ARNETTE TRAVIS et al., Plaintiffs and Appellants, v. BILL BRAND et al., Defendants and Respondents; REDONDO BEACH WATERFRONT, LLC, et al., Appellants. ARNETTE TRAVIS et al.,
S268480
IN THE SUPREME COURT OF CALIFORNIA
January 30, 2023
Second Appellate District, Division Eight, B298104, B301479; Los Angeles County Superior Court, BC665330; Judge: Malcolm H. Mackey
Chief Justice Guerrero authored the opinion of the Court, in which Justices Corrigan, Liu, Kruger, Groban, Jenkins, and Cantil-Sakauye* concurred.
* Retired Chief Justice of California, assigned by the Chief Justice pursuant to
Opinion of the Court by Guerrero, C. J.
Several defendants were sued for their alleged failure to make certain required disclosures under the Political Reform Act of 1974 (
I.
In 2010, residents of the City of Redondo Beach (City) approved Measure G, which authorized 400,000 square feet of new development in the City‘s King Harbor-Pier area. The City sought out a private developer to assist with the project and ultimately entered into an exclusive negotiating agreement with CenterCal Properties, LLC. (Redondo Beach Waterfront, LLC v. City of Redondo Beach (2020) 51 Cal.App.5th 982, 988 (Redondo Beach Waterfront).) In 2016, the project passed several milestones: the City notified CenterCal Properties that its application seeking approval of the vesting tentative tract map was “‘deemed complete‘“; the harbor commission certified the environmental impact report and approved both a coastal development permit and a conditional use permit; and the city council passed a resolution reciting its approval “‘shall confer a vested right to proceed with development.‘” (Id. at pp. 988–989.) The City and CenterCal Properties signed an agreement for lease of property and infrastructure financing the following year. (Id. at p. 989.)
Meanwhile, some City residents who opposed the development started soliciting signatures to place a local initiative — the King Harbor Coastal Access, Revitalization, and Enhancement Act (later designated Measure C) — on the ballot for the next general municipal election. Measure C sought to place zoning restrictions on the highly contested $400 million waterfront project. Measure C appeared on the March 7, 2017, ballot, and was approved by the voters. (Redondo Beach Waterfront, supra, 51 Cal.App.5th at p. 990.)
These events triggered various lawsuits, but we are concerned here only with one: an action seeking injunctive relief against certain Measure C supporters to compel their compliance with the Political Reform Act. The lawsuit was filed by two City residents who opposed Measure C and supported the development project, Arnette Travis and Chris Voisey (collectively, plaintiffs). Plaintiffs alleged that some supporters of Measure C had violated and continued to violate the Political Reform Act by failing to
Following a five-day bench trial, the trial court ruled in defendants’ favor on all claims. It determined that the Rescue Our Waterfront PAC was a general purpose committee (
free speech and their public support to guard against the [development] project.”
As relevant here, the Court of Appeal affirmed the trial court‘s award of attorney‘s fees to defendants. (Travis, supra, 62 Cal.App.5th at p. 265.) The court held that
In construing the attorney‘s fees statute to define a single standard that applies equally to both prevailing plaintiffs and defendants, the Court of Appeal rejected two decisions — People v. Roger Hedgecock for Mayor Com. (1986) 183 Cal.App.3d 810 (Hedgecock) and Community Cause v. Boatwright (1987) 195 Cal.App.3d 562 (Boatwright) — which held that a prevailing defendant seeking attorney‘s fees under the Political Reform Act had to establish that the plaintiffs’ claims were frivolous, unreasonable, or without foundation. (Hedgecock, at p. 815; Boatwright, at p. 574.)4
We granted review to resolve the conflict and to determine whether an asymmetrical standard applies to a prevailing defendant‘s request for attorney‘s fees under the Political Reform Act.
II.
California follows the American rule regarding attorney‘s fees. Under that rule, litigants are ordinarily responsible for paying their own attorney‘s fees, unless a statute or agreement provides otherwise. (Essex Ins. Co. v. Five Star Dye House, Inc. (2006) 38 Cal.4th 1252, 1257;
The parties agree that this statute gives the trial court discretion to decide whether to award attorney‘s fees in cases arising under the Political Reform Act. They disagree, however, about the legal framework governing that discretion. Defendants, echoing the Court of Appeal, argue that prevailing plaintiffs and defendants “are to be treated the same” in determining whether to award attorney‘s fees. Plaintiffs, on the other hand, contend that a defendant‘s opportunity to recover attorney‘s fees is more limited than that of
private enforcement of the Political Reform Act and thus undermine its purpose. We agree with plaintiffs.
A.
The United States Supreme Court construed a similarly worded fee statute as imposing an asymmetrical standard in Christiansburg, supra, 434 U.S. 412, which affirmed the denial of attorney‘s fees to a prevailing defendant in an action under title VII of the Civil Rights Act of 1964. The fee statute there — like the one here — was silent on what standard to apply when awarding attorney‘s fees. The statute there provided, “‘In any action or proceeding under this title the court, in its discretion, may allow the prevailing party . . . a reasonable attorney‘s fee.‘” (Christiansburg, at pp. 413-414, quoting
clearly became so.” (Id. at p. 422.) The Supreme Court cautioned courts considering these fee requests to resist the understandable temptation to engage in post hoc reasoning by concluding that, because a plaintiff did not ultimately prevail, his action must have been unreasonable or without foundation.” (Id. at pp. 421–422, italics omitted.)
B.
Two Court of Appeal decisions subsequently applied the Christiansburg standard to requests for attorney‘s fees under the Political Reform Act. Before discussing these opinions, we provide a brief overview of the Political Reform Act.
Both Hedgecock and Boatwright considered the purposes and objectives of the Political Reform Act when determining what standard to apply to attorney‘s fee requests under the statute. In Hedgecock, the district attorney filed a civil lawsuit for injunctive relief based on various defendants’ alleged failures to report campaign contributions made to a mayoral candidate. (Hedgecock, supra, 183 Cal.App.3d at pp. 812-813Id. at pp. 813–815Id. at p. 814Ibid.) The Court of Appeal did not address this ground for denying fees; instead, the court denied fees on the ground that “the district attorney‘s suit was not frivolous or groundless” within the meaning of the Christiansburg standard. (Id. at p. 815.)
The Hedgecock court justified its reliance on the Christiansburg standard by focusing on the statutory purpose of encouraging private enforcement of the Political Reform Act. (Hedgecock, supra, 183 Cal.App.3d at pp. 815-819Id. at p. 816Christiansburg, ” ‘could discourage all but the most
airtight claims, for seldom can a prospective plaintiff be sure of ultimate
The Hedgecock court further held that the need to incentivize private enforcement is particularly acute for actions brought under the Political Reform Act. “Where the actionable wrong is the adulteration of the political process,” the Hedgecock court observed, “the damage to the citizenry is significant but the injury to any one citizen is not only nebulous but also indirect.” (Hedgecock, supra, 183 Cal.App.3d at p. 817.) “The attorney‘s fee provisions of the Political Reform Act are designed to ameliorate the burden on the individual citizen who seeks to remedy what is essentially a collective wrong.” (Ibid.; cf. Eddy v. Colonial Life Ins. Co. of America (D.C. Cir. 1995) 59 F.3d 201, 205 [“the presumption favoring fee-shifting in civil rights cases reflects the unique importance of the enforcement of these statutes to the nation as a whole, as well as to their direct beneficiaries“].)5
The Boatwright court reached the same result in an action brought by a nonprofit corporation against a state assemblyman for alleged reporting violations under the Political Reform Act. (Boatwright, supra, 195 Cal.App.3d at pp. 565-566Id. at p. 566Id. at p. 574section 91012 “[o]n its face . . . contains no such limitation,” but it concluded that Hedgecock and Christiansburg supported the plaintiff‘s interpretation of the statute. (Boatwright, at pp. 574-575Christiansburg was similar to [the Political Reform Act] in that it contained no limitation on a prevailing defendant‘s right to fees,” but the United States Supreme Court nonetheless “rejected an argument that the plain meaning of the statute entitled a prevailing defendant to fees on the same basis as a prevailing plaintiff.” (Id. at p. 575Christiansburg‘s conclusion that an asymmetrical fee standard was necessary to encourage private enforcement actions, and by Hedgecock‘s application of this standard to the Political Reform Act, where encouraging such claims was ‘perhaps even more critical’ ” to ” ‘remedy what is essentially a collective wrong.‘” (Boatwright, at p. 575, quoting Hedgecock, supra, 183 Cal.App.3d at p. 817.)
C.
The Court of Appeal below expressly disagreed with Hedgecock and Boatwright. (See Travis, supra, 62 Cal.App.5th at p. 264.) It believed the high court had “considerably limited” the scope of the Christiansburg standard in Fogerty v. Fantasy, Inc. (1994) 510 U.S. 517 (Fogerty). (Travis, at p. 264.) Based on its view that the fee provision here resembled the one in Fogerty more than the one in Christiansburg, the Court of Appeal concluded “prevailing plaintiffs and prevailing defendants are to be treated alike” under the Political Reform Act. (Travis, at p. 264.) We conclude the Court of Appeal‘s reliance on Fogerty was misplaced.
Fogerty involved a prevailing defendant in the distinct context of a private copyright dispute. The fee statute at issue in Fogerty resembled the one here, insofar as it did not expressly articulate any particular standard to inform a court‘s discretion in awarding attorney‘s fees to a prevailing party, as well as the fee statute at issue in Christiansburg. (See Fogerty, supra, 510 U.S. at p. 519, quoting the
First, “in the civil rights context, impecunious ‘private attorney general’ plaintiffs can ill afford to litigate their claims
against defendants with more resources,” so Congress sought “to provide incentives for the bringing of meritorious lawsuits[] by treating successful plaintiffs more favorably than successful defendants in terms of the award of attorney‘s fees.” (Fogerty, supra, 510 U.S. at p. 524.) Litigants in copyright actions, on the other hand, “can run the gamut from corporate behemoths to starving artists.” (Ibid.) And “it is by no means always the case that the plaintiff in an infringement action is the only holder of a copyright; often times, defendants hold copyrights too.” (Id. at p. 526.)
Second, “the policies served by the Copyright Act are more complex, more measured, than simply maximizing the number of meritorious suits for
We disagree with the Court of Appeal‘s conclusion that this case is unlike Christiansburg and more like Fogerty. (Travis, supra, 62 Cal.App.5th at p. 264.) To determine whether “election law disputes are more like the ordinary civil litigation setting in Fogerty” (id. at p. 264), we must examine the goals and objectives of the Political Reform Act. (Accord, Martin v. Franklin Capital Corp. (2005) 546 U.S. 132, 139–140 [“When applying fee-shifting statutes, ‘we have found limits in “the large objectives” of the relevant Act, which embrace certain “equitable considerations” ‘“].)
As discussed above, the voters intended for the Political Reform Act to be robustly enforced to promote the important public policy of transparency. (See Flannery v. California Highway Patrol (1998) 61 Cal.App.4th 629, 642 [“the Political Reform Act expressly encourages enforcement by private citizen suits“]; Weinreb, supra, 168 Cal.App.3d at p. 538 [the act is “dependent upon private litigation as a means of enforcement“].) As the ballot pamphlet explained about the Political Reform Act, “Proposition 9 will establish standards which give citizens a basis for the faith and trust which must lie at the heart of our political process,” undergirded “at last” by “full, fair and independent enforcement of the law.” (Ballot Pamp., Primary Elec. (June 4, 1974) rebuttal to argument against Prop. 9, p. 37.)
The policies and objectives of the Political Reform Act are not analogous to the Copyright Act in the context of attorney‘s fee awards. The Copyright Act “serves the purpose of enriching the general public through access to creative works” and to that end seeks to ensure that “the boundaries of
rewarding authors’ creations while also enabling others to build on that work.” (Kirtsaeng v. John Wiley & Sons, Inc. (2016) 579 U.S. 197, 204, citing Fogerty, at p. 526.) “That is why . . . Fogerty insisted on treating prevailing plaintiffs and prevailing defendants alike — because the one could ‘further the policies of the Copyright Act every bit as much as’ the other.” (Kirtsaeng, at p. 204, quoting Fogerty, at p. 527.) We see no similar need to strike a balance between conflicting aims under the Political Reform Act. Maximizing the number of meritorious suits through the Political Reform Act‘s private enforcement mechanism is of primary importance. Encouraging such claims is the best way to further the act‘s objective of ensuring that “[a]dequate enforcement mechanisms . . . be provided to public officials and private citizens.” (
Although the Court of Appeal correctly recognized the difficulty in generalizing about the relative resources available to plaintiffs and defendants in Political Reform Act litigation (Travis, supra, 62 Cal.App.5th at p. 264 [noting the resources available to either side could ” ’ “run the gamut” ’ “]), we do not believe this is a reason to reject the approach outlined in Christiansburg. Even if some plaintiffs may have sufficient resources to pursue their claims, that fact does not undermine
our conclusion that the statutory scheme here, which depends on an individual acting as a private attorney general to enforce a law for a public benefit, is more like the antidiscrimination laws at issue in Christiansburg (and those laws discussed post) than the copyright scheme at issue in Fogerty. Indeed, a rule subjecting unsuccessful plaintiffs to substantial financial risk in Political Reform Act cases, where the plaintiff often will have suffered no particularized harm, would discourage all but a few from seeking to enforce laws vital to ensuring transparency in the political process. We therefore cannot say that the factors justifying the Christiansburg rule are “absent” here. (Fogerty, supra, 510 U.S. at p. 523.)
The Court of Appeal‘s ruling below does not accurately capture the distinct interests of plaintiffs under the two statutory schemes, either. While the typical plaintiff in a copyright suit will generally be pursuing that plaintiff‘s own interests, the typical plaintiff under the Political Reform Act
