PACIFIC LEGAL FOUNDATION, Plaintiff and Appellant, v. UNEMPLOYMENT INSURANCE APPEALS BOARD, Defendant and Appellant.
S.F. No. 24139
Supreme Court of California
Mar. 2, 1981.
101
Ronald A. Zumbrun, John H. Findley and Sandra M. Robertson for Plaintiff and Appellant.
George Deukmejian, Attorney General, and Carol Hunter, Deputy Attorney General, for Defendant and Appellant.
John A. Fillion, Jordan Rossen, Stephen P. Berzon, Evelyn R. Frank and Altshuler & Berzon as Amici Curiae on behalf of Defendant and Appellant.
OPINION
NEWMAN, J.—The California Unemployment Insurance Appeals Board (board) challenges a judgment declaring invalid its decision that
Plaintiff sought declaratory relief under
The principal issue is whether claimant‘s job-seeking efforts complied with requirements that, while receiving benefits, he be “available for work” (
We conclude the facts stated by the board support its holding that claimant followed the seek-work instructions given him by the public employment office. The board correctly ruled that, by doing so, he fulfilled his duty to seek work for purposes of benefit eligibility. Therefore, we reverse the judgment, but we uphold the order denying attorneys’ fees.
I. Facts.
Thurman Carroll, age 64, had long worked as a gardener and caretaker. He lost his caretaker‘s job in February or March 1975. On June
On June 14 he was asked to complete a questionnaire about his seek-work efforts for the two weeks just ended. He declared he had responded to three classified advertisements for caretakers and had gone to an employment office. The EDD then denied benefits for those weeks on grounds his compliance with the June 2 instructions had not been diligent, and he had not made himself genuinely available for work.
On appeal he testified as follows at a hearing before an administrative law judge (ALJ): During the two weeks ending June 14 he registered at the Marysville farm labor office. He checked there or at a private employment office for farm work and was told there would be none “until tomatoes started.” He scanned three newspapers daily for caretaker work and sought work at two industrial plants, including one where he thought a caretaker was needed.
Asked about his failure to contact farmers personally, he stated that those he knew were not hiring. He indicated that the gas necessary to travel from farm to farm was more than he could afford.
The ALJ upheld the decision to deny benefits on two grounds. First, lack of diligence in seeking farm work as instructed disqualified Carroll for benefits under
The board disagreed, holding that
Plaintiff sought a judicial declaration that the board‘s decision was invalid. The trial court adopted the ALJ‘s reasoning. Exercising its independent judgment, it found that the evidence showed Carroll‘s failure to comply with EDD instructions to seek farm work. It held that his lack of diligence in searching for all suitable work rendered him unavailable for work under
The board challenges the trial court‘s rulings under both
2. Scope of review under section 409.2.
This court recently reaffirmed that a dispute about an employer‘s liability for unemployment benefits affects both the claimant‘s and the employer‘s “fundamental vested rights.” Hence, when either challenges a board decision by administrative mandamus (
But one suing under
Further, as amicus United Auto Workers International Union argues, the Legislature apparently intended to grant quite limited review rights to the class of “interested” nonparties entitled to seek declaratory relief against a precedent decision.
In almost identical words
A challenge to agency rulemaking may involve judicial review of a factual record when the rule must be justified by evidence of specified conditions. (See, e.g., California Hotel & Motel Assn. v. Industrial Welfare Com. (1979) 25 Cal.3d 200, 211-213 [157 Cal.Rptr. 840, 599 P.2d 31]; Pitts v. Perluss (1962) 58 Cal.2d 824, 833 [27 Cal.Rptr. 19, 377 P.2d 83].) But the board‘s precedent decisions simply interpret controlling statutes and regulations. Their correctness as precedent relates to law and policy, not to adjudicative fact. (Cf. International Business Machines v. State Bd. of Equalization (1980) 26 Cal.3d 923, 931, fn. 7 [163 Cal.Rptr. 782, 609 P.2d 1].) The board‘s resolution of evidentiary
For similar reasons, a declaratory judgment obtained by a third person under
Indeed, if the section were interpreted to mean that third persons not affected by “adjudicatory aspects” of the original proceeding could bring an action to which the original disputants were not parties—in which adjudicative facts, as well as orders directly concerning those disputants could be reexamined—there would be serious due process problems.
We recognize that a superficial reading of
Yet the separate reference in
It follows that in a third-party declaratory action under
In deciding whether the board‘s application of governing law may be upheld, reviewing courts will apply settled standards. Statutory construction is a matter of law for the courts (Carmona v. Division of Industrial Safety (1975) 13 Cal.3d 303, 310 [118 Cal.Rptr. 473, 530 P.2d 161]), and administrative interpretations must be rejected where contrary to statutory intent. (Mooney v. Pickett (1971) 4 Cal.3d 669, 681 [94 Cal.Rptr. 279, 483 P.2d 1231].) But because of the agency‘s expertise, its view of a statute or regulation it enforces is entitled to great weight unless clearly erroneous or unauthorized. (International Business Machines v. State Bd. of Equalization, supra, 26 Cal.3d at pp. 930-931; Rivera v. City of Fresno (1971) 6 Cal.3d 132, 140 [98 Cal.Rptr. 281, 490 P.2d 793].) Courts may not substitute their judgment for that of the agency on matters within the agency‘s discretion. (See Credit Ins. Gen. Agents Assn. v. Payne (1976) 16 Cal.3d 651, 656-657 [128 Cal.Rptr. 881, 547 P.2d 993].)
3. Compliance with seek-work instructions.
The board argues the trial court erred in finding that Carroll did not comply diligently with seek-work instructions. We agree. The legislative history reinforces the board‘s conclusion that Carroll‘s registering at a state farm labor office and relying on its job information was reasonable compliance.
The seek-work statute, as adopted in 1947, provided that claimant must comply with seek-work “regulations.” (See Stats. 1953, ch. 308,
The Legislature apparently believed it was unfair to make each claimant guess what seek-work effort was necessary to maintain eligibility in his case. It therefore eliminated the open-ended “regulations” requirement and substituted a mandate that the EDD give each claimant “specific” instructions—the guidance appropriate for his particular circumstance.
Under
So far as the board‘s decision here reveals, when the EDD told Carroll to seek farm work, an occupation unfamiliar to him, its only “specific” instruction was to register at the state farm labor office. He did so5 and was told that no farm work was available “until tomato harvest.” He had no contrary information, and there is no indication he knew or should have known farm labor conditions or hiring practices. If the office‘s advice was true, farm-to-farm inquiries would have been expensive, time-consuming, and useless. They would have detracted from his simultaneous efforts, also required by the EDD, to become reemployed as a caretaker. Under those circumstances and according the
In any event the 1975 Regulations provided that registration alone might be deemed an adequate work search whenever the EDD found “that for a particular locality, occupation, or class of claimant during a certain interval, the prospects of suitable job openings other than those listed with the public employment service are so remote that any effort to seek work other than by registration for work ... would be fruitless to the claimant and burdensome to employers, ...” (Regs., former § 1253, subd. (c)-1; see now
4. Work search as requisite of availability under section 1253, subdivision (c).
The board next says the trial court erred by concluding that, even if Carroll did follow seek-work instructions under
That seems correct. The trial court‘s interpretation contravenes the established meaning of “availability for work.” In Sanchez v. Unemployment Ins. Appeals Bd. (1977) 20 Cal.3d 55 [141 Cal.Rptr. 146, 569 P.2d 740], this court rejected a contention that claimant‘s self-imposed time restrictions rendered her unavailable even though it materially reduced her chance for reemployment and prevented her from working at times normal in her usual occupation. “... ‘Availability for work’ within the meaning of
In other words, “availability” reflects a concern not as to the search for work but as to the restrictions claimant imposes on the work he will accept. That view is accepted in states with similar statutes. (Sanchez, supra, 20 Cal.3d at p. 64.)
Settled principles of statutory construction also support the board‘s position. Wherever reasonable, interpretations which produce internal harmony, avoid redundancy, and accord significance to each word and phrase are preferred. (Moyer v. Workmen‘s Comp. Appeals Bd. (1973) 10 Cal.3d 222, 230-231 [110 Cal.Rptr. 144, 514 P.2d 1224].)
Early versions of the California statute included sections dealing with “availability” and “registration” but contained no seek-work language. (See, e.g., Stats. 1939, ch. 674, § 13, p. 2150; Stats. 1935, ch. 352, § 56, p. 1238.) That language was added in 1947 as subdivision (f) of section 57. (Stats. 1947, ch. 651, § 1, pp. 1692-1693, supra.) It couched the requirement in terms of compliance with all “regulations.” (See discussion ante.)
In 1953 the law was revised and enacted as the
The 1961 amendment rephrased “availability” and “seek work” in separate subdivisions. The requirement of a job search in compliance with “regulations” gave way to the more limited command that claimant follow “specific and reasonable [seek-work] instructions” from the local employment office. (Stats. 1961, ch. 2208, § 1, p. 4553.)
Plaintiff argues that
Even if
Plaintiff says the Legislature has acquiesced in rulings by the EDD, the board and the courts that “availability for work” includes a distinct seek-work requirement. These rulings, it contends, are administrative constructions of the statute to which we should defer. We disagree.
The courts have suggested that a claimant may be “unavailable” under
Several board decisions are cited for the principle that the law imposes a duty to seek all suitable work. (See, e.g., P-B-260 (Gosha) (1976); P-B-170 (Anderson) (1976); P-B-61 (Miller) (1969); P-B-17 (Griggsby) (1968); P-B-1 (Anderson) (1967); Benefit Dec. Nos. 5989 (Warford) (1953); 5733 (O‘Gatty) (1951); 5718 (Daum) (1951).) None clearly rules, though, that the current wording of
Finally, plaintiff points to section 1253, subdivision (c)-2 of the Regulations, which purports to implement
Recent changes in the Regulations, however, evidence once more the department‘s recognition that seek-work requirements should be considered under
The 1979 amendments then repealed section 1253, subdivision (c)-1; and its substance was moved to a new section, 1253, subdivision (e)-1, adopted under authority of
In any event, administrative construction of a statute, while entitled to weight, cannot prevail when a contrary legislative purpose is apparent. (Sanchez, supra, 20 Cal.3d 55, 67; Wilkinson v. Workers’ Comp. Appeals Bd. (1977) 19 Cal.3d 491, 501 [138 Cal.Rptr. 696, 564 P.2d 848]; Rivera v. City of Fresno, supra, 6 Cal.3d 132, 140.) We think section 1253, subdivision (c)-2 of the Regulations, insofar as it suggests a separate seek-work requirement under
We therefore conclude that an applicant for benefits fulfills his duty to seek work if he follows with reasonable diligence the “specific and reasonable [seek-work] instructions of a public employment office.” (
5. Attorneys’ fees.
Our disposition obviates plaintiff‘s contention on cross-appeal that the trial court erred by denying its postjudgment motion for attorneys’ fees. The motion and cross-appeal were premised on plaintiff‘s status as successful party in the lawsuit. (See, e.g.,
The judgment is reversed. The order denying plaintiff‘s motion for attorneys’ fees is affirmed.
Bird, C. J., Tobriner, J., and Mosk, J., concurred.
RICHARDSON, J.—I concur in the result reached by the majority. However, I believe that once the majority has determined that the scope of review under
I further concur in the majority‘s conclusion that a claimant is entitled to rely on the specific “course of action” recommended by the EDD “[w]hen the EDD is better situated than the claimant to know ‘customary methods of obtaining work and the current condition of the labor market.‘” (Ante, p. 112.) I emphasize, however, that it is not my understanding that the majority holds, because it is not at issue, that the EDD in all cases must prescribe a detailed seek-work plan for all claimants. In some instances, a claimant‘s superior knowledge of the employment market may place a heavier burden on such claimant to use his initiative in seeking work.
In summary, the case before us does not present the questions—what constitutes (1) adequate “specific and reasonable instructions” by the EDD, or (2) adequate compliance with such instructions by all claimants, who must make “all reasonable effort to secure employment on
Clark, J., concurred.
