Opinion
In Turner v. Association of American Medical Colleges (2008)
This case presents an issue of first impression: Is a trial court required to award attorney fees to a prevailing defendant under the bilateral, “prevailing party” statutory fee-shifting provision in section 55 for attorney hours that were inextricably intertwined with the hours incurred in defending claims under sections 52 and 54.3?
FACTUAL AND PROCEDURAL BACKGROUND
Defendant is a nonprofit organization whose members include medical schools and teaching hospitals throughout the country. Its mission is to improve public health by enhancing the effectiveness of academic medicine. Among other things, defendant develops and administers the Medical College Admission Test (MCAT), a nationwide standardized test designed to assess a medical school applicant’s knowledge of basic science concepts, writing skills, and facility in problem solving and critical thinking.
Plaintiffs Turner, Cashmore, Pierce, and Lebovitz are California residents with reading-related learning disabilities and/or attention deficit hyperactivity disorder who applied to take the MCAT in California in 2004. Defendant denied their requests for more time and/or a private room in which to take the test. In July 2004, these four individuals and two nonprofit organizations, the National Disabled Students Union and the International Dyslexia Association, filed a class action complaint alleging that defendant failed to accommodate Turner, Cashmore, Pierce, Lebovitz, and other similarly situated students with learning disabilities who were seeking to take the MCAT. The complaint alleged causes of action under the Unruh Civil Rights Act, the DPA, and the unfair competition law (Bus. & Prof. Code, § 17200 et seq.). The complaint
The trial court granted plaintiffs’ motion for class certification “for the limited purpose of determining whether [defendant] must apply California law to the members of the defined class.” Following a five-day bench trial, the court ruled, among other things, that defendant is required to provide reasonable accommodations that do not otherwise fundamentally alter the MCAT to persons with established disabilities as defined under the Unruh Civil Rights Act and the DPA. The court rejected the cause of action under Business and Professions Code section 17200. It awarded plaintiffs approximately $1,969,000 in attorney fees and costs as the prevailing parties under section 55.
In Turner I, supra,
The trial court denied defendant’s request for attorney fees. The court stated that the fee award sought by defendant “would conflict with the statutory policy embodied in the Unruh [Civil Rights] Act and other sections of the DPA not to award fees to a prevailing defendant.” The court “harmonize[d]” the statutory provisions by concluding that attorney fees should not be awarded to a prevailing defendant under section 55 unless the plaintiff’s claims were frivolous, which the claims in this case plainly were not. The trial court also concluded that a “reasonable” fee under section 55 would be an award of “zero” fees, particularly in light of plaintiffs’ limited financial resources. The court awarded defendant $30,447.95 in costs. This appeal followed.
Ordinarily, a party to litigation may recover its attorney fees only when fee shifting is provided for by statute or by agreement of the parties. (Code Civ. Proc., § 1021 ;
I. Standard of Review and General Principles of Statutory Interpretation
Generally, a trial court’s determination of whether a party is entitled to an award of attorney fees, and the calculation of such an award, is reviewed for abuse of discretion. (Press v. Lucky Stores, Inc. (1983)
The present case requires this court to apply three different, but related, statutory provisions: sections 52, 54.3, and 55. In doing so, “ ‘[u]nder well-established rules of statutory construction, we must ascertain the intent of the drafters so as to effectuate the purpose of the law. [Citation.] Because the statutory language is generally the most reliable indicator of legislative intent, we first examine the words themselves, giving them their usual and ordinary meaning and construing them in context.’ [Citation.] ‘[E]very statute should be construed with reference to the whole system of law of which it is a part, so that all may be harmonized and have effect.’ [Citation.]” (Mejia v. Reed (2003)
“When the plain meaning of the statutory text is insufficient to resolve the question of its interpretation, the courts may turn to rules or
Where two or more statutes cannot “be harmonized so that the legal effect intended by each can be carried out,” additional principles of statutory construction assist courts in resolving the conflict between statutes. (McLaughlin v. State Bd. of Education (1999)
II. The Statutory Scheme
Section 51, the Unruh Civil Rights Act, prohibits invidious discrimination in public accommodations. Section 51, subdivision (b) provides that “[a]ll persons within the jurisdiction of this state are free and equal, and no matter what their sex, race, color, religion, ancestry, national origin, disability, medical condition, marital status, or sexual orientation are entitled to the full and equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever.” Section 51, subdivision (f) provides that “[a] violation of the right of any individual under the [ADA] shall also constitute a violation of this section.” Subdivision (f) was added to section 51 in 1992; the Legislature’s express intent was “to strengthen California law in areas where it is weaker than the [ADA] and to retain California law when it provides more protection for individuals with disabilities than the [ADA].” (Stats. 1992, ch. 913, § 1, p. 4282; see also Munson v. Del Taco, Inc. (2009)
The DPA (§ 54 et seq.) is a California statutory scheme guaranteeing access to people with disabilities.
Section 55 expressly authorizes private actions for injunctive relief to correct violations of DPA standards. Section 55 provides, “Any person who is aggrieved or potentially aggrieved by a violation of Section 54 or 54.1 of this code . . . may bring an action to enjoin the violation. The prevailing party in the action shall be entitled to recover reasonable attorney’s fees.” (See Molski, supra,
III. There Is a Conflict in the Present Case Between Sections 52, 54.3, and 55
Where, as here, a prevailing defendant has incurred attorney fees defending claims arising under sections 52, 54.3, and 55, and those fees are inextricably intertwined, a conflict arises between sections 52 and 54.3, on the one hand, and section 55, on the other. Section 55 authorizes fee awards to prevailing defendants, but sections 52 and 54.3 authorize such awards only to prevailing plaintiffs. Although sections 52 and 54.3 do not literally state
As the court explained in Covenant Mutual Ins. Co. v. Young (1986)
The same rationale underlies the unilateral fee-shifting provisions in sections 52 and 54.3. The statutory language authorizing fee awards only to prevailing plaintiffs reflects a determination that prevailing defendants should not receive a fee award for hours spent defending such claims. This is reflected strongly in the legislative history to section 52, when, in 1976, it was amended to include the unilateral fee-shifting provision by Assembly Bill No. 2553 (1975-1976 Reg. Sess.) (Stats. 1976, ch. 367, §2, p. 1014). Particularly notable is a September 9, 1975 letter from Attorney Matthew B. Weinberg to Speaker of the Assembly Leo T. McCarthy, which letter was requested by the Assembly Judiciary Committee and attached to the January 12, 1976 “Bill Analysis Work Sheet” for Assembly Bill No. 2553 (Weinberg
A number of California decisions have followed Covenant, supra,
The decision in Carver, supra,
The decisions in Molski, supra,
In Murillo, supra,
In conclusion, the unilateral fee-shifting provisions in sections 52 and 54.3 reflect the Legislature’s intent to encourage vigorous enforcement of the Unruh Civil Rights Act and section 54.3 by removing the potent economic obstacles presented by the cost of obtaining representation and the risk of an
IV. Sections 52 and 54.3 Create an Exception to Section 55 by Implication
As stated in McLaughlin, supra,
A. Legislative History
Because the ultimate goal is to effectuate the Legislature’s intent (Mejia, supra,
B. Specific Versus General Statutes
Turning to the principles of statutory interpretation that do not rely on an express indication of legislative intent, most straightforward is the principle that where there is a conflict between a general statute and a more specific one, the specific statute controls and will be treated as an exception to the general statute. (McLaughlin, supra, 75 Cal.App.4th at pp. 223-224.) As courts have explained, “ ‘Unless repealed expressly or by necessary implication, a special statute dealing with a particular subject constitutes an exception so as to control and take precedence over a conflicting general statute on the same subject. [Citations.] This is the case regardless of whether the special provision is enacted before or after the general one [citation], and notwithstanding that the general provision, standing alone, would be broad enough to include the subject to which the more particular one relates.’ [Citation.]” (Tapia v. Pohlmann (1998)
C. Presumptions of Legislative Acquiescence and Awareness of Existing Statutes
Defendant asserts that section 55, enacted in 1974 (Stats. 1974, ch. 1443, § 1, p. 3150), should prevail because it “was left undisturbed” when the unilateral fee-shifting provision was added to section 54.3 in 1981 (Stats. 1981, ch. 395, § 1, p. 1582), when the Unruh Civil Rights Act and the DPA were amended in
Neither can we rely on the related presumption that legislators are deemed “ ‘to be aware of laws in effect at the time they enact new laws and are conclusively presumed to have enacted the new laws in light of existing laws having direct bearing upon them. [Citations.]’ ” (McLaughlin, supra,
D. Amendment or Exception by Implication
In McLaughlin, the court was called upon to resolve a conflict between Proposition 227, the “ ‘English Language in Public Schools’ initiative statute” and Education Code section 33050. (McLaughlin, supra,
After reviewing the intent underlying both enactments and the history of Proposition 227, the McLaughlin court concluded that “there is simply no rational way to reconcile or harmonize the [cjhapter as an integrated whole with [Education Code] section 33050. One cannot uphold the clear and positive expression of intent in the [c]hapter, which mandates a strong English-based system of education subject only to parental waiver, while supporting the right of school districts to avoid the [cjhapter’s decree through waivers. The statutes are in such irremediable conflict that to allow one would render the other ‘nugatory.’ [Citation.]” (McLaughlin, supra,
Turning to principles of statutory interpretation to resolve the conflict, McLaughlin observed: “California courts have long recognized that ‘an act adding new provisions to and affecting the application of an existing statute “in a sense” amends that statute. . . .’ [Citation.] An implied amendment is an act that creates an addition, omission, modification or substitution and changes the scope or effect of an existing statute. [Citations.] Like the related principles of ‘[r]epeal[] by implication’ [citation], and ‘draftfers’] oversight’ [citation], ‘amendments by implication’ are disfavored but are allowed to preserve statutory harmony and effectuate the intent of the Legislature [citation].” (McLaughlin, supra, 75 Cal.App.4th at pp. 219-220.) The court pointed out that the California Supreme Court had employed the principle in two criminal cases in concluding that subsequently enacted sentencing enhancement provisions constituted implied exceptions to a section of the Penal Code that limited prison terms to double the base term. (McLaughlin, at pp. 220-221; see People v. Pieters (1991)
The McLaughlin court recognized that “the principle of amendment or exception by implication is to be employed frugally, and only where the later-enacted statute creates such a conflict with existing law that there is no rational basis for harmonizing the two statutes, such as where they are ‘ “irreconcilable, clearly repugnant, and so inconsistent that the two cannot have concurrent operation. . . .” ’ [Citation.]” (McLaughlin, supra, 75 Cal.App.4th at pp. 222-223.) The court stated that the chapter enacted by Proposition 227 and Education Code section 33050 were so irreconcilable, because “[w]e see no way that the guarantee of English-only instruction subject solely to parental waiver can be accomplished if school boards are allowed to avoid compliance with the entire [cjhapter by seeking waivers, no matter how well intentioned administrators may be in doing so.” (McLaughlin, at p. 223.) The court concluded that the failure to expressly amend Education Code section 33050 was an “oversight,” and read into the section an implied exception from the waiver process. (McLaughlin, at p. 223.)
Similarly, sections 52 and 54.3 are irreconcilable with section 55 in a lawsuit such as this, where a defendant prevails on all claims and the attorney fees incurred in defense of a claim under section 55 were inextricably intertwined with the fees incurred defending claims under sections 52 and 54.3. There is “no rational basis for harmonizing” the three fee statutes. (McLaughlin, supra,
On the other hand, like the unilateral fee-shifting provisions in Carver and other cases cited above in part III., the fee provisions in sections 52 and 54.3 serve the well-established public purpose of encouraging private enforcement of disability rights law. (Carver, supra,
The main thrust of defendant’s argument that section 55 should prevail is that it is fair to impose attorney fees on plaintiffs because plaintiffs could have elected not to pursue an injunction under section 55. Defendant relies on statements made by the court in Molski, supra,
Although the plaintiff in Molski sought relief under sections 52, 54.3, and 55 (Molski, supra,
On balance, the public policy analysis supports our conclusion that sections 52 and 54.3 should be read to create an exception to section 55 by implication. The objectives underlying the unilateral fee-shifting provisions in sections 52 and 54.3 are well established in the legislative history and case law. To conclude that section 55 mandates a fee award to a prevailing defendant for hours intertwined with the defense of claims under sections 52 and 54.3 would frustrate the purposes of the unilateral fee-shifting provisions in sections 52 and 54.3 and undermine enforcement of section 55, even where its inclusion would not add to the burden of the litigation.
In support of its claim to a fee award for all hours spent on the section 55 claim, even if the hours overlapped with the defense on other claims, defendant cites the general proposition that “[ajttomey’s fees need not be apportioned when incurred for representation on an issue common to both a cause of action in which fees are proper and one in which they are not allowed.” (Reynolds Metals Co. v. Alperson (1979)
Defendant also argues that, even if a fee award for all hours spent on the section 55 claim would have been improper, the trial court abused its
In conclusion, we hold that where a defendant prevails against a plaintiff who sought relief under section 55 as well as under section 52 and/or section 54.3, the defendant may not obtain an attorney fee award under section 55 for attorney hours inextricably intertwined with hours spent defending claims under section 52 and/or section 54.3.
The trial court’s order is affirmed. Costs on appeal are awarded to respondents.
Jones, P. J., and Needham, J., concurred.
Notes
All further undesignated section references are to the Civil Code.
Plaintiffs are Andres Turner, Anne Cashmore, Brendan Pierce, David Lebovitz, the National Disabled Students Union, and the International Dyslexia Association.
A “bilateral” attomey-fee-shifting provision authorizes the recovery of fees by whichever party prevails, while a “unilateral” attomey-fee-shifting provision limits that right to a specified party, often to the prevailing plaintiff in the civil rights context. (See Santisas v. Goodin (1998)
This summary borrows liberally from our decision in Turner I, supra,
This court permitted the filing of two amicus curiae briefs in support of plaintiffs, one from the Los Angeles County Bar Association, and one from the Disability Rights Legal Center, Public Justice, P.C., the Disability Rights Education and Defense Fund, Inc., and the Legal Aid Society—Employment Law Center (hereafter collectively referred to as Disability Rights Amici Curiae). Defendant filed responses to those briefs.
Code of Civil Procedure section 1021 provides in pertinent part: “Except as attorney’s fees are specifically provided for by statute, the measure and mode of compensation of attorneys and counselors at law is left to the agreement, express or implied, of the parties . . . .”
Although section 51, subdivision (a) states that the section “shall be known, and may be cited, as the Unruh Civil Rights Act,” sections 51 and 52 are “interrelated parts of the same statutory scheme ... with section 52 serving ‘to provide an enforcement mechanism for section 51 and other provisions of law.’ [Citations.]” (Munson, supra, 46 Cal.4th at pp. 667-668.)
Although part 2.5 of division 1 of the Civil Code, which currently consists of sections 54 to 55.3, has no official title, it is commonly referred to as the “ ‘Disabled Persons Act.’ ” (Munson, supra,
Plaintiffs did not seek damages under section 54.3, but they did seek attorney fees under that section and a declaration that defendant’s policies violated the DPA. We read section 54.3 as authorizing a plaintiff to seek damages and/or attorney fees as a remedy for violation of section 54 of the DPA. Defendant does not argue to the contrary.
Plaintiffs also sought, in the complaint, an award of attorney fees on their unfair competition law claim (Bus. & Prof. Code, § 17200 et seq.) under Code of Civil Procedure section 1021.5, which gives trial courts discretion to award fees “in any action which has resulted in the enforcement of an important right affecting the public interest.” Because sections 52 and 54.3 reflect more clearly and directly the Legislature’s intent as to fee shifting in the context of the claims in this case, we focus on those sections rather than on Code of Civil Procedure section 1021.5.
“[W]e have routinely found enrolled bill reports, prepared by a responsible agency contemporaneous with passage and before signing, instructive on matters of legislative intent. [Citations.]” (Eisner v. Uveges (2004)
Although Carver is helpful in explaining why there is a statutory conflict in this case, the principle employed in resolving the conflict in that case is not applicable here. Because the conflict was between a statute and a contractual provision, the court had no difficulty in concluding the statute prevailed. (Carver, supra,
In the remainder of this decision, we use “frivolous” as shorthand for “frivolous, unreasonable, or without foundation.” (Christiansburg, supra,
An analogous rule is the principle that “[w]hen two acts governing the same subject matter cannot be reconciled, the later in time will prevail over the earlier. [Citations.]” (Los Angeles Police Protective League v. City of Los Angeles (1994)
There may be circumstances in which it is inappropriate to apply the amendment-by-implication principle, such as where the statutes in conflict address such different subject matters that it would be illogical to imply legislative intent to amend the earlier enactment. (See Mejia, supra,
Defendant argues it is particularly important to discourage meritless suits in this context because “[a]n equitable action under section 55 carries no standing requirement other than that the plaintiff be a ‘person who is aggrieved or potentially aggrieved’ by the challenged violation.” (Urhausen, supra,
The trial court relied on these 1992 amendments to sections 52 and 54.3 to conclude that, in the circumstances of this case, a prevailing defendant would be entitled to attorney fees only if it established that the plaintiff’s claims were frivolous under Christiansburg, supra,
Although the above analysis is sufficient to support our conclusion that sections 52 and 54.3 should prevail as a matter of public policy, an additional case-specific consideration applies here. This case was pled as a class action, which complicated the risk-benefit calculus alluded to in Molski, supra, 164 Cal.App.4th at pages 790-791. “A class action is a
Defendant heavily relies on the decision in Akins, supra,
Because we affirm on the basis that sections 52 and 54.3 prevail, we need not decide whether the trial court’s order could also be upheld as a “reasonable” attorney fee award (§ 55) in light of plaintiffs’ limited financial resources and any other relevant considerations. (See, e.g., Ketchum v. Moses (2001)
We do not understand plaintiffs to argue that the standard in Christiansburg, supra,
