IN THE SUPREME COURT OF CALIFORNIA
DWIGHT SMITH,
Petitioner,
S150528
v.
Ct.App. 2/6 B190054
WORKERS’ COMPENSATION
APPEALS BOARD and DEPARTMENT
(W.C.A.B. Nos.
OF CORRECTIONS AND
GRO 16225, 16226,
REHABILITATION, JUVENILE
16352)
JUSTICE et al.,
Respondents.
___________________________________ )
)
DAVID AMAR,
Petitioner,
v.
Ct.App. 2/6 B190655
WORKERS’ COMPENSATION
APPEALS BOARD and MEL CLAYTON )
(W.C.A.B. No.
FORD et al.,
GOL 89438)
)
Respondents.
In these consolidated workers’ compensation cases, we consider the scope
of Labor Code section 4607, which provides: “Where a party to a proceeding
institutes proceedings to terminate an award made by the appeals board to an
1
applicant for continuing medical treatment and is unsuccessful in such
proceedings, the appeals board may determine the amount of attorney’s fees
reasonably incurred by the applicant in resisting the proceeding to terminate the
medical treatment, and may assess such reasonable attorney’s fees as a cost upon
the party instituting the proceedings to terminate the award of the appeals board.”
(Lab. Code, § 4607.1)
Petitioners obtained awards for future treatment of their industrial injuries.
Sometime thereafter, they submitted medical treatment requests, but their
employers’ insurance carrier disputed their entitlement to the requested care.
Petitioners initiated proceedings to obtain the treatment and, ultimately, were
determined to be entitled to the requested care. The insurer thereafter authorized
the treatment requests. Petitioners subsequently sought attorney fees pursuant to
section 4607. Based on the statutory language, the Workers’ Compensation
Appeals Board (Board) denied the fee requests, but the Court of Appeal reversed.
We granted review to resolve whether section 4607 permits an award under these
circumstances. In light of the statute’s unambiguous language, we conclude it
does not. An employer or insurer that disputes a specific treatment request cannot
be said to have “institute[d] proceedings to terminate an award . . . for continuing
medical treatment . . .” (§ 4607). Accordingly, we reverse the contrary judgment
of the Court of Appeal.
I. FACTS AND BACKGROUND
Smith’s Request for Medical Treatment
Dwight Smith sustained industrial injuries from cumulative trauma to his
right shoulder, neck and psyche while working for the former California Youth
1
All further unlabeled statutory references are to the Labor Code.
2
Authority (now the Juvenile Justice section of the Department of Corrections and
Rehabilitation).2 In 1997, by stipulation, Smith was awarded partial permanent
disability indemnity and future medical treatment.
Eight years later, State Compensation Insurance Fund (SCIF) refused to
authorize a request for epidural injections to his back. Smith contacted the
attorney who filed his original workers’ compensation claim and the attorney
sought utilization review (§ 4610). Pursuant to court order, Smith was examined
by an agreed medical examiner, who concluded he needed the injections to relieve
his back pain, which was precipitated by his industrial injuries. SCIF authorized
the injections without a formal hearing.
Citing section 4607, Smith subsequently sought attorney fees. The
workers’ compensation judge denied the request, concluding the statute did not
authorize an award because SCIF had not instituted proceedings to terminate
Smith’s award of medical treatment. In a split decision, the Board denied Smith’s
petition for reconsideration. The majority concluded fees would be available to an
applicant who is forced to challenge an insurer’s complete refusal to authorize
future treatment covered by an award. But, because SCIF disputed only part of
Smith’s care, the statute did not authorize an award of fees.
Amar’s Request for Medical Treatment
Amar sustained an injury to his right foot while working as a car salesman
for Mel Clayton Ford. In 2004, by stipulation, Amar was awarded partial
permanent disability indemnity and future medical care. Amar thereafter received
treatment for weight loss and diabetes, both of which treatments were related to
alleviating his foot injury.
2
The factual and procedural history is largely taken from the Court of
Appeal’s opinion.
3
Based on further utilization review, SCIF refused to pay for additional
medical care for the diabetes or weight loss program. Amar, assisted by the
attorneys who had filed his original workers’ compensation claim, instituted
proceedings to obtain the sought treatment. A workers’ compensation judge found
the weight loss program remained medically necessary to relieve the effects of the
injury, but that continued treatment for diabetes was unnecessary for that purpose.
The judge ordered the weight loss program reinstated.
Citing section 4607, Amar sought an award of attorney fees. The workers’
compensation judge ruled the statute was inapplicable and denied the request. On
reconsideration, the judge found SCIF had made a good faith denial of medical
care, had not refused to provide necessary medical care or engaged in
unreasonable delay in providing care, and had not improperly denied previously
awarded treatment. The judge recommended section 4607 fees be denied. The
Board adopted the workers’ compensation judge’s report, and denied
reconsideration.
Smith and Amar filed petitions for review. The Court of Appeal granted,
and consolidated, the two petitions. It reversed the Board’s decisions and
concluded section 4607 authorizes an award of attorney fees to an employee who
successfully challenges an employer or insurer’s denial of a specific request for
medical treatment. We granted respondents’ petition for review.
II. DISCUSSION
We independently review the construction of workers’ compensation
statutes. (State Comp. Ins. Fund v. Workers’ Comp. Appeals Bd. (2008) 44
Cal.4th 230, 236, fn. 6.) We typically give great weight to the Board’s
construction of the statutes it is charged to enforce and interpret; we will, however,
annul clearly erroneous interpretations. (Ibid.)
4
When interpreting any statute, it is well-settled that we begin with its words
“because they generally provide the most reliable indicator of legislative intent.”
(Hsu v. Abbara (1995) 9 Cal.4th 863, 871.) If the language is clear and
unambiguous, there is ordinarily no need for judicial construction. (Murphy v.
Kenneth Cole Productions, Inc. (2007) 40 Cal.4th 1094, 1103.) In construing a
provision, “we presume the Legislature meant what it said” and the plain meaning
governs. (People v. Snook (1997) 16 Cal.4th 1210, 1215.) We remain mindful,
however, that workers’ compensation statutes are to be liberally construed in favor
of the injured worker. (§ 3202; Claxton v. Waters (2004) 34 Cal.4th 367, 373.)
With these principles in mind, we consider the scope of section 4607.
The statutory language is unambiguous. It only authorizes an award of
attorney fees when a party “institutes proceedings to terminate an award . . . .”3
(§ 4607, italics added.) Petitioners nonetheless argue the language also permits an
award of fees to an employee who successfully challenges the denial of a
particular treatment request. We disagree. When a party institutes termination
proceedings, it challenges the continuing necessity for the Board’s award of future
treatment. By contrast, when an employer or insurer denies a specific treatment
request, it challenges whether the sought medical care is “reasonably required to
cure or relieve the injured worker from the effects of his or her injury . . . .”
(§ 4600, subd. (a).) The difference between the two concepts is illustrated by our
decision in Barnes v. Workers’ Compensation Appeals Board (2000) 23 Cal.4th
679 (Barnes).
3
While section 4607 does not explicitly state that employers or insurers are
the only ones that can initiate termination proceedings, it is difficult to imagine an
employee instituting proceedings to terminate his or her own award of treatment.
5
In that case, an injured employee obtained an award for future treatment in
1982. (Barnes, supra, 23 Cal.4th at p. 682.) Thirteen years later, after an agreed
medical examiner concluded the employee’s continuing pain was not traceable to
the original injury, the employer and its insurer filed a petition to terminate the
award. (Id. at pp. 682-683.) The workers’ compensation judge granted the
petition and the Board and the Court of Appeal affirmed. (Id. at pp. 683-684.)
We reversed, explaining that section 5804, which contains a five-year statute of
limitations for rescinding, altering, or amending an award, deprived the Board of
jurisdiction. (Barnes, supra, 23 Cal.4th at p. 686.) We noted, however, that while
it no longer had jurisdiction to terminate the award, the Board retained jurisdiction
“to determine whether a particular medical treatment . . . is justified to treat [an
employee’s] industrial injury.” (Id. at p. 687.) Thus, we distinguished between
efforts to terminate an award (which attack the validity of the Board’s
determination that an employee may need future medical treatment) and the denial
of a specific treatment request (which challenges the necessity of a particular
course of medical care). (Id. at p. 688.)
In the cases at issue here, it is clear the insurer was disputing specific
requests rather than attacking petitioners’ awards of future treatment. Smith, for
example, was originally awarded treatment for injuries to his right shoulder, neck,
and psyche. A dispute subsequently arose as to whether epidural injections to his
back were covered by the award. The insurer was not attempting to terminate all
future medical care. The same is true of Amar. He was originally awarded
treatment for injuries to his right foot. Based on further utilization review, the
employer challenged the necessity of two particular treatments: a weight loss
program and treatment for diabetes. As with Smith, the insurer was disputing
Amar’s specific requests, not challenging the validity of his award. Thus, the
6
plain language of section 4607 does not permit an award of attorney fees to
petitioners.
Petitioners claim such a narrow interpretation of section 4607 will result in
illogical consequences. In particular, petitioners argue it would be absurd to
award fees when an employer unsuccessfully seeks to terminate an award, but not
when an employer unsuccessfully denies a specific treatment request. Such a
construction, petitioners warn, will encourage employers and insurers to simply
deny all treatment requests rather than institute termination proceedings so as to
avoid being forced to pay attorney fees.4 We are not persuaded for several
reasons.
First, it is not irrational that the Legislature might have elected to treat the
more dramatic step of seeking to terminate an award differently than disputes over
specific treatment requests. Termination of all medical treatment can have
predictably devastating consequences for an employee. The Legislature could
have reasonably decided (as the statutory language clearly suggests) to permit fee
shifting under section 4607 only when an employee has successfully resisted an
attempt to terminate his or her award for continuing treatment. Second, the
specter raised by petitioners ignores the existence of other statutes, such as section
5814.5, which require the Board to award fees when benefits have been
unreasonably delayed or refused.5 Indeed, petitioners’ construction of section
4
We note the Court of Appeal cited several of these considerations in
concluding section 4607 authorized an award here. However, such policy
concerns are more properly directed at, and considered by, the Legislature.
5
Section 5814.5 provides, “When the payment of compensation has been
unreasonably delayed or refused subsequent to the issuance of an award . . . , the
appeals board shall . . . award reasonable attorneys’ fees incurred in enforcing the
payment of compensation awarded.”
7
4607 is so expansive that it would make such statutes largely irrelevant as far as
the award of medical benefits is concerned. Third, the potential consequences
invoked by petitioners — employers issuing blanket denials of medical treatment
requests to avoid paying attorney fees — ignores the existence of the utilization
review process.
As we discussed in State Compensation Ins. Fund v. Workers’ Comp.
Appeals Bd., supra, 44 Cal.4th at pages 239-240, in response to skyrocketing
workers’ compensation costs, the Legislature recently established a utilization
review process for handling employees’ medical treatment requests. The process
was intended to provide “quality, standardized medical care for workers in a
prompt and expeditious manner.” (Id. at p. 241.) Employees submit requests for
medical treatment to their employer. “If the treatment request is straightforward
and uncontroversial, the employer can quickly approve the request . . . without any
need for additional medical review of the request.” (Ibid.) However, under the
statutory scheme, only an employer’s utilization review physician applying
approved criteria can modify, delay, or deny treatment requests — an employer
may not, on its own, object to a treatment request. (§ 4610, subds. (e) & (f).)
Further, the utilization review scheme contains a procedure for resolving
disputes over treatment requests that uses doctors, rather than judges, as the
adjudicators. (§§ 4610, subd. (g)(3)(A), 4062, 4062.1, 4062.2.) If an employee
disagrees with the utilization review physician’s decision to modify, delay, or
deny treatment, the employee can request review by an independent medical
evaluator who, after evaluating the evidence, decides whether the sought treatment
is necessary. (Ibid.) Thus, the dispute resolution process does not require the
employee to obtain counsel (although the employee is allowed to do so). Indeed,
holding out the prospect of attorney fees every time an employee successfully
challenges a denial of a treatment request would likely transform the utilization
8
review process, which was intended to be expeditious, inexpensive, and driven by
uniform standards and the recommendations of treating physicians, into a more
expensive, adversarial, and cumbersome process. In short, the utilization review
process renders highly unlikely the scenario petitioners invoke.6
Finally, the available legislative history of section 4607 is consistent with a
plain language interpretation. First, according to the Legislative Counsel’s Digest,
section 4607 permits the Board to award attorney fees when an employee
successfully resists “proceedings instituted to terminate [the] employee’s award
for continuing medical treatment . . . .”7 (Legis. Counsel’s Dig., Assem. Bill No.
138 (1973-1974 Reg. Sess.) 2 Stats. 1973, Summary Dig., p. 91, italics added.)
Nothing suggests the Legislature intended a broader interpretation. Second,
section 4607 was modeled after another attorney fees provision, section 4651.3.
(Assem. Com. on Finance and Insurance, Analysis of Assem. Bill No. 138 (1973-
1974 Reg. Sess.).) Section 4651.3 authorizes an award of fees when an employer
unsuccessfully files a petition alleging that an employee’s disability has decreased
or terminated. The fact that the Legislature used both “decrease” and “terminate”
6
We note that this case does not present, and we do not consider, the
instance of an employer or insurer unilaterally refusing to pay for all further
medical treatment. An employer or insurer that decides for itself that an employee
no longer needs additional treatment and accordingly decides to deny all future
requests poses a different issue. At a minimum, such an employer or insurer risks
sanctions under previously discussed section 5814.5. Moreover, an employer or
insurer that fails to comply with the mandates of the utilization review process
risks the imposition of penalties under section 4610, subdivision (i).
7
Although the Legislative Counsel’s summary digests are not binding (State
ex rel. Harris v. PricewaterhouseCoopers, LLP (2006) 39 Cal.4th 1220, 1233,
fn. 9), they are entitled to great weight (California Assn. of Psychology Providers
v. Rank (1990) 51 Cal.3d 1, 17).
9
in section 4651.3, but only “terminate” in section 4607 suggests that it knew how,
if it so chose, to fashion a broader remedy.
Accordingly, in light of the unambiguous statutory language and the
legislative history, we hold that section 4607 authorizes an award of attorney fees
only to employees who successfully resist efforts to terminate their award of
medical treatment. It does not permit an award of fees to employees who
successfully challenge the denial of specific treatment requests.
III. DISPOSITION
The judgment of the Court of Appeal is reversed.
MORENO, J.
WE CONCUR: GEORGE, C. J.
KENNARD,
J.
BAXTER,
J.
WERDEGAR,
J.
CHIN,
J.
CORRIGAN,
J.
10
See next page for addresses and telephone numbers for counsel who argued in Supreme Court.
Name of Opinion Smith v. Workers’ Compensation Appeals Board __________________________________________________________________________________
Unpublished Opinion
Original Appeal
Original Proceeding
Review Granted XXX 146 Cal.App.4th 1032
Rehearing Granted
__________________________________________________________________________________
Opinion No. S150528
Date Filed: May 11, 2009
__________________________________________________________________________________
Court:
County:
Judge:
__________________________________________________________________________________
Attorneys for Appellant:
William A. Herreras for Petitioner Dwight Smith.
Ghitterman, Ghitterman & Feld, Allan S. Ghitterman, Russell R. Ghitterman and Benjamin P. Feld for
Peititoner David Amar.
__________________________________________________________________________________
Attorneys for Respondent:
No appearance for Respondent Worker’s Compensation Appeals Board.
Robert W. Daneri, Suzanne Ah-Tye, Don E. Clark and David M. Goi for Respondents Department of
Corrections and Rehabilitation, Juvenile Justice, Mel Clayton Ford and State Compensation Insurance
Fund.
Raymond G. Fortner, Jr. County Counsel (Los Angeles), Patrick A. Wu, Assistant County Counsel, Leah
D. Davis, Principal Deputy County Counsel, Eugenia W. Der, Deputy County Counsel, Rita A.
Tchavdarian and Jason E. Waller, Associate County Counsel, for County of Los Angeles as Amicus Curiae
on behalf of Respondents Department of Corrections and Rehabilitation, Juvenile Justice, Mel Clayton
Ford and State Compensation Insurance Fund.
Law Offices of Saul Allweiss and Michael A. Marks for California Workers’ Compensation Institute as
Amicus Curiae on behalf of Respondents Department of Corrections and Rehabilitation, Juvenile Justice,
Mel Clayton Ford and State Compensation Insurance Fund.
Counsel who argued in Supreme Court (not intended for publication with opinion):
William A. Herreras
200 South 13th Street, Suite 212
Grover Beach, CA 93483
(805) 473-8550
Russell R. Ghitterman
Ghitterman, Ghitterman & Feld
126 East Carrillo Street
Santa Barbara, CA 93101
(805) 965-4540
Don E. Clark
State Compensation Insurance Fund
1275 Market Street, Room 399
San Francisco, CA 94103
(415) 565-1266
Leah D. Davis
Principal Deputy County Counsel
350 South Figueroa Street, Suite 601
Los Angeles, CA 90071
(213) 974-0062
Document Outline
- ��
- ��
- ��
Petition for review after the Court of Appeal annulled decisions of the Board. This case presents the following issue: Does Labor Code section 4607, which authorizes the Board to award attorney fees to an applicant who successfully resists a proceeding instituted by his or her employer to terminate a prior award for medical treatment, authorize the Board to award attorney fees to an applicant whose employer has not instituted proceedings to terminate medical care but has refused to authorize medical treatment, thereby requiring the applicant to institute proceedings to obtain that treatment?
| Date: | Citation: | Docket Number: | Category: | Status: | Cross Referenced Cases: |
| Mon, 05/11/2009 | 46 Cal. 4th 272, 206 P.3d 430, 92 Cal. Rptr. 3d 894 | S150528 | Review - Civil Appeal | closed; remittitur issued | 44 Cal. 4th 230 |
| 1 | Smith, Dwight (Petitioner) Represented by William A. Herreras Attorney at Law P.O. Box 387 Grover Beach, CA |
| 2 | Department Of Corrections & Rehabilitation (Respondent) Represented by David M. Goi State Compensation Insurance Fund 1275 Market Street, Room 399 San Francisco, CA |
| 3 | Department Of Corrections & Rehabilitation (Respondent) Represented by Don E. Clark State Compensation Insurance Fund 1275 Market Street, Room 399 San Francisco, CA |
| 4 | Department Of Corrections & Rehabilitation (Respondent) Represented by Robert William Daneri State Compensation Insurance Fund 1275 Market Street, Room 399 San Francisco, CA |
| 5 | State Compensation Insurance Fund (Respondent) Represented by Don E. Clark State Compensation Insurance Fund 1275 Market Street, Room 399 San Francisco, CA |
| 6 | State Compensation Insurance Fund (Respondent) Represented by Robert William Daneri State Compensation Insurance Fund 1275 Market Street, Room 399 San Francisco, CA |
| 7 | State Compensation Insurance Fund (Respondent) Represented by David M. Goi State Compensation Insurance Fund 1275 Market Street, Room 399 San Francisco, CA |
| 8 | Amar, David (Petitioner) Represented by Russell R. Ghitterman Ghitterman & Ghitterman 126 E. Carrillo Street Santa Barbara, CA |
| 9 | Amar, David (Petitioner) Represented by Benjamin Paul Feld Ghitterman & Ghitterman 126 E. Carrillo Street Santa Barbara, CA |
| 10 | Workers Compensation Appeals Board (Respondent) Represented by Workers Compensation Appeals Board P.O. Box 429459 (Attn: Writ Unit) P.O. Box 429459 (Attn: Writ Unit) San Francisco, CA |
| 11 | Ford, Mel Clayton (Respondent) Represented by Don E. Clark State Compensation Insurance Fund 1275 Market Street, Room 399 San Francisco, CA |
| 12 | California Workers Compensation Institute (Amicus curiae) Represented by Michael Aaron Marks Law Office Saul Allweiss 18321 Ventura Boulevard, Suite 500 Tarzana, CA |
| 13 | County Of Los Angeles (Amicus curiae) Represented by Leah D. Davis Office of the Los Angeles County Counsel 350 S. Figueroa Street, Suite 601 Los Angeles, CA |
| Disposition | |
| May 11 2009 | Opinion: Reversed |
| Dockets | |
| Feb 26 2007 | Petition for review filed Dwight Smith, California Youth Authority, State Compensation Insurance Fund, Mel C. Ford respondents Robert W. Daneri, Counsel |
| Feb 27 2007 | Record requested Via telephone Mary Rosas Both B190054 and B190665 |
| Mar 1 2007 | Received Court of Appeal record One doghouse. |
| Mar 1 2007 | Received Court of Appeal record one manila jacket |
| Mar 8 2007 | Answer to petition for review filed Dwight Smith, petitioner by William A. Herreras, counsel |
| Mar 19 2007 | Reply to answer to petition filed California Youth Authority, et al., respondents by Robert W. Daneri, counsel |
| Apr 6 2007 | Answer to petition for review filed David Amar, Real party in intererest by Ruseell R. Ghitterman, counsel |
| Apr 18 2007 | Petition for review granted (civil case) George, C.J., was absent and did not participate. Votes: Moreno, ACJ., Kennard, Baxter, Werdegar, Chin and Corrigan, JJ. |
| Apr 18 2007 | Letter sent to: to counsel, re certification of interested parties or persons |
| Apr 24 2007 | Received: letter from counsel for Real Party in Interest (State Compensation Isurance Fund) dated April 23, 2007, regarding the name used for the California Youth Authority in the petition for review and reply. |
| Apr 27 2007 | Certification of interested entities or persons filed by counsel for the Respondent, Workers Compensation Appeals Board. |
| May 2 2007 | Certification of interested entities or persons filed by counsel for petitioner Dwight Smith. |
| May 2 2007 | Certification of interested entities or persons filed By counsel for Real Parties in Interest. |
| May 18 2007 | Opening brief on the merits filed California Youth Authority, et. al., real parties in interest by Robert W. Danieri, counsel |
| Jun 6 2007 | Answer brief on the merits filed Dwight Smith, petititoner by William A. Herreras, counsel |
| Jun 12 2007 | Request for extension of time filed real party in interest requesting 24 days till July 20, 2007 to file reply brief on the merits. by David M. Goi, counsel. |
| Jun 18 2007 | Answer brief on the merits filed Petitioner, David Amar by counsel, Russell R. Ghitterman. |
| Jun 19 2007 | Extension of time granted to July 20, 2007 to file real party in interest (State Compensation Insurance Fund) reply brief on the merits. |
| Jun 25 2007 | Change of contact information filed for: Benjamin Paul Feld |
| Jul 20 2007 | Reply brief filed (case fully briefed) State Compensation Insurance Fund, respondent by David M. Goi, counsel |
| Jul 20 2007 | Received application to file Amicus Curiae Brief County of Los Angeles [in support of respondents] Pincipal Deputy County Counsel Leah D. Davis [app w/i brief] |
| Jul 26 2007 | Permission to file amicus curiae brief granted County of Los Angeles |
| Jul 26 2007 | Amicus curiae brief filed County of Los Angeles in support of respondent's (California Youth Authority, et al.). Answer due within twenty days of the filiing of the brief. |
| Sep 21 2007 | Received application to file Amicus Curiae Brief California Workers' Compensation Institute in support of respondents. by Michael A. Marks, counsel |
| Sep 25 2007 | Permission to file amicus curiae brief granted California Workers' Compensation Institute |
| Sep 25 2007 | Received application to file Amicus Curiae Brief The application of California Worker's Compensation Institue for permission to file an amicus curiae brief in support of respondents is hereby granted. An answer thereto may be served and filed by any party within twenty days of the filing of the brief. |
| Mar 11 2009 | Case ordered on calendar to be argued on Tuesday, April 7, 2009, at 1:30 p.m., in Los Angeles |
| Mar 24 2009 | Application filed Application to divide oral argument time, filed by Don E. Clark, counsel for respondent State Compensation Insurance Fund. Requesting to share 15 minutes of time with amicus curiae County of Los Angeles. |
| Mar 25 2009 | Filed: Letter from Russel R. Ghitterman, counsel for petitioner Smith, requesting to divide oral argument time. Asking to share 15 minutes of time with co-petitioner Amar. |
| Mar 25 2009 | Order filed The request of counsel for respondents in the above-referenced cause to allow two counsel to argue on behalf of respondents at oral argument is hereby granted. The request of respondents to allocate to amicus curiae County of Los Angeles 15 minutes of respondents' 30-minute allotted time for oral argument is granted. |
| Mar 25 2009 | Order filed The request of counsel for petitioners in the above-referenced cause to allow two counsel to argue on behalf of petitioners at oral argument is hereby granted. The request of petitioners to allocate to petitioner Smith 15 minutes and petitioner Amar 15 minutes of petitioners' 30-minute allotted time for oral argument is granted. |
| Apr 7 2009 | Cause argued and submitted |
| May 8 2009 | Notice of forthcoming opinion posted |
| May 11 2009 | Opinion filed: Judgment reversed The judgment of the Court of Appeal is reversed. Opinion by Moreno, J. -----joined by George, C.J., Kennard, J., Baxter, J., Werdegar, J., Chin & Corrigan, JJ. |
| May 21 2009 | Note: Mail returned (unable to forward) David M. Goi |
| Jun 16 2009 | Remittitur issued |
| Jul 1 2009 | Received: Receipt for Remittitur from court of Appeal, Second Appellate District, Division Six |
| Briefs | |
| May 18 2007 | Opening brief on the merits filed California Youth Authority, et. al., real parties in interest by Robert W. Danieri, counsel |
| Jun 6 2007 | Answer brief on the merits filed Dwight Smith, petititoner by William A. Herreras, counsel |
| Jun 18 2007 | Answer brief on the merits filed Petitioner, David Amar |
| Jul 20 2007 | Reply brief filed (case fully briefed) State Compensation Insurance Fund, respondent by David M. Goi, counsel |
| Jul 26 2007 | Amicus curiae brief filed County of Los Angeles in support of respondent's (California Youth Authority, et al.). Answer due within twenty days of the filiing of the brief. |
| Nov 11, 2009 Annotated by Yosuke Koike | Facts: One petitioner, Mr. Smith, sustained industrial injuries and awarded partial permanent disability indemnity and future medical treatment. After that, he requested additional remedy but it was refused to authorize by State Compensation Insurance Fund. Then he and his attorney sought utilization review (Labor Code §4610) and SCIF finally authorized the remedy. Mr. Smith sought attorney fees under Labor Code §4607, but the Workers’ Compensation Appeals Board rejected. The other petitioner, Mr. Amar, sustained injury and awarded partial permanent disability indemnity and future medical treatment, too. After that, he started medical cares for the diabetes and weight loss program but these were refused to authorize by SCIF. Then he and his attorney instituted proceedings to obtain the sought treatments. The weight loss program was judged necessary. Mr. Amar sought attorney fees, too, citing Labor Code §4607, but the WCAB didn’t reconsider. Procedural History: Rejected by the WCAB, both Mir. Smith and Mr. Amar appealed. The Court of Appeal reversed the WCAB’s decisions and granted petitions. Two petitions were consolidated. Respondents appealed. Finally, the judgment of the Court of Appeal is reversed by the Supreme Court of California. Issue: This is a problem of scope of Labor Code §4607. The statutory language in Labor Code §4607 permits an award of attorney fees when a party “institutes proceedings to terminate an award… and is unsuccessful in such proceedings.” It is clear that employees are authorized to be paid attorney fees when a party “institutes proceedings to terminate an award”, but it is not clear if employees are authorized to be paid attorney fees when they successfully challenge the denial of a particular additional treatment request. Is it also permitted by the language, or not? Holding: Labor Code §4607 authorizes an award of attorney fees only to employees who successfully resist efforts to terminate their award of medical treatment. It does not permit an award of fees to employees who successfully challenge the denial of specific treatment requests. Reasoning: In the main opinion, Judge Moreno upheld that Labor Code §4607 authorizes an award of attorney fees only to employees who successfully resist efforts to terminate their award of medical treatment. There are four reasons. First, it is not irrational that the Legislature might have elected to treat the more dramatic step of seeking to terminate an award differently than disputes over specific treatment requests. Second, the specter raised by petitioners ignores the existence of other statutes, such as section 5814.5, which require the Board to award fees when benefits have been unreasonably delayed or refused. Third, as the court discussed in State Comp. Ins. Fund v. Workers’ Comp. Appeals Bd. (2008) 44 Cal 4th 230, the Legislature established utilization review process, which contains a procedure for resolving disputes over treatment requests that uses doctors, rather than judges. In this review scheme, there is no need for an employee to hire attorney. The potential consequences invoked by petitioners ignores the existence of this utilization review process. Forth, the available legislative history of section 4607 is consistent with a plain language interpretation. In section 4651.3, the Legislature used both “decrease” and “terminate”, but on the other hand, in section 4607, it used only “terminate”. |
IN THE SUPREME COURT OF CALIFORNIA
ABIGAIL HERNANDEZ et al.,
Plaintiffs and Appellants,
S147552
v.
Ct.App. 2/3 B183713
HILLSIDES, INC. et al.,
Los Angeles County
Defendants and Respondents. )
Super. Ct. No. GC032633
Defendants Hillsides, Inc., and Hillsides Children Center, Inc. (Hillsides)
operated a private nonprofit residential facility for neglected and abused children,
including the victims of sexual abuse. Plaintiffs Abigail Hernandez (Hernandez)
and Maria-Jose Lopez (Lopez) were employed by Hillsides. They shared an
enclosed office and performed clerical work during daytime business hours.
Defendant John M. Hitchcock (Hitchcock), the director of the facility, learned that
late at night, after plaintiffs had left the premises, an unknown person had
repeatedly used a computer in plaintiffs‟ office to access the Internet and view
pornographic Web sites. Such use conflicted with company policy and with
Hillsides‟ aim of providing a safe haven for the children.
Concerned that the culprit might be a staff member who worked with the
children, and without notifying plaintiffs, Hitchcock set up a hidden camera in
their office. The camera could be made operable from a remote location, at any
time of day or night, to permit either live viewing or videotaping of activities
1
around the targeted workstation. It is undisputed that the camera was not operated
for either of these purposes during business hours, and, as a consequence, that
plaintiffs‟ activities in the office were not viewed or recorded by means of the
surveillance system. Hitchcock did not expect or intend to catch plaintiffs on tape.
Nonetheless, after discovering the hidden camera in their office, plaintiffs
filed this tort action alleging, among other things, that defendants intruded into a
protected place, interest, or matter, and violated their right to privacy under both
the common law and the state Constitution. The trial court granted defendants‟
motion for summary judgment and dismissed the case. The Court of Appeal
reversed, finding triable issues that plaintiffs had suffered (1) an intrusion into a
protected zone of privacy that (2) was so unjustified and offensive as to constitute
a privacy violation.
Defendants argue here, as below, that, absent evidence they targeted and
either viewed or recorded plaintiffs as part of the surveillance scheme, there could
be, as a matter of law, no actionable invasion of privacy on an intrusion theory.
Hence, they insist, the Court of Appeal erred in reinstating that claim.
We agree with defendants that the trial court properly granted their motion
for summary judgment. However, we reach this conclusion for reasons more
varied and nuanced than those offered by defendants.
On the one hand, the Court of Appeal did not err in determining that a jury
could find the requisite intrusion. While plaintiffs‟ privacy interests in a shared
office at work were far from absolute, they had a reasonable expectation under
widely held social norms that their employer would not install video equipment
capable of monitoring and recording their activities — personal and work related
— behind closed doors without their knowledge or consent.
On the other hand, the Court of Appeal erroneously found a triable issue as
to whether such intrusion was highly offensive and sufficiently serious to
2
constitute a privacy violation. Any actual surveillance was drastically limited in
nature and scope, exempting plaintiffs from its reach. Defendants also were
motivated by strong countervailing concerns. We therefore will reverse the Court
of Appeal‟s judgment insofar as it allowed the privacy claim to proceed to trial.
FACTS
In September 2003, plaintiffs Hernandez and Lopez filed this suit against
defendants Hillsides and Hitchcock over the use of video surveillance equipment
in plaintiffs‟ office. The complaint set forth three related causes of action in tort,
and sought compensatory and punitive damages. The first cause of action alleged
an invasion of privacy, alluding to principles and authorities under both the
common law (see Shulman v. Group W Productions, Inc. (1998) 18 Cal.4th 200
(Shulman)) and the state Constitution (see Cal. Const., art 1, § 1; Hill v. National
Collegiate Athletic Assn. (1994) 7 Cal.4th 1 (Hill)). The other two claims alleged
intentional and negligent infliction of emotional distress.
In December 2004, after the parties engaged in discovery, defendants
moved for summary judgment. The motion attached numerous supporting
documents. They included the declarations of both defendant Hitchcock and Tom
Foster (Foster), the computer specialist at Hillsides, and excerpts from the
depositions of Hitchcock and plaintiffs Hernandez and Lopez. In opposing
summary judgment, plaintiffs submitted additional excerpts from the same
depositions, as well as declarations each of them had prepared. Based on these
submissions, the following facts appear to be essentially undisputed.
Hillsides was established in 1913, and is affiliated with the Episcopal
Church. First operated as an orphanage, Hillsides later became a residential
treatment center for children, ranging in age from six to 18. At the time of the
events herein, 66 boys and girls lived at its facility in Pasadena.
3
Typically, before entering Hillsides, the children had lived in foster homes
and had been the victims of emotional, physical, and sexual abuse. Such abuse
included exposure to and participation in pornography. Working in conjunction
with child welfare authorities, Hillsides offered programs to assist residents with
academic, psychological, and behavioral problems.
The campus consisted of 12 buildings — five that housed the children, and
seven that were used for administrative, academic, and other purposes. The
grounds were open to the public, but certain security measures were in place. For
instance, Hillsides required employees to carry photo identification at work, and
issued temporary badges to all visitors. Any visitor caught wandering on the
grounds without a badge was directed or escorted to the receptionist at the main
entrance of the facility. The residence halls were locked at all times. Other
buildings were unlocked only during regular daytime business hours. Alarms
sounded for any unauthorized entry.
In addition, security personnel, or “program directors,” patrolled the
premises. They worked every day, around the clock, with more of them on duty
during the day than at night. The program directors also monitored televised
images transmitted from four cameras stationed outside some of the buildings.
These exterior cameras captured and recorded certain views of the parking lot, the
administration building, and the main entrance of the facility, where visitors
entered. No similar camera system was permanently installed inside any building.
Plaintiffs Hernandez and Lopez performed clerical work during daytime
business hours at Hillsides. When they were hired in 1996 and 1999, respectively,
they signed disclosure statements and underwent background screening procedures
required by law of persons working at licensed child care facilities. This process
included fingerprint and criminal record checks, and an agreement to report any
child abuse witnessed or suspected while working at Hillsides.
4
Beginning in 2001, plaintiffs shared an office in the administrative building
at Hillsides. Each woman had her own desk and computer workstation. The
office had three windows on exterior walls. Blinds on the windows could be
opened and closed. The office also had a door that could be closed and locked. A
“doggie” door near the bottom of the office door was missing its flap, creating a
small, low opening into the office. Several people, besides plaintiffs, had keys to
their office: five administrators, including Hitchcock, and all of the program
directors. Hernandez estimated that there were five program directors. Hitchcock
counted eight of them.
According to plaintiffs, they occasionally used their office to change or
adjust their clothing. Hernandez replaced her work clothes with athletic wear
before leaving Hillsides to exercise at the end of the day. Two or three times,
Lopez raised her shirt to show Hernandez her postpregnancy figure. Both women
stated in their declarations that the blinds were drawn and the door was closed
when this activity occurred. Hernandez also recalled the door being locked when
she changed clothes.
On or before August 22, 2002, Hillsides circulated an “E-Mail, Voicemail
and Computer Systems Policy.” This document stated that it was intended to
prevent employees from using Hillsides‟ electronic communications systems in a
manner that defamed, harassed, or harmed others, or that subjected the company to
“significant legal exposure.” Illegal and inappropriate activity was prohibited,
such as accessing sexually offensive Web sites or displaying, downloading, or
distributing sexually explicit material. The policy further contemplated the use of
electronic “[p]ersonal passwords.” However, it warned employees that they had
“no reasonable expectation of privacy in any . . . use of Company computers,
network and system.” Along the same lines, the policy advised that all data
created, transmitted, downloaded, or stored on the system was Hillsides‟ property,
5
and that the company could “monitor and record employee activity on its
computers, network . . . and e-mail systems,” including “e-mail messages[,] . . .
files stored or transmitted[,] and . . . web sites accessed.”1
Plaintiffs acknowledged the existence of the foregoing policy in their
depositions. Indeed, both testified that, as employees of Hillsides, they were not
allowed to access pornographic Web sites from their computers at work. They
indicated that such conduct would conflict with Hillsides‟ mission to provide a
safe environment for the abused and vulnerable children in its care. Hernandez
described such conduct as “wrong,” “illegal,” and “unethical.” Lopez agreed with
this assessment.
In order to ensure compliance with Hillsides‟ computer policy and
restrictions, Foster, the computer specialist, could retrieve and print a list of all
Internet Web sites accessed from every computer on the premises. The network
server that recorded and stored such information could pinpoint exactly when and
where such Web access had occurred. In July 2002, Foster determined that
numerous pornographic Web sites had been viewed in the late-night and early-
morning hours from at least two different computers. One of them was located in
1
On November 5, 2002, shortly after the events herein occurred, Hitchcock
circulated a one-page memorandum reminding staff that they could not use
Hillsides‟ computers or Internet services to view or access any sexually explicit or
offensive material or Web site. The memorandum further stated that the network
could be made to monitor Internet use, and that unspecified “surveillance devices”
could be placed wherever inappropriate computer use occurred. Attached to the
memorandum was a two-page document dated November 4, 2002, entitled
“Communications Acceptable Use Policy.” Like its predecessor, the new policy
sought to address “possible legal issues” by providing that data stored on
Hillsides‟ computers remained company property, that password protections were
required, that Hillsides could monitor the computer network at any time, and that
use of its equipment to view or access sexually explicit or offensive materials or
Web sites was prohibited.
6
the computer laboratory, or classroom. The other one sat on the desk Lopez used
in the office she shared with Hernandez.
The evidence indicated that Lopez‟s computer could have been accessed
after hours by someone other than her, because she did not always log off before
going home at night. Hitchcock explained in his deposition that employees were
expected to turn off their computers when leaving work at the end of the day, that
a personal password was required to log onto the computer again after it had been
turned off, and that this policy was communicated orally to employees when their
computers were first assigned. He admitted that he did not remind plaintiffs of
this procedure before taking the surveillance steps at issue here. Nonetheless,
Lopez noted in her declaration that “[o]nce [her] computer at Hillsides was turned
off, it required the input of a secret password in order to be accessed again.”
Foster told defendant Hitchcock about the inappropriate Internet use, and
showed him printouts listing the pornographic Web sites that had been accessed.
Given the odd hours at which such activity had occurred, Hitchcock surmised that
the perpetrator was a program director or other staff person who had unfettered
access to Hillsides in the middle of the night. Hitchcock did not blame any of the
children, because they would have been under supervision and asleep in the
residence halls at the time. Nor did he suspect plaintiffs. They typically were
gone from the premises when the impermissible nighttime computer use occurred.
In light of these circumstances, Hitchcock decided to use video equipment
Hillsides already had in its possession to record the perpetrator in the act of using
the computers at night. He told other administrators about the problem and his
surveillance plan. Hitchcock explained in both his deposition and declaration that
7
he sought to protect the children from any staff person who might expose them to
pornography, emphasizing the harm they had endured before entering Hillsides.2
With Foster‟s assistance, Hitchcock initially installed the video equipment
in the computer laboratory from which some of the pornographic Web sites had
been accessed. However, because so many people used the laboratory for
legitimate reasons during and after business hours, Hitchcock decided instead to
conduct surveillance in the office that plaintiffs shared. He did not inform
plaintiffs of this decision. He reasoned that the more people who knew and
“gossiped” about the plan, the greater the chance the culprit would hear about it
and never be identified or stopped.
Hence, at some point during the first week of October 2002, Hitchcock and
Foster installed video recording equipment in plaintiffs‟ office and in a storage
room nearby. First, in plaintiffs‟ office, they positioned a camera on the top shelf
2
Plaintiffs claim defendants never established that an unidentified employee
or other intruder accessed pornographic Web sites from Lopez‟s computer,
thereby risking harm to Hillsides‟ residents or operations. Plaintiffs assume that
declarations filed by Hitchcock and Foster containing such factual assertions are
incompetent and inadmissible on numerous grounds, and that no other similar
evidence exists. We reject the argument and its premise. Plaintiffs do not make
clear through an analysis of the pleadings below, or specific record citations,
whether the present evidentiary objections are the same as those made and
overruled in the trial court. In the summary judgment context, we have declined
similar requests to disregard evidence based on objections “in this court lack[ing]
adequate argument and support.” (Lyle v. Warner Brothers Television
Productions (2006) 38 Cal.4th 264, 277, fn. 3.) In any event, the substance of the
information contained in the challenged declarations appears in Hitchcock‟s
deposition. As best we can determine from the record, plaintiffs never contested
such deposition testimony in the trial court. Their failure to do so prevents them
from complaining about the admission of the evidence in deposition form. (E.g.,
Miller v. Department of Corrections (2005) 36 Cal.4th 446, 452, fn. 3; see Code
Civ. Proc., § 437c, subds. (b)(5) & (d) [evidentiary objections not made at
summary judgment hearing are waived].)
8
of a bookcase, among some plants, where it apparently was obscured from view.
They also tucked a motion detector into the lap of a stuffed animal or toy sitting on
a lower shelf of the same bookcase. Second, these devices connected remotely to
a television that Hitchcock and Foster moved into the storage room. A
videocassette recorder was built into the unit. The television had a 19-inch
monitor on which images could be viewed.
Hitchcock explained the system‟s operation in his deposition as follows:
Through wireless technology, the camera broadcast images to the television
monitor, and the motion detector operated the videocassette recorder. The
recorder would “run as long as there [was] motion in that room to keep it
activated.” Once installed in plaintiffs‟ office, both the camera and the motion
detector were always plugged into the electrical system, and therefore were
capable of operating “all the time.” However, in order for the camera to display
an image on the monitor, and for the motion detector to trigger a recording of that
image, a wireless “receptive device” in the storage room needed to be plugged into
— i.e., “connected” and “engaged” to — the television set. Hitchcock further
testified that if these wireless receptors were unplugged, disconnected, or
disengaged, then the camera and motion detector were not “activated,” and
nothing was displayed or recorded on the television equipment.
Hitchcock was not the only person with access to the storage room and the
video surveillance equipment inside. Plaintiffs each stated in their declarations
that “several supervisory employees and program directors had keys and access to
that storage room.” Hitchcock stated in his deposition that he knew of only two
employees with keys to the storage room, Susanne Crummey and Ramona McGee,
and that the location was locked and “secure.” Crummey and another
administrator, Stacey Brake, were the only people other than Hitchcock and Foster
9
who knew that the video equipment in the storage room was specifically set up to
monitor plaintiffs‟ office.
Hitchcock rarely activated the camera and motion detector in plaintiffs‟
office, and never did so while they were there. His deposition testimony
addressed these circumstances as follows: On three occasions, Hitchcock
connected the wireless receptors to the television in the storage room after
plaintiffs left work for the day, and then disconnected the receptors the next
morning, before plaintiffs returned to work. On one such morning, he also
removed the camera from the office, and returned it later, when plaintiffs were
gone for the night. In short, the camera and motion detector were always disabled
during the workday, such that “there was no picture showing” and “no recording
going on” while plaintiffs were in their office. Hitchcock further stated that
between installation of the equipment in early October 2002, and his decision to
remove it three weeks later, no one was videotaped or caught using the computer
in plaintiffs‟ office. He assumed that the culprit had learned about the camera and
stopped engaging in unauthorized activity.3
3
Plaintiffs insist here, as on appeal, that triable issues exist as to whether
they were viewed or recorded because (1) the video surveillance equipment was
“always on,” (2) the television monitor in the storage room displayed a
“continuous” live image of the interior of plaintiffs‟ office, and (3) “recording was
possible” even when nothing triggered the motion detector. However, Hitchcock‟s
deposition defeats these assertions, and plaintiffs presented no contrary evidence
below. As we have seen, Hitchcock testified that no image was displayed or
recorded on the television unless the remote controls in the storage room were
connected, and that he connected them and activated the surveillance system only
three times, at night, when plaintiffs were not at work. He also stated that no
recording occurred unless movement was first sensed by the motion detector in its
activated state, and that neither plaintiffs nor any third person appeared on the
videotape. Indeed, the Court of Appeal reached a similar conclusion concerning
the undisputed nature of Hitchcock‟s testimony about the “recording and/or
(footnote continued on next page)
10
Meanwhile, about 4:30 p.m. on Friday, October 25, 2002, plaintiffs
discovered the video equipment in their office. A red light on the motion detector
flashed at the time. The cord attached to the camera was plugged into the wall and
was hot to the touch.
Shocked by the discovery, plaintiffs immediately reported it to two
supervisors, Sylvia Levitan and Toni Aikins. Levitan called Hitchcock, who was
at home. A program director helped remove the camera from plaintiffs‟ office and
lock it in Levitan‟s office for safekeeping.
A short time later, Hitchcock called Hernandez in her office. He
apologized for installing the camera, and said the surveillance was not aimed at
plaintiffs, but at an intruder who had used Lopez‟s computer to access
inappropriate Web sites. Hernandez expressed concern that she was videotaped
while changing her clothes or that “personal stuff” in her office was somehow
disturbed. Hitchcock replied by assuring Hernandez that “the only time we
activated that camera and the video recorder was after you left at night and [we]
deactivated the two devices before you came to work in the morning. [¶] . . . [A]t
no time did [we] ever capture [you] or [Lopez] on the tape.” During this
conversation, Hitchcock asked to speak with Lopez, but learned she had left the
office for the day. Hitchcock twice tried contacting Lopez over the next two days,
which fell on a weekend, but did not reach her.
(footnote continued from previous page)
viewing” of plaintiffs. Plaintiffs did not seek rehearing or modification on this or
any other factual point, and are barred from complaining about it now. (See Cal.
Rules of Court, rule 8.500(c)(2) [Court of Appeal‟s statement of facts is accepted
on review absent rehearing petition challenging alleged misstatements].)
11
Plaintiffs did not return to work until Wednesday, October 30, 2002. That
morning, they met for 30 minutes with both defendant Hitchcock and Aikins, their
supervisor. Hitchcock essentially repeated the substance of his prior conversation
with Hernandez. He apologized and explained the reason for installing the camera
in plaintiffs‟ office, and assured them that they were not the target of the
surveillance and had not been videotaped.
During this meeting, Lopez asked to see the surveillance videotape.
Hitchcock agreed. The group went to Hitchcock‟s office and watched the tape on
his television set. According to the depositions of both plaintiffs, there was not
much to see. No one appeared on the tape except for Hitchcock, who was briefly
seen setting up the camera and moving around inside plaintiffs‟ office. The only
other recorded images were of Lopez‟s empty desk and computer, the surrounding
work area, some closets, and the entrance to the office. No sound accompanied
the playing of the tape. Hitchcock never indicated to plaintiffs that any audio
recording was made, or that the camera could record sound.4
Based on the foregoing facts, the trial court found no triable issue as to any
cause of action stated in the complaint, granted summary judgment in defendants‟
favor, and dismissed the action. The court agreed with defendants that there had
been no intrusion on plaintiffs‟ reasonable expectations of privacy. In this regard,
the court emphasized the lack of evidence that plaintiffs “were secretly observed
or recorded by way of a hidden camera located in their office. . . . [I]t is
undisputed that the camera was only connected to a video monitor and to
4
This court has reviewed a copy of the videotape provided by plaintiffs‟
counsel, which conforms to the parties‟ descriptions in the trial court. As to the
camera, Lopez remarked in her deposition that, based on her own Internet
research, Hitchcock‟s model had an audio recording feature. She did not
otherwise describe the camera or explain her conclusion.
12
recording equipment on three occasions, all of which occurred after working hours
when Plaintiffs were not present.” Alternatively, the trial court concluded that any
privacy expectations plaintiffs had in their joint office were “diminished,” and
were “overcome by Defendants‟ right to a safe environment for its children.”
The Court of Appeal reversed as to the invasion-of-privacy count. Critical
to the court‟s analysis on appeal was the placement in plaintiffs‟ office of a
functioning hidden camera, capable of transmitting images that could be viewed or
recorded by anyone who had access to the storage room and who activated the
wireless remote controls. According to the appellate court, plaintiffs had a
reasonable expectation to be free from this kind of intrusion in the workplace,
notwithstanding evidence that they were never viewed or recorded and that they
worked in a shared office to which others had access. For similar reasons, and
even assuming defendants were merely trying to stop an intruder‟s inappropriate
use of the computers at night, the Court of Appeal concluded that defendants‟
conduct was highly offensive. However, for reasons not challenged or relevant
here, the Court of Appeal agreed with the trial court that plaintiffs had not
presented triable claims for intentional and negligent infliction of emotional
distress, and that such counts should be dismissed.
Defendants petitioned for review on the ground the Court of Appeal erred
in not affirming the judgment in its entirety and reversing the trial court‟s
dismissal of the invasion-of-privacy count. We granted review.5
5
We note that the Employers Group and the California Employment Law
Council have jointly filed a brief as amici curiae in support of defendant Hillsides.
13
DISCUSSION
A. Summary Judgment Rules
A grant of summary judgment is proper where it appears no triable issues
of material fact exist, and judgment is warranted as a matter of law. (Code of Civ.
Proc., § 437c, subd. (c); Miller v. Department of Corrections, supra, 36 Cal.4th
446, 460.) As the moving party, the defendant must show that the plaintiff “has
not established, and cannot reasonably expect to establish, a prima facie case” on
one or more elements of the cause of action. (Saelzler v. Advanced Group 400
(2001) 25 Cal.4th 763, 768; accord, Wilson v. 21st Century Ins. Co. (2007) 42
Cal.4th 713, 720.) The reviewing court independently examines the record and
considers all of the evidence set forth in the moving and opposing papers except
that as to which objections have been made and sustained. (Lyle v. Warner
Brothers Television Productions, supra, 38 Cal.4th 264, 274; Guz v. Bechtel
National, Inc. (2000) 24 Cal.4th 317, 334; see id. at p. 335, fn. 7.)
B. General Privacy Principles
Defendants (joined by their amici curiae) argue here, as below, that they did
nothing wrong in attempting to videotape a nighttime intruder using the computer
in plaintiffs‟ office, because no private information about plaintiffs was obtained.
Defendants insist that plaintiffs, not being the intended targets of the surveillance
plan, were never viewed or recorded, and thereby suffered no serious or actionable
intrusion into their private domain. Plaintiffs disagree and urge us to adopt the
Court of Appeal‟s approach in the present case. They insist that defendants were
able to view and record plaintiffs at will, without their knowledge or consent, and
unjustifiably deprived them of the privacy they reasonably expected to have while
working behind closed doors in their shared office.
The foregoing arguments have been framed throughout this action in terms
of both the common law and the state Constitution. These two sources of privacy
14
protection “are not unrelated” under California law. (Shulman, supra, 18 Cal.4th
200, 227; accord, Hill, supra, 7 Cal.4th 1, 27; but see Katzberg v. Regents of
University of California (2002) 29 Cal.4th 300, 313, fn. 13 [suggesting it is an
open question whether the state constitutional privacy provision, which is
otherwise self-executing and serves as the basis for injunctive relief, can also
provide direct and sole support for a damages claim].) Such privacy principles
provide the framework for our analysis, as follows.
A privacy violation based on the common law tort of intrusion has two
elements. First, the defendant must intentionally intrude into a place,
conversation, or matter as to which the plaintiff has a reasonable expectation of
privacy. Second, the intrusion must occur in a manner highly offensive to a
reasonable person. (Shulman, supra, 18 Cal.4th 200, 231, approving and
following Rest.2d Torts, § 652B; Miller v. National Broadcasting Co. (1986) 187
Cal.App.3d 1463, 1482 (Miller); accord, Taus v. Loftus (2007) 40 Cal.4th 683,
724-725, 731 (Taus).) These limitations on the right to privacy are not
insignificant. (Miller, supra, at p. 1482.) Nonetheless, the cause of action
recognizes a measure of personal control over the individual‟s autonomy, dignity,
and serenity. (Shulman, supra, at p. 231.) The gravamen is the mental anguish
sustained when both conditions of liability exist. (Miller, supra, pp. 1484-1485.)
As to the first element of the common law tort, the defendant must have
“penetrated some zone of physical or sensory privacy . . . or obtained unwanted
access to data” by electronic or other covert means, in violation of the law or
social norms. (Shulman, supra, 18 Cal.4th 200, 232; see id. at pp. 230-231.) In
either instance, the expectation of privacy must be “objectively reasonable.” (Id.
at p. 232.) In Sanders v. American Broadcasting Companies (1999) 20 Cal.4th
907 (Sanders), a leading case on workplace privacy that we discuss further below,
this court linked the reasonableness of privacy expectations to such factors as (1)
15
the identity of the intruder, (2) the extent to which other persons had access to the
subject place, and could see or hear the plaintiff, and (3) the means by which the
intrusion occurred. (Id. at p. 923; see Shulman, supra, 18 Cal.4th 200, 233-235.)
The second common law element essentially involves a “policy”
determination as to whether the alleged intrusion is “highly offensive” under the
particular circumstances. (Taus, supra, 40 Cal.4th 683, 737.) Relevant factors
include the degree and setting of the intrusion, and the intruder‟s motives and
objectives. (Shulman, supra, 18 Cal.4th 200, 236; Miller, supra, 187 Cal.App.3d
1463, 1483-1484.) Even in cases involving the use of photographic and electronic
recording devices, which can raise difficult questions about covert surveillance,
“California tort law provides no bright line on [„offensiveness‟]; each case must be
taken on its facts.” (Shulman, supra, at p. 237.)
The right to privacy in the California Constitution sets standards similar to
the common law tort of intrusion. (Hill, supra, 7 Cal.4th 1, 27.)6 Under this
provision, which creates at least a limited right of action against both private and
government entities (id. at p. 20), the plaintiff must meet several requirements.
First, he must possess a legally protected privacy interest. (Hill, supra, 7
Cal.4th 1, 35.) These interests include “conducting personal activities without
observation, intrusion, or interference” (ibid.), as determined by “established
social norms” derived from such sources as the “common law” and “statutory
enactment.” (Id. at p. 36.) Second, the plaintiff‟s expectations of privacy must be
reasonable. This element rests on an examination of “customs, practices, and
6
Article I, section 1 of the California Constitution states: “All people are by
nature free and independent and have inalienable rights. Among these are
enjoying and defending life and liberty, acquiring, possessing, and protecting
property, and pursuing and obtaining safety, happiness, and privacy.”
16
physical settings surrounding particular activities” (ibid.), as well as the
opportunity to be notified in advance and consent to the intrusion. (Id. at pp. 36-
37.) Third, the plaintiff must show that the intrusion is so serious in “nature,
scope, and actual or potential impact as to constitute an egregious breach of the
social norms.” (Id. at p. 37; accord, Sheehan v. San Francisco 49ers, Ltd. (2009)
45 Cal.4th 992, 998 (Sheehan); Pioneer Electronics (USA), Inc. v. Superior Court
(2007) 40 Cal.4th 360, 370-371 (Pioneer).)
Hill and its progeny further provide that no constitutional violation occurs,
i.e., a “defense” exists, if the intrusion on privacy is justified by one or more
competing interests. (Hill, supra, 7 Cal.4th 1, 38.) For purposes of this balancing
function — and except in the rare case in which a “fundamental” right of personal
autonomy is involved — the defendant need not present a “ „compelling‟ ”
countervailing interest; only “general balancing tests are employed.” (Id. at p. 34.)
To the extent the plaintiff raises the issue in response to a claim or defense of
competing interests, the defendant may show that less intrusive alternative means
were not reasonably available. (Id. at p. 38.) A relevant inquiry in this regard is
whether the intrusion was limited, such that no confidential information was
gathered or disclosed. (Ibid.; accord, Sheehan, supra, 45 Cal.4th 992, 998-999;
Pioneer, supra, 40 Cal.4th 360, 371.)
In light of the foregoing, we will assess the parties‟ claims and the
undisputed evidence under the rubric of both the common law and constitutional
tests for establishing a privacy violation. Borrowing certain shorthand language
from Hill, supra, 7 Cal.4th 1, which distilled the largely parallel elements of these
two causes of action, we consider (1) the nature of any intrusion upon reasonable
expectations of privacy, and (2) the offensiveness or seriousness of the intrusion,
including any justification and other relevant interests. (Id. at pp. 27, 34.)
17
C. Intrusion upon Reasonable Privacy Expectations
For reasons we now explain, we cannot conclude as a matter of law that the
Court of Appeal erred in finding a prima facie case on the threshold question
whether defendants‟ video surveillance measures intruded upon plaintiffs‟
reasonable expectations of privacy. Plaintiffs plausibly maintain that defendants
cannot prevail on this element of the cause of action simply because they “never
intended to view or record” plaintiffs, or because defendants did not “capture
[plaintiffs‟] images at all.” Other significant factors not considered by defendants
point favorably in plaintiffs‟ direction on this issue.
Our analysis starts from the premise that, while privacy expectations may
be significantly diminished in the workplace, they are not lacking altogether. In
Sanders, supra, 20 Cal.4th 907, a reporter working undercover for a national
broadcasting company obtained employment alongside the plaintiff as a
telepsychic, giving “readings” to customers over the phone. The reporter then
secretly videotaped and recorded interactions with the plaintiff and other psychics
using a small camera hidden in her hat and a microphone attached to her brassiere.
The taping occurred in a large room containing 100 cubicles that were open on one
side and on top, and from which coworkers could be seen and heard nearby.
Visitors could not enter this area without permission from the front desk.
Ultimately, the plaintiff sued the reporter and the broadcasting company for
violating his privacy after one of his secretly taped conversations aired on
television. A jury verdict in the plaintiff‟s favor was reversed on appeal. The
appellate court concluded that the plaintiff could not reasonably expect that
actions and statements witnessed by coworkers would remain private and not be
disclosed to third parties. (Id. at pp. 911-913 & fn. 1.)
Relying on the elements of the intrusion tort set forth in Shulman, supra, 18
Cal.4th 200, we disagreed with the Court of Appeal in Sanders, and reversed the
18
judgment. This court emphasized that privacy expectations can be reasonable
even if they are not absolute. “[P]rivacy, for purposes of the intrusion tort, is not a
binary, all-or-nothing characteristic. There are degrees and nuances to societal
recognition of our expectations of privacy: the fact that the privacy one expects in
a given setting is not complete or absolute does not render the expectation
unreasonable as a matter of law.” (Sanders, supra, 20 Cal.4th 907, 916.)
In adopting this refined approach, Sanders highlighted various factors
which, either singly or in combination, affect societal expectations of privacy.
One factor was the identity of the intruder. (Sanders, supra, 20 Cal.4th 907, 918,
923.) We noted that the plaintiff in that case, and other employees, were
deliberately misled into believing that the defendant reporter was a colleague, and
had no reason to suspect she worked undercover to secretly tape their interactions
for use in a national television program. (Id. at p. 921.)
Also relevant in Sanders, supra, 20 Cal.4th 907, was the nature of the
intrusion (id. at p. 918), meaning, both the extent to which the subject interaction
could be “seen and overheard” and the “means of intrusion.” (Id. at p. 923.)
These factors weighed heavily in the plaintiff‟s favor: “[T]he possibility of being
overheard by coworkers does not, as a matter of law, render unreasonable an
employee‟s expectation that his or her interactions within a nonpublic workplace
will not be videotaped in secret by a journalist.” (Ibid.) We distinguished the
situation in which “the workplace is regularly open to entry or observation by the
public or press,” or the subject interaction occurred between either the proprietor
or employee of a business and a “customer” who walks in from the street. (Ibid.)
The present case, of course, does not involve an imposter or “stranger to the
workplace” who surreptitiously recorded and videotaped conversations that were
later published without the speaker‟s consent. (Sanders, supra, 20 Cal.4th 907,
918.) Nor does it involve commercial interactions between the representatives of
19
a business and its customers or other members of the public. Rather, defendants
represent a private employer accused of installing electronic equipment that gave it
the capacity to secretly watch and record employee activities behind closed doors
in an office to which the general public had limited access. As we discuss later
with respect to the “offensiveness” element of plaintiffs‟ claim, an employer may
have sound reasons for monitoring the workplace, and an intrusion upon the
employee‟s reasonable privacy expectations may not be egregious or actionable
under the particular circumstances. However, on the threshold question whether
such expectations were infringed, decisional law suggests that is the case here.
Consistent with Sanders, supra, 20 Cal.4th 907, 922, which asks whether
the employee could be “overheard or observed” by others when the tortious act
allegedly occurred, courts have examined the physical layout of the area intruded
upon, its relationship to the workplace as a whole, and the nature of the activities
commonly performed in such places. At one end of the spectrum are settings in
which work or business is conducted in an open and accessible space, within the
sight and hearing not only of coworkers and supervisors, but also of customers,
visitors, and the general public. (See Wilkins v. National Broadcasting Co. (1999)
71 Cal.App.4th 1066, 1072-1073, 1078 [holding for purpose of common law
intrusion tort that businessmen lacked privacy in lunch meeting secretly
videotaped on crowded outdoor patio of public restaurant]; see also Acosta v. Scott
Labor LLC (N.D.Ill. 2005) 377 F.Supp.2d 647, 649, 652 [similar conclusion as to
employer secretly videotaped by disgruntled employee in common, open, and
exposed area of workplace]; Melder v. Sears, Roebuck and Co. (La.Ct.App. 1999)
731 So.2d 991, 994, 1001 [similar conclusion as to department store employee
captured on video cameras used to monitor customers as they shopped].)
At the other end of the spectrum are areas in the workplace subject to
restricted access and limited view, and reserved exclusively for performing bodily
20
functions or other inherently personal acts. (See Trujillo v. City of Ontario
(C.D.Cal. 2006) 428 F.Supp.2d 1094, 1099-1100, 1103, 1119-1122 (Trujillo)
[recognizing that employees have common law and constitutional privacy interests
while using locker room in basement of police station, and can reasonably expect
that employer will not intrude by secretly videotaping them as they undress]; see
also Doe by Doe v. B.P.S. Guard Services, Inc. (8th Cir. 1991) 945 F.2d 1422,
1424, 1427 (Doe) [similar conclusion as to models who were secretly viewed and
videotaped while changing clothes behind curtained area at fashion show]; Liberti
v. Walt Disney World Co. (M.D.Fla. 1995) 912 F.Supp. 1494, 1499, 1506 (Liberti)
[similar conclusion as to dancers who were secretly viewed and videotaped while
changing clothes and using restroom in dressing room at work].)
The present scenario falls between these extremes. (Cf. Sacramento
County Deputy Sheriffs’ Assn. v. County of Sacramento (1996) 51 Cal.App.4th
1468, 1482, 1487 [rejecting common law intrusion claim of jail employee secretly
videotaped while handling inmate property based on accessibility of his office to
others and heightened security concerns inherent in custodial setting]; see also
Marrs v. Marriott Corp. (D.Md. 1992) 830 F.Supp. 274, 283 [similar conclusion
as to security guard secretly videotaped while breaking into colleague‟s locked
desk in open office used as common area by entire staff].)
Plaintiffs plausibly claim that Hillsides provided an enclosed office with a
door that could be shut and locked, and window blinds that could be drawn, to
allow the occupants to obtain some measure of refuge, to focus on their work, and
to escape visual and aural interruptions from other sources, including their
employer. Such a protective setting generates legitimate expectations that not all
activities performed behind closed doors would be clerical and work related. As
suggested by the evidence here, employees who share an office, and who have
four walls that shield them from outside view (albeit, with a broken “doggie” flap
21
on the door), may perform grooming or hygiene activities, or conduct personal
conversations, during the workday. Privacy is not wholly lacking because the
occupants of an office can see one another, or because colleagues, supervisors,
visitors, and security and maintenance personnel have varying degrees of access.
(See Sanders, supra, 20 Cal.4th 907, 917 [“ „visibility to some people does not
strip [away] the right to remain secluded from others‟ ”]; id. at pp. 918-919
[“ „business office need not be sealed to offer its occupant a reasonable degree of
privacy‟ ”].)
Regarding another relevant factor in Sanders, supra, 20 Cal.4th 907, 923,
the “means of intrusion,” employees who retreat into a shared or solo office, and
who perform work and personal activities in relative seclusion there, would not
reasonably expect to be the subject of televised spying and secret filming by their
employer. As noted, in assessing social norms in this regard, we may look at both
the “common law” and “statutory enactment.” (Hill, supra, 7 Cal.4th 1, 36.)
Courts have acknowledged the intrusive effect for tort purposes of hidden
cameras and video recorders in settings that otherwise seem private. It has been
said that the “unblinking lens” can be more penetrating than the naked eye with
respect to “duration, proximity, focus, and vantage point.” (Cowles v. State
(Alaska 2001) 23 P.3d 1168, 1182 (dis. opn. of Fabe, J.).) Such monitoring and
recording denies the actor a key feature of privacy — the right to control the
dissemination of his image and actions. (See Shulman, supra, 18 Cal.4th 200,
235.) We have made clear that the “ „mere fact that a person can be seen by
someone does not automatically mean that he or she can legally be forced to be
subject to being seen by everyone.‟ ” (Sanders, supra, 20 Cal.4th 907, 916.)
Not surprisingly, we discern a similar legislative policy against covert
monitoring and recording that intrudes — or threatens to intrude — upon visual
privacy. Some statutes criminalize the use of camcorders, motion picture cameras,
22
or photographic cameras to violate reasonable expectations of privacy in specified
areas in which persons commonly undress or perform other intimate acts.
Liability exists, under certain circumstances, where the lens allows the intruder to
“look[ ]” into or “view[ ]” the protected area. (Pen. Code, § 647, subd. (j)(1).)7
Of course, the intruder also cannot “secretly videotape, film, photograph, or
record” anyone in that private place where various conditions exist. (Id., subd.
(j)(3)(A); see Trujillo, supra, 428 F.Supp.2d 1094, 1119 [statute intended to
protect visual privacy of persons in various states of undress].)
Other statutes authorize civil damages for certain invasions of privacy that
involve either a physical trespass or other offensive conduct for the purpose of
capturing a picture of someone engaged in personal or familial activities. The
focus of such provisions is on the “intent to capture” a “visual image” (Civ. Code,
7
Penal Code section 647 imposes misdemeanor liability for disorderly
conduct. Its diverse provisions include subdivision (j)(1), which applies to “[a]ny
person who looks through a hole or opening, into, or otherwise views, by means of
any instrumentality, including, but not limited to, a periscope, telescope,
binoculars, camera, motion picture camera, or camcorder, the interior of a
bedroom, bathroom, changing room, fitting room, dressing room, or tanning
booth, or the interior of any other area in which the occupant has a reasonable
expectation of privacy, with the intent to invade the privacy of a person or persons
inside.”
Subdivision (j)(3)(A) of Penal Code section 647 applies to “[a]ny person
who uses a concealed camcorder, motion picture camera, or photographic camera
of any type, to secretly videotape, film, photograph, or record by electronic means,
another, identifiable person who may be in a state of full or partial undress, for the
purpose of viewing the body of, or the undergarments worn by, that other person,
without the consent or knowledge of that other person, in the interior of a
bedroom, bathroom, changing room, fitting room, dressing room, or tanning
booth, or the interior of any other area in which that other person has a reasonable
expectation of privacy, with the intent to invade the privacy of that other person.”
23
§ 1708.8, subd. (a)), or on the “attempt” to do so. (Id., subd. (b).)8 Failure to
capture or record the subject image is no defense to a statutory violation in this
context. (Id., subd. (j); see Richardson-Tunnell v. Schools Ins. Program for
Employees (SIPE) (2007) 157 Cal.App.4th 1056, 1063 [statute protects against
aggressive, paparazzi-like, behavior of tabloid journalists].)
As emphasized by defendants, the evidence shows that Hitchcock never
viewed or recorded plaintiffs inside their office by means of the equipment he
installed both there and in the storage room. He also did not intend or attempt to
do so, and took steps to avoid capturing them on camera and videotape. While
such factors bear on the offensiveness of the challenged conduct, as discussed
below, we reject the defense suggestion that they preclude us from finding the
8
Civil Code section 1708.8 authorizes compensatory and punitive damages
and injunctive relief for acts constituting a physical or constructive invasion of
privacy. Subdivision (a) states: “A person is liable for physical invasion of
privacy when the defendant knowingly enters onto the land of another person
without permission or otherwise committed a trespass in order to physically
invade the privacy of the plaintiff with the intent to capture any type of visual
image, sound recording, or other physical impression of the plaintiff engaging in a
personal or familial activity and the physical invasion occurs in a manner that is
offensive to a reasonable person.”
Subdivision (b) of Civil Code section 1708.8 states: “A person is liable for
constructive invasion of privacy when the defendant attempts to capture, in a
manner that is offensive to a reasonable person, any type of visual image, sound
recording, or other physical impression of the plaintiff engaging in a personal or
familial activity under circumstances in which the plaintiff had a reasonable
expectation of privacy, through the use of a visual or auditory enhancing device,
regardless of whether there is a physical trespass, if this image, sound recording,
or other physical impression could not have been achieved without a trespass
unless the visual or auditory enhancing device was used.”
Subdivision (j) of Civil Code section 1708.8 states: “It is not a defense to a
violation of this section that no image, recording, or physical impression was
captured or sold.”
24
requisite intrusion in the first place. (See Shulman, supra, 18 Cal.4th 200, 232
[requiring either a physical or sensory penetration into a private place or matter, or
the gaining of unwanted access to private information].)
In particular, Hitchcock hid the video equipment in plaintiffs‟ office from
view in an apparent attempt to prevent anyone from discovering, avoiding, or
dismantling it. He used a camera and motion detector small enough to tuck inside
and around decorative items perched on different bookshelves, both high and low.
Plaintiffs presumably would have been caught in the camera‟s sights if they had
returned to work after hours, or if Hitchcock had been mistaken about them having
left the office when he activated the system. Additionally, except for the one day
in which Hitchcock removed the camera from plaintiffs‟ office, the means to
activate the monitoring and recording functions were available around the clock,
for three weeks, to anyone who had access to the storage room. Assuming the
storage room was locked, as many as eight to 11 employees had keys under
plaintiffs‟ version of the facts (depending upon the total number of program
directors at Hillsides).
In a related vein, plaintiffs cannot plausibly be found to have received
warning that they would be subjected to the risk of such surveillance, or to have
agreed to it in advance. We have said that notice of and consent to an impending
intrusion can “inhibit reasonable expectations of privacy.” (Hill, supra, 7 Cal.4th
1, 36; accord, Sheehan, supra, 45 Cal.4th 992, 1000-1001.) Such factors also can
“ „ “limit [an] intrusion upon personal dignity” ‟ ” by providing an opportunity for
persons to regulate their conduct while being monitored. (Hill, supra, at p. 36.)
Here, however, the evidence shows that no one at Hillsides told plaintiffs that
someone had used Lopez‟s computer to access pornographic Web sites. Nor were
they told that Hitchcock planned to install surveillance equipment inside their
office to catch the perpetrator on television and videotape.
25
Moreover, nothing in Hillsides‟ written computer policy mentioned or even
alluded to the latter scenario. As noted earlier, the version in effect at the relevant
time made clear that any monitoring and recording of employee activity, and any
resulting diminution in reasonable privacy expectations, were limited to “use of
Company computers” in the form of “e-mail” messages, electronic “files,” and
“web site” data. Foster performed this administrative function when he used the
network server to produce the list of pornographic Web sites accessed in both the
computer laboratory and Lopez‟s office, and showed such computer-generated
data to Hitchcock. There is no evidence that employees like plaintiffs had any
indication that Hillsides would take the next drastic step and use cameras and
recording devices to view and videotape employees sitting at their desks and
computer workstations, or moving around their offices within camera range.
In sum, the undisputed evidence seems clearly to support the first of two
basic elements we have identified as necessary to establish a violation of privacy
as alleged in plaintiffs‟ complaint. Defendants secretly installed a hidden video
camera that was both operable and operating (electricity-wise), and that could be
made to monitor and record activities inside plaintiffs‟ office, at will, by anyone
who plugged in the receptors, and who had access to the remote location in which
both the receptors and recording equipment were located. The workplace policy,
that by means within the computer system itself, plaintiffs would be monitored
about the pattern and use of Web sites visited, to prevent abuse of Hillsides‟
computer system, is distinguishable from and does not necessarily create a social
norm that in order to advance that same interest, a camera would be placed inside
their office, and would be aimed toward a computer workstation to capture all
26
human activity occurring there. Plaintiffs had no reasonable expectation that their
employer would intrude so tangibly into their semi-private office.9
D. Offensiveness/Seriousness of the Privacy Intrusion
Plaintiffs must show more than an intrusion upon reasonable privacy
expectations. Actionable invasions of privacy also must be “highly offensive” to a
reasonable person (Shulman, supra, 18 Cal.4th 200, 231; see id. at p. 236), and
“sufficiently serious” and unwarranted as to constitute an “egregious breach of the
social norms.” (Hill, supra, 7 Cal.4th 1, 37.) Defendants claim that, in finding a
triable issue in this regard, the Court of Appeal focused too narrowly on the mere
9
In our analysis, we have sidestepped cases involving claims that searches
by governmental agents and employers for evidence of misconduct or criminality
in the workplace violate an employee‟s reasonable expectations of privacy under
the Fourth Amendment of the federal Constitution. (See O’Connor v. Ortega
(1987) 480 U.S. 709, 714-719 (plur. opn. of O‟Connor, J.); id. at pp. 730-731
(conc. opn. of Scalia, J.); id. at pp. 732 (dis. opn. of Blackmun, J.); Mancusi v.
DeForte (1968) 392 U.S. 364, 369.) Recognizing the special concerns involved in
defining a private citizen‟s protection against governmental intrusion, and the
government‟s unique interest in investigating and suppressing criminal activity,
we have said that employee expectations of privacy against government searches
are “not directly applicable” in the privacy tort context. (Sanders, supra, 20
Cal.4th 907, 919, fn. 3.) Here, as elsewhere, we do not suggest that the same
standards necessarily apply in both settings. (Ibid.) We note, however, that where
a governmental search intrudes upon an enclosed office or other protected
workplace, and where covert video surveillance is involved, limited but reasonable
expectations of privacy may exist under the Fourth Amendment. (Compare U.S. v.
Taketa (9th Cir. 1991) 923 F.2d 665, 674-678 [disapproving admission of
warrantless secret videotape made in shared office of airport]; and State v. Bonnell
(Hawaii 1993) 856 P.2d 1265, 1275-1277 [upholding suppression of warrantless
secret videotape made in employee break room of post office], with Vega-
Rodriguez v. Puerto Rico Telephone Co. (1st Cir. 1997) 110 F.3d 174, 178-182
[allowing visible videotaping in open and undivided communications center of
phone company]; and Nelson v. Salem State College (Mass. 2006) 845 N.E.2d
338, 346-347 [allowing secret videotaping in open area of business development
office accessible to general public].)
27
presence of a functioning camera in plaintiffs‟ office during the workday, and on
the inchoate risk that someone would sneak into the locked storage room and
activate the monitoring and recording devices. Defendants imply that under a
broader view of the relevant circumstances, no reasonable jury could find in
plaintiffs‟ favor and impose liability on this evidentiary record. We agree.
For guidance, we note that this court has previously characterized the
“offensiveness” element as an indispensible part of the privacy analysis. It reflects
the reality that “[n]o community could function if every intrusion into the realm of
private action” gave rise to a viable claim. (Hill, supra, 7 Cal.4th 1, 37.) Hence,
no cause of action will lie for accidental, misguided, or excusable acts of
overstepping upon legitimate privacy rights. (Miller, supra, 187 Cal.App.3d 1463,
1483-1484.) In light of such pragmatic policy concerns (see Taus, supra, 40
Cal.4th 683, 737), a court determining whether this requirement has been met as a
matter of law examines all of the surrounding circumstances, including the
“degree and setting” of the intrusion and “the intruder‟s „motives and
objectives.‟ ” (Shulman, supra, 18 Cal.3d 200, 236, quoting and following Miller,
supra, 187 Cal.App.3d at pp. 1483-1484.) Courts also may be asked to decide
whether the plaintiff, in attempting to defeat a claim of competing interests, has
shown that the defendant could have minimized the privacy intrusion through
other reasonably available, less intrusive means. (Hill, supra, 7 Cal.4th at p. 38.)
1. Degree and Setting of Intrusion. This set of factors logically
encompasses the place, time, and scope of defendants‟ video surveillance efforts.
In this case, they weigh heavily against a finding that the intrusion upon plaintiffs‟
privacy interests was highly offensive or sufficiently serious to warrant liability.
In context, defendants took a measured approach in choosing the location to
videotape the person who was misusing the computer system. Evidently,
plaintiffs‟ office was not the preferred spot. Hitchcock initially tried to capture the
28
culprit in the computer laboratory. Based on the consistently high level of human
traffic he described there, the laboratory apparently was far more accessible and
less secluded than plaintiffs‟ office. The surveillance equipment was moved to the
latter location only after Hitchcock determined it was too difficult to pinpoint who
was using computers inappropriately in the open, more public laboratory setting.
Defendants‟ surveillance efforts also were largely confined to the area in
which the unauthorized computer activity had occurred. Once the camera was
placed in plaintiffs‟ office, it was aimed towards Lopez‟s desk and computer
workstation. There is no evidence that Hitchcock intended or attempted to include
Hernandez‟s desk in camera range. We can reasonably infer he avoided doing so,
because no improper computer use had been detected there.
Likewise, access to the storage room and knowledge of the surveillance
equipment inside were limited. A total of two people other than Hitchcock and
Foster (Susanne Crummey and Stacey Brake) knew that the television/recorder
was set up to monitor plaintiffs‟ office. Only one of them (Crummey) had a key to
the lock on the storage room door. The spot was relatively remote and secure.
Timing considerations favor defendants as well. After being moved to
plaintiffs‟ office and the storage room, the surveillance equipment was operational
during a fairly limited window of time. Hitchcock decided to remove the
equipment (and plaintiffs coincidentally discovered it) a mere 21 days later, during
which time no one had accessed Lopez‟s computer for pornographic purposes.
We can infer from the undisputed evidence that Hitchcock kept abreast of his own
monitoring activities, and did not expose plaintiffs to the risk of covert visual
monitoring or video recording any longer than was necessary to determine that his
plan would not work, and that the culprit probably had been scared away.
Defendants‟ actual surveillance activities also were quite limited in scope.
On the one hand, the camera and motion detector in plaintiffs‟ office were always
29
plugged into the electrical circuit and capable of operating the entire time they
were in place. On the other hand, Hitchcock took the critical step of connecting
the wireless receptors and activating the system only three times. At most, he was
responsible for monitoring and recording inside of plaintiffs‟ office an average of
only once a week for three weeks. Such measures were hardly excessive or
egregious. (Cf. Wolfson v. Lewis (E.D.Pa. 1996) 924 F.Supp. 1413, 1420
[electronic surveillance that is persistent and pervasive may constitute a tortious
intrusion on privacy even when conducted in a public or semi-public place].)
Moreover, on each of these three occasions, Hitchcock connected the
wireless devices and allowed the system to remotely monitor and record events
inside plaintiffs‟ office only after their shifts ended, and after they normally left
Hillsides‟ property. He never activated the system during regular business hours
when plaintiffs were scheduled to work. The evidence shows they were not
secretly viewed or taped while engaged in personal or clerical activities.
On the latter point, we agree with defendants that their successful effort to
avoid capturing plaintiffs on camera is inconsistent with an egregious breach of
social norms. For example, in a case closely on point, one court has held that even
where an employer placed a camera in an area reserved for the most personal
functions at work, such that heightened privacy expectations applied, the lack of
any viewing or recording defeated the employee‟s invasion of privacy claim.
(E.g., Meche v. Wal-Mart, Stores, Inc. (La.Ct.App. 1997) 692 So.2d 544, 547
[camera concealed in ceiling of restroom to prevent theft].) This circumstance
also distinguishes plaintiffs‟ case from those we have discussed above, in which
covert visual monitoring and video recording in an employment setting supported
a viable intrusion claim. (E.g., Doe, supra, 945 F.2d 1422, 1424, 1427 [models‟
changing area]; Trujillo, supra, 428 F.Supp.2d 1094, 1100, 1119-1122 [police
locker room]; Liberti, supra, 912 F.Supp. 1494, 1499 [dancers‟ dressing room].)
30
2. Defendants’ motives, justifications, and related issues. This case
does not involve surveillance measures conducted for socially repugnant or
unprotected reasons. (See, e.g., Shulman, supra, 18 Cal.4th 200, 237 [harassment,
blackmail, or prurient curiosity].) Nor, contrary to what plaintiffs imply, does the
record reveal the absence of any reasonable justification or beneficial motivation.
The undisputed evidence is that defendants installed video surveillance equipment
in plaintiffs‟ office, and activated it three times after they left work, in order to
confirm a strong suspicion — triggered by publicized network tracking measures
— that an unknown staff person was engaged in unauthorized and inappropriate
computer use at night. Given the apparent risks under existing law of doing
nothing to avert the problem, and the limited range of available solutions,
defendants‟ conduct was not highly offensive for purposes of establishing a
tortious intrusion into private matters. Our reasoning is as follows.
For legitimate business reasons, employers commonly link their network
servers to the Internet, and provide employees with computers that have direct
access to the network and the Internet. (Delfino v. Agilent Technologies, Inc.
(2006) 145 Cal.App.4th 790, 805-806 (Delfino) [noting trend over previous
decade].) As this phenomenon has grown, employers have adopted formal
policies regulating the scope of appropriate computer and Internet use. Such
policies contemplate reasonable monitoring efforts by employers, and authorize
employee discipline for noncompliance. (E.g., Delfino, supra, at p. 800, fn. 13
[authorizing discharge for transmitting any threatening, sexually explicit, or
harassing item on company computers]; TBG Ins. Services Corp. v. Superior
Court (2002) 96 Cal.App.4th 443, 446 (TBG) [similar policy as to derogatory,
defamatory, or obscene material, coupled with notice that company would monitor
employee computer use]; id. at p. 451 [discussing American Management
Association report stating that most large firms regulate and monitor employee
31
Internet use]; cf. Chin et al., Cal. Practice Guide: Employment Litigation (The
Rutter Group 2007) ¶ 5:782.5 et seq. [exploring limits on computer monitoring in
workplace].)
Despite efforts to control the problem, the potential for abuse of computer
systems and Internet access in the workplace is wide-ranging. (See, e.g., Intel
Corp. v. Hamidi (2003) 30 Cal.4th 1342, 1347 [holding that employee did not
commit tort of trespass to chattels by sending mass emails on employer‟s
electronic system, but otherwise declining to exempt Internet messages from
general rules of tort liability]; TBG, supra, 96 Cal.App.4th 443, 446-447
[employee terminated after repeatedly accessing pornographic Web sites on
computer at work].) The consequences to employers may be serious. (E.g.,
Delfino, supra, 145 Cal.App.4th 790, 795-796, 800 [third parties sued employer
on various counts after receiving vile threats that employee sent over Internet from
work computer]; Monge v. Superior Court (1986) 176 Cal.App.3d 503, 506-507,
509 [employee stated claims for discrimination, harassment, and punitive damages
against employer who failed to investigate her complaints about receiving sexually
offensive message from supervisors on her work computer].)
Here, Hitchcock learned that the computer in plaintiffs‟ office was being
used to access the Internet late at night, long after their shifts ended, by someone
not authorized to use that equipment or office. Data recorded and stored inside the
computer system itself convinced Hitchcock and the computer specialist, Foster,
that the unauthorized user was viewing sexually explicit Web sites. Given the
hour at which this unauthorized Internet activity occurred, Hitchcock strongly
suspected that the responsible party was a program director or other staff person
with keys and access to the administration building, which was otherwise locked
at that hour.
32
Such use of Hillsides‟ computer equipment by an employee violated written
workplace policies circulated both before and after the challenged surveillance
activities occurred. As those policies warned, and case law confirms, the
offending conduct posed a risk that the perpetrator might expose Hillsides to legal
liability from various quarters. At the very least, parties on both sides confirmed
that accessing pornography on company computers was inconsistent with
Hillsides‟ goal to provide a wholesome environment for the abused children in its
care, and to avoid any exposure that might aggravate their vulnerable state.
We also note that Hitchcock‟s repeated assurances that he installed the
surveillance equipment solely to serve the foregoing purposes and not to invade
plaintiffs‟ privacy are corroborated by his actions afterwards. When confronted by
plaintiffs about the camera in their office, he explained its presence, and tried to
assuage their concerns about being suspected of wrongdoing and secretly
videotaped. To this end, he showed them the actual surveillance tape on demand
and without delay. Against this backdrop, a reasonable jury could find it difficult
to conclude that defendants‟ conduct was utterly unjustified and highly offensive.
Plaintiffs argue that even assuming defendants acted to prevent a rogue
employee from accessing pornography on Hillsides‟ computers, and to minimize a
genuine risk of liability and harm, no claim or defense of justification has been
established as a matter of law. Plaintiffs insist triable issues exist as to whether
defendants could have employed means less offensive than installing the camera
in their office and connecting it to the monitor and recorder nearby. Examples
include better enforcement of Hillsides‟ log-off/password-protection policy,
installation of software filtering programs,10 closer nighttime monitoring of the
10
Plaintiffs fault defendants for not using “Net Nanny,” a software program
that apparently limits access to the Internet. Hitchcock testified that Hillsides
(footnote continued on next page)
33
camera outside the administration building, increased security patrols at night, and
receipt of plaintiffs‟ informed consent to video surveillance.
Contrary to what plaintiffs imply, it appears defendants are not required to
prove that there were no less intrusive means of accomplishing the legitimate
objectives we have identified above in order to defeat the instant privacy claim. In
the past, we have specifically declined to “impos[e] on a private organization,
acting in a situation involving decreased expectations of privacy, the burden of
justifying its conduct as the „least offensive alternative‟ possible under the
circumstances.” (Hill, supra, 7 Cal.4th 1, 50 [invoking language and history of
state constitutional privacy provision and relevant case authority]; accord,
Sheehan, supra, 45 Cal.4th 992, 1002.)
The argument lacks merit in any event. First, the alternatives that plaintiffs
propose would not necessarily have achieved at least one of defendants‟ aims —
determining whether a program director was accessing pornographic Web sites in
plaintiffs‟ office. Rather, it is the same suspect group of program directors on
whom plaintiffs would have had defendants more heavily rely to monitor exterior
cameras and perform office patrols. Obtaining plaintiffs‟ consent also might have
risked disclosing the surveillance plan to other employees, including the program
directors. With respect to stricter regulation of employee computer use (software
filters and log-off enforcement), such steps might have stopped the improper use
(footnote continued from previous page)
installed “Net Nanny” after the relevant events occurred, and that it was being
used in June 2004, when Hitchcock was deposed. However, it is not clear from
his testimony, or from plaintiffs‟ briefs, when such software first became available
or how it worked. Hitchcock explained that, before Hillsides installed “Net
Nanny,” no child could operate a computer without direct adult supervision.
34
of Lopez‟s computer. However, they would not have helped defendants identify
the employee who performed such activity and who posed a risk of liability and
harm in the workplace. (See Hill, supra, 7 Cal.4th 1, 50 [rejecting proposed
alternatives as “different in kind and character” than challenged acts].)
Second, for reasons suggested above, this is not a case in which “sensitive
information [was] gathered and feasible safeguards [were] slipshod or
nonexistent.” (Hill, supra, 7 Cal.4th 1, 38.) Rather, privacy concerns are
alleviated because the intrusion was “limited” and no information about plaintiffs
was accessed, gathered, or disclosed. (Ibid.) As we have seen, defendants did not
suspect plaintiffs of using their computers improperly, and sought to ensure that
they were not present when any monitoring or recording in their office occurred.
The video equipment was rarely activated and then only at night, when plaintiffs
were gone. There was no covert surveillance of them behind closed doors.
CONCLUSION
We appreciate plaintiffs‟ dismay over the discovery of video equipment —
small, blinking, and hot to the touch — that their employer had hidden among
their personal effects in an office that was reasonably secluded from public access
and view. Nothing we say here is meant to encourage such surveillance measures,
particularly in the absence of adequate notice to persons within camera range that
their actions may be viewed and taped.
35
Nevertheless, considering all the relevant circumstances, plaintiffs have not
established, and cannot reasonably expect to establish, that the particular conduct
of defendants that is challenged in this case was highly offensive and constituted
an egregious violation of prevailing social norms. We reach this conclusion from
the standpoint of a reasonable person based on defendants‟ vigorous efforts to
avoid intruding on plaintiffs‟ visual privacy altogether. Activation of the
surveillance system was narrowly tailored in place, time, and scope, and was
prompted by legitimate business concerns. Plaintiffs were not at risk of being
monitored or recorded during regular work hours and were never actually caught
on camera or videotape.
We therefore reverse the judgment of the Court of Appeal insofar as it
reversed and vacated the trial court‟s order granting defendants‟ motion for
summary judgment on all counts alleged in the complaint.
BAXTER, J.
WE CONCUR:
GEORGE, C. J.
KENNARD, J.
WERDEGAR, J.
CHIN, J.
MORENO, J.
CORRIGAN, J.
36
See next page for addresses and telephone numbers for counsel who argued in Supreme Court. Name of Opinion Hernandez v. Hillsides, Inc.
__________________________________________________________________________________
Unpublished Opinion
Original Appeal
Original Proceeding
Review Granted XXX 142 Cal.App.4th 1377
Rehearing Granted
__________________________________________________________________________________
Opinion No.
S147552Date Filed: August 3, 2009
__________________________________________________________________________________
Court:
SuperiorCounty: Los Angeles
Judge: C. Edward Simpson
__________________________________________________________________________________
Attorneys for Appellant:
Eisenberg & Associates, Arnold Kessler and Mark S. Eisenberg for Plaintiffs and Appellants.__________________________________________________________________________________
Attorneys for Respondent:
Seyfarth Shaw, Laura Wilson Shelby, Holger G. Besch, Candice Zee and Amy C. Chang for Defendantsand Respondents.
Paul, Hastings, Janofsky & Walker, Paul W. Cane, Jr., and Teresa J. Hutson for Employers Group and
California Employment Law Council as Amici Curiae on behalf of Defendants and Respondents.
Counsel who argued in Supreme Court (not intended for publication with opinion):
Mark S. EisenbergEisenberg & Associates
12121 Wilshire Boulevard, Suite 600
Los Angeles, CA 90025
(310) 444-1100
Holger G. Besch
Seyfarth Shaw
2029 Century Park East, 33d Floor
Los Angeles, CA 90067-3063
(310) 277-7200
Paul W. Cane, Jr.
Paul, Hastings, Janofsky & Walker
55 Second Street, Twenty-Fourth Floor
San Francisco, CA 94105
(415) 856-7000
Petition for review after the Court of Appeal reversed the judgment in a civil action. This case presents the following issue: May employees assert a cause of action for invasion of privacy when their employer installed a hidden surveillance camera in the office to investigate whether someone was using an office computer for improper purposes, only operated the camera after normal working hours, and did not actually capture any video of the employees who worked in the office?
Kelly v. Methodist Hospital of So. California (2000) 22 Cal.4th 1108 , 95 Cal.Rptr.2d 514; 997 P.2d 1169
ALACOQUE COLETTE KELLY, Plaintiff and Appellant, v. METHODIST HOSPITAL OF SOUTHERN CALIFORNIA et al., Defendants and Respondents.
(Superior Court of Los Angeles County, No. GC005963, Coleman A. Swart, Judge.)
(The Court of Appeal, Second Dist., Div. One, No. FFN_189833.)
(Opinion by Werdegar, J., expressing the unanimous view of the court.)
COUNSEL
Melanie A. Calvert for Plaintiff and Appellant.
Quackenbush & Quackenbush and William C. Quackenbush for California Employment Lawyers Association as Amicus Curiae on behalf of Plaintiff and Appellant.
Steven K. Green; Julie Segal; and Edward Tabash for Americans United for Separation of Church and State as Amicus Curiae on behalf of Plaintiff and Appellant.
Herzog, Fisher, Flame & Grayson, Herzog, Fisher & Grayson, David R. Fisher; Greines, Martin, Stein & Richland, Marc J. Poster, Robert A. Olson and Jennifer L. King for Defendants and Respondents.
Law Offices of Steven Drapkin, Steven Drapkin; Proskauer Rose Goetz & Mendelsohn and Jeffrey A. Berman for the California Catholic Conference, the Pacific Union Conference of Seventh-day Adventists, the Church State Council, the Council on Religious Freedom, Loma Linda University, Loma Linda University Medical Center and Adventist Health as Amici Curiae on behalf of Defendants and Respondents. [22 Cal.4th 1111]
OPINION
WERDEGAR, J.-
The Fair Employment and Housing Act (FEHA) (Gov. Code, § 12900 et seq.) fn. 1 bars discrimination by employers on several enumerated bases. Under section 12926, subdivision (d) (the religious-entity exemption), the term "employer" specifically excludes "a religious association or corporation not organized for private profit." fn. 2 In McKeon v. Mercy Healthcare Sacramento (1998) 19 Cal.4th 321 [79 Cal.Rptr.2d 319, 965 P.2d 1189] (McKeon), we determined that a hospital controlled by the Roman Catholic Church could invoke the religious-entity exemption even though not officially incorporated as a nonprofit religious corporation under Corporations Code section 9110 et seq. No other factual or legal arguments were at issue in McKeon.
In the present case, plaintiff asserts that her former employer, a different religiously affiliated hospital, fails to qualify for the religious-entity exemption under its previous incarnation because the hospital's purpose and affiliations are inadequately religious. fn. 3 We disagree.
I. Factual and Procedural History
Plaintiff, a nurse at defendant Methodist Hospital of Southern California (Hospital), was discharged in 1991 on the grounds that she had failed to [22 Cal.4th 1112] return to work after the expiration of her medical leave, despite having received five extensions of time to do so. Plaintiff was 50 years old at the time of her discharge. She filed a lawsuit against Hospital and her immediate superior, alleging, among other things, that her termination was based on her age. While she did not seek direct relief under FEHA, she did allege that her termination violated California's fundamental public policy against age discrimination as expressed in FEHA. (See Tameny v. Atlantic Richfield Co. (1980) 27 Cal.3d 167 [164 Cal.Rptr. 839, 610 P.2d 1330, 9 A.L.R.4th 314] (Tameny).) Tameny claims permit wrongful termination damages when a termination is undertaken in violation of a fundamental, substantial and well-established public policy of state law grounded in a statute or constitutional provision. (See Gantt v. Sentry Insurance (1992) 1 Cal.4th 1083, 1094-1095 [4 Cal.Rptr.2d 874, 824 P.2d 680].)
Hospital moved for summary judgment, arguing it is a religious corporation not organized for private profit and is thus expressly excluded from FEHA under the religious-entity exemption. Relying on our decision in Jennings v. Marralle (1994) 8 Cal.4th 121, 135-136 [32 Cal.Rptr.2d 275, 876 P.2d 1074], in which we held that a FEHA-based Tameny claim would not lie against an employer who is specifically exempt from the scope of FEHA, Hospital argued that, because no state law other than FEHA proscribes age discrimination and Hospital is not subject to FEHA restrictions, no public policy basis exists for a Tameny claim against Hospital.
In support of the motion for summary judgment, Hospital presented evidence of its creation by and affiliation with the United Methodist Church. Under Hospital's articles of incorporation, all of its assets are irrevocably dedicated to charitable and religious purposes, and upon its dissolution those assets revert to the United Methodist Women. Hospital's directors are elected annually at a meeting of the Woman's Society of Christian Service of the Southern California-Arizona Conference of the Methodist Church. Under Hospital's bylaws, a majority of its board members must be members of the United Methodist Church and one member of the board must be a Methodist minister. The president of the United Methodist Women is also a board member by virtue of her office. In lieu of shareholders, Hospital has "members" who vote on significant issues affecting Hospital. The only persons eligible to be members are those individuals currently serving on the board of directors and those individuals currently serving on the Executive Committee of United Methodist Women.
A Methodist chaplain ministers to the religious needs of patients in the Hospital, and Hospital broadcasts a daily in-house sermon for the benefit of [22 Cal.4th 1113] patients, staff and visitors. Hospital abides by the requirements of the Health and Welfare Ministry of the United Methodist Church and is accredited by the Certification Council of the United Methodist Church.
In addition, Hospital demonstrated it is exempt from federal taxation as a corporation "organized and operated exclusively for religious, charitable ... or educational purposes" as set forth in 26 United States Code section 501(c)(3) under an Internal Revenue Service ruling in effect since 1937. Hospital also noted that several years earlier the Fair Employment Practice Commission (the predecessor to the Fair Employment and Housing Commission (FEHC)) had dismissed a discrimination complaint against Hospital after determining that it lacked jurisdiction over the complaint.
Plaintiff opposed the summary judgment motion, arguing triable issues of fact remain as to whether Hospital is actually a "religious association or corporation not organized for private profit" within the meaning of section 12926. She asserted that Hospital is ineligible for the religious-entity exemption because it is a secular business involved in health care, not an organization dedicated to religious indoctrination or propagation of the Methodist faith. In factual support, she cited the testimony of Hospital's administrative director of human resources, who admitted that Hospital's "business" is "[c]aring for the health care needs of the community" and is not specifically related to religion. Plaintiff further relied on Hospital's articles of incorporation, which provide that the purposes of the corporation are to "establish, erect and maintain a hospital; to buy, own, hold and sell real estate; to receive, by donation or otherwise any real or personal property that may be deemed advantageous, desirable or necessary; to lease, mortgage, sell, or otherwise dispose of property; to establish and maintain a training school for nurses; to receive endowments and to invest the same; to establish and maintain free beds for those unable to pay hospital charges; to maintain a dispensary; to establish and maintain branch hospitals and sanitariums; and to receive property and to pay annuities." In plaintiff's view, these are not religious purposes. Plaintiff also noted that Hospital does not require its patients or employees to profess the Methodist faith, nearly half the members of the board may be non-Methodist, and only one member of the board need be a Methodist minister. Plaintiff opined that this evidence created a triable issue of fact as to whether Hospital is truly a "religious association or corporation not organized for private profit" as that term was intended by the Legislature in enacting section 12926.
The trial court concluded the evidence did not create a triable issue of fact as to whether Hospital is a "religious association or corporation not organized for private profit" within the meaning of section 12926. The court [22 Cal.4th 1114] therefore granted the motion for summary judgment and entered judgment for Hospital. The Court of Appeal affirmed the judgment. We granted review.
II. Discussion
Section 12940, subdivision (a) prohibits employers from discriminating against certain protected classes in compensation, terms, conditions or privileges of employment. Section 12926, subdivision (d) provides: " 'Employer' includes any person regularly employing five or more persons, or any person acting as an agent of an employer, directly or indirectly, ... except as follows: [¶] 'Employer' does not include a religious association or corporation not organized for private profit." At the time applicable to this action, the statute contained no other relevant definitions. (Stats. 1990, ch. 15, § 1, p. 87.)
[1] We have previously stated general principles for interpreting the provisions of FEHA. "Because the FEHA is remedial legislation, which declares '[t]he opportunity to seek, obtain and hold employment without discrimination' to be a civil right (§ 12921), and expresses a legislative policy that it is necessary to protect and safeguard that right (§ 12920), the court must construe the FEHA broadly, not ... restrictively. Section 12993, subdivision (a) directs: 'The provisions of this part shall be construed liberally for the accomplishment of the purposes thereof.' If there is ambiguity that is not resolved by the legislative history of the FEHA or other extrinsic sources, we are required to construe the FEHA so as to facilitate the exercise of jurisdiction by the FEHC. [Citation.]" (Robinson v. Fair Employment & Housing Com. (1992) 2 Cal.4th 226, 243 [5 Cal.Rptr.2d 782, 825 P.2d 767] (Robinson).) Not all statutory interpretations, of course, are equally reasonable: the mere fact that one may make a theoretical and unsupported argument to broaden the scope of the statute or to narrow its exceptions does not necessarily mean the language at issue is legitimately susceptible of that interpretation. Our goal is to discern the apparent legislative intent in enacting the relevant version of the religious-entity exemption, not to adopt a judicial construction to give that exemption the meaning we might believe most salutary.
[2a] As we previously noted, "[t]o take advantage of the exemption, an entity apparently need only be 'religious' and 'not organized for private profit.' " (McKeon, supra, 19 Cal.4th at p. 326.) That Hospital is a corporation not organized for private profit is undisputed. Also certain from the showing made by Hospital in support of its motion for summary judgment is [22 Cal.4th 1115] that, at a minimum, Hospital was founded by a religious group, is affiliated with and to some extent controlled by that religious group and, if it is ever dissolved, its assets will revert to that religious group.
The legislative history of section 12926 provides little guidance in interpreting its meaning. Plaintiff suggests that in initially drafting the Fair Employment Practices Act, the predecessor to FEHA, and its exceptions, the Legislature had the power to enact language that would have expressly excluded religiously affiliated hospitals, but did not do so. She also notes that the Legislature in 1977 amended the act's exemptions, but did not take that opportunity to add clarifying language specifically providing that the religious-entity exemption applies to religiously affiliated hospitals. That the Legislature did neither of these things does not, however, create a legitimate inference that it did not intend to include religiously affiliated hospitals in the facially broad language of the religious-entity exemption along with other religiously affiliated entities. Standing alone, the failure to add additional language under these circumstances creates no inferences at all.
We previously explored the legislative history of FEHA in Robinson, supra, 2 Cal.4th at pages 236-243. When it was enacted in 1959, Labor Code former section 1413, subdivision (d), the predecessor statute to Government Code section 12926, provided: " 'Employer' does not include a social club, fraternal, charitable, educational or religious association or corporation not organized for private profit." (Stats. 1959, ch. 121, § 1, p. 2000.) As will be discussed below, the first four of these categories of exempted employers were excised from the statute in a 1977 amendment, an amendment that left the language of the religious-entity exemption intact.
At different points in their briefing, plaintiff and supporting amicus curiae California Employment Lawyers Association (hereafter amicus curiae) advance three different ways in which the language of the exemption might be interpreted so as to permit plaintiff's claim against Hospital to go forward. First, the exemption might be interpreted to permit discrimination by religious entities only in situations where the religious faith of the employee is a legitimate requirement of the job in which the employee is engaged. As religious faith is not one of the qualifications legitimately required of a nurse, the exemption as thus interpreted arguably would be inapplicable to a claim by a nurse. Second, the exemption might be interpreted to permit religious entities to discriminate against all employees, whatever their position, provided the entity does so solely on the basis of religion. As plaintiff, however, claims age rather than religious discrimination, this postulated exemption arguably would be inapplicable to her claim. Finally, the exemption might be interpreted as applying only to churches and other proselytizing organizations that have a religious rather than secular purpose. Under [22 Cal.4th 1116] this theory, if health care is viewed as a secular function, Hospital would be ineligible for the exemption despite its religious affiliations.
We have examined the statute, its legislative history and analogous authority to determine whether any support can be found for any of these readings in light of the facially broad language of the prior version of the exemption which continues to be applicable to plaintiff's claim. We conclude no legitimate basis appears to exclude Hospital from the scope of the relevant version of the religious-entity exemption in any of these manners.
The first suggested interpretation, that the exemption is conditioned upon the nature of the employee's job position, is easily refuted. That interpretation clearly ignores the structure of the statute itself, which predicates potential FEHA liability on the status of the defendant as an "employer." (§ 12926.) The exemption renders qualified religious entities exempt from FEHA in its entirety. The nature of the employee's work is not relevant; the nature of the entity that employs him or her is determinative. Indeed, the Legislature specifically rejected an opportunity to narrow the scope of the exemption in precisely this manner when, in 1977, it amended Labor Code former section 1413, subdivision (d) to remove the statutory exemption for social, fraternal, charitable and educational associations. (Stats. 1977, ch. 1019, § 1, p. 3055.) The original version of the proposed amendment would have defined the term "employer" as "not includ[ing] a religious association or corporation when employing persons directly involved in carrying out the religious purposes of the religious association or corporation." (Assem. Bill No. 1047 (1977-1978 Reg. Sess.) § 1, as introduced Mar. 22, 1977.) Subsequent versions of the bill, however, abandoned this reformulation, and the Legislature ultimately retained the religious-entity exemption in precisely the same language as before: "religious association or corporation not organized for private profit." (Stats. 1977, ch. 1019, § 1, p. 3055.)
The second proposed interpretation, that the religious-entity exemption permits such entities to discriminate only on the basis of religion, is equally unsupported by the terms of the statute. Only employers are subject to FEHA. Whether a religious entity, whatever that phrase may mean, is an employer is not dependent on the nature of the discrimination claim made against the entity. Amicus curiae nevertheless suggests that we follow a 1985 decision of the FEHC that concluded the religious-entity exemption applies only to allegations of religious discrimination, and only in situations where the religious faith of the employee is a legitimate job requirement. (Department of Fair Employment and Housing v. Hoag Memorial Hospital Presbyterian (1985) No. 85-10, FEHC Precedential Decs. 1984-1985, CEB [22 Cal.4th 1117] 14 (Hoag).) The Hoag decision, however, is not a persuasive interpretation of the exemption, as it ignores the plain language of the statute.
Prior to the Hoag decision, the FEHC had interpreted the religious-entity exemption "to mean that a nonprofit organization is entirely exempt from [FEHA] if it can demonstrate that it is in fact religious in nature." (Hoag, supra, No. 85-10, FEHC Precedential Decs. 1984-1985, CEB 14, p. 7.) This understanding is reflected in a regulation promulgated by the FEHC in 1980, which provided that "any non-profit religious organization exempt from federal and state income tax as a non-profit religious organization is presumed not to be an employer under [FEHA]." (Cal. Code Regs., tit. 2, § 7286.5, subd. (a)(5).)
In Hoag, the FEHC considered a sex discrimination complaint that arose from a religiously affiliated hospital's refusal to allow a male nurse to work in the postpartum unit. The FEHC reversed course from its prior understanding of the exemption, stating it had "become convinced ... that this interpretation of the religious exemption is far too broad, and runs contrary both to our obligation to interpret [FEHA] liberally to prevent and eliminate discrimination ... and to the Constitutional injunctions against establishment of religion. We have determined, therefore, that the soundest rule is that a nonprofit organization should be exempt from [FEHA] if it can demonstrate not just that it is a religious organization, but also that the case in which it claims exemption involves the denial of a job for which practice of and belief in the religion of the organization is a legitimate, job-related requirement, on the ground that the person rejected does not adhere to that religion. Where this test is met, we see good cause to exempt the employer, as to that job. We can no longer see any justification for excusing employers which may be essentially religious in nature when they discriminate on religious grounds in jobs that do not require their religion, or when they discriminate in any job on the basis of race, sex, or other bases protected under [FEHA]." (Hoag, supra, No. 85-10, FEHC Precedential Decs. 1984-1985, CEB 14, p. 7.)
With reference to its own regulation providing that any organization holding tax-exempt status as a nonprofit religious organization is presumed not to be an employer under FEHA, the FEHC stated that this "presumption is part of a regulation which we now believe does not state the proper standard for [FEHA's] religious exemption" and "is in the process of being repealed." (Hoag, supra, No. 85-10, FEHC Precedential Decs. 1984-1985, CEB 14, p. 8.)
The Hoag decision was incorrect on several counts. Despite the prediction that the regulatory presumption was in the process of being repealed, that [22 Cal.4th 1118] regulation in fact remains effective to this date. (Cal. Code Regs., tit. 2, § 7286.5, subd. (a)(5).) More importantly, the decision appears to reflect not what the Legislature actually set forth in the statutory language, but, rather, the FEHC's opinion of what, in an ideal statute, a religious-entity exemption should provide. First, the Hoag decision concludes that a religious entity may discriminate only where religion is a legitimate job-related requirement for the particular employee. In doing so, it does not even attempt to explain how this interpretation may be reconciled with the actual language of the statute, which conditions the exemption on the status of the employer rather than on the job held by the particular employee. The Hoag decision concludes, moreover, that even if a religious entity qualifies for the exemption, the exemption shields the entity only from claims of religious discrimination. This limitation flies in the face of the express terms of section 12926, subdivision (d), which provides that all qualifying religious entities are excluded from the definition of "employer" under FEHA, with no reference to the nature of the violations alleged against them.
[3] Although courts ordinarily give substantial weight to the FEHC's construction of the statutes under which it operates (Robinson, supra, 2 Cal.4th at pp. 234-235 & fn. 6), we will not do so where the agency's interpretation is "clearly erroneous or unauthorized" (Cuadra v. Millan (1998) 17 Cal.4th 855, 870 [72 Cal.Rptr.2d 687, 952 P.2d 704]; People ex rel. Lungren v. Superior Court (1996) 14 Cal.4th 294, 309 [58 Cal.Rptr.2d 855, 926 P.2d 1042]). Because the Hoag decision cannot be reconciled with section 12926, it is not useful authority. fn. 4
Amicus curiae also suggests that we interpret the religious-entity exemption by reference to the religious-entity exemption contained in title VII, the federal employment discrimination law originally enacted in 1964 (42 U.S.C. § 2000e et seq.). Although California courts have frequently looked to title VII jurisprudence to interpret analogous principles of California law, to do so here is inappropriate for several reasons, the most significant being that the language of the federal exemption is significantly different than the language of section 12926. Title VII exempts from its scope "a religious corporation, association, educational institution, or society with respect to [22 Cal.4th 1119] the employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, educational institution, or society of its activities." (42 U.S.C. § 2000e-1(a).) Under title VII, a religious organization may discriminate against any employee on religious grounds (Corporation of Presiding Bishop v. Amos (1987) 483 U.S. 327, 335-336 [107 S.Ct. 2862, 2868-2869, 97 L.Ed.2d 273]), but may not discriminate on any other prohibited basis, such as sex or race (Boyd v. Harding Academy of Memphis, Inc. (6th Cir. 1996) 88 F.3d 410, 413 [sex]; Rayburn v. General Conf. of Seventh-Day Adventists (4th Cir. 1985) 772 F.2d 1164, 1166-1167 [sex and race]). Given the patent differences between the title VII exemption and section 12926, and the fact title VII was enacted five years after the predecessor to section 12926 went into effect in California, we cannot legitimately construe section 12926 by reference to 42 United States Code section 2000e-1(a). fn. 5
[2b] In light of the statute's unqualified exemption of religious entity employers, it is clear the relevant version of the religious-entity exemption is not limited so as to permit religious entities to discriminate, provided they do so solely on the basis of religion, nor is it limited to situations where the religious faith of the employee is a legitimate requirement of the relevant job. If Hospital is qualified as a "religious association or corporation not organized for private profit" (§ 12926, subd. (d)), it will be exempt from FEHA regardless of the nature of the employee's job or the type of discrimination it allegedly practiced.
This leaves plaintiff's most difficult argument: that the religious-entity exemption should not apply to Hospital because Hospital's primary function is the provision of health care and that function is insufficiently religious. While this argument has superficial appeal, it ultimately is irreconcilable with the words, structure and history of the relevant version of section 12926.
As previously noted, the religious-entity exemption applies to any "religious association or corporation not organized for private profit." (§ 12926.) No definition of the term "religious" is found in the statute, and we have not been presented with a definition from any source, legal or linguistic, that we may say for certain sets forth an accurate expression of the legislative intent [22 Cal.4th 1120] behind this statute. fn. 6 This is not surprising; few words in our language encompass such a broad range and nuance of potential meaning as the word "religion," and all available definitions are necessarily influenced by the context in which they arise.
This does not mean we can discern from the language itself no information about the meaning of the statute. Our task is not to define the word "religious" in the abstract, but rather to determine the Legislature's intent in exempting from FEHA any "religious association or corporation not organized for private profit." These words, taken together, have a different implication than the word "religious" standing alone. The term "corporation" would arguably be superfluous if, as plaintiff contends, the Legislature intended to exempt only those entities traditionally understood as churches and religious orders. At the very least, the exemption would be a remarkably inelegant way by which to designate such a limited class of institutions.
In addition, we may be reasonably certain from this language that, whatever their other characteristics, the religious entities to be exempted are not limited to religious organizations solely engaged in worship and proselytization of their faith. By specifically extending the exemption to religious "corporation[s] not organized for private profit" (§ 12926), the Legislature appears to have anticipated that at least some of the exempted religious employers would be corporations that engage in potentially remunerative activities, albeit not for private profit. This language cannot easily be reconciled with an interpretation that would limit the exemption solely to groups whose essential character and purpose are "religious," narrowly defined to mean engaged in activities relating only to active manifestation of devotion and obligation to a supreme being. Although a purely religious group of the kind plaintiff envisions might potentially engage employees for the limited remunerative purpose of collecting donations and otherwise managing the incidental monetary exchanges necessary to support the worship activities of the group, that such groups provided the motivation for the Legislature's inclusion of the "religious corporation" aspect of section 12926 is unlikely. Such a group would already qualify for exemption as a "religious [22 Cal.4th 1121] association" (ibid.); hence, adding to the exemption the additional words "or corporation not organized for private profit" would have been unnecessary.
That the Legislature had a broader intention when it chose the subject language is suggested by the provision's legislative history. As noted above, section 12926's predecessor statute, Labor Code former section 1413, subdivision (d), was enacted in 1959 to provide as follows: " 'Employer' does not include a social club, fraternal, charitable, educational or religious association or corporation not organized for private profit." (Stats. 1959, ch. 121, § 1, p. 2000.) By amendment in 1977, the Legislature eliminated the first four categories of exempted employers, leaving intact only the religious-entity exemption. (Stats. 1977, ch. 1019, § 1, p. 3055.) As the language describing the exempt religious entities remained unchanged, we must presume the Legislature did not intend in 1977 to alter the meaning of the religious-entity exemption from its original 1959 incarnation. Thus, our current understanding of "religious association or corporation not organized for private profit" must take into account the presence of those other four exempted categories with which religious entities were associated in the 1959 statute.
[4] The principle of ejusdem generis instructs that "when a statute contains a list or catalogue of items, a court should determine the meaning of each by reference to the others, giving preference to an interpretation that uniformly treats items similar in nature and scope. [Citations.]" (Moore v. California State Bd. of Accountancy (1992) 2 Cal.4th 999, 1011-1012 [9 Cal.Rptr.2d 358, 831 P.2d 798].) [2c] Applied here, that principle suggests a broad reading of the religious-entity exemption in accordance with those other four broad categories with which religious entities once were listed.
That the 1959 Legislature would have considered religiously affiliated hospitals and other religiously affiliated quasi-secular entities any less worthy of exemption from FEHA than it did the great mass of social, fraternal, charitable and educational entities it chose to exempt at that time seems unlikely. To the contrary, the smorgasbord of exclusions in the 1959 statute appears to evidence a legislative unwillingness to impose a new and, at that time, potentially controversial remedial statute upon any group dedicated to social welfare, as opposed to private profit. Imposing plaintiff's implied qualification to the religious-entity exemption, moreover, would evoke similar questions for the other originally excluded categories. But no reason appears to believe the Legislature intended social clubs or fraternal organizations to lose their exemptions if their activities were not deemed exclusively "social" or "fraternal" under some dictionary definition. Nor does it [22 Cal.4th 1122] seem likely the Legislature would have intended a qualification test for religious entities alone, without drawing some distinction between religious entities and other exempted employers in the language of the statute.
Hospital was founded by members of the Methodist faith, is controlled by directors selected by a subgroup of the United Methodist Church, and operates under guidelines set by church associations. Health care is a social service that historically has been associated with religious groups, and plaintiff does not dispute that Hospital's founders were motivated by a sincerely held belief that healing the sick serves to advance the religious principles of the Methodist faith. None of the various facts set forth by plaintiff in opposition to the motion for summary judgment negate this demonstration of religious character.
For example, plaintiff argued that Hospital's nonreligious nature may be discerned from its articles of incorporation, which evidence that Hospital is controlled by the Methodist Church but do not formally define its purpose as religious in nature. We discern little point in parsing out and weighing every clause of Hospital's articles and bylaws. Suffice to say that other passages of those documents contain language arguably religious in character and, even if they did not, the omission of sufficient specific religious language in the articles does not negate the religious motivation underlying the creation and operation of the Hospital. "However wise or unwise it might be to require religious entities to identify themselves as such through their method of incorporation, in fact no such requirement exist[ed]" in the version of the statute relevant to this case. (McKeon, supra, 19 Cal.4th at p. 329.) At that time, "[n]o provision of California law ... preclude[d] a religious entity from describing its purposes as 'public or charitable' " rather than religious. (Ibid.) Similar reasoning applies to efforts to focus on a formal statement of purpose in the articles of incorporation; there is no statutory justification for exalting form over substance here.
Plaintiff relied on the facts that nearly half the members of the board may be non-Methodist and only one member of the board need be a Methodist minister. These facts merely evoke their corollaries: that at least half the members of the board must be Methodists, and the board must always have at least one Methodist minister. Plaintiff further noted that Hospital does not require its patients or employees to profess the Methodist faith. However, if those who created and control Hospital themselves view healing the sick without regard to the patient's religious beliefs to be part of their religious purpose, then the religious beliefs of the patient are of little relevance in assessing the religious nature of the entity providing their care. Likewise, if [22 Cal.4th 1123] Hospital's goal of healing the sick is to be conducted with maximum effectiveness, Hospital may find it necessary to hire whatever employees are most qualified or readily available to do the job, regardless of their religious affiliation. The employees' religious affiliations or lack thereof do not negate the religious nature of the entity that employs them.
Plaintiff also relied upon an "admission" by Hospital's administrative director of human resources, who acknowledged that Hospital's business is "[c]aring for the health care needs of the community." The fact that Hospital's business may be so characterized by one employee in one context does not negate Hospital's religious nature. Indeed, one could equally well argue that the United Methodist Church has the capacity to fulfill a religious mission that includes healing the sick solely because the founders of the Hospital were motivated by their religious faith to create a vehicle with the capacity to care for the health care needs of the community. Amici curiae the California Catholic Conference, the Pacific Union Conference of Seventh-day Adventists, the Church State Council, the Council on Religious Freedom, Loma Linda University, Loma Linda University Medical Center and Adventist Health likewise assert that religious faith originally provided and continues to provide the underlying motivation for the establishment and maintenance of their numerous hospitals, schools and charitable organizations. fn. 7
That the 1959 Legislature was aware of the propensity of religious groups to advance their spiritual goals through the formation of separate institutions that some might characterize as secular seems a reasonable assumption; therefore, to interpret the statutory language "religious association or corporation not organized for private profit" as having been crafted precisely in recognition of this propensity appears appropriate. (Stats. 1959, ch. 121, § 1, p. 2000.) Had the Legislature intended to draw a distinction between religious groups and the affiliated institutions they create in order to advance their goals, it could easily have used language that affirmatively drew such distinctions. The Legislature did not do so in 1959, nor in 1977 when it amended the exemption, nor in 1980 when it recodified the religious-entity exemption in section 12926 as part of FEHA. [22 Cal.4th 1124]
Likewise, had the 1959 Legislature intended, in granting the religious-entity exemption, to differentiate among some institutions created by and affiliated with religious groups according to the type of service the institution provided, it more than likely would have articulated within the relevant version of the exemption some basis for religious groups to predict in advance whether a contemplated institution would or would not be exempt. Finally, had the Legislature intended the courts to undertake the difficult task of determining whether to permit particular religiously affiliated entities to claim the exemption, it more than likely would have provided some language within the statute itself to give the courts a reasoned basis to draw the necessary distinctions. The relevant version of section 12926 is devoid of any such indications.
The mere fact that nonreligious organizations may also provide health care does not lead us to the conclusion the Legislature intended to exclude religiously affiliated hospitals from the religious-entity exemption. Indeed, if a religiously affiliated hospital is not sufficiently religious to claim the exemption, then what of a soup kitchen located in a church basement? It may be argued that the technical purpose of a soup kitchen is to provide food to the hungry rather than to make an immediate manifestation of devotion to a divine entity. Sustenance certainly may be obtained in the secular world outside the auspices of the church. Nevertheless, while providing food is an arguably secular function, the church's underlying motivation for feeding the destitute remains a matter of religious motivation and faith. Plaintiff's briefing provides us with no principled basis to draw a distinction between a soup kitchen and the Hospital under her interpretation of the relevant version of the religious-entity exemption.
Every religiously affiliated entity generally is both secular and religious to some extent, from small entities like soup kitchens and parochial schools to large organizations like religiously affiliated universities and the Christian Science Monitor. We are not prepared to hold that all of these are prohibited from qualifying as religious solely because their functions may be duplicated in some manner by secular institutions. Yet we have no reasoned basis to draw a distinction among these institutions, or between any of these institutions and the Hospital. The Legislature gave no indication that it intended the courts to attempt to parse out various levels of religious sufficiency among the myriad types of religiously affiliated entities in order to determine when to apply the exemption, and provided us with no guidance on how to undertake such a difficult task. Absent any such indications or guidance, it is not appropriate for this court to create a religious sufficiency test out of whole cloth. We therefore read the relevant version of the [22 Cal.4th 1125] religious-entity exemption as encompassing any entity with colorable religious motivation and substantial bona fide religious affiliations, including Hospital.
Amicus curiae directs us to a decision from the State of Washington, Hazen v. Catholic Credit Union (1984) 37 Wash.App. 502 [681 P.2d 856] (Hazen). In Hazen, the Washington Court of Appeals held that a credit union organized to benefit Roman Catholics and employees of Roman Catholic institutions did not qualify as a " 'religious or sectarian organization not organized for private profit' " so as to qualify for an exemption from the state employment antidiscrimination statute. (Id. at p. 857.) Using a dictionary definition of the words "religious" and "sect," the court concluded the credit union was not a religious organization that qualified for the exemption because "[w]e do not believe promoting thrift and providing a source of credit are manifestations of devotion to a superior being in a religious sense." (Id. at p. 858.)
Hazen is readily distinguishable from the present case. The statutory language of the Washington exemption encompassing any "religious or sectarian organization" is arguably more susceptible to an interpretation limited to traditional religious groups than is the disjunctive "religious association or corporation" language utilized in FEHA. Moreover, the credit union seeking to claim the exemption in Hazen was very different than Hospital. The credit union was founded by lay people and had "no organizational, structural, or financial ties to the Roman Catholic Church or any diocese. The Diocese of Yakima receives no reports from the Credit Union and has no input regarding its operational, business, financial or management decisions.... [¶] The Credit Union's board of directors are chosen for their financial, business, or other management skills and not for their religious qualifications. No member of the Catholic clergy has ever served as a director of the Credit Union." (Hazen, supra, 681 P.2d at p. 857.)
Significantly, amicus curiae's brief omits discussion of subsequent authority from the State of Washington that makes clear Hospital would be considered an exempt entity under Washington law as well. Farnam v. CRISTA Ministries (1991) 116 Wash.2d 659 [807 P.2d 830] concerned an employment discrimination claim by a nurse in a religiously affiliated nursing home. The defendant was not a religious group per se, but rather a "nonprofit interdenominational Christian organization, which is a single corporate entity encompassing seven divisions, including schools, counseling services, radio stations and health care facilities." (Id. at p. 831.) The Washington Supreme Court concluded the defendant was a " 'religious or [22 Cal.4th 1126] sectarian organization not organized for private profit' " under Washington law and thus exempt from an employment discrimination claim. (Id. at p. 837.) The plaintiff in Farnam had argued that she was employed by a subentity, the nursing home, that did not qualify for the exemption because nursing care is not a "religious purpose." In rejecting this argument, the court specifically criticized the Hazen decision for "unnecessarily" grafting a specific religious purpose test drawn from an unrelated tax statute onto the language of the antidiscrimination statute. (Id. at p. 838.)
Farnam was followed by yet another Washington State decision, this one specifically recognizing that a religiously affiliated hospital is a religious nonprofit organization exempt from the Washington antidiscrimination law. (City of Tacoma v. Franciscan Foundation (1999) 94 Wash.App. 663 [972 P.2d 566].) Thus, to the limited extent that Washington State law gives us assistance in interpreting the language of California's religious-entity exemption, that authority unequivocally holds that a religiously affiliated health care provider such as Hospital is qualified for, not disqualified from, Washington's arguably analogous religious-entity exemption.
Hospital qualifies as a "religious association or corporation not organized for private profit" as that category was likely understood by the 1959 Legislature that first crafted the applicable version of the religious-entity exemption (now § 12926, subd. (d)). For purposes of this action, Hospital is exempt from a claim for wrongful termination in violation of public policy based upon the public policy expressed in FEHA. Summary judgment was properly entered.
III. Disposition
The judgment is affirmed.
George, C. J., Mosk, J., Kennard, J., Baxter, J., Chin, J., and Brown, J., concurred.
Appellant's petition for a rehearing was denied June 28, 2000.
FN 1. All further statutory references are to the Government Code unless otherwise specified.
FN 2. On October 9, 1999, the Governor signed into law Assembly Bill No. 1541 (1999-2000 Reg. Sess.), which revised the religious-entity exemption by adding sections 12922 and 12926.2 to the Government Code. (Stats. 1999, ch. 913, §§ 1, 2.) Section 12922 provides that an "employer that is a religious corporation may restrict eligibility for employment in any position involving the performance of religious duties to adherents of the religion for which the corporation is organized." Section 12926.2 provides statutory definitions for the terms "religious corporation," "religious duties" and "employer." That section further provides that employers covered by FEHA include "a religious corporation or association with respect to persons employed by the religious association or corporation to perform duties, other than religious duties, at a health care facility operated by the religious association or corporation for the provision of health care that is not restricted to adherents of the religion that established the association or corporation." (§ 12926.2, subd. (c).)
These modifications to the religious-entity exemption went into effect on January 1, 2000. While it is not this court's ordinary practice to issue opinions construing superseded statutory language, the parties have identified several unrelated actions the resolution of which also revolves around the proper construction of the former version of the exemption. In addition, numerous lawsuits may be pending of which the parties are unaware, and additional civil actions may arise out of administrative complaints previously filed with the Department of Fair Employment and Housing. Consequently, we feel it appropriate to retain and resolve the fully briefed matter before us. In so doing, we express no view regarding the scope of the religious-entity exemption as modified by Assembly Bill No. 1541.
FN 3. The petition for review and briefing raise several additional arguments concerning the constitutionality of the religious-entity exemption. Because these arguments were not properly preserved in the lower courts, we do not address them in this opinion.
FN 4. Deference to the Hoag construction is particularly inappropriate in this case. As we noted in Robinson, an administrative construction is useful in determining legislative intent when the construction is "reasonably contemporaneous with the law's adoption." (Robinson, supra, 2 Cal.4th at p. 234.) The Hoag decision was not contemporaneous with the Legislature's adoption of the religious-entity exemption. Indeed, as noted above, a more contemporaneous FEHC interpretation of the exemption is found in the 1980 FEHC regulation providing that any organization holding tax-exempt status as a nonprofit religious organization is presumed not to be an employer under FEHA. (Cal. Code Regs., tit. 2, § 7286.5, subd. (a)(5).)
FN 5. Even were we to do so, that the result would favor plaintiff's position is far from clear. Federal decisions have found numerous quasi-secular institutions to be exempt religious employers under title VII standards. (See, e.g., Corporation of Presiding Bishop v. Amos, supra, 483 U.S. 327 [gymnasium]; Feldstein v. Christian Science Monitor (D.Mass. 1983) 555 F.Supp. 974 [newspaper]; E.E.O.C. v. Presbyterian Ministries, Inc. (W.D.Wash. 1992) 788 F.Supp. 1154 [retirement home].)
FN 6. Plaintiff argues that a definition of "religious" may be drawn from Bradfield v. Roberts (1899) 175 U.S. 291 [20 S.Ct. 121, 44 L.Ed. 168], a case in which the United States Supreme Court held that a contract between the federal government and a religiously affiliated hospital did not violate the prohibition against the establishment of religion contained in the United States Constitution. This authority is not helpful here. We have no reason to believe that our California Legislature intended the words "religious association or corporation not organized for private profit" as used in the religious-entity exemption to be construed by reference to the constitutional analysis in Bradford, which applied entirely different concepts to inapposite language 60 years prior to the enactment of California's Fair Employment Practices Act (now FEHA).
FN 7. This is not to say that a court is prohibited from questioning the truth of an entity's claim of religious belief. While it is generally inappropriate for a court to judge the truth or validity of a religious practice or belief, it is not illegitimate to inquire whether or not claims to religious belief are sincerely held or merely a sham put forth in an effort to avoid the reach of laws, such as FEHA and the tax codes, that would otherwise apply to the entity's detriment. (See, e.g., United States v. Ballard (1944) 322 U.S. 78 [64 S.Ct. 882, 88 L.Ed. 1148].) While plaintiff does question whether Hospital legally qualifies as a religious entity, the sincerity of the Methodist belief that the provision of health care advances their religious mission is not at issue in this case.
Petition for review after the Court of Appeal affirmed a summary judgment in a civil action. Concerns whether the exception to the Fair Employment and Housing Act for religious organizations applies to a religiously affiliated hospital.
Cassista v. Community Foods, Inc. (1993) 5 Cal.4th 1050 , 22 Cal.Rptr.2d 287; 856 P.2d 1143
TONI LINDA CASSISTA, Plaintiff and Appellant, v. COMMUNITY FOODS, INC., et al., Defendants and Respondents.
(Superior Court of Santa Cruz County, No. 107688, John A. Marlo, Judge.)
(Opinion by Arabian, J., expressing the unanimous view of the court.)
COUNSEL
Robins, Kaplan, Miller & Ciresi and Stefanie M. Brown for Plaintiff and Appellant.
Joseph Posner, Pauline T. Kim, Jo Anne Frankfurt, John M. True III, Steven C. Owyang, Prudence Poppink, James F. Miller, Jr., Quackenbush & Quackenbush and William C. Quackenbush as Amici Curiae on behalf of Plaintiff and Appellant.
Grunsky, Ebey, Farrar & Howell, Frederick H. Ebey and Leslie J. Karst for Defendants and Respondents.
Paul, Hastings, Janofsky & Walker, Paul Grossman, Brobeck, Phleger & Harrison, Cecily A. Waterman, Thomas M. Peterson, Karen H. Peteros and Lucy C. Hodder as Amici Curiae on behalf of Defendants and Respondents.
Brad Seligman as Amicus Curiae.
OPINION
ARABIAN, J.
We granted review to consider whether the California Fair Employment and Housing Act (FEHA or Act) (Gov. Code, § 12900 et seq.) prohibits employment discrimination on the basis of a person's weight. fn. 1 We conclude that weight may qualify as a protected "handicap" or "disability" within the meaning of the FEHA if medical evidence demonstrates that it results from a physiological condition affecting one or more of the basic bodily systems and limits a major life activity. Because the plaintiff here adduced no evidence of this kind, we conclude that she failed to establish a prima facie case of employment discrimination. [5 Cal.4th 1053]
I. Facts
In the summer of 1987, Toni Linda Cassista (plaintiff) applied for one of three openings at Community Foods, a health food store in the City of Santa Cruz. Founded as a neighborhood collective in the 1970's, Community Foods normally employed 16 to 17 people. The duties to be performed by the prospective employees included running the cash register, stocking 35- to 50- pound bags of grain, carrying 50-pound boxes of produce, retrieving groceries from the warehouse, changing 55-gallon drums of honey, and carrying large crates of milk. To fill the vacancies, Community Foods sought people with grocery store, retail clerk, cashier and stocking experience. New employees could eventually become members of the collective with management and ownership interests.
Plaintiff is five feet four inches tall and, at the time she applied to Community Foods, weighed three hundred and five pounds. She had previously been employed in several restaurants, managed a sandwich shop and worked as an aide in nursing homes. Plaintiff heard about the openings at Community Foods though a friend who worked there; she was interested in the job because she believed that the collective shared her "political awareness of issues and consciousness and concerns regarding the community and the environment ...."
The hiring process at Community Foods involved two steps. First, the applicant was interviewed by one or two members of the collective; next, those applicants who were not eliminated after the initial screening were called back for a more in-depth interview with the hiring committee. Plaintiff was one of eight applicants invited for a second interview.
Plaintiff's interview lasted approximately 30 minutes and covered the job requirements and her previous experience. Toward the end of the interview, she was asked if she had any physical limitations which would interfere with her ability to do the job. She replied that she did not. Plaintiff subsequently learned that the positions had been filled by three of the other applicants.
Several weeks after her interview with the committee, plaintiff learned of another opening at Community Foods. She immediately contacted Will Hildeburn, Community Foods's personnel coordinator, and asked that she be considered for the position. Hildeburn agreed to resubmit her application. Later, when she failed to hear from the committee, plaintiff again called Hildeburn and was informed that she had not been selected for the job.
Plaintiff asked Hildeburn what she might do to improve her chances for future openings. Hildeburn replied that they had hired people with more [5 Cal.4th 1054] experience. He also admitted telling plaintiff that "there was some concern about your weight." Plaintiff testified that Hildeburn's response was more explicit, to the effect that "members were concerned that you couldn't physically do the work due to your weight." She denied that Hildeburn referred to plaintiff's lack of experience as the basis for the committee's hiring decision.
Upset by her conversation with Hildeburn, plaintiff wrote to Community Foods about the matter. In response, Community Foods arranged a meeting with plaintiff to explain their decision and discuss her concerns. At the meeting, Hildeburn apologized to plaintiff for hurting her feelings and various members of the collective discussed their views about weight and job performance. One stated that her own weight fluctuated and observed that when she was heavier "at the end of the day ... my feet hurt and my lower back usually hurts, because my stomach is, you know, pulling my back." The same member testified, however, that plaintiff's weight played no role in the collective's hiring decision. Another member recalled that when she was pregnant it became more difficult to climb ladders and stock aisles, and observed that "physical attributes have to be a part of the decision-making process ...." She too testified, however, that plaintiff's weight had no effect on the hiring decision.
Dissatisfied with the results of the meeting, plaintiff filed a complaint with the Department of Fair Employment and Housing (Department), alleging discrimination on the basis of her weight. Shortly thereafter, Community Foods offered plaintiff a position with the store. She refused the offer, however, because she did not believe the collective had adequately "educated" itself about the concerns of overweight people. After the Department determined not to file a complaint in the matter, plaintiff filed suit against Community Foods and Will Hildeburn alleging that she was denied employment in violation of the FEHA "in that [they] regarded her as having a physical handicap, i.e., too much weight." fn. 2 Community Foods answered the complaint and denied its allegations.
The matter was tried before a jury. In addition to plaintiff, who recounted her experiences during the hiring process, Will Hildeburn testified that he had been concerned initially about plaintiff's physical ability to maintain the "pace" necessary for the job; his concerns were alleviated, however, by another member who stated that "large people can work as fast as anybody else." Hildeburn also conceded asking a friend shortly before the meeting with plaintiff, "If she had a 300-pound worker and 150-pound worker, how would she decide who to pick." Hildeburn denied, however, that plaintiff's [5 Cal.4th 1055] weight was a factor in the committee's selection. A friend of plaintiff's also testified to the physical and emotional distress which plaintiff experienced after the meeting with Community Foods.
At the conclusion of plaintiff's case, Community Foods moved for a nonsuit on the ground that plaintiff had failed to establish she was a handicapped individual within the meaning of the FEHA. The trial court denied the motion. fn. 3 Thereafter, three members of the collective (Will Hildeburn, Deborah Walsh and Elvie Moreno) testified for the defense that plaintiff's weight had played no role in the store's hiring decision. In addition, a safety engineer, Dr. Robert Liptai, testified about the health and safety ramifications of employing a 305-pound person at a store such as Community Foods. Liptai stated that the store would constitute a hazardous workplace for an individual such as plaintiff because of the narrow aisles and the danger that stepstools and ladders would not support her weight.
At the conclusion of the evidence, the trial court instructed the jury, inter alia, that plaintiff was required to prove that "but for plaintiff's handicap she would have been hired by defendant ...." The jury returned a unanimous verdict in favor of Community Foods.
The Court of Appeal reversed the judgment. The court held: (1) the evidence established that Community Foods considered plaintiff's weight to be a physical handicap as that term is defined under the FEHA, and (2) the trial court erred in instructing the jury that plaintiff was required to prove that but for her weight, she would have been hired. Rather, the court held that once plaintiff adduced evidence her weight played a part in the employer's decision, the latter must demonstrate it would have made the same decision even if weight had not been considered. Concluding that the instructional error was prejudicial, the Court of Appeal remanded for a new trial.
We granted review to consider whether, on the record evidence, plaintiff had established a prima facie case of handicap discrimination within the meaning of the FEHA. fn. 4 [5 Cal.4th 1056]
II. Discussion
A. Physical Handicap
1. Background
It is important to emphasize at the outset the limited nature of our inquiry. We do not intend, nor indeed are we at liberty, to define "physical handicap" in terms we believe to be morally just or socially desirable. Our task, rather, is to determine the boundaries of that provision which the Legislature intended. In this endeavor, we are constrained to begin with the statutory text, assuming that the Legislature chose its words carefully and assigned them their usual and ordinary meaning. (Dyna-Med, Inc. v. Fair Employment & Housing Com. (1987) 43 Cal.3d 1379, 1386-1387 [241 Cal.Rptr. 67, 743 P.2d 1323].)
In 1973, the Legislature amended Labor Code section 1420, the predecessor to section 12940 of the FEHA, to make "physical handicap" one of the bases on which employment discrimination was forbidden. (Stats. 1973, ch. 1189, § 6, p. 2501.) fn. 5 At the same time, the Legislature adopted a definition of "physical handicap" which provided as follows: " 'Physical handicap' includes impairment of sight, hearing, or speech, or impairment of physical ability because of amputation or loss of function or coordination, or any other health impairment which requires special education or related services." (Stats. 1973, ch. 1189, § 3, p. 2499; now § 12926, subd. (h).) fn. 6
By its plain terms, therefore, the statute set forth three general categories of "physical handicap": (1) impairment of sight, hearing or speech; (2) impairment of physical ability because of amputation or loss of function or coordination; and (3) any other health impairment that requires special education or related services. The first category obviously concerned certain [5 Cal.4th 1057] sensory deprivations, such as blindness or impaired vision, hearing loss and speech impediments. The third category, unlike the first two, referred not to a specific group of ailments but to a class of handicapped individuals statutorily entitled to special education programs and services. (See former Cal. Admin. Code, tit. 2, div. 4, § 7293.6, subd. (f); now Cal. Code Regs., tit. 2, § 7293.6, subd. (f).)
The second category, although less explicit, was similarly limited. "Amputation," "loss of function" and "loss of coordination" all share a common element relating to the body's basic motor abilities. "Amputation" obviously refers to the removal of a limb or appendage (Webster's New Internat. Dict. (3d ed. 1961) p. 74); "function" in a physiological sense means simply "bodily ... action." (id. at p. 920); and "coordination" relates generally to the "functioning of [body] parts in cooperation and normal sequence." (Id. at p. 502.) Thus, impairment of physical "ability," i.e., the "power to perform" (id. at p. 3) through amputation, loss of function or coordination, applies essentially to any disabling condition caused by the removal or loss of use of, or lack of control over, the body's limbs, joints and extremities.
2. American National
Notwithstanding the relatively plain statutory language, a majority of this, court in American National Ins. Co. v. Fair Employment & Housing Com. (1982) 32 Cal.3d 603 [186 Cal.Rptr. 345 [651 P.2d 1151] (American National), held that "handicap" must be construed as coextensive with its dictionary definition, to wit, " 'a disadvantage that makes achievement unusually difficult.' " (Id. at p. 609, quoting Webster's New Internat. Dict. (3d ed. 1961) p. 1027.) Applying this broad construction, the majority held that high blood pressure constituted a "handicap" within the meaning of the FEHA.
As pointed out by Justice Mosk in dissent, the foregoing construction virtually ignored not only the statutory language, but also the pertinent legislative history. The original Assembly bill defined "physical handicap" to include "hardness of hearing, deafness, speech impairment, visual handicap, being crippled, or any other health impairment which requires special education and related services." (Assem. Bill No. 1126 (1973-1974 Reg. Sess.), italics added.) Although the bill was subsequently amended to replace the outdated phrase "being crippled" with the longer reference to "amputation or loss of function or coordination," it does not appear that the Legislature intended any significant change of substance. As Justice Mosk observed, "The phrase was evidently outdated, and prior to final passage it was amended into its present form. Yet in its old-fashioned way it did express the Legislature's intent: in ordinary usage and common understanding, to be [5 Cal.4th 1058] 'crippled' means to suffer from impaired physical mobility because of the total or partial loss of use of one or more limbs, extremities, or major joints. In most cases such impairment results when the limb is missing (e.g., because of birth defect or amputation), or when the limb is intact but the person cannot move it because of paralysis caused by disease (e.g., polio, multiple sclerosis, muscular dystrophy, or stroke) or trauma (e.g., paraplegia or quadriplegia) or because of immobility of the joint (e.g., degenerative arthritis), or when the limb is movable but the person cannot always control or coordinate its motions (e.g., because of cerebral palsy, epilepsy, or Parkinson's disease). [¶] In substituting the present definition for the phrase 'being crippled,' the Legislature merely restated this traditional meaning in contemporary words." (American National, supra, 32 Cal.3d at pp. 613-614.) fn. 7
3. The 1992 Amendments fn. 8
In 1992, the Legislature enacted a sweeping amendment to section 12926, completely rewriting the law of handicap discrimination. Effective January 1, 1993, "physical disability" has replaced the phrase "physical handicap," and the former is now defined as including, but not limited to, "all of the following: (1) Having any physiological disease, disorder, condition, cosmetic disfigurement, or anatomical loss that does both of the following: ¶ (A) Affects one or more of the following body systems: neurological, immunological, musculoskeletal, special sense organs, respiratory, including speech organs, cardiovascular, reproductive, digestive, genitourinary, hemic and lymphatic, skin, and endocrine. [¶] (B) Limits an individual's ability to participate in major life activities. [¶] (2) Any other health impairment not described in paragraph (1) that requires special education or related services. [¶] (3) Being regarded as having had a disease, disorder, condition, cosmetic disfigurement, anatomical loss, or health impairment described in paragraph [5 Cal.4th 1059] (1) or (2). [¶] (4) Being regarded as having, or having had, a disease, disorder, condition, cosmetic disfigurement, anatomical loss, or health impairment that has no present disabling effect but may become a physical disability as described in paragraph (1) or (2)." (Gov. Code, § 12926, subd. (k), enacted by Stats. 1992, ch. 913, § 21.3.) fn. 9
Thus, to qualify as physically "disabled" under the new statute the claimant must have, or be perceived as having, a "physiological" disorder that affects one or more of the basic bodily "systems" and limits the claimant's ability "to participate in major life activities."
In an apparent effort to maintain continuity with the former law, the Legislature, in addition to adopting the foregoing definition of "physical disability," also provided as follows: "It is the intent of the Legislature that the definition of 'physical disability' in this subdivision shall have the same meaning as the term 'physical handicap' formerly defined by this subdivision and construed in American National Ins. Co. v. Fair Employment & Housing Com., 32 Cal.3d 603. ..." (§ 12926, subd. (k), italics added.)
This express reference to American National, supra, 32 Cal.3d 603, suggests that the Legislature intended to avoid the creation of two standards for discrimination claims, depending upon whether the cause of action arose before or after the effective date of the amendment. Accordingly, the amendment, although well short of an express endorsement of the majority's reasoning in American National, supra, 32 Cal.3d 603, nevertheless imparts a clear legislative desire to maintain continuity in the law. Whatever the infirmities in American National, therefore, a due regard to the Legislature's mandate for consistency militates against overruling that decision. The Legislature has decreed, in effect, that the current and former versions of section 12926 should be harmonized. Therefore, although the instant matter arose under and is governed by the former law, we shall analyze plaintiff's claim with that legislative mandate in mind.
4. The Old Law and the New
In point of fact, the current and former law are remarkably consistent. Indeed, the definition of "physical disability" adopted by the Legislature in 1992 has been effectively controlling FEHA claims in California since 1980. In that year, the Fair Employment and Housing Commission first adopted a [5 Cal.4th 1060] regulation defining "handicapped individual" in terms substantially similar to the recent amendment. That regulation, which has not been significantly amended, describes such an individual as one who "(1) Has a physical handicap which substantially limits one or more major life activities; [¶] Has a record of such a physical handicap; or [¶] (3) Is regarded as having such a physical handicap." (See now Cal. Code Regs., tit. 2, § 7293.6, subd. (i).) In addition, the regulation interprets "impairment of physical ability due to loss of function" as "Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological, musculoskeletal, special sense organs, respiratory, including speech organs, cardiovascular, reproductive, digestive, genitourinary, hemic and lymphatic, skin and endocrine." (See now Cal. Code Regs., tit. 2, § 7293.6, subd. (d), italics added.)
The obvious similarity between the 1980 regulation and the 1992 statutory amendment is not coincidental. Both derive from the same source, the federal Rehabilitation Act of 1973 (29 U.S.C. § 701 et seq.) (Rehabilitation Act), which prohibits handicap discrimination by federal contractors and recipients of federal assistance. fn. 10 Over the last two decades, many states have enacted statutes or, as in California, regulations which track the federal statute. (See O'Connor, Defining "Handicap" for Purposes of Employment Discrimination (1988) 30 Ariz. L.Rev. 633, 649-650 [hereafter O'Connor].) The Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.) (ADA), which substantially broadens the scope of federal protection of the disabled, also adopts the Rehabilitation Act definition of "handicap" (42 U.S.C. § 12102; 29 C.F.R. § 1630.2(g) (1992)). The 1992 amendment to section 12926 is modeled, in turn, on the ADA. (§ 12926, subd. (k).)
The result is that our statute has finally caught up with its implementing regulation; the new definition of "disability" in section 12926, subdivision (k), and the long-standing interpretation of "handicap" in the California Code of Regulations (Cal. Code Regs., tit. 2, § 7293.6) are in harmony. Each requires an actual or perceived physiological disorder, disease, condition, cosmetic disfigurement or anatomical loss affecting one or more of the body's major systems and substantially limiting one or more major life activities. [5 Cal.4th 1061]
The case law also reveals a general consistency between the current and former versions of section 12926. The regulation, which is now more than a dozen years old, has regularly informed the courts' decisions. Indeed, every reported decision to date has either cited, or is consistent with, the regulatory provision. In Pickrel v. General Telephone Co. (1988) 205 Cal.App.3d 1058, 1061 [252 Cal.Rptr. 878], for example, the court relied on the regulation in holding that the plaintiff's back injury-a physiological disorder affecting the musculoskeletal system-satisfied the definition of physical handicap. In County of Fresno v. Fair Employment & Housing Com. (1991) 226 Cal.App.3d 1541, 1549 [277 Cal.Rptr. 557], the court noted that the plaintiffs' physical condition, an extreme sensitivity to smoke, constituted a physiological disorder affecting the respiratory system and therefore qualified as a physical handicap under the FEHA. (See also Raytheon Co. v. Fair Employment & Housing Com. (1989) 212 Cal.App.3d 1242 [261 Cal.Rptr. 197] [acquired immune deficiency syndrome is the result of a virus affecting the human immune system and therefore constitutes a physical handicap under FEHA].) Even the relatively broad holding in American National, supra, 32 Cal.3d 603, was informed and limited by the fact that the plaintiff alleged a physiological disorder (high blood pressure) affecting the cardiovascular system and therefore fit neatly within the regulatory requirements.
[1] Thus, it is a relatively simple matter to harmonize the current and former versions of section 12926. Under both, the touchstone of a qualifying handicap or disability is an actual or perceived physiological disorder which affects a major body system and limits the individual's ability to participate in one or more major life activities.
5. Weight as a Physical Handicap or Disability
[2a] The case law specifically addressing claims, brought under FEHA, of handicap discrimination on the basis of weight is minimal but instructive. fn. 11 A succinct analysis is set forth in Hegwer v. Board of Civil Service Comrs. (1992) 5 Cal.App.4th 1011 [7 Cal.Rptr.2d 389]. [3] (See fn. 12.) [5 Cal.4th 1062] There, a paramedic suspended for failure to maintain required levels of fitness and body weight accused her employer, the Los Angeles City Fire Department, of handicap discrimination under the FEHA. The plaintiff claimed to suffer from a thyroid condition which contributed to her obesity. fn. 12 Acknowledging that a person "is considered handicapped under California law if he or she suffers from a physiological disorder affecting the endocrine system, which includes the thyroid (Cal. Code Regs., tit. 2, div. 4, § 7293.6, subd. (d))," the court nevertheless concluded that the department's standards were based upon a " 'bona fide occupational qualification.' (Gov. Code, § 12940)" and therefore upheld the department's disciplinary action. (5 Cal.App.4th at pp. 1024-1025.)
McMillen v. Civil Service Com. (1992) 6 Cal.App.4th 125 [8 Cal.Rptr.2d 548] is similar, although there the plaintiff, an ambulance driver for a city fire department, did not allege that his failure to maintain body weight [5 Cal.4th 1063] standards was caused by any physiological disorder. Assuming, without analysis, that plaintiff's obesity nevertheless qualified as a physical handicap, the court concluded that, as in Hegwer v. Board of Civil Service Comrs., supra, 5 Cal.App.4th 1011, the department's weight standards were bona fide occupational qualifications. (McMillen v. Civil Service Com., supra, at pp. 130-131.) fn. 13
Several decisions dealing with weight as a physical handicap under the federal Rehabilitation Act (29 U.S.C. § 701 et seq.) are also pertinent. [2b] As noted earlier, the current definition of "disability" in section 12926, subdivision (k), and the interpretive regulation in the California Code of Regulations (Cal. Code Regs., tit. 2, § 7293.6), are both modeled on the definitions in the Rehabilitation Act (29 U.S.C. § 706(8)(B); 45 C.F.R. § 84.3(j)(2)(i)) and the ADA (42 U.S.C. § 12102; 29 C.F.R. § 1630.2). Thus, interpretations of federal law may be particularly useful "to guide the construction" of this provision of California's antidiscrimination act. (American Civil Liberties Union Foundation v. Deukmejian (1982) 32 Cal.3d 440, 449 [186 Cal.Rptr. 235, 651 P.2d 822]; Kaplan's Fruit & Produce Co. v. Superior Court (1979) 26 Cal.3d 60, 65 [160 Cal.Rptr. 745 [603 P.2d 1341].)
Two decisions under the Rehabilitation Act are particularly noteworthy. In Tudyman v. United Airlines (C.D.Cal. 1984) 608 F.Supp. 739, a male applicant for a position as a flight attendant was rejected because he exceeded the [5 Cal.4th 1064] airline's body weight guidelines. He sued, claiming that he had been denied employment on the basis of a handicap under the Rehabilitation Act. His weight was apparently the result of extensive body building, resulting in a low percentage of body fat and a high percentage of muscle. (Id. at p. 741.) The court granted summary judgment for the airline, observing that the applicant's condition was not the result of a physiological disorder affecting one or more of the body's systems, "e.g, the result of a glandular problem," but rather was "self-imposed and voluntary." (Id. at p. 746.) Accordingly, he failed to meet the definition of a handicapped individual under the federal statute.
Cook v. State of R.I., Dept. of MHRH (D.R.I. 1992) 783 F.Supp. 1569 also addressed the question whether obesity not caused or accompanied by other physiological disorders constitutes a handicap within the meaning of the Rehabilitation Act. The claimant was refused employment by a state agency when she failed to comply with a requirement that she reduce her weight to "something less than three hundred pounds." (Id. at p. 1571.) She asserted that the agency's action amounted to discrimination under the federal act. The court concluded otherwise. To constitute a physiological disorder qualifying as a handicap, the court observed, the claimant was required to adduce evidence of some related physiological disorder (e.g., heart disease or diabetes) or some medical evidence that the claimant's obesity itself "is caused by systemic or metabolic factors ...." (Id. at p. 1573.) As the court explained: "Thus, to the extent that obesity, or Cook's form of obesity, is caused by systemic or metabolic factors and constitutes an immutable condition that she is powerless to control, it may be a physiological disorder qualifying as a handicap. [Citations.] Conversely, to the extent that obesity is a transitory or self-imposed condition resulting from an individual's voluntary action or inaction, it would be neither a physiological disorder nor a handicap." (Ibid.)
That obesity does not constitute a qualifying disability absent proof of physiological causation under federal law is also the view of the Equal Employment Opportunity Commission, the administrative agency charged with interpreting and implementing the most recent and far-reaching federal antidiscrimination statute, the ADA (42 U.S.C. § 12101 et seq.). As noted earlier, the ADA's definition of "disability" is drawn from the Rehabilitation Act, which in turn was the model for California's long- standing regulation (Cal. Code Regs., tit. 2, § 7293.6) and current statute (§ 12926, subd. (k)). In explaining the meaning of disability under the ADA, the federal regulations observe: "It is important to distinguish between conditions that are impairments and physical, psychological, environmental, cultural, and economic characteristics that are not impairments." (29 C.F.R. appen. § 1630.2(h) [5 Cal.4th 1065] (1992).) Examples of the latter include such physical characteristics as "height, weight, or muscle tone" that "are not the result of a physiological disorder." (Ibid., italics added; see also 29 C.F.R. appen. § 1630.2(j) (1992) ["Except in rare circumstances, obesity is not considered a disabling impairment."].)
Thus, both judicial and administrative interpretations of the federal statutes on which our law is modeled uniformly reject the argument that weight unrelated to a physiological, systemic disorder constitutes a handicap or disability. These interpretations are also consistent with most other state court decisions on the subject. (See Shapiro, The Heavy Burden of Establishing Weight as a Handicap Under Anti-Discrimination Statutes (1991) 18 Western St.U. L.Rev. 565, 569 ["Most courts have held that obesity by itself, without a related medical condition or other impairment, is not a handicap."]; Comment, Employment Discrimination Against Overweight Individuals: Should Obesity Be a Protected Classification?, supra, 30 Santa Clara L.Rev. 951, 961 ["Most courts have examined whether or not obesity is a handicap and have found that it is not."].) And the recent decision of the California Court of Appeal in Hegwer v. Board of Civil Service Comrs., supra, 5 Cal.App.4th 1011, is in accord. We conclude, therefore, that an individual who asserts a violation of the FEHA on the basis of his or her weight must adduce evidence of a physiological, systemic basis for the condition.
6. Perception of Handicap or Disability
Even if weight does not qualify as an actual handicap or disability within the meaning of the FEHA, plaintiff argues that one might still qualify as a handicapped individual if one is "regarded" as such. As previously noted, the regulation defines a handicapped individual as one who, inter alia, "[i]s regarded as having such a physical handicap" (Cal. Code Regs., tit. 2, § 7293.6, subd. (i)), and the current statute provides that "physical disability" includes, "Being regarded as having or having had a disease, disorder, condition, cosmetic disfigurement, anatomical loss, or health impairment described in paragraph (1) or (2)." (§ 12926, subd. (k)((3).)
Plaintiff's argument is unavailing. As the language of the statute makes clear, it is not enough to show that an employer's decision is based on the perception that an applicant is disqualified by his or her weight. The applicant must be "regarded as having or having had" a condition "described in paragraph (1) or (2)," to wit, a physiological disease or disorder affecting one or more of the bodily systems. The regulation similarly requires that the applicant must be regarded as having "such a physical handicap." (Italics added.) In other words, the condition, as perceived by the employer, must [5 Cal.4th 1066] still be in the nature of a physiological disorder within the meaning of the FEHA, even if it is not in fact disabling. (See Cook v. State of R.I., Dept. of MHRH, supra, 783 F.Supp. at p. 1575 [perception of applicant's weight as a handicapping condition does not render applicant handicapped within the meaning of the Rehabilitation Act]; American Motors Corp. v. Labor & Industry (1984) 119 Wis.2d 706 [350 N.W.2d 120, 125] [perception of applicant's height as a disqualification does not make the individual disabled where stature is not a physical disability or impairment under the state's fair employment act].)
[4] Applying the foregoing principles to the case at bar, we conclude that plaintiff failed to establish a prima facie case of employment discrimination by demonstrating she fits within the class of handicapped or disabled persons protected by the FEHA. The record is devoid of any evidence that plaintiff's weight is the result of a physiological condition or disorder affecting one or more of the body systems. (§ 12926, subd. (k); Cal. Code Regs., tit. 2, § 7293.6, subd. (d).) Indeed, plaintiff alleged in her complaint and maintained at trial that despite her weight she is a healthy, fit individual. Thus, she demonstrated neither an actual nor a perceived handicap within the meaning of the FEHA.
It follows that the trial court erred in denying Community Foods' motion for nonsuit, which was based squarely on plaintiff's failure to adduce any evidence, "medical, competent or otherwise, to establish that [plaintiff's weight] is a physical or a perceived physical handicap." As previously discussed, the requirement that plaintiff establish a physiological basis for her alleged handicap was relatively settled at the time of trial. Furthermore, she was clearly on notice of the potential importance of such evidence through the motions of defendants. Having thus received a full and fair opportunity to prove her case, she is not entitled to a new trial. (Eatwell v. Beck (1953) 41 Cal.2d 128, 135 [257 P.2d 643]; McCoy v. Hearst Corp. (1991) 227 Cal.App.3d 1657, 1661 [278 Cal.Rptr. 596]; Code Civ. Proc., § 657.)
Accordingly, the judgment of the Court of Appeal is reversed.
Lucas, C. J., Mosk, J., Panelli, J., Kennard, J., Baxter, J., and George, J., concurred.
FN 1. All further statutory references are to the Government Code unless otherwise noted.
FN 2. For convenience, defendants will be referred to collectively as Community Foods.
FN 3. Counsel for Community Foods argued that plaintiff had adduced "absolutely no testimony, medical, competent or otherwise, to establish that [plaintiff's weight] is a physical handicap or a perceived physical handicap." Plaintiff's counsel responded that "the physical condition we are talking about here is [plaintiff] being fat." The trial court appeared to be chagrined that Community Foods had not raised the issue earlier in a motion for summary judgment or judgment on the pleadings, observing that "the defense was remiss ... this case should have never gotten this far. But it has gotten this far and the Court's attitude is to ride it out with no resolution on the defense side either ...." Accordingly, the trial court denied the motion.
FN 4. For obvious reasons, plaintiff did not appeal the denial of Community Foods' motion for nonsuit based on plaintiff's failure to demonstrate her weight was a physical handicap within the meaning of the FEHA. In resolving the burden of proof issue, however, the Court of Appeal was compelled to consider whether plaintiff had established a prima facie case of discrimination, i.e., whether overweight persons fell within the class protected by the Act, and whether Community Foods had discriminated on that basis. In its petition for review, Community Foods specifically challenged the Court of Appeal's determination that plaintiff's weight qualified as a "physical handicap" under the FEHA, and the point was briefed by both parties. Accordingly, the issue is properly before this court.
FN 5. The amendment provided an exception where the employee, "because of his [or her] physical handicap, is unable to perform his [or her] duties, or ... cannot perform [those] duties in a manner which would not endanger his [or her] health or safety or the health and safety of others." (Ibid.; see now § 12940, subd. (a).)
FN 6. As discussed more fully below, the Legislature recently amended the statute to substitute the term "physical disability" for "physical handicap," and defined the former in terms consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.). (Stats. 1992, ch. 913, § 21.3, No. 6 Deering's Adv. Legis. Service pp. 3861-3862.)
FN 7. Other aspects of the legislative history also suggest that the Legislature contemplated a more narrow definition of "physical handicap." For example, a competing bill introduced in the same legislative session by Senator Roberti (Sen. Bill No. 1045 (1973-1974 Reg. Sess.)) would have prohibited employment discrimination against the "physically or mentally handicapped," which it defined in somewhat circular fashion as a "handicap unrelated to one's ability to perform jobs or positions available to him for hire or promotion." In effect, the Roberti bill provided no limiting definition of "handicap," leaving the door open to a potentially much broader range of impairments subject to the Act. In this respect, it was similar to several other state laws then in effect (e.g., Wisconsin's and Illinois's) which also lacked a definition of "handicap" and thus virtually invited a broad judicial interpretation. (See Advocates for Handicapped v. Sears, Roebuck & Co. (1978) 67 Ill.App.3d 512 [385 N.E.2d 39, 42-42]; Chicago, M., St. P. & P.R. Co. v. State, Dept. of I., L. & H. R. (1974) 62 Wis.2d 392 [215 N.W.2d 443, 446].) The Legislature's adoption of the more limited Assembly bill instead of its Senate rival tends to undermine the majority's broad construction of "handicap" in American National, supra, 32 Cal.3d 603.
FN 8. Because neither party raised the 1992 amendment to section 12926 or its possible effect on this litigation, we solicited and received supplemental briefing on the matter.
FN 9. The 1992 amendments also included, for the first time, "mental disability" among the list of prohibited employment criteria. (Stats. 1992, ch. 913, §§ 19, 23, No. 6 Deering's Adv. Legis. Service, pp. 3853, 3863.)
FN 10. The Rehabilitation Act defines an " 'individual with a disability' " as any person who "(i) has a physical or mental impairment which substantially limits one or more of such person's major life activities, (ii) has a record of such an impairment, or (iii) is regarded as having such an impairment." (29 U.S.C. § 706(8)(B).) The federal regulations provide that a physical or mental impairment means "any physiological disorder or condition, cosmetic disfigurement or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive, digestive, genito-urinary; hemic and lymphatic; skin; and endocrine ...." (45 C.F.R. § 84.3(j)(2)(i) (1992).)
FN 11. Although the vast majority of states have enacted statutes prohibiting employment discrimination on the basis of disability or handicap (see Comment, Employment Discrimination Against Overweight Individuals: Should Obesity Be a Protected Classification? (1990) 30 Santa Clara L.Rev. 951, 954-955), there is little uniformity among them and minimal case law interpreting their scope. (O'Connor, supra, 30 Ariz. L.Rev. at p. 634.) Only one state, Michigan, has specifically codified a prohibition against employment discrimination on the basis of weight. (Mich. Comp. Laws Ann. § 37.2102 (West 1985).) Of the courts that have considered the issue, most have concluded that an individual's weight does not by itself constitute a handicap or disability, but may in conjunction with other related disorders such as diabetes, high blood pressure, cardiovascular disease or osteoarthritis qualify as a handicap or disability under their respective states' antidiscrimination statutes. (See, e.g., Philadelphia Elec. v. Com., Pa. Human Rel. (1982) 68 Pa. Commw. 212 [448 A.2d 701, 707] [morbid obesity alone, without other physical consequences, is not a handicap under the Pennsylvania antidiscrimination statute]; see also Mo. Com'n on Human Rights v. S.W. Bell Tele. (Mo.Ct. App. 1985) 699 S.W.2d 75; Krein v. Marian Manor Nursing Home (N.D. 1987) 415 N.W.2d 793, 796.) And in a widely cited decision a federal district court held that obesity was not a handicap under Washington law because it was not an "immutable" condition such as blindness or lameness. (Greene v. Union Pacific R. Co. (W.D.Wash. 1981) 548 F.Supp. 3, 5.) Two notable exceptions to the foregoing rationales are State Div. of Human Rights v. Xerox Corp. (1985) 65 N.Y.2d 213 [491 N.Y.S.2d 106, 480 N.E.2d 695] and Gimello v. Agency Rent-A-Car Systems (N.J. Super.Ct. App. Div. 1991) 594 A.2d 264. In Xerox, the claimant was denied employment because of her obesity and claimed that this was unlawful under New York's Human Rights Law. The court agreed, noting that the law defined "disability" very broadly and that, fairly read, encompassed "merely diagnosable medical anomalies which impair bodily integrity ...." (491 N.Y.S.2d at p. 109.) Thus, the court concluded that plaintiff's obesity qualified as a disability notwithstanding the fact that it was "unrelated to any glandular or organic deficiency." (Id. at p. 108.) Applying similar reasoning, the court in Gimello v. Agency Rent-A-Car Systems, supra, 594 A.2d 264, concluded that obesity qualified as a handicap under the New Jersey Law Against Discrimination. The law, the court observed, set forth "a very broad definition" of handicap as including any "physiological ... condition [] which ... is demonstrable, medically or psychologically, by accepted clinical or laboratory diagnostic techniques." (Id. at p. 276.) This expansive definition, the court held, easily subsumed the medical condition of obesity: "Undisputably, Gimello's obesity exists physiologically and is demonstrable by accepted diagnostic techniques." (Ibid.) Clearly, however, these and other out-of-state decisions are distinguishable from the case at bar by the fact that local antidiscrimination laws have widely varying texts and historical antecedents.
FN 12. Although often used as a synonym for "fat" or "corpulent" (Webster's New Internat. Dict., supra, p. 1555), "obesity" in medical terms generally refers to the condition of a person who is 20 percent above the ideal weight; gross or serious obesity is considered 30 to 35 percent over ideal weight; and morbid obesity is either 100 pounds above or twice the ideal weight. (Comment, The Rehabilitation Act of 1973: Protection for Victims of Weight Discrimination? (1982) 29 UCLA L.Rev. 947, 948-949.) There was no specific expert testimony here that plaintiff is clinically obese, although medical records introduced by defendant refer, without analysis, to her condition as "obesity." Thus, we shall refrain from use of that term in connection with plaintiff.
FN 13. A number of decisions have touched on weight as a factor in employment discrimination but are distinguishable. In a pre-FEHA decision, Blodgett v. Board of Trustees (1971) 20 Cal.App.3d 183 [97 Cal.Rptr. 406], the court held that a teacher's obesity, standing alone, did not constitute good cause for denying the teacher reemployment under provisions of the Education Code providing that such a determination shall be only for cause and shall relate solely to the welfare of the schools and the pupils. (Id. at pp. 190-193.) In State Personnel Bd. v. Fair Employment & Housing Com. (1985) 39 Cal.3d 422 [217 Cal.Rptr. 16 [703 P.2d 354], we held that the FEHA applied to state civil service employees. In so holding we noted, without discussion, that one of the plaintiffs claimed that she had been denied employment with the California Highway Patrol not on the basis of her weight per se, but rather on the ground that she had undergone intestinal bypass surgery to alleviate a weight problem. (Id. at p. 426.)
Also distinguishable are those cases holding, under title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.) or equivalent state civil rights laws, that height and weight requirements may not be used as a basis for employment discrimination where such requirements would have a disparate and unjustified impact on protected groups such as women and minorities. (See, e.g., Hardy v. Stumpf (1974) 37 Cal.App.3d 958 [112 Cal.Rptr. 739]; Leag. of U. Latin Am. Citizens v. City of Santa Ana (C.D.Cal. 1976) 410 F.Supp. 873; Laffey v. Northwest Airlines, Inc. (D.D.C. 1973) 366 F.Supp. 763, 790; see generally Annot. (1979) 44 A.L.R.Fed. 148.)
Weight was also addressed in section 19702, part of the State Civil Service Act, which prohibits discrimination against state employees on the basis, inter alia, of physical handicap. (§ 19702, subd. (a).) Interestingly, formerly that provision also expressly excluded "obesity" from the definition of "physical handicap" as used in the section. (§ 19702, former subd. (c).) Nothing in the statute or legislative history of section 19702, however, reflects on the legislative intent underlying the handicap provision in the FEHA.
Petition for review after the Court of Appeal reversed a judgment in a civil action. This case presents issues concerning the treatment of a job applicant's weight as a physical handicap within the meaning of the Fair Employment and Housing Act (Gov. Code section 12900 et seq.).