to swim in the river.15 And nothing evinces any intention to immunize the excavation contractor in O‘Shea had the landowner in that case lost its immunity by charging the motorcyclist a fee to ride there. Yet in many cases someone with a nonpossessory right to access and use property might bear greater responsibility for creating a dangerous condition than the actual owner, as appears to be true, for example, of the excavation contractor in O‘Shea who built up a dangerous dirt pile. (See O‘Shea, supra, 97 Cal.App.3d at pp. 907-908.)
In short, what little legislative history there is indicates the Legislature intended to put the holders of nonpossessory property interests merely on an equal footing with property owners, not confer on them immunity for its own sake divorced from the statute‘s underlying purpose. Every indication is the Legislature sought only to correct an anomalous result, not to create one.
V. Public Policy Considerations
While not dispositive, we also consider the public policy implications of a particular interpretation, “to ensure that the construction we adopt will
As explained, construing the consideration exception to apply whenever consideration is paid for permission to enter land for a recreational purpose, regardless of whether the payment inures to the benefit of the defendant claiming immunity, is consistent with Legislature‘s goal of encouraging private landowners to open their land to public use. Landowners could safely be assured that charging a fee for access, even a minimal one simply to help defray any increased costs occasioned by public use, would not put them at potential risk of liability out of all proportion to their own responsibility for dangerous conditions on their property, because the risk of tort liability would be spread fairly among all potentially culpable joint tortfeasors, including those with a nonexclusive, nonpossessory right to use that land too.
The contrary interpretation urged by PG&E, even were it supported by the statute‘s literal language, leads to problematic results we do not think the Legislature intended. (See People v. Vidana (2016) 1 Cal.5th 632, 638 [206 Cal.Rptr.3d 556, 377 P.3d 805] [“‘a statute‘s literal terms will not be given effect if to do so would yield an unreasonable or mischievous result‘“].) Under PG&E‘s construction, every stripe of easement holder and licensee would have nearly absolute immunity from premises liability torts to paying recreational users of land, and to the landowners who permit them access there (see Prince v. Pacific Gas & Electric Co., supra, 45 Cal.4th 1151). Not only would this create a windfall untethered to the statute‘s purpose and potentially deter property owners from opening their land to public use, it also would be dangerous.
To start with, PG&E itself would owe a dangerously diminished duty of care to anyone paying to camp, hike or even picnic at a park served by its power. The accident here befell a child sleeping in a tent beneath an allegedly negligently maintained tree. But on PG&E‘s theory, the immunity it invokes under
PG&E argues hypotheticals such as these (for example, involving a paid park visitor getting electrocuted by a negligently maintained electrical wire), “test[] the boundaries of recreational immunity” under
More broadly, on PG&E‘s theory, all utilities and other easement or license holders would enjoy practically absolute immunity to paying patrons on other people‘s land, save for willful or malicious misconduct (
PG&E‘s interpretation also would lead to arbitrary distinctions. (See Klein, supra, 50 Cal.4th at p. 84.) For example, if a paying visitor to a private
VI. The Case Law
As we have said, the question here is one of first impression under California law. Nevertheless, the interpretation we adopt is supported by Ducey v. U.S. (9th Cir. 1983) 713 F.2d 504 (Ducey), in which the Ninth Circuit construed a similarly worded exception in Nevada‘s recreational immunity statute that, like
The plaintiffs in Ducey were spouses of three people killed in a flash flood while camping and boating in a national recreational area operated by the National Park Service. (Ducey, supra, 713 F.2d at p. 507Id. at pp. 507-509.) The Ninth Circuit held that they did, concluding both that these charges constituted “consideration” within the meaning of Nevada‘s statute even though technically they were not entrance fees (id. at pp. 509-512) and that they were paid in return for permission to recreate, as required by the statute (id. at pp. 513-515).17
Necessary to the court‘s decision on the latter point was its determination that Nevada‘s statute requires consideration to be paid to the party granting permission to recreate. The court explained, “Subsection 41.510(3)(b) does not specify to whom consideration must be tendered. We think it a fair reading of the provision, however, that consideration must be tendered directly or indirectly to a person who has the power to grant or deny permission to participate in recreational activities. Since the concession agreement did not give [the concessionaire] the power to deny permission to recreate in Eldorado Canyon, the exception is applicable only if consideration was tendered, directly or indirectly, to the United States in return for permission to recreate in Eldorado Canyon.” (Ducey, supra, 713 F.2d at p. 513, italics added.) For reasons irrelevant here, the Ninth Circuit concluded that the condition was met (because the United States had received consideration indirectly).18 (Ducey, at p. 513.)
The Ninth Circuit said that the result, moreover, was supported by general policy considerations underlying the consideration exception. (Ducey, supra, 713 F.2d at p. 514.) As Ducey explained, the consideration exception “is not simply a mechanical test,” but is intended “to serve more broadly as a proxy for differentiating the entrepreneur-landowner whose land is open for business reasons from the landowner whom the statute encourages to open his land on a gratuitous basis by the promise of immunity.” (Ibid., italics added.) In other words, the exception is concerned chiefly with ensuring public recreational access to land, not financial remuneration of landowners.
PG&E contends Ducey is distinguishable principally because there was a pattern of indirect payment of consideration to the party whose immunity was held to be abrogated. And that is accurate. But the reason those facts were relevant is because of the legal standard the court applied, a standard PG&E overlooks. In Ducey (unlike here) the party asserting immunity in litigation and the party with the power to grant access to recreational users were one and the same (i.e., the United States, the actual landowner). Under Ducey‘s construction of the immunity statute, though, the fact that the party claiming immunity had received consideration was legally irrelevant, and played no
PG&E cites several decisions it contends support a contrary interpretation, but we do not agree. Three addressed the question of what constitutes consideration for “permission to enter” under the statute, rejecting various benefits argued to qualify; they did not address to whom consideration for permission to enter must be paid. (See Johnson, supra, 21 Cal.App.4th at p. 312 [exception held inapplicable to hold harmless agreement signed as a condition for free use of picnic area] and footnote 8, ante; Miller v. Weitzen (2005) 133 Cal.App.4th 732, 739–741 [35 Cal.Rptr.3d 73] [dues paid to horse riding club that were used to maintain horse riding trails]; Mansion v. U.S. (9th Cir. 1991) 945 F.2d 1115, 1118-1119 [conjectural benefit of improved labor relations resulting from picnic held on employer‘s property].) PG&E also cites what it calls “persuasive dicta” that is simply an observation that confirms the legal issue we decide here is a question of first impression. (See Johnson, at p. 316 [“we are aware of no cases in which the consideration did not involve the actual payment of an entrance fee by plaintiff to defendant“].) In addition, PG&E cites a portion of the First Circuit‘s per curiam decision in Collins v. Martella (1st Cir. 1994) 17 F.3d 1 construing New Hampshire‘s recreational use immunity statute, stating that the consideration exception is not triggered “simply because a benefit is paid to an unconnected third party.” (Id. at pp. 2, 5.) The parties disagree whether this language is dictum or an alternative holding but, regardless, PG&E takes the language out of context. In that case, none of the owners of the beachfront property in question were paid anything by the plaintiff for access to the beach where he was injured. The court merely rejected the argument, nonsensical on its face, that under New Hampshire‘s statute, the purchase price the property owners paid third parties to buy their lots constituted consideration paid for the plaintiff‘s access to the private beach. (See id. at p. 5.) We glean nothing of any import from the language PG&E quotes from Collins.
Finally, at oral argument, PG&E invoked Wang, supra, 4 Cal.App.5th 1, a personal injury action brought against owners of a meadow who had permit-ted participants in a historic wagon train event to camp on their property
At oral argument, PG&E argued Wang held that the fee paid by event participants to the event organizer did not trigger the consideration exception because it was not paid to the defendant landowner, which supported PG&E‘s construction of the statute. Counsel stated that in Wang “the court of appeal rejected an argument that that fee would waive the defendant landowners’ immunity,” and quoted the following portion of Wang: “That [event organizer] raises funds and charges participants to join the Wagon Train does not affect the landowner‘s reliance on
We disagree. Wang is inapposite. The quoted portion of the opinion has nothing to do with the consideration exception. It concerns the question whether the wagon train was for a recreational purpose, which is an entirely different issue. (See Wang, supra, 4 Cal.App.5th at pp. 28-30.)
VII. PG&E‘s Remaining Contentions
Having concluded the consideration exception applies here, we come to PG&E‘s remaining arguments in favor of narrowing the exception, and reject them.20
A. The Statute‘s Breadth
PG&E argues the consideration exception should be narrowly construed, citing authority that
B. The Invitation Exception
PG&E also argues the consideration exception should be construed in parallel with the separate exception for invited persons. That exception, applicable “to any persons who are expressly invited rather than merely permitted to come upon the premises by the landowner” (
Jackson predates Klein‘s admonition that
To start with, the two exceptions differ structurally.
The two exceptions also differ considerably in terms of their relationship to the Legislature‘s goal of encouraging free public access to property. Zachary argues, and we agree, that, unlike charging consideration for permission to enter, an express invitation does not undermine the statute‘s purpose. As Zachary puts it, “Exacting consideration in exchange for permission to enter for a recreational purpose necessarily excludes those unwilling to pay the consideration, and thus entirely vitiates the statute‘s objective of holding the property open to the public free of charge. In contrast, expressly inviting one person to enter does not thereby exclude others not expressly invited. The public at large remains free to enter and recreate without charge.” In other words, when consideration is charged for the public to enter property to
Finally, a narrow interpretation of the invitation exception would not discourage property owners from opening their lands to recreational use in the way we have explained PG&E‘s construction of the consideration exception would. Unlike the consideration exception (“where permission to enter for the above purpose was granted for a consideration” (
DISPOSITION
We do not think the Legislature intended to confer on holders of nonpossessory interests absolute immunity from premises liability to paying recreational visitors of property (save for willful and malicious misconduct), in circumstances in which even the property‘s owner would not be immune.
The petition for writ of mandate and/or prohibition is denied. The stay of trial court proceedings this court entered on February 4, 2016, is hereby lifted as between real party in interest Zachary Rowe and petitioner Pacific Gas
Kline, P. J., and Richman, J., concurred.
A petition for a rehearing was denied April 20, 2017, and the opinion was modified to read as printed above. Petitioner‘s petition for review by the Supreme Court was denied July 19, 2017, S241968. Chin, J., and Corrigan, J., did not participate therein.
