FACTUAL AND PROCEDURAL BACKGROUND
Sweetwater and Julian are public school districts in San Diego County, California. Sweetwater provides educational services to over 40,000 students in several cities in San Diego County, including Chula Vista and National City. Julian serves just over 300 students from preschool to eighth grade; it does not serve high school students.
Diego Plus operates the charter schools Diego Valley and Diego Springs Academy (Diego Springs). Diego Plus pays fees to Julian for its Diego Valley charter school program. Diego Springs operates resource centers at 2 North Euclid Avenue in National City (the National City facility) and at 310 Broadway in Chula Vista (the Chula Vista facility). Both facilities are located within Sweetwater's school district boundaries.
In March 2015 Sweetwater sent letters to Julian and Diego Valley requesting that they stop operating within Sweetwater's geographic boundaries. In June 2015, after neither Julian nor Diego Valley responded, Sweetwater filed this action to enforce the Charter Schools Act (CSA) ( Ed. Code, § 47600 et seq. ). In its petition for a writ of mandate, Sweetwater alleged that Julian approved a charter petition for Diego Valley and that Diego Valley has been operating charter schools outside Julian's geographic boundaries.
On October 17, 2016, the third district filed its opinion in Anderson Union High School Dist. v. Shasta Secondary Home School (2016)
In March 2017 several Diego Valley students moved to intervene, alleging that Sweetwater's lawsuit would deprive them of their constitutional right of access to a quality public education.
The trial court issued a tentative ruling, which it later affirmed after hearing the parties' arguments. The court declined to issue a writ of mandate directing that Julian revoke Diego Valley's charter, essentially concluding this form of relief would unreasonably disrupt students. The court declared that Diego Valley's operation at the National City and Chula Vista facilities "would be in violation of the Education Code" and enjoined Diego Valley from operating both facilities.
Thereafter, Sweetwater moved for an attorney fees award under section 1021.5, arguing, among other things, that its action acted as a catalyst for appellants' pursuit of the SBE waiver. The court granted the motion, finding that the requirements of section 1021.5 were satisfied, and awarded Sweetwater $166,027.05 in attorney fees. Appellants timely appealed from the fee award, but did not appeal the order on the merits of Sweetwater's claims.
DISCUSSION
I. SECTION 1021.5
"The Legislature adopted section 1021.5 as a codification of the private attorney general doctrine of attorney fees developed in prior judicial
"A court may award attorney fees under section 1021.5 only if the statute's requirements are satisfied. Thus, a court may award fees only to 'a successful party' and only if the action has 'resulted in the enforcement of an important right affecting the public interest ....' [Citation.] Three additional conditions must also exist: '(a) a significant benefit, whether pecuniary or nonpecuniary, has been conferred on the general public or a large class of persons, (b) the necessity and financial burden of private enforcement ... are such as to make the award appropriate, and (c) such fees should not in the interest of justice be paid out of the recovery, if any.' "
The determination whether a party has met the requirement for an award of fees and the reasonable amount of such an award are matters best decided
II. ANALYSIS
As a preliminary matter, we note that a trial court is "not required to issue a statement of decision with regard to [a] fee award." ( Ketchum v. Moses (2001)
We reject appellants' assertion that the de novo standard of review applies to our review. Such review is only warranted where the determination of whether the criteria for an award of attorney fees has been satisfied amounts to statutory construction and a question of law. ( Whitley , supra ,
Appellants assert that Sweetwater did not qualify as a successful party under section 1021.5 as a matter of law because: (1) it failed to achieve its primary goal, (2) the relief granted by the trial court was illusory and inconsequential, and (3) its suit was not a catalyst in motivating the actions of either Julian or Diego Valley. As we shall explain, we reject this argument because Sweetwater obtained a judgment in its favor and qualified as a successful party for this reason. Appellants' reliance on the catalyst theory of recovery and cases pertaining to this theory are inapposite.
Under section 1021.5, "[a] 'successful party' means a 'prevailing' party." ( Bowman v. City of Berkeley (2005)
Here, appellants argued to the trial court that Sweetwater failed to achieve its primary litigation goal and that the minimal relief it obtained was different than requested, had no impact on Diego Plus, and was not the catalyst for Diego Plus taking any action. The trial court necessarily rejected these arguments.
The prayer in Sweetwater's petition requested that a peremptory writ of mandate issue to Julian to: (1) set aside Diego Valley's charter, (2) discharge its oversight duties over Diego Valley, (3) refrain from approving charter schools operating outside Julian's geographic boundaries, and (4) revoke Diego Valley's charter and prohibit Diego Valley from operating charter schools in violation of the charter and the law. It requested that a peremptory writ of mandate issue to Diego Valley to: (1) submit a legally sufficient charter petition complying with the requirements of the CSA, including submission to the school district(s) in which it proposes to operate; and (2) with respect to location of its charter school(s), strictly comply with the location and notice provisions of the CSA by following the requisite process outlined in Education Code sections 47605 and 47605.1.
Sweetwater requested declaratory relief stating that the operation of a charter school by Diego Valley outside of Julian's geographic boundaries
Before trial, the court issued a tentative ruling. After trial, the court adopted its
Appellants contend that Sweetwater is not a successful party for purposes of an attorney fee award under section 1021.5 because Sweetwater did not prevail on any of its claims as to Julian. Appellants are correct that Sweetwater did not prevail on any of its claims as to Julian, an argument Julian made to the trial court. The trial court likely rejected this argument, however, because it ignores settled law that a party need not prevail on every claim to be considered a successful party under section 1021.5. ( Wallace , supra ,
Appellants next assert that Sweetwater does not qualify as a successful party because the declaratory and injunctive relief awarded by the trial court
"As to the second cause of action, the operation of Diego Valley at the National City Facility and the Chula Vista Facility would be in violation of the Education Code, therefore Sweetwater is entitled to declaratory relief in that regard. Sweetwater is also entitled to injunctive relief prohibiting Diego Plus from operating as Diego Valley at the National City Facility and Chula Vista Facility. Sweetwater's request for declaratory and injunctive relief is therefore granted." (Italics added.)
Appellants contend that the trial court phrased its order in the subjunctive because Sweetwater failed to establish that Diego Valley ever operated at either the National City facility or the Chula Vista facility and that the court fashioned unnecessary relief. The record shows that one of the primary factual disputes before the trial court was whether appellants were
To qualify for declaratory relief under section 1060 a plaintiff must show its action is a proper subject of declaratory relief and that an actual controversy exists involving justiciable questions relating to the rights or obligations of a party. ( Brownfield v. Daniel Freeman Marina Hospital (1989)
As Julian correctly noted in its arguments to the trial court, declaratory relief is not appropriate where a controversy is "conjectural, anticipated to occur in the future, or an attempt to obtain an advisory opinion from the court." ( Brownfield , supra ,
The declaratory and injunctive relief granted by the trial court changed the legal relationship between the parties. Traditional (noncatalyst) success requires the claimant to prevail by obtaining " 'a judicially recognized change in the legal relationship between the parties.' " ( Tipton-Whittingham v. City of Los Angeles (2004)
In any event, even assuming the trial court found Sweetwater to be a successful party under a catalyst theory, the record supports Sweetwater's entitlement to successful party status under this theory. Under the catalyst theory, plaintiffs may be considered to be the prevailing party when they achieve their litigation objectives, even though they succeed " 'by means of [the] defendant's "voluntary" change in response to the litigation,' rather than by means of a final judgment." ( Graham , supra ,
Sweetwater's petition makes clear that its central grievance was appellants' operation of charter schools within its geographic boundaries.
B. Sweetwater Satisfied the Remaining Section 1021.5 Criteria
Even if the trial court did not err in determining that Sweetwater was a successful party, appellants claim that Sweetwater failed to establish that its action (1) sought to enforce an important right affecting the public interest, (2) conferred a significant benefit on the general public or a large class of persons, and (3) was not necessary or burdensome enough to warrant an award of attorney fees. ( Vasquez , supra , 45 Cal.4th at pp. 250-251,
1. Enforcement of important right affecting public interest
Appellants contend that this action did not enforce the right of children to receive a public education, any constitutional rights, or any other important public right. They again assert that "the trial did not hold that either Diego Valley or Julian violated any law, but rather that only Diego
In determining whether the right vindicated in a particular case is sufficiently important to justify a fee award, courts must "exercise judgment in attempting to ascertain the 'strength' or 'societal importance' of the right involved" ( Woodland Hills Residents Assn, Inc. v. City Council (1979)
In Woodland Hills , the plaintiffs prevailed on a procedural rather than substantive basis and sought attorney fees under section 1021.5. ( Woodland Hills , supra ,
Legislative history materials show that the issue of where charter schools would operate has been an issue since the inception of the CSA. The legislative counsel noted that despite "the lack of any explicit authorization for a school district governing board to approve the charter of a school that would operate outside the district, ... this is a common practice among charter schools." (Sen. Com. on Education., Analysis of Assem. Bill No. 1994 (2001-2002 Reg. Sess.) June 25, 2001.) The lack of geographic restrictions on charter school operations resulted in school districts approving charter schools for a "bounty." (Sen. Com. on Education, Staff Rep. on Assem. Bill No. 1994 (2001-2002 Reg. Sess.) In one case, "the charter was charged a percentage of their revenue limit, on the average of 15%, in exchange for the [charter] authorization." (Ibid. ))
In 2002 the Legislature amended the CSA to add "stringent geographical restrictions for the operation of charter schools." ( California School Bds. Assn. v. State Bd. of Education (2010)
Charter schools must now be located within the boundaries of the school districts where they are chartered, with limited exceptions. (
In awarding fees under section 1021.5 the trial court impliedly found that Sweetwater's action enforced an important right affecting the public interest. We cannot conclude that the trial court abused its discretion in making this finding. "The chartering of a school and the charter school's compliance with the law, the regulations, and the conditions imposed on its charter can be matters of serious concern to the public and to our public school system." ( California School , supra ,
Here, the trial court found that Diego Plus operated within Sweetwater's geographic boundaries and ordered that this practice stop. In view of the foregoing authorities, the trial court could have reasonably found that requiring compliance with the geographic boundary requirements of the CSA enforced an important right affecting the public interest.
Appellants contend that the prospective declaratory and injunctive relief granted by the trial court provides no significant benefit to Sweetwater, Sweetwater's constituents or anyone else. They claim that Sweetwater is the only potential beneficiary of this action and that such self-serving litigation does not warrant an award of attorney fees.
An award of attorney fees to the prevailing party is justified in an action if "a significant benefit, whether pecuniary or nonpecuniary, has been conferred on the general public or a large class of persons." ( § 1021.5, subd. (a).) " '[T]he "significant benefit" that will justify an attorney fee award need not represent a "tangible" asset or a "concrete" gain but, in some cases, may be recognized simply from the effectuation of a fundamental constitutional or statutory policy.' [Citation.] The benefit may be conceptual or doctrinal [citation], and the California Supreme Court has recognized that 'the litigation underlying the section 1021.5 award can involve rights or benefits that are somewhat intangible.' " ( Environmental Protection Information Center v. Department of Forestry & Fire Protection (2010)
Here, the trial court could have reasonably concluded that Sweetwater's action advanced the public's interest in the lawful operation of charter schools and the Legislature's oversight objectives reflected in the CSA's location requirements. Even more broadly, the trial court could have found that through this action Sweetwater has helped preserve the constitutionality of charter schools within the public education system. The trial court could have reasonably concluded that advancement of these objectives conferred a significant benefit on the general public.
3. Necessity and Financial Burden of Private Enforcement
The necessity and financial burden requirement " ' "examines two issues: whether private enforcement was necessary and whether the financial
The necessity of private enforcement element of the section 1021.5 analysis requires courts to consider only one fact-the availability of public enforcement. ( Whitley , supra ,
We next consider the financial burdens and incentives involved in bringing the lawsuit. ( Whitley , supra ,
"[T]he absence of a monetary award, or of precise amounts attached to financial incentives, does not prevent a court from determining whether the plaintiff's financial burden in pursuing the lawsuit is ' " 'out of proportion to his individual stake in the matter.' " ' " ( Summit Media, LLC v. City of Los Angeles (2015)
Appellants claim that the trial court's order accomplished one thing, the elimination of Sweetwater's competition for average daily attendance per-student funding (ADA funding). Because of this, appellants argue that Sweetwater failed to meet its burden of establishing that the cost of litigation transcended its expected personal financial stake in the increased ADA funding it expected to receive at the outset of this litigation. Appellants note
Sweetwater asserts that appellants' argument "grossly mischaracterize[s] school district accounting by ignoring offsetting educational costs and relying on assumptions about hypothetical student transfers unsupported by any part of the appellate record." Sweetwater contends that a more accurate review of school district accounting compares total revenue and total expenditures. We agree with Sweetwater.
Sweetwater concedes that ADA funding is directly tied to student enrollment, which correlates to revenue. It points out, however, that while its proposed budget for the 2017-2018 school year reflects $453,861,354 in total revenue, total expenditures amount to $453,166,553, for a net revenue of $694,801. Sweetwater presented evidence that it serves "over 40,000 students." Accepting appellants' student worth theory, Sweetwater points out that this amounts to approximately $17 in net revenue per student.
In contrast, Diego Valley enrolled 686 students throughout San Diego county. Even assuming all these students were eligible to enroll in Sweetwater schools, and that they did enroll, this amounts to a trivial financial gain for Sweetwater. The record supports the trial court's implied conclusion that Sweetwater's personal financial stake in this litigation was insufficient to warrant its decision to incur significant attorney fees and costs in the prosecution of this action.
Finally, appellants contend that Sweetwater is disqualified from receiving a section 1021.5 fee award because its petition contained a prayer for damages. This argument is forfeited because it was not raised below, in appellants' opening briefing, nor is it supported with a citation to authority. ( In re Marriage of Khera & Sameer , supra ,
In any event, we reject this argument on the merits. Our independent research has uncovered no support for appellants' contention. Additionally, we note that Sweetwater's prayer contained a boilerplate request "[f]or such damages and other and further relief as the Court deems just and proper." Sweetwater, however, did not request damages in its briefing to the trial
C. No Abuse of Discretion in Awarding Fees
Sweetwater sought $163,728.50 in attorney fees. In support of its request, Sweetwater filed declarations prepared by three attorneys itemizing the hourly rate and work performed on a categorical basis. The trial court awarded Sweetwater $163,728.05 in attorney fees, jointly and severally against Julian and Diego Plus.
Determination of the amount of an attorney fees award under section 1021.5 begins with the calculation of a lodestar figure. ( Graham , supra ,
"With respect to the amount of fees awarded, there is no question our review must be highly deferential to the views of the trial court. [Citation.] As our high court has repeatedly stated, ' " '[t]he "experienced trial judge is the best judge of the value of professional services rendered in his [or her] court, and while his judgment is of course subject to review, it will not be disturbed unless the appellate court is convinced that it is clearly wrong"-meaning that it abused its discretion.' " ' " ( Children's Hospital & Medical Center v. Bonta ' (2002)
"A trial court may not rubberstamp a request for attorney fees, but must determine the number of hours reasonably expended." (
Appellants assert that even assuming Sweetwater's entitlement to a fee award, the trial court erred in the amount of fees awarded. Appellants note that the court awarded Sweetwater the full amount of fees requested and contend that the court merely "rubberstamped" Sweetwater's fee request. As examples of the trial court's failure to analyze the time spent by Sweetwater's counsel, appellants observe that the trial court awarded Sweetwater over 80 hours, or approximately $20,000 worth of fees, for tasks related to the intervenor students. It also awarded 10 hours (approximately $2,000 worth of fees) for tasks related to potential criminal violations of the CSA by Diego Plus.
Appellants also complain that Sweetwater did not present billing timesheets to support their request, but presented declarations with general summaries of blocked-billing statements. "The law is clear, however, that an award of attorney fees may be based on counsel's declarations, without production of detailed time records." ( Raining Data Corp. v. Barrenechea (2009)
Appellants specifically complain that the trial court had insufficient information with which to determine the reasonableness of 108.6 hours spent by attorney Keith Yeomans related to drafting the motion for judgment on the petition. Yeomans's declaration stated that the 108.6 hours were spent as follows: "Research, draft, and revise motion for judgment on petition for writ of mandate; analysis of oppositions to motion for judgment on petition for writ of mandate; research, draft, and revise reply to oppositions to motion for judgment on petition for writ of mandate; and communications re same." This brief description, however, is not the only information before the trial court. The court also had the 35-page motion, supported by six declarations, 52 exhibits and legislative history. The court also had appellants' two opposition briefs, two requests for judicial notice, evidentiary objections and numerous exhibits to which Sweetwater filed a consolidated reply. At the beginning of trial the court acknowledged the breadth and complexity of the material, stating:
"Ladies and gentlemen. [¶] Thank you for the opportunity to read and read and read and read. It is a complicated case, and I have tried very hard, as I'm sure you have, to analyze the facts and the legal arguments and the law to come up with an appropriate decision."
This record does not support appellants' assertion that the trial court had insufficient information to evaluate the work performed by Sweetwater's counsel. Nor does it support appellants' claim that the trial court abused its discretion when it declined
Appellants next complain about 10 blocked-billing entries by attorney Yeomans, totaling 108.1 hours, that related to the first set of written discovery. The trial court, however, had before it the material Yeomans either drafted or reviewed, including: discovery requests, appellants' responses, and three motions to compel and opposition thereto. Again, we discern no abuse of discretion in awarding the requested fees for this work.
Finally, appellants contend that Sweetwater's fee award should be reduced based on its partial success. Julian specifically argued to the trial court that the "majority of the work performed by Sweetwater's legal counsel was unnecessary to achieve Sweetwater's limited success." The trial court impliedly rejected this argument by declining to reduce the fee award.
We apply a two-step inquiry in analyzing whether section 1021.5 fees are appropriate where a plaintiff achieves limited success. (
Where claims are related, the second step requires the trial court to evaluate the significance of the overall relief obtained by the plaintiff in relation to the hours reasonably expended on the litigation and reduce the lodestar calculation if the relief is limited in comparison to the scope of the litigation as a whole. ( Espejo , supra ,
Sweetwater filed this litigation to stop appellants' operation of charter schools within its geographic boundaries. The trial court impliedly found that Diego Plus was operating within Sweetwater's geographic boundaries and granted Sweetwater both declaratory and injunctive relief. The court, however, declined to issue a writ of mandate directing that Julian revoke Diego Valley's charter, finding that revoking Diego Valley's charter was not the only reasonable exercise of discretion under the circumstances. The court cited the waivers granted by the SBE, noting that the waivers were designed to minimize disruption to students. Accordingly, the court denied the requested relief based on the detrimental impact this action would have on a large number of students. The trial court also declined to order the remaining mandamus relief requested against Julian and Diego Plus because it found that writs mandating compliance with the law to be "superfluous." Thus, although the court ultimately denied Sweetwater's petition for writ of mandate, its denial did not reflect adversely on the merits for these claims. Given these circumstances, the trial court could have concluded that Sweetwater's attorneys reasonably expended all its listed hours. On this record, we cannot conclude that the
The judgment is affirmed. Respondent is entitled to its costs on appeal.
WE CONCUR:
McCONNELL, P. J.
BENKE, J.
Notes
Undesignated statutory references are to the Code of Civil Procedure.
The trial court denied the claims of the intervening students. The students have not appealed, and we will not address their claims.
Subdivision (c) of section 1021.5, which requires that "such fees should not in the interest of justice be paid out of the recovery, if any" is inapplicable here since Sweetwater's action did not produce any monetary recovery.
Upon a party's timely and proper request, a trial court must issue a statement of decision upon "the trial of a question of fact by the court." (§ 632.) The statement must explain "the factual and legal basis for [the court's] decision as to each of the principal controverted issues at trial ...." (Ibid. ) In trials completed in one calendar day, a request for statement of decision must be made before the matter is submitted for decision. (Ibid. ) "The statement of decision provides the trial court's reasoning on disputed issues and is our touchstone to determine whether or not the trial court's decision is supported by the facts and the law." (Slavin v. Borinstein (1994)
Appellants do not claim that they timely requested a statement of decision and we have not found such a request. Additionally, although a trial court may state that its tentative decision is the court's proposed statement of decision or direct that the tentative decision shall be the statement of decision, the trial court did not choose either of these options. (Cal. Rules of Court, rule 3.1590(c)(1) & (4).) The trial court's tentative ruling is no substitute for a statement of decision. While we may examine a trial court's tentative or memorandum decision to help interpret its findings and conclusions, the function of a memorandum decision on appellate review is very limited and a memorandum opinion "will not be used in determining whether or not the ... findings of the court are supported by the evidence." (Balding v. Atchison, T. & S.F. Ry. Co. (1964)
Appellants do not dispute that Sweetwater tried to settle this litigation.
Sweetwater's request for judicial notice of documents showing the closure of Diego Springs and Diego Valley is denied. These closures occurred after the trial court made its fee award. We generally do not take judicial notice of evidence not presented to the trial court. (Vons Companies, Inc. v. Seabest Foods, Inc. (1996)
