City of Pasadena v. Superior Court of L. A. Cnty.

(the Jaureguis) filed a first amended complaint (FAC), alleging a cause of action against petitioner City of Pasadena (the City) arising from Sandra Jauregui's mesothelioma. The City demurred to the Jaureguis' complaint, arguing that they had failed to comply with the claim presentation requirement of the Government Claims Act by not presenting their claim to the City within six months of the date of Sandra's mesothelioma diagnosis. The Jaureguis opposed the demurrer, arguing that their claim presentation was timely because under the applicable statute of limitations- Code of Civil Procedure section 340.2 -their cause of action never accrued.^[1] Thus, they asserted, the six-month claim presentation period never began to run. The trial court overruled the demurrer, and the City now seeks a writ directing the trial court to sustain the demurrer.

For the reasons set forth below, we conclude that "the date upon which the cause of action would be deemed to have accrued within the meaning of the [applicable] statute of limitations" is the date on which a plaintiff discovers or should reasonably have discovered that she had suffered

a compensable injury. In this case, that date was no later than the date Sandra was diagnosed with mesothelioma. Because the Jaureguis presented their claim to the City more than 10 months after that date, they failed to comply with the claim presentation requirement. Accordingly, we grant the petition for writ of mandate.

FACTUAL BACKGROUND & PROCEDURAL HISTORY

On October 5, 2015, the Jaureguis filed a complaint for personal injuries and loss of consortium against numerous defendants, but not the City. The complaint alleged that Sandra was diagnosed with mesothelioma on or about September 25, 2015. She allegedly developed the disease as a result of exposure to airborne asbestos that her father "was exposed to and thereafter tracked into the family's home and vehicles on his clothing, shoes, person, and personal effects." The complaint also alleged that Sandra's father was a mechanic who worked with asbestos-containing products at various sites, including at "The City of Pasadena from about 1980 to 1987."

A year later, on October 14, 2016, the Jaureguis filed their FAC, adding the City as a defendant. The FAC alleged a single cause of action against the City for dangerous conditions of public property. According to the FAC, Sandra's father worked for the City as a vehicle mechanic and was exposed to asbestos at various vehicle repair facilities owned, controlled or managed by the City. The FAC further alleged that on August 22, 2016, the Jaureguis presented their claim to the City in compliance with the Government Claims Act.^[2]

On November 17, 2016, the City demurred to the FAC. It argued that the Jaureguis had failed to allege facts demonstrating or excusing compliance with the claim presentation requirement set forth in Government Code section 911.2, which requires that a claim be presented within six months of the accrual of the cause of action. The City asserted that the Jaureguis' causes of action accrued on September 25, 2015, the date when Sandra was diagnosed

presentation timely. Although the limitations period did not run because Sandra was never disabled within the meaning of section 340.2, that section "says nothing about the accrual of the cause of action." Accordingly, the City asserted, section 340.2 did not provide an accrual date other than the date of diagnosis.

The Jaureguis opposed the City's demurrer, contending there was no time limit on their claim presentation. They argued: "Sandra's government claim had to be filed within six months of the 'accrual' of her underlying tort causes of action-a date statutorily defined for this purpose as the trigger date for the underlying limitations period." Because that date was never triggered, "Sandra's claims never 'accrued' for purposes of filing a government claim." They further argued that "accrual" has two different meanings-(1) " 'ripeness' " and (2) " 'beginning of the limitations period' "-and "accrual" as used in Government Code section 901 meant the latter.

In reply, the City argued that section 340.2 did not equate "accrual" with the commencement of the limitations period. Although section 340.2 altered the limitations period-the time during which a plaintiff may file a complaint-it had no impact on when a cause of action accrued. The City also argued that nothing in section 340.2 reflects an intent on the part of the Legislature to modify the claim presentation deadline in the Government Claims Act.

On December 15, 2016, the trial court overruled the demurrer without explanation. However, at the hearing on the demurrer, the court stated its belief that the term "accrual" as used in Government Code section 901 is "not used in the sense of a case being ripe so that somebody can sue." Rather, it is used to mean "when a person must sue or lose their right," i.e., when the limitations period commences.

The City filed its petition on February 21, 2017, seeking an immediate stay of all proceedings and a peremptory writ of mandate directing the trial court to set aside and vacate its order overruling the demurrer and to enter a new order sustaining the demurrer.^[3] In response to the petition, on March 16, 2017, we issued

sustained and an order for a temporary stay entered. The Jaureguis filed their return to the petition on April 14, 2017, and the City filed its reply May 5, 2017.

DISCUSSION

" Government Code section 905 requires that 'all claims for money or damages against local public entities' be presented to the responsible public entity before a lawsuit is filed." ( City of Stockton v. Superior Court , supra , 42 Cal.4th at p. 734, 68 Cal.Rptr.3d 295 , 171 P.3d 20 .) "Claims for personal injury and property damage must be presented within six months after accrual; all other claims must be presented within a year. ( [Gov. Code,] § 911.2.) '[N]o suit for money or damages may be brought against a public entity on a cause of action for which a claim is required to be presented ... until a written claim therefor has been presented to the public entity and has been acted upon ... or has been deemed to have been rejected....' ( [Gov. Code,] § 945.4.) 'Thus, under these statutes, failure to timely present a claim for money or damages to a public entity bars a plaintiff from filing a lawsuit against that entity.' [Citation.]" ( Id . at p. 738, 68 Cal.Rptr.3d 295 , 171 P.3d 20 .)

"The purpose of the claims statutes is not to prevent surprise, but 'to provide the public entity sufficient information to enable it to adequately investigate claims and to settle them, if appropriate, without the expense of litigation. [Citations.] It is well-settled that claims statutes must be satisfied even in face of the public entity's actual knowledge of the circumstances surrounding the claim.' [Citation.] The claims statutes also 'enable the public entity to engage in fiscal planning for potential liabilities and to avoid similar liabilities in the future.' [Citations.]" ( City of Stockton v. Superior Court , supra , 42 Cal.4th at p. 738, 68 Cal.Rptr.3d 295 , 171 P.3d 20 .)

Here, the Jaureguis were obligated to present their claims against petitioner "not later than six months after the accrual of the cause of action." ( Gov. Code, § 911.2.)^[4] "For the purpose of computing the time limits prescribed by [ Government Code section] 911.2..., the date of the accrual of a cause of action to which a claim relates is the date upon which the cause of action would be deemed to have accrued within the meaning of the statute of limitations which would be applicable thereto if there were no

Under section 312, a cause of action accrues when "the party owning it is entitled to begin and prosecute an action thereon." ( United States Liab. Ins. Co. v. Haidinger-Hayes, Inc . (1970) 1 Cal.3d 586 , 596, 83 Cal.Rptr. 418 , 463 P.2d 770 ; see also Collins v. County of Los Angeles (1966) 241 Cal.App.2d 451 , 454, 50 Cal.Rptr. 586 ( Collins ) ["A cause of action accrues at the moment the party who owns it is entitled to bring and prosecute an action thereon."].) "Generally, the right to bring and prosecute an action arises immediately upon the commission of the wrong claimed...." ( Ibid . ) Stated differently, a "cause of action accrues 'when [it] is complete with all of its elements'-those elements being wrongdoing, harm, and causation." ( Pooshs v. Philip Morris USA, Inc . (2011) 51 Cal.4th 788 , 797, 123 Cal.Rptr.3d 578 , 250 P.3d 181 ( Pooshs ).)

An exception to the general rule regarding the initial accrual of a claim is the discovery rule. ( Aryeh v. Canon Business Solutions, Inc . (2013) 55 Cal.4th 1185 , 1192, 151 Cal.Rptr.3d 827 , 292 P.3d 871 ( Aryeh ).) Under the discovery rule, the accrual of a cause of action is delayed until "the plaintiff 'discovers, or has reason to discover, the cause of action.' [Citation.]" ( Pooshs , supra , 51 Cal.4th at p. 797, 123 Cal.Rptr.3d 578 , 250 P.3d 181 ; see also Seelenfreund v. Terminix of Northern Cal., Inc. (1978) 84 Cal.App.3d 133 , 136, 148 Cal.Rptr. 307 ["In some situations, ... a cause of action does not accrue until the aggrieved party discovers, or should discover, the existence of the cause of action."].)^[5]

discovers or should reasonably have discovered he has suffered a compensable injury." ( Hamilton , supra , 22 Cal.4th at p. 1144, 95 Cal.Rptr.2d 701 , 998 P.2d 403 .)

As the foregoing demonstrates, in the context of statutes of limitations, "accrual" of an action is used in the sense of ripeness. This is also the ordinary and common understanding of the term "accrue." In Webster's Seventh New Collegiate Dictionary (1969) page 6, the first definition of "accrue" is "to come into existence as a legally enforceable claim."^[6] Likewise, Black's Law Dictionary defines "accrue" as "To come into existence as an enforceable claim or right; to arise < the plaintiff's cause of action for silicosis did not accrue until the plaintiff knew or had reason to know of the disease>." (Black's Law Dict. (10th ed. 2014).)^[7]

In sum, we conclude that as used in Government Code section 901, "the date upon which the cause of action would be deemed to have accrued within the meaning of the statute of limitations which would be applicable" is the date on which the cause of action became actionable. In the instant matter, the Jaureguis' cause of action against the City accrued when Sandra discovered or reasonably should have discovered that she had suffered a compensable injury. That date was no later than the date she was diagnosed with mesothelioma, September 25, 2015. However, the Jaureguis did not present their claim to the City until August 22, 2016, more than 10 months after Sandra was diagnosed. Thus, they failed to comply with the six-month claim presentation deadline set forth in Government Code section 911.2. Accordingly, their action against the City is barred, and the City's demurrer should have been sustained.

The Jaureguis argue that under Government Code section 901, "accrue" does not

beginning of the limitations period." ( Hamilton , supra , 22 Cal.4th at p. 1144, 95 Cal.Rptr.2d 701 , 998 P.2d 403 .) Thus, in Hamilton , the court observed that it would be a "mistake[ ]" to "equate[ ] the accrual of a cause of action for asbestos-related injury with the beginning of the limitations period prescribed by section 340.2." ( Ibid . ) The court explained: "Before the enactment of section 340.2, [the] accrual date was also the date of the beginning of the limitations period in cases in which the latent injury or disease arose from exposure to asbestos. [Citation.] But section 340.2 changed that rule, declaring a separate and distinct date for the beginning of the limitations period in asbestos cases, i.e., the date of disability as specially defined in the statute." ( Id . at pp. 1144-1145, 95 Cal.Rptr.2d 701 , 998 P.2d 403 , italics omitted.) Notably, the Hamilton court never used the term "accrual" when referring to the beginning of the limitations period. In short, "[a]lthough commentators have referred to [ section 340.2 ] as providing for a 'postponed accrual' date [citation], it is more accurately described as a statute of repose-a time in the future after which a claimant may not file suit because the claim becomes stale." ( Barr v. A C and S , Inc. , supra , 57 Cal.App.4th at p. 1049, 67 Cal.Rptr.2d 494 .)

The Jaureguis' argument that "accrue" means only "commencement of the limitations period" would lead to the anomalous result that they could not bring the instant action. As noted, under section 340.2, the limitations period begins to run on the date of "disability." Because Sandra never suffered a "disability," the limitations period has never begun to run, and under the Jaureguis' interpretation their cause of action has not-and never will-accrue. However, under section 312, "without exception," an action may not be filed until the underlying claim "shall have accrued." Thus, the Jaureguis could never bring a suit for an asbestos-related injury or illness. Like other courts, we reject such an interpretation. (See Barr v. A C and S , Inc. , supra , 57 Cal.App.4th at p. 1049, 67 Cal.Rptr.2d 494 ["If a claim for personal injuries allegedly resulting from asbestos exposure could not accrue until disability occurred, it would lead to the anomalous result that plaintiffs who did not suffer disability as defined by the statute would be forever barred from filing suit."].)^[8]

The Jaureguis further argue that interpreting "accrued" to mean when a cause of action is ripe would rewrite Government Code section 901 to excise any reference to statutes of limitations. We disagree. In the context of statutes of limitations, accrual refers to the settled common

Lastly, we note our interpretation of Government Code section 901 does not bar an action by a plaintiff who, years after exposure to asbestos, discovers she has suffered a compensable injury. It requires only that after making such a discovery, she promptly present a claim to the governmental entity she seeks to hold responsible.^[9]