Justia Government & Administrative Law Opinion Summaries

Articles Posted in California Courts of Appeal
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Plaintiff Mary Anna Whitehall worked as a social worker for the San Bernardino County Children and Family Services (CFS or the County). She sought legal advice pertaining to any liability she might have for submitting misleading information and doctored photographs to the juvenile court at the direction of her superiors. Her counsel prepared a filing; subsequently plaintiff was immediately placed on administrative leave for disclosing confidential information to an unauthorized person. Upon being informed she would be terminated for the breach, plaintiff resigned her position and filed a whistle blower action against the County. The County filed a special motion to strike the complaint as an Anti-SLAPP action, pursuant to Code of Civil Procedure section 425.16, which was denied by the trial court. The County appealed. On appeal, the County argued the trial court erred in determining plaintiff had established the second prong of the criteria to overcome a special motion to strike an Anti-SLAPP lawsuit by finding a likelihood she would prevail because the County’s actions were not privileged or covered by governmental immunity. Finding no reversible error, the Court of Appeal affirmed. View "Whitehall v. County of San Bernardino" on Justia Law

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At issue in this case was a municipal ordinance, which authorized the issuance of bonds to be used to refinance the defendants' obligations with respect to the ​construction of a baseball park. Judgment was entered in favor of defendants on grounds that plaintiffs lacked standing to challenge the refinancing. After review, the Court of Appeal found the plaintiff taxpayers had standing under Government Code section 1092 to challenge the ordinance on the grounds participants in the proposed transaction violated the conflict of interest provisions of section 1090. Accordingly, the Court reversed the trial court's judgment dismissing plaintiff's complaint. View "San Diegans for Open Gov. v. Public Facilities Financing etc." on Justia Law

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Grace Walker appealed a superior court judgment denying her petition for a writ of administrative mandamus. The petition asked the court to set aside a decision of the Physical Therapy Board of California (the "Board") that subjected Walker to discipline based on a misdemeanor hit-and-run conviction and the Board's finding she had used alcohol in a manner dangerous to herself or others. The superior court concluded the misdemeanor conviction was not an appropriate ground for discipline because it was not sufficiently related to Walker's fitness to practice physical therapy, but that discipline was appropriate pursuant to Business and Professions Code sections 2239 and 2660 based on Walker's use of alcohol in a dangerous manner. On appeal, Walker argued the court erred because the statutes did not permit discipline of a physical therapist based on a single isolated instance of alcohol use in a dangerous manner without a specific finding of a nexus between the conduct at issue and the fitness of the individual to practice physical therapy. The Court of Appeal concluded sections 2239 and 2260 did permit the Board to impose discipline in this context and affirm the judgment. View "Walker v. Physical Therapy Bd. of California" on Justia Law

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To seek redress for an opioid epidemic, characterized by the Court of Appeal as having placed a financial strain on state and local governments dealing with the epidemic’s health and safety consequences, two California counties sued (the California Action) various pharmaceutical manufacturers and distributors, including the appellants in this matter, Actavis, Inc., Actavis LLC, Actavis Pharma, Inc., Watson Pharmaceuticals, Inc., Watson Laboratories, Inc., and Watson Pharma, Inc. (collectively, “Watson”). The California Action alleged Watson engaged in a “common, sophisticated, and highly deceptive marketing campaign” designed to expand the market and increase sales of opioid products by promoting them for treating long-term chronic, nonacute, and noncancer pain - a purpose for which Watson allegedly knew its opioid products were not suited. The City of Chicago brought a lawsuit in Illinois (the Chicago Action) making essentially the same allegations. The issue presented by this appeal was whether there was insurance coverage for Watson based on the allegations made in the California Action and the Chicago Action. Specifically, the issue was whether the Travelers Property Casualty Company of America (Travelers Insurance) and St. Paul Fire and Marine Insurance Company (St. Paul) owe Watson a duty to defend those lawsuits pursuant to commercial general liability (CGL) insurance policies issued to Watson. Travelers denied Watson’s demand for a defense and brought this lawsuit to obtain a declaration that Travelers had no duty to defend or indemnify. The trial court, following a bench trial based on stipulated facts, found that Travelers had no duty to defend because the injuries alleged were not the result of an accident within the meaning of the insurance policies and the claims alleged fell within a policy exclusion for the insured’s products and for warranties and representations made about those products. The California Court of Appeal concluded Travelers had no duty to defend Watson under the policies and affirmed. View "The Traveler's Property Casualty Company of America v. Actavis, Inc." on Justia Law

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Between 2000 and 2001, plaintiff-appellant Troy Flowers's application for a securities sales license was rejected by Ohio state officials because they found that he was "not of 'good business repute.'" In addition, Flowers was subjected to discipline by securities regulators with respect to his violation of securities laws and regulations and his failure to cooperate in a securities investigation. Flowers filed a complaint against the Financial Industry Regulatory Authority, Inc. (FINRA), seeking an order that FINRA expunge his disciplinary history from its records. The trial court sustained without leave to amend FINRA's demurrer to Flowers's complaint. Because federal securities laws and regulations provided Flowers with a process by which he may challenge FINRA's publication of his disciplinary history, and Flowers has not pursued that process, the Court of Appeal concluded he may not now, by way of a civil action, seek that relief from the trial court. Accordingly, the Court affirmed the trial court's order sustaining the demurrer and its judgment in favor of FINRA. View "Flowers v. Financial Industry Regulatory Authority, Inc." on Justia Law

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In this case, we deny relief on a petition for review of an award of benefits made by the Workers' Compensation Appeals Board (WCAB). In 2006, while working at Pearson Ford, Leopoldo Hernandez accidentally slammed the trunk of a car on his left hand and crushed one of his fingers. Although no bones in his hand were broken, he was unable to continue working at Pearson Ford because of continuing pain in his hand and shoulder. Hernandez applied for and received workers' compensation benefits. Pearson Ford's workers' compensation carrier retained the services of a private investigator, who conducted video surveillance of Hernandez following each of the three visits to his doctor in early 2010. Following each visit, Hernandez was observed taking off his sling, using his left hand to get in and out of his truck or a car, using his left hand to steer his truck or car, and on one occasion stopping at a grocery store and using his left hand to carry a bag of groceries. After the investigator witnessed other instances of Hernandez using his allegedly injured left hand, the carrier notified the district attorney, who in turn, commenced its own investigation. In specified circumstances, a worker who engages in criminal fraud in attempting to recover workers' compensation benefits and is convicted of doing so is thereafter barred from recovering benefits growing out of the fraud. However, in given circumstances where, independent of any fraud, a worker is able to establish his or her entitlement to benefits, benefits may be awarded. Here, the WCAB found evidence, independent of a worker's fraud, that he had suffered a compensable injury and was entitled to benefits. In doing so the WCAB relied on the determination of a medical expert. The Court of Appeal found no error in the WCAB's determination the workers' claim was not barred by the eventual misdemeanor conviction for workers' compensation fraud and in the WCAB's adoption of the expert's finding of a permanent disability. The Court denied the petitioner any relief on its petition asking that it vacate the WCAB's award. View "Pearson Ford v. Workers' Comp. Appeals Bd." on Justia Law

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Defendants-appellants the City of Huntington Beach and the City Council of Huntington Beach (collectively, City) appealed mandamus relief to plaintiffs-respondents The Kennedy Commission, William Adams and Jason Puloe (collectively, Kennedy) invalidating City’s amendment to the Beach Edinger Corridors Specific Plan (BECSP). Kennedy filed a complaint alleging in the first cause of action that the amended BECSP was inconsistent with the housing element in violation of California’s Housing Element Law (Gov. Code) sections 65454, 65580, 65583, 65587 and 65860. Kennedy argued that the amended BECSP was void as it was not consistent with the housing element in the general plan, and therefore the amendment should have been invalidated. City responded that it was amending its housing element and was seeking approval from the Department of Housing and Community Development (HCD). The trial court applied section 65454, which required a specific plan be consistent with the general plan, and declared the amended BECSP was void. The Court of Appeal granted City’s petition for writ of supersedeas staying the writ of mandate. City argued: (1) for the first time on appeal, the City of Huntington Beach was a charter city, making it exempt from a consistency requirement of its specific plans to the general plan pursuant to section 65700; (2) if City was subject to the consistency requirement, the trial court erred by invalidating the entire BECSP amendment because it contained provisions that did not refer to housing; (3) the trial court’s judgment and writ are overbroad and overreaching and therefore violated constitutional separation of powers; (4) the issues are not ripe for adjudication because Kennedy cannot show harm; and (5) Kennedy has no standing to bring a claim under section 65454. The Court of Appeal concluded Kennedy’s attempts to show City adopted the consistency requirement in section 65454 failed. Even if the exemption applied, the remedy would not be that the amended BECSP was void. Rather, according to section 65750, City should have been granted time to amend its housing element. “As noted, City had already submitted an amended housing element to the HCD for approval prior to the trial court’s decision in this case. Moreover, the trial court ruled that it would not grant relief on Kennedy’s claim that City must implement the housing element in its current state. It was without dispute that City was working with the HCD to have the housing element comply with state law. City was free to amend its housing element to comply with state law while leaving the amended BECSP in place.” The Court of Appeal reversed the superior court’s grant of a writ of mandate and remanded this matter for further proceedings. View "Kennedy Commission v. City of Huntington Beach" on Justia Law

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Defendants-respondents the City of Davis (City) and the City Council of the City of Davis (City Council) approved a conditional use permit authorizing the use of a single family home in a residential zoning district as professional office space for three therapists. Petitioner-appellant and next door neighbor Michael Harrington, filed a petition for an administrative writ of mandate asking the trial court to set aside the conditional use permit. The trial court denied the petition. Harrington appealed, arguing: (1) the conditional use permit violated an ordinance prohibiting parking in the front yard setback; (2) the issuance of the conditional use permit resulted in a change in occupancy triggering accessible parking requirements under the California Building Standards Code (Cal. Code Regs., tit. 24, pt. 2); (3) the conditional use permit contemplated alterations triggering the accessible parking requirements; (4) the City Council failed to make sufficient findings to support a conclusion that compliance with accessible parking requirements would be technically infeasible, and the findings are not supported by substantial evidence; and (5) the City Council failed to make sufficient findings to support a conclusion that the permitted use is consistent with the zoning designation, and the findings are not supported by substantial evidence. After review, the Court of Appeal concluded: (1) the conditional use permit did not require parking in the front yard setback; (2) the City’s reasonable construction of the Building Code is entitled to deference, and its determination that the issuance of the conditional use permit did not result in a change in occupancy is supported by substantial evidence; (3) Harrington forfeited the argument that the conditional use permit contemplated alterations within the meaning of the Building Code; (4) technical infeasibility findings were not necessary, as the City Council did not rely on that theory; and (5) the City Council’s consistency findings were legally sufficient and supported by substantial evidence. View "Harrington v. City of Davis" on Justia Law

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In 2001, Michael Durkin, through two limited liability companies, purchased two lots directly adjacent to the McClellan Palomar Airport (Airport) in the City of Carlsbad (City). His development plans for the two lots were initially successful despite determinations by the San Diego County Regional Airport Authority (Authority) that the proposed projects were not compatible with the Airport. Overriding the Authority's objections, the City issued a planned industrial permit and Durkin completed the construction of a commercial building on one of the lots in 2005. He also obtained a permit from the City for construction of a second building on the other lot. Both permits included provisions in which Durkin agreed to hold the City harmless for any liability arising out of approval of the projects. Durkin's permit on the second lot expired in 2012 without the commencement of any construction. By the time Durkin sought to restart the permitting process with the City, the Authority had adopted an Airport Land Use Compatibility Plan (ALUCP) that designated Durkin's properties as being within a Safety Zone that carried specific limiting recommendations for compatible land uses. Despite having approved Durkin's previous permit application, the City now refused to override the recommendations in the ALUCP. Durkin filed an inverse condemnation action against the Authority and San Diego County, arguing the value of his property was depressed by the Authority’s adoption of the ALUCP and that decrease in value constituted a governmental taking. The Court of Appeal concluded the trial court properly entered summary judgment in favor of the County and the Authority on the ground that undisputed evidence shows there was no taking by these defendants. View "Dryden Oaks v. San Diego County Regional Airport Authority" on Justia Law

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Mainstay Business Solutions (Mainstay), a division of the Blue Lake Rancheria Economic Development Corporation, was a tribal government-sponsored entity of Blue Lake Rancheria, a federally recognized Indian tribe. Mainstay operated a temporary staffing business, assigning temporary workers to its clients. It also operated an employee leasing business in which employees of Mainstay’s clients were placed on Mainstay’s payroll and leased back to the clients. The California Self-Insurers’ Security Fund (SISF) assumed the workers’ compensation obligations when Mainstay defaulted on its obligations to self-insure. SISF then sued Mainstay, Mainstay’s clients and others to recover its costs and liabilities. Among other things, the trial court granted SISF’s motion for judgment on the pleadings against Mainstay’s clients. Mainstay’s clients filed a petition for writ of mandate and/or prohibition to challenge the trial court’s order. SISF argued on appeal: (1) writ review was not appropriate because the main issue presented was rendered moot by the enactment of Labor Code section 3701.9. On the merits, Mainstay’s clients argued: (2) SISF’s claim was subject to the exclusive remedy provisions of the Workers Compensation Act and should have been brought before the Workers Compensation Appeals Board; and (3) their agreements with Mainstay in compliance with Labor Code section 3602(d) serve to bar SISF’s civil action. Finding no reversible error, the Court of Appeal affirmed. View "American Cargo Express v. Super Ct." on Justia Law