Judge: Ronald F. Frank, Case: 22TRCV01219, Date: 2024-06-07 Tentative Ruling

Case Number: 22TRCV01219    Hearing Date: June 7, 2024    Dept: 8

Tentative Ruling¿ 

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HEARING DATE:                 June 7, 2024 

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CASE NUMBER:                   22TRCV01219

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CASE NAME:                        Jane Doe 1, et al v. Defendant Doe School District, et al.

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MOVING PARTY:                 Defendant, Palos Verdes Peninsula Unified School District

 

RESPONDING PARTY:        Plaintiffs, Jane Doe 1, Jane Doe 2, Jane Doe 3, Jane Doe 4, and Jane Doe 5.

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TRIAL DATE:                        September 23, 2024

 

MOTION:¿                              (1) Motion to Stay Proceedings

                                               

Tentative Ruling:                    (1) Defendant’s Motion to Stay Proceedings is DENIED. 

 

The Court embraces a slippery slope when asked to stay a looming trial pending the outcome of appeals or writ petitions in the intermediate appellate courts.  When would the stay period end?  If the Court were to stay this trial until both the First and Second Districts rule on the pending writs there, and if one or both writs are denied, will not the District seek a further stay pending the outcome of the District’s certain Petition for Review to the California Supreme Court?  Under such a scenario, the duration of the requested stay might be for several years.

 

This being a discretionary motion, the Court elects to exercise its discretion by moving forward to the upcoming trial.  In so ruling, the Court considers that the Legislature was aware of the California Constitution when it enacted AB 214, it was aware that some defendants in revived sexual abuse lawsuits would be public agencies including schools and school districts, and it was aware of the claim presentation requirement of Gov. Code § 945.4.  The Court considers that instead of creating a trust fund mechanism for alleged victims of childhood sexual abuse to make claims, the Legislature made the public policy judgment to allow the civil litigation process to be an alternative mechanism.  The Court aligns itself with the courts who have rejected the Gift Clause argument in litigation under CCP section 340.1.  This Court considers in the exercise of its discretion that there is a manifest public purpose in reasonable compensation for past victims of abuse by private and public actors and to use the civil litigation process to facilitate payment by parties proven to have responsibility for causing, enabling or failing to prevent such abuse.  The Court also considers in its discretion that payment of compensation by a public entity – one that is found by a jury or judge to be legally responsible for causing harm to an alleged victim of that agency’s past or present employees -- does not constitute a gift of public funds.  Finally, the Court considers that given the passage of time between alleged abuse and the time of trial, a further delay of potentially several more years in deciding this case would prejudice the interests of justice due to the further fading of memories, death of key witnesses as has occurred in other similar cases, and the loss of other evidence bearing on both claims and defenses to this matter.

 

I. BACKGROUND¿¿ 

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A. Factual¿¿ 

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On November 14, 2022, Plaintiffs, Jane Doe 1, Jane Doe 2, Jane Doe 3, Jane Doe 4, and Jane Doe 5 (collectively “Plaintiffs”) filed a complaint against Defendants, Defendant Doe School District (“Defendant”), and Defendant DOES 2 through 100. On April 11, 2023, Plaintiffs filed a First Amended Complaint (“FAC”). On July 18, 2023, Plaintiffs filed a Second Amended Complaint (“SAC”) alleging causes of action for: (1) Negligence; (2) Negligent Supervision/Failure to Warn; and (3) Negligent Retention/Hiring. 

 

Now, Defendant seeks an order from this Court staying proceedings on this matter pending resolution of one or both of the pending writs: (1) West Contra Costa USD v. Superior Court (First District Case No. A16934); and/or (2) Roe #2 v. Superior Court (Second Appellate District, Div. 6, Case No. B334707)

 

B. Procedural¿¿ 

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On May 2, 2024, Defendant District filed this Motion to Stay Proceedings Pending Resolution of Writs. On May 24, 2024, Plaintiffs filed an opposition. On May 31, 2024, Defendant District filed a reply brief. 

 

 

II. REQUEST FOR JUDICIAL NOTICE

 

            Concurrently filed with District’s moving papers, it has requested this Court judicially notice the following:

1.     On December 18, 2023, West Contra Costa Unified School District filed a Petition for a Writ of Mandate seeking to have the First District Court of Appeal compel the Superior Court of Contra Costa County to reverse its decision overruling a demurrer which had been filed predicated on the fact that AB 218 was an unlawful gift of public funds as applied to claims against public entities for childhood sexual abuse which had occurred prior to January 1, 2009.

2.     On December 22, 2023, the First District issued an Order directing that any Opposition to the Petition be filed before January 26, 2024 and a Reply to any Opposition filed within fifteen days thereafter. Both the District and the Plaintiff filed the permitted briefs.

3.     On February 27, 2024, the First District issued an Order to Show Cause which provided in part that the trial court there show cause why the relief requested in the Petition should not be granted.

4.     The February 27, 2024 Order to Show Cause required Real party in interest to serve and file a return to the petition on or before March 28, 2024 and the reply to the return to be served and filed within fifteen (15) days of the filing of the return. No extensions of time for briefing are contemplated.

5.     The February 27, 2024 Order to Show Cause provided in part that any requests for oral argument must be served and filed on or before March 8, 2024. 6. On March 7, 2024, both parties requested oral argument. Thereafter, Real Party in interest submitted a Return on March 28, 2024.

6.     On March 7, 2024, both parties requested oral argument. Thereafter, Real Party in interest submitted a Return on March 28, 2024.

7.     Multiple amicus briefs were submitted in support of Petitioner’s position by school districts and other Joint Powers Authorities (JPAs) on April 11, 2024.

8.     On April 12, 2024, Petitioner filed its Reply and the West Contra Costa USD matter was fully briefed and simply awaiting the requested oral argument.

9.     On January 25, 2024, a public entity elementary school district designated as “Roe 2” in an AB 218 Complaint filed a Petition for a Writ of Mandate seeking to have the Second District Court of Appeal, Division Six compel the Superior Court of Santa Barbara County reverse its decision overruling a Motion for Judgment on the Pleadings which had been filed predicated on the fact that AB 218 was an unlawful gift of public funds as applied to claims against public entities for childhood sexual abuse which had occurred prior to January 1, 2009.

10.  On March 27, 2024, the Second District, Division Six requested an informal response to the writ to be filed on or before April 22, 2024 which addressed the question of whether the trial court had conflated the ‘public policy’ reasons motivating the legislative enactment of AB218 with the constitutional requirement that the appropriation of public funds serve a ‘public purpose’.

11.  The March 27, 2024 Order of the Second District, Division Six requested an informal response to be filed on or before April 22, 2024 which addressed the question of whether the retroactive elimination of the claims presentation requirements for legally invalid claims serve a public purpose, i.e. does it benefit the state or does it solely benefit the private individual plaintiffs? In responding to this question, the Court directed the parties to consider the following authorities “Conlin v. Board of Supervisors (1893) 99 Cal. 17, 21-22 [“An appropriation of money by the legislature for the relief of one who has no legal claim therefor must be regarded as a ‘gift,’ within the meaning of that term, as used in [article XVI, section 6, of the California Constitution], and it is none the less a gift that a sufficient motive appears for its appropriation, if the motive does not rest upon a valid consideration”]; Orange County Foundation v. Irvine Co. (1983) 139 Cal.App.3d 195, 201 [where state funds are expended in exchange for relinquishment of an invalid claim, no public purpose is achieved; such expenditure violates the gift clause]; County of Alameda v. Carleson (1971) 5 Cal.3d 730, 745-746 [the benefit to the state from an expenditure for a public purpose is in the nature of consideration and the funds expended are therefore not a gift even though private persons are benefited]; Civ. Code Section 1146 [“A gift is a transfer of personal property, made voluntarily, without consideration”].”

12.  The March 27, 2024 Order of the Second District, Division Six provided that the school district could file an informal reply to the letter response on or before May 17, 2024.

 

The Court GRANTS this request and takes judicial notice of the above.

 

Additionally, filed concurrently with Plaintiffs’ reply brief, they have requested this Court take judicial notice of the following:

 

1.     EXHIBIT 1: Senate Judiciary Report, dated July 2, 2019

2.     EXHIBIT 2: AB 218 Concurrence in Senate Amendments, dated August 30, 2019

3.     EXHIBIT 3: Assembly Judiciary Report – 3rd Reading, dated January 16, 2019

4.     EXHIBIT 4: Assembly Judiciary Report, dated March 12, 2019

5.     EXHIBIT 5: AB 218 Senate Committee on Appropriations, dated August 12, 2019

 

The Court also GRANTS this request and takes judicial notice of the above.

 

III. ANALYSIS  

 

A.    Legal Standard

 

The Court recognizes that it has inherent authority to stay proceedings to promote judicial efficiency or if the ends of justice so require. (Freiberg v. City of Mission Viejo (1995) 33 Cal. App. 4th 1484, 1489.) In determining whether an action should be stayed, the court should generally consider “the following factors: (1) the interest of the [party opposing the stay] in proceeding expeditiously with this litigation or any particular aspect of it, and the potential prejudice to [the party opposing the stay] of a delay; (2) the burden which any particular aspect of the proceedings may impose on [the party seeking the stay]; (3) the convenience of the court in the management of its cases, and the efficient use of judicial resources; (4) the interests of persons not parties to the civil litigation; and (5) the interest of the public in the pending civil and criminal litigation.” (Bains v. Moores (2009) 172 Cal. App. 4th 445, 483.)  The Court has considered each of these factors and the arguments by both sides presented on this motion.

The Court also has considered Cal. Const., art. VI, § 1, which vests courts with judicial power, and the following authorities: Adams v. Paul (1995) 11 Cal.4th 583, 593 (court has inherent power to stay related actions); Smith v. Jones (1900) 128 Cal. 14, 15 (court has right to postpone case); Koch-Ash v. Superior Ct. (2d Dist.1986) 180 Cal.App.3d 689, 696 (court has inherent authority to stay trial); see also Walker v. Superior Ct. (1991) 53 Cal.3d 257, 266–67 (California Supreme Court has repeatedly recognized inherent power of courts, derived from both statute and Constitution, to ensure orderly administration of justice). 

B.    Discussion  

                

Here, Defendant District makes this motion on the grounds that it argues AB 218 is unconstitutional as applied to governmental entities and that Plaintiffs did not comply with the claims presentation requirements in effect at the time, they have no enforceable claim against the District. As noted by Defendant District, two cases involving the constitutionality of AB 218 currently have pending writs in the Court of Appeals: (1) West Contra Costa USD v. Superior Court (First District Case No. A16934); and (2) Roe #2 v. Superior Court (Second Appellate District, Div. 6, Case No. B334707). Defendant argues that staying the proceedings in this case pending resolution of one or both of the pending write is in the interest of: (1) judicial economy and, in the event the appellate courts disagree with the District’s position regarding the constitutionality of AB218, (2) the District’s ability to engage in meaningful settlement negotiations without fear that its boards will be asked to violate the law in order to authorize the payments called for in any settlement agreement.

 

 

Government Claim Presentation

 

            Per the Government Claims Act, a party with a claim for damages against a public entity must first file claim directly with that entity. The party may file a lawsuit only if the public entity denies or rejects the claim. (Gov. Code §§ 905, 945.4; City of Ontario v. Superior Court (1993) 12 Cal.App.4th 894.) Further, an action against a public employee is barred if an action against the employing public entity would be barred by the failure to satisfy the entity claims requirements. (Gov. Code, § 950.2.) The claims presentation requirement provides the public entity with an opportunity to evaluate the claim and decide whether to pay on the claim. (Roberts v. County of Los Angeles (2009) 175 Cal.App.4th 474.) Failure to allege facts demonstrating compliance with the claims presentation requirement subjects the complaint to a general demurrer. (State of Cal. v. Superior Court (2004) 32 Cal.4th 1234, 1239.) However, claims based on childhood sexual assault are exempt from the claims presentation requirement under the Government Claims Act. (See Coats v. New Haven Unified School Dist. (2020) 46 Cal.App.5th 415, 428; Gov. Code, § 905, subd. (m).)

 

Defendant argues that Plaintiffs have not complied with the Government Claims Act. But Plaintiffs allege that they are victim of childhood sexual assault, and thus, the claims presentation requirement does not apply. Defendant argues that prior to the passage of AB 218, Plaintiffs did not have an enforceable claim against the District. Defendant notes that Plaintiffs allege that the misconduct occurred between 1978 and 1989, and at the time, the Government Code expressly provided that “no suit for money damages may be brought against a public entity on a cause of action for which a claims is required to be presented ... until a written claim therefor has been presented to the public entity.” (Gov. Code § 945.4.) Defendant urges that because Plaintiffs never presented government claims to the District, there was never a time in this case prior to 2020 that all of the elements of a cause of action against the District were satisfied.  Defendant argues also that the appropriation of public funds for allegedly unenforceable claims serves no public purpose as a matter of law, concluding that the Legislature cannot retroactively impose liability on a public entity where, prior to passage of the law, the plaintiffs had no enforceable claims.

 

This Court notes that many of the precedents cited to in the writs pre-date the 2019 Legislative amendment to Code of Civil Procedure § 340.1, which expanded the reach of the statute. Additionally, the Court notes that the constitutionality of Code of Civil Procedure § 340.1 with respect to the claims presentation requirement was addressed by the Court of Appeal in Coats v. New Haven Unified School District (2020) 46 Cal.App.5th 415. In Coats, the appellants sued a school district alleging childhood sexual abuse by one of the school’s teachers. (Id. at 418.) There, the trial court dismissed the appellants’ claim because they failed to comply with the school district’s claim-presentation requirement. (Id. at 418-19.) However, the Court of Appeal reversed based on the 2019 amendment to Code of Civil Procedure § 340.1, and found “[i]n the face of a revival provision expressly and unequivocally encompassing claims of childhood sexual abuse previously barred for failure to present a timely government claim, it is clear we must revers the trial court’s judgment.” (Id. at 430-31.) The Court of Appeal there also noted the Legislatures consistent work to expand the ability of victims of childhood sexual abuse to seek compensation. (Id. at 430.)

 

Under the Current law the express language of Government Code section 905, subdivision (m) makes clear that the claims presentation requirement would no longer be required for childhood sexual assault claims brought under Code of Civil Procedure section 340.1, which is the basis for Plaintiff’s claims here. (Gov. Code § 905, subd. (m).) Government Code section 905, subdivision (p) also expressly states that it applies retroactively to the date the California Government Tort Claims Act was enacted. (Id., § 905, subd. (p).) Code of Civil Procedure section 340.1, subdivision (q) further makes clear that any prior limitations due to the claims presentation requirement would not bar claims like Plaintiffs’ if filed within the three-year timeframe provided thereunder. (Code Civ. Proc., § 340.1, subd. (q).) Plaintiffs filed this action on November 14, 2022, and is therefore within the relevant timeframe. 

 

While the Court agrees that Coats does not address the Gift Clause, Coats is authority for the proposition that the Legislature has the power to revive claims previously barred by a claim presentation requirement. (46 Cal.App.5th at p. 428.) Coats addresses Code of Civil Procedure section 340.1, subdivision (q), which, as noted above, expressly provides that satisfaction of the claims presentation requirement is not mandated for a childhood sexual assault claim under section 340.1. (Id.; Code Civ. Proc., § 340.1, subd. (q).) Thus, the Court’s tentative ruling is to DENY the Motion.

 

            Defendant moves to stay this action based on two unrelated cases that are currently pending before the First and Second Districts of the Court of Appeal, i.e., West Contra Costa USD v. Superior Court (First District Case No. A16934) and Roe #2 v. Superior Court (Second Appellate District, Div. 6, Case No. B334707), respectively. Both of these cases involve the question of whether AB 218 violates the Gift Clause of the California Constitution, an issue underlying this current litigation. Defendant contends that judicial economy mandates the Court exercise its inherent power to stay these proceedings pending the outcomes of these two other cases in the Court of Appeal. The Court considers and weighs those points in exercising its discretion to deny the stay motion here.    

 

Defendant contends that if the Gift Clause argument is embraced in the pending writ petition cases, a hypothetical verdict for the Plaintiffs here would be reversed on appeal, which would render all work performed before then wasteful. Defendant also contends it cannot settle this case while those two cases are before the Court of Appeal. Defendant cites the case of Farmland Irrigation Co. v. Dopplmaier (1957) 48 Cal.2d 208 (Farmland Irrigation), as the standard for determining whether to grant a stay.   

 

In opposition, Plaintiffs contend Defendant has not made any showing it is likely to succeed on the merits. Plaintiffs argue other trial court decisions regarding the constitutionality of AB 218 are not binding on this court, but that fifty trial courts across California have overruled demurrers filed by school districts defendants based on the constitutionality of AB 218. Plaintiffs assert that although there is no evidence how the Court of Appeal will rule on the Jane Doe case, the Second District of the Court of Appeal and the California Supreme Court summarily denied writ petitions on related issues regarding AB 218. This Court also notes that if the Court of Appeal provides conflicting rulings, then the trial courts will be in the same position they are already in and rely on the precedent they choose to follow, and then the California Supreme Court would have to step in, which could take years.

 

            Plaintiffs cite the case of Nken v. Holder (2009) 556 U.S. 418 (Nken) regarding the factors for the Court to consider regarding the requested stay. Plaintiffs assert they will be prejudiced if the action is stayed, and that the public interest weigh in favor of denying the stay, given the Legislature’s purpose behind AB 218, which was to provide victims of childhood sexual abuse a path forward to seek justice against those who abused them. Plaintiffs assert the public’s interest will not be served by delay, as the probability of death of witnesses increases with time. Plaintiffs contends appeals can years to decide, and at that point, this Court notes that the losing party will likely petition the California Supreme Court for review.

 

            Based on the foregoing, the Court DENIES Defendant’s motion to stay proceedings.  Plaintiffs are to serve and file notice of this ruling.  ¿¿¿¿ 

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