Judge: Michael Shultz, Case: 22STCV16143, Date: 2023-10-24 Tentative Ruling

Case Number: 22STCV16143    Hearing Date: October 24, 2023    Dept: A

22STCV16143 L.V. v. Compton Unified School District

Tuesday, October 24, 2023 at 8:30 a.m.

 

[TENTATIVE] ORDER OVERRULING DEFENDANT’S MOTION FOR JUDGMENT ON THE PLEADING

 

I.        BACKGROUND

      Plaintiff commenced this action on May 16, 2022. The second amended and operative complaint alleges that Plaintiff suffered injury because of childhood sexual abuse and repeated assault by Defendant’s employee when Plaintiff was fifteen years old. Plaintiff alleges claims for negligence and negligent hiring, retention, and supervision.

II.      ARGUMENTS

        Defendant, Compton Unified School District, demurs to all claims on grounds Assembly Bill 218 which attempted to retroactively revive claims such as Plaintiff’s is unconstitutional. This Court never had jurisdiction over this lawsuit. The imposition of liability for a past act of negligence is construed as giving a gift of public funds (“the Gift Clause.”) At the time incident occurred in 1986 or 1987, Plaintiff did not have an enforceable claim because she did not file a tort claim pursuant to the Government Claims Act (GCA), which law was in effect until 2009 which exempted claims presentation requirements for sexual abuse claims occurring on or after January 1, 2009.

      Plaintiff argues that California courts have rejected Defendant’s arguments. There is no basis for the assertion that the revival of stale claims violates the Gift Clause. Civil Procedure Section 340.1 is constitutional and clearly permits revival of any claim that would otherwise be barred by a plaintiff’s failure to file a government tort claim.

      In reply, Defendant argues that the trial court decisions cited by Plaintiff have no bearing on the issues raised. Defendant contends that “appropriations” for unenforceable claims serves no public purpose. Plaintiff did not have an enforceable claim for 30 years prior to the passage of AB218 because Plaintiff did not have an enforceable claim.

III.    LEGAL STANDARDS

      A party can move for judgment on the pleadings on grounds the complaint does not state facts sufficient to constitute a cause of action against that defendant. (Code Civ. Proc., § 438 subd. (c)(B)). The motion performs the same function as a general demurrer and attacks only defects disclosed on the face of the pleadings or by matters subject to judicial notice. (Burnett v. Chimney Sweep (2004) 123 Cal.App.4th 1057, 1064). For the purposes of this motion, all properly alleged material facts are deemed true. (Fire Ins. Exchange v. Superior Court (2004) 116 Cal.App.4th 446, 452.)

IV.    DISCUSSION

      Plaintiff commenced this action on May 16, 2022, and alleged she was exempt from claims filing requirements pursuant to Civil Procedure, section 340.1. The version of the statute effective on January 1, 2020, provided that any claim not litigated to finality and that would otherwise be barred as of January 1, 2020 “because the applicable statute of limitations, claim presentation deadline, or any other time limit had expired, is revived, and these claims may be commenced within three years of January 1, 2020.” (Cal Code Civ Proc § 340.1.)

      Defendant contends that Assembly Bill 218 (“AB 218”) improperly revived otherwise stale claims for childhood sexual assault and improperly removed the Government Code’s exemption from claims filing requirements for conduct arising on or after January 1, 2009. In other words, exclusion from claims filing requirements applied regardless of when the sexual assault occurred. Defendant contends these amendments violate the prohibition against gifting of public funds.

      The California Constitution states that the Legislature has no power to make a gift of any public money or thing of value to any individual. (Cal. Const., art. XVI, § 6.) The term “gift” is not limited to the transfer of personal property without consideration, but includes all appropriations of public money, for which there is no authority or enforceable claim. (Conlin v. Board of Sup'rs of City and County of San Francisco (1893) 99 Cal. 17, 21.)

      Defendant cites Bourn v. Hart (1892) 93 Cal. 321, which held that a “legislative appropriation” made to an individual in payment of a claim for personal injury damages for which the state is not responsible, “is a gift within the meaning of the Constitution.” (Bourn v. Hart (1892) 93 Cal. 321, 328.) This case does not involve a legislative appropriation of money.

      Defendant contends that imposing liability for a past act of negligence constitutes a “gift of public money or other thing of value to any person.” (Chapman v. State (1894) 104 Cal. 690, 694.) Chapman is distinguishable because the plaintiff alleged negligence against the State based on a statute enacted after plaintiff’s claims arose. In Chapman, the plaintiff sued the state for the loss of its coal when a large part of the wharf where the coal was stored broke away from the wharf due to the State’s alleged negligence. (Id. at 692.) At the time the incident took place, the State was not liable for damage absent a statute voluntarily assuming such liability. The court acknowledged that to “create” liability for a past act of negligence violated the constitutional prohibition against gifts of public money. (Id. at 693.) Here, the legislature did not create liability by virtue of AB218 where none existed. Statutory liability against a public entity is conferred by the Government Code which existed at the time of the alleged acts. (Gov. Code, § 815.) Creation of liability is not at issue.

      The issue is whether AB218’s revival of claims previously barred and the abrogation of claims filing requirements constitutes a gift of public funds. The California Constitution states that the Legislature does not have the power “to make any gift or authorize the making of any gift * * * of any public money or thing of value to any individual * * *; provided, that nothing in this section shall prevent the Legislature granting aid pursuant to Section 21 of this article … .” (County of Alameda v. Carleson (1971) 5 Cal.3d 730, 745.)

      Funds expended for a public purpose does not constitute a “gift” although private persons may benefit. (Id. at 746.) The existence of a gift is determined by the Legislature although the courts can infer the public purpose from other legislation or the way the legislation is enacted. (Scott v. State Bd. of Equalization (1996) 50 Cal.App.4th 1597, 1604.) Here, the retroactivity provision of section 340.1 “indicates a clear legislative intent to maximize claims of sexual-abuse minor plaintiffs for as expansive a period as possible. The public policy is manifest from the text of the law.” (Liebig v. Superior Court (1989) 209 Cal.App.3d 828, 834.)

      Conlin, cited by Defendant, is generally instructive on the principles of a “gift” under the Constitution, however, it is otherwise factually distinguishable. There, the Legislature passed a statute authorizing the City & County of San Francisco to pay $54,015 to a contractor for work done upon public streets pursuant to a contract that remained unpaid. It involved a personal benefit, not a public purpose.  (Conlin at 20.). Defendant also cites Powell v. Phelan (1903) 138 Cal. 271, which is not particularly instructive as it did not consider whether newly enacted legislation for the purpose of giving money to certain jurors in criminal cases they were otherwise not entitled to was for a public purpose. (Powell at 274.)

      Defendant also cites Heron v. Riley (1930) 209 Cal. 507 which rejected the argument that the appropriation of funds to pay judgments against the State constituted a gift. The Court held that application of such funds are not gifts of public money as the judgments were obtained after due process requirements were met. (Heron at 517.) The court distinguished the legislation at issue by stating the "legislature has not attempted to create a liability against the state for any past acts of negligence on the part of its officers, agents or employees—something it could not do, and the doing of which would, in effect, be the making of a gift—but has provided that ‘hereafter it shall be liable for certain things done which cause damage to its citizens, its liability to be first determined by an appropriate action at law." (Id.) Heron did not discuss whether retroactive application of a revival statute constituted a gift of public funds.

      The Gift Clause "was intended to prevent the giving of a bonus and was not intended to apply to the settlement of claims, whether they had great or little merit, or no merit at all." (Bourn at 322.) Used in its popular sense, a “gift” is a “gratuitous donation without consideration, and without any reasonable claim to it.” (Id.) Section 340.1 does not involve a giving of a bonus.

      Defendant has not established that Plaintiff does not have an enforceable claim because she was required to present a government claim until the Legislature amended the statute in 2009, abrogating those requirements. The California Supreme Court’s decision on which Defendant relies was based on a government claim presented by the Plaintiff in 2012. The effective version of the statute provided that “the time for commencement of the action shall be within eight years of the date the plaintiff attains the age of majority or within three years of the date the plaintiff discovers or reasonably should have discovered that psychological injury or illness occurring after the age of majority was caused by the sexual abuse, whichever period expires later, … .”(1999 Cal ALS 120, 1999 Cal SB 674, 1999 Cal Stats. ch. 120, 1999 Cal ALS 120, 1999 Cal SB 674, 1999 Cal Stats. ch. 120.) The statute also did not revive claims otherwise expired because of a failure to present a timely government claim. The Rubenstein court acknowledged that “[h]ad the Legislature intended to also revive in subdivision (c) the claim presentation deadline under the government claims statute, it could have easily said so. It did not.” (Rubenstein v. Doe No. 1 (2017) 3 Cal.5th 903, 907.)

      Here, Plaintiff did not present a tort claim pursuant to the 2020 version of 340.1, which expressly revives claims “not litigated to finality that would otherwise be barred because of the statute of limitations or claims presentation deadline or any other time limit had expired, … .”  (Cal Code Civ Proc § 340.1 (q).) Rubenstein does not apply.

      Finally, the Court denies Plaintiff’s request for judicial notice of rulings made by other trial courts as none are relevant or binding.

V.      CONCLUSION

      Based on the foregoing, Defendant’s Motion for Judgment on the Pleading is DENIED. Defendant is ordered to answer within 10 days.