Decision forthcoming in Kirby, et al. v. Immoos Fire Protection, Inc.

On Monday, April 30, 2012, the California Supreme Court will issue its decision in Kirby, et al. v. Immoos Fire Protection, Inc.  The Court of Appeal decision was discussed on this blog here.  The great question, of course, is whether the relatively employee-protective decision in Brinker will be tempered by prevailing party fee concerns.  The California Supreme Court describes the issues under review as follows:

The court limited review to the following issues: (1) Does Labor Code section 1194 apply to a cause of action alleging meal and rest period violations (Lab. Code, § 226.7) or may attorney’s fees be awarded under Labor Code section 218.5? (2) Is our analysis affected by whether the claims for meal and rest periods are brought alone or are accompanied by claims for minimum wage and overtime?

Certiorari denied in Ticketmaster, et al. v. Stearns, et al.

On the consumer litigation front, today the United States Supreme Court denied certiorari in Ticketmaster, et al. v. Stearns, et al. (Sup. Ct. Case No. 11-983).  Stearns v. Ticketmaster Corp., 655 F.3d 1013 (9th Cir. 2011) examined a number of consumer law concepts in the class context.  For example, the Ninth Circuit shot down the federal court standing challenge attempted in UCL actions post-Tobacco II.  And, on the issue of reliance in CLRA claims, the Court said:

A CLRA claim warrants an analysis different from a UCL claim because the CLRA requires each class member to have an actual injury caused by the unlawful practice. Steroid Hormone Prod. Cases, 181 Cal.App.4th 145, 155-56, 104 Cal. Rptr.3d 329, 337 (2010). But "[c]ausation, on a classwide basis, may be established by materiality. If the trial court finds that material misrepresentations have been made to the entire class, an inference of reliance arises as to the class." Vioxx, 180 Cal.App.4th at 129, 103 Cal.Rptr.3d at 95; see also Vasquez v. Superior Court, 4 Cal.3d 800, 814, 484 P.2d 964, 973, 94 Cal.Rptr. 796, 805 (1971); Steroid, 181 Cal. App.4th at 156-57, 104 Cal.Rptr.3d at 338. This rule applies to cases regarding omissions or "failures to disclose" as well. See McAdams v. Monier, Inc., 182 Cal.App.4th 174, 184, 105 Cal.Rptr.3d 704, 711 (2010) (holding that because of defendant's failure to disclose information "which would have been material to any reasonable person who purchased" the product, a presumption of reliance was justified); Mass. Mut. Life Ins. Co. v. Superior Court, 97 Cal. App. 4th 1282, 1293, 119 Cal.Rptr.2d 190, 198 (2002) ("[H]ere the record permits an inference of common reliance. Plaintiffs contend Mass Mutual failed to disclose its own concerns about the premiums it was paying and that those concerns would have been material to any reasonable person contemplating the purchase...." If proved, that would "be sufficient to give rise to the inference of common reliance on representations which were materially deficient.").

Stearns, at 1022.

Brinker Analysis: California still protects employees

The California Supreme Court has been consistent in its recognition that California law protects employees as part of a fundamental policy of the state of California. For instance, in Sav-On, the California Supreme Court observed that “California’s overtime laws are remedial and are to be construed so as to promote employee protection.” More recently, in an easily overlooked opinion in the matter of Brinker Restaurant Corporation, et al. v. Superior Court (Hohnbaum) (April 12, 2012), the California Supreme Court began its opinion by observing, “For the better part of a century, California law has guaranteed to employees wage and hour protection, including meal and rest periods intended to ameliorate the consequences of long hours.” At this point, it should be clear that, at least to some degree, Brinker will be consistent with the Court’s employee-protective view of California law. Brinker is long and complex. The unanimous opinion is 54 pages long, and Justice Werdegar offered an additional concurring opinion about four pages long to offer further guidance on the certification issue remanded for further consideration.
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An ode to Brinker...

Shall I compare Brinker to a business game?

It is more wordy and more moderate.

Harsh plans do fill the corporate coffer’s shame,

And employee rights make each boss irate.

Sometime too harsh the HR bigwig whines,

And often is their open access dimmed;

And every job from fair sometime declines,

By chance, or nature's changing course, untrimmed;

But Brinker’s sharp protections shall not fade,

Nor lose possession of those rights each ow'st,

Nor shall corporations dwarf Brinker in their shade,

When in eternal lines to Time Brinker grow'st.

So long as the employee works, and eyes can see,

So long lives Brinker, and Brinker protects the employee.

Brown v. Ralphs Grocery Co. is now final final final

Assuming you fall into the camp that doesn't want to see arbitration used to destroy all collective rights (which camp includes plaintiffs' counsel explicilty and defendants' counsel covertly), here is some good  news, compliments of The UCL Practitioner.  The U.S. Supreme Court denied a petition for writ of certiorari in Brown v. Ralphs Grocery Co., 197 Cal.App.4th 489 (2011).  In Brown, the Court of Appeal (Second Appellate District, Division Five) held that representative PAGA claims (i.e., not class-based claims) are not subject to arbitration, even post-Concepcion.  That's Concepcion, the case, not the other option (with different spelling).

Get your PAGA letters ready.

The unconstitutional dismantling of California's judicial branch continues unchallenged

I have written previously about the unconstitutionality of underfunding California's Courts, including a Daily Journal article posted here.  And with every additional funding cut, I believe that the legislative and executive branches march further down the path of unconstitutional conduct.  In the latest example of grevious injury to our Courts, the Los Angeles Superior Court has announced $30 million in additional cuts (about $70 million in prior cuts).  These cuts include the loss of 56 courtrooms, layoffs of 100 additional non-courtroom staff (above 329 layoffs and 229 attrition-based reductions), and a significant reduction in court reporter availability.

It is my fondest wish that a victim of these latest layoffs, a litigant, and a judge will all step forward and challenge the constitutionality of starving a co-equal branch of government.  Where are the checks and balances when one allegedly equal branch exists at the mercy of politicians that refuse to make the tough choices necessary to ensure, as a first priority, that the judicial branch is capable fo resolving the legal disputes it was created to resolve?

Regardless of whether you represent plaintiffs, or defendants, civil litigants or those charged with crimes, you cannot acquiesce to this relentless assault on fundamental, constitutional rights.   This is not a political question.  The California legislature is not constitutionally empowered to eviscerate the judicial branch.

Write your legislators.  Tell them that they must discharge their constitutional obligations before any other consideration.

And no, this is not the end of my rant.  It's just a pause...

Breaking News: Brinker opinion now available

With traffic to the California Courts website so heavy that a temporary mirror site was added, the long wait for the Brinker opinion in now over.  I can't write extensive comments now, but a quick skim suggests to me that the opinion falls somewhere in the middle of what the respective sides hoped to see happen.

Breaking News: Brinker decision to be released tomorrow

The Supreme Court has just released a Notice of Forthcoming Filing, indicating that the Brinker opinion will be published tomorrow.  Stay tuned for the insanity...

California Supreme Court activity for the week of March 26, 2012

The California Supreme Court held its (usually) weekly conference on March 28, 2012.  Notable results include:

  • Review was granted in Wisdom v. Accentcare, Inc.  The Court of Appeal invalidated an arbitration agreement as unconscionable and expressly criticized the result reached in Roman.  The case was covered on this blog here.

California Supreme Court activity for the week of March 12, 2012

The California Supreme Court held its (usually) weekly conference on March 14, 2012.  Notable results include:

  • Review was granted in Rose v. Bank of America.  The Court of Appeal held that a UCL "unlawful" prong claim could not be based upon alleged violations of the federal Truth in Savings Act, 12 U.S.C. § 4301 et seq.
  • Review was granted, and the matter held, in Aleman v. Airtouch Cellular (December 21, 2011).  The "lead" case for which Aleman was held is  Kirby v. Immoos Fire Protection, Inc.  The issue for review in Aleman is likely the portion of Aleman concerning one-way or two-way fee recoveries.