Opinion
Larry Plancich (Plancich) sued United Parcel Service, Inc. (UPS), for (1) failing to pay overtime compensation (Lab. Code, §§ 510, 1194, 1198); (2) failing to provide meal and rest breaks (Lab. Code, §§ 226.7, 512); (3) failing to keep, maintain, and furnish accurate wage statements and time records (Lab. Code, §§ 226, 226.3, 1174, 1174.5); (4) conversion (Civ. Code, § 3336); (5) a preliminary and permanent injunction, as well as other equitable relief; and (6) unfair competition (Bus. & Prof. Code, § 17200 et seq.). The trial court found in favor of UPS on the unfair competition cause of action. A jury found in favor of UPS on the remaining causes of action. The trial court awarded costs to UPS, but then granted Plancich’s motion to strike costs. UPS contends that the trial court erred by granting the motion to strike costs. We reverse the order granting the motion to strike costs.
FACTUAL AND PROCEDURAL HISTORY
In his complaint, Plancich alleged he was employed by UPS as an onroad supervisor. Plancich asserted he worked more than eight hours per day, and
As detailed ante, Plancich sued UPS based upon a variety of causes of action, including failing to pay overtime compensation and failing to provide breaks. The jury found Plancich was an exempt employee under one or more of the following exemptions: executive exemption, administrative exemption, or the Motor Carrier Act of 1980 (Pub.L. No. 96-296, July 1, 1980, 94 Stat. 793). As to the unfair competition cause of action, the trial court found in favor of UPS. The trial court entered judgment in favor of UPS, and ordered that Plancich take nothing from UPS. The trial court further ordered that UPS recover its costs from Plancich, in an amount to be determined.
On November 19, 2009, UPS filed a memorandum of costs with a total cost amount of $38,387.20. Plancich filed a motion to strike and tax costs. Plancich argued that in Earley v. Superior Court (2000)
UPS opposed Plancich’s motion. UPS argued that Code of Civil Procedure section 1032, subdivision (b) required that costs be awarded to the prevailing party. UPS asserted, Earley was irrelevant because the decision did not address a prevailing party’s right to costs under Code of Civil Procedure section 1032, subdivision (b). UPS further asserted its costs were “reasonably necessary.”
On February 2, 2010, Plancich responded to UPS’s opposition. Plancich argued section 1194 prevented UPS from recovering its costs, and UPS’s costs could not be apportioned, because all of the claimed costs related to the section 1194 claim.
On February 10, 2010, the trial court held a hearing on the motion. The trial court noted UPS’s motion for costs was unsupported by any invoices or
In regard to apportionment, the trial court found Plancich’s other claims— the nonovertime claims—were not contract claims. The trial court noted, “[t]he distinction between statutory and contract wage claims is critical in terms of the relationship between public policy and attorney fees and costs.” Since all of Plancich’s claims were statutorily based, the trial court concluded any apportionment of costs would “defeat the legislative intent and create a chilling effect on workers who have had their statutory rights violated.” Accordingly, the trial court granted the motion to strike costs in its entirety.
DISCUSSION
A. Code of Civil Procedure Section 1032
UPS contends it is entitled to costs pursuant to Code of Civil Procedure section 1032, subdivision (b). We agree.
Code of Civil Procedure section 1032, subdivision (b), provides: “Except as otherwise expressly provided by statute, a prevailing party is entitled as a matter of right to recover costs in any action or proceeding.” In Murillo v. Fleetwood Enterprises, Inc. (1998)
Section 1194, subdivision (a), provides: “Notwithstanding any agreement to work for a lesser wage, any employee receiving less than the legal
“The rules governing statutory interpretation are well settled. We begin with the fundamental principle that ‘[t]he objective of statutory construction is to determine the intent of the enacting body so that the law may receive the interpretation that best effectuates that intent. [Citation.]’ [Citation.] To ascertain that intent, ‘we turn first to the words of the statute, giving them their usual and ordinary meaning. [Citations.]’ [Citation.] The statute’s every word and clause should be given effect so that no part or provision is rendered meaningless or inoperative. [Citations.] Moreover, a statute is not to be read in isolation, but construed in context and ‘ “with reference to the whole system of law of which it is a part so that all may be harmonized and have effect. [Citations.]” ’ [Citation.] ‘If the statutory language is unambiguous, “we presume the Legislature meant what it said, and the plain meaning of the statute governs.” [Citations.]’ [Citations.]” (Compulink Management Center, Inc. v. St. Paul Fire & Marine Ins. Co. (2008)
Section 1194 gives a prevailing employee the right to recover attorney’s fees and costs; however, the statute makes no mention of prevailing employers. In other words, the statute does not contain express language excluding prevailing employers from recovering their costs; any suggestion that a prevailing employer is prohibited from recovering its costs is, at most, implied by the language of section 1194. (See Murillo, supra,
Our interpretation of Code of Civil Procedure section 1032, subdivision (b) and Labor Code section 1194, does not render section 1194 meaningless or inoperative. Section 1194 is still necessary for purposes of
Plancich asserts Code of Civil Procedure section 1032, subdivision (b) is not applicable to the instant case. Plancich argues Labor Code section 218.5 governs whether a prevailing party can collect costs in a suit for nonpayment of wages.
Labor Code section 218.5 provides: “In any action brought for the nonpayment of wages, fringe benefits, or health and welfare or pension fund contributions, the court shall award reasonable attorney’s fees and costs to the prevailing party if any party to the action requests attorney’s fees and costs upon the initiation of the action. This section shall not apply to an action brought by the Labor Commissioner. . . . [f ] This section does not apply to any action for which attorney’s fees are recoverable under [Labor Code s]ection 1194.”
Assuming, without deciding, that Plancich is correct and Labor Code section 218.5 controls the awarding of costs in suits brought for unpaid wages, then UPS should still be awarded its costs. UPS was the prevailing party in this action. In UPS’s answer to Plancich’s complaint, UPS requested that UPS “be awarded its reasonable costs and attorneys’ fees.” Accordingly, UPS fulfilled the requirements for being awarded costs under Labor Code section 218.5, namely, it was the prevailing party and it requested costs be awarded at the initiation of the action. Accordingly, we are not persuaded by Plancich’s argument.
Next, Plancich raises an argument that relies primarily on the Earley opinion. In Earley, the petitioners were seeking to recover unpaid overtime compensation. (Earley, supra,
The petitioners argued section 1194 was a specific statute that allowed for attorney’s fees to be awarded only to a prevailing employee—not an employer. {Earley, supra,
The Earley court examined the legislative histories of Labor Code sections 218.5 and 1194. {Earley, supra, 79 Cal.App.4th at pp. 1427-1429.) Based on that history, the appellate court concluded the Legislature intended to give special treatment to claims for unpaid overtime compensation when it enacted section 1194. {Earley, at p. 1428.) Additionally, the appellate court noted that one-way fee shifting provisions tend to serve specific public policies, which would be vitiated if the fee awards were reciprocal. {Id. at p. 1429.) Based upon the foregoing, the appellate court held that section 1194 “should be recognized as the sole statutory authority for the award of attorney’s fees upon the successful prosecution” of employees’ overtime claims. {Earley, at p. 1429, italics omitted.)
The appellate court went on to conclude that absent class members could not be held liable for a prevailing employer’s attorney’s fees and costs. {Earley, supra,
We do not find the Earley opinion to be persuasive authority in this case, because the Earley opinion did not discuss the costs provision of Labor Code section 1194 in relation to Code of Civil Procedure section 1032, subdivision (b). Rather, the opinion was focused on the issue of attorney’s fees in
Relying on the Earley case, Plancich argues that allowing a prevailing employer to collect costs will have a chilling effect on employees bringing suit for unpaid overtime compensation. While Plancich may be correct, we cannot ignore the plain language of Code of Civil Procedure section 1032, subdivision (b), and Labor Code section 1194. (See Murillo, supra,
B. Evidence of Costs
Plancich, in his respondent’s brief, contends UPS did not present evidence of its costs, such as invoices or receipts. We do not address this issue, because the trial court did not award a specific amount of costs to UPS, rather, the trial court granted the motion to strike costs in its entirety. Whether UPS has evidence to support the costs that it is claiming is not ripe for our review, because thus far a specific amount of costs has not been awarded. (See Low v. Golden Eagle Ins. Co. (2002)
The order granting the motion to strike costs is reversed. Appellant is awarded its costs on appeal.
Richli, Acting P. J., and King, J., concurred.
Notes
In Murillo, our Supreme Court noted “that when the Legislature intends to restrict the recovery of costs to just one side of a lawsuit, it knows how to express such restriction. (See Pub. Contract Code, § 10421 [the state, or person acting on the state’s behalf, may sue and, if successful, collect costs and attorney fees; contracting entity not entitled to recover costs or attorney fees].)” (Murillo, supra,