Majority
In this writ proceeding, petitioners ask us to resolve a single issue: whether section 17204 of the UCL "permit[s] a county district attorney to bring a claim that seeks relief for alleged injuries to residents of California counties whom he or she does not represent, based on conduct occurring outside the county he or she serves ...." Petitioners argue district attorneys have no authority to prosecute civil actions absent specific legislative authorization, and neither the Government Code, nor
We grant the petition. The California Constitution designates the Attorney General the "chief law officer of the State" ( Cal. Const., art. V, § 13 ), and consistent with this constitutional provision, the Attorney General "has charge, as attorney, of all legal matters in which the State is interested" ( Gov. Code, § 12511 ) and also "shall ... prosecute or defend all causes to which the State ... is a party in his or her official capacity." ( Gov. Code, § 12512.) The District Attorney, on the other hand, is a county officer whose territorial jurisdiction and power is limited accordingly. Though section 17204 confers standing on
Petitioners thereafter moved to strike from the operative complaint "all claims for restitution and civil penalties based on conduct outside the territorial jurisdiction of Orange County."[2] Relying on People v. Hy-Lond Enterprises, Inc. (1979) 93 Cal.App.3d 734 , 751, 155 Cal.Rptr. 880 ( Hy-Lond ) as well as California v. M & P Investments (E.D.Cal. 2002) 213 F.Supp.2d 1208 ( M & P Investments ), petitioners argued a district attorney's enforcement authority under the UCL was limited to the geographic boundaries of the county for which the district attorney was elected, but contrary to that restriction, the District Attorney sought to recover for overcharges paid by "California Niaspan users, their insurers, public healthcare providers and other government payors ...." Petitioners sought to strike several words and phrases from the complaint referring to pursuing relief across California.
In opposition, the District Attorney argued Hy-Lond was inapposite as it involved a settlement and stipulated injunction that purported to bind the real "client," which was the state Department of Health, and immunize the defendant as
2 Petitioners also filed a demurrer based on the statute of limitations. That demurrer and the trial court's ruling overruling it are not at issue in this proceeding.
I. District Attorney's Demurrer to Petition
Petitioners sought writ relief by this petition. We issued an order to show cause and stayed further proceedings in the superior court pending further order.
DISCUSSION
P
reliminarily, we address seriatim the District Attorney's arguments made in a general demurrer to the petition. ( Code Civ. Proc., § 1089 [when the court issues an alternative writ, "the party upon whom the writ ... has been served may make a return by demurrer, verified answer or both"]; see Cal. Rules of Court, rule 8.487(b)(1) ["If the court issues an alternative writ or order to show cause, the respondent or any real party in interest, separately or jointly, may serve and file a return by demurrer, verified answer, or both"]; Agricultural Labor Relations Board v. Superior Court (2016) 4 Cal.App.5th 675 , 681, 209 Cal.Rptr.3d 243 .) The demurrer admits the facts pleaded in the writ petition. ( Agricultural Labor Relations Board v. Superior Court , at p. 682, 209 Cal.Rptr.3d 243 .)
A. Service on Attorney General
The District Attorney first contends the petition is procedurally defective because petitioners did not provide a proof of service of a copy of the writ petition on the Attorney General as required by section 17209.[3] He points out that if the Attorney General is not properly served and the time for serving the brief has not been
3 Section 17209 provides in part: "If a violation of this chapter is alleged or the application or construction of this chapter is in issue in any proceeding in the Supreme Court of California, a state court of appeal, or the appellate division of a superior court, each person filing any brief or petition with the court in that proceeding shall serve, within three days of filing with the court, a copy of that brief or petition on the Attorney General .... No judgment or relief, temporary or permanent, shall be granted or opinion issued until proof of service of the brief or petition on the Attorney General and district attorney is filed with the court."
B. Advisory Opinion
The District Attorney next contends the petition seeks an improper advisory opinion on an abstract proposition of law, assertedly because the issue is "not tethered to the facts in this case" or to "any order that is now properly justiciable." The contention is not further explained, and we reject it. Petitioners challenge the trial court's ruling denying their motion to strike allegations seeking to recover restitution and civil penalties for each sale of Niaspan in the State of California, which rejected the argument that the District Attorney was geographically limited to the County of Orange in seeking such relief. The court's ruling presents a concrete legal dispute over the scope of recovery that a district attorney may seek under the UCL, which is properly the subject of a motion to strike. (Accord, Commodore Home Systems, Inc. v. Superior Court (1982) 32 Cal.3d 211 , 213-215, 185 Cal.Rptr. 270 , 649 P.2d 912 [considering petition for writ of mandate filed after superior court denied motion to strike portions of complaint, and deciding legal recoverability of punitive damages in a suit for job discrimination under the California Fair Employment and Housing Act]; Clauson v. Superior Court (1998) 67 Cal.App.4th 1253 , 1255, 79 Cal.Rptr.2d 747 [deciding whether plaintiffs could seek at the pleading stage punitive damages and statutory penalties for unlawful wiretapping].) Our review of the legal question presented here is not an abstract proposition, and an early resolution of the issue will streamline both discovery and any trial on the matter. (Accord, Smith v. Superior Court (1992) 10 Cal.App.4th 1033 , 1037, 13 Cal.Rptr.2d 133 [extraordinary relief was warranted where court denied motion to strike emotional distress and punitive damage allegations; "[i]f forced to proceed to trial on the amended complaint as it stands, petitioners will be required to conduct further discovery on
C. Ripeness
Similarly, the District Attorney contends the petition must be dismissed
The District Attorney next contends petitioners have not established irreparable harm to support extraordinary writ review of the "amount of penalties to be awarded in this case." (Some capitalization omitted.) We reject the premise of this argument, namely that the petition at hand challenges merely the "amount" or sum of the award, as opposed to the District Attorney's power to collect penalties from sales or reimbursements occurring outside the limits of Orange County. We also reject the District Attorney's argument that because the pleading of civil penalties is legally authorized by the UCL, the remedies are not "irrelevant, false, or improper matter" subject to a motion to strike. The first amended complaint did not simply plead entitlement to civil penalties, a legally proper remedy in the abstract, but specifically sought such penalties for sales, purchases and reimbursements-alleged to constitute violations of "federal, state, statutory and/or common laws"-occurring throughout California. As stated, a motion to strike is proper where petitioners challenge
II. The District Attorney's Authority to Recover Restitution and Civil Penalties Is Limited to Violations Occurring in the County in Which He Was Elected
A. Standard of Review
The issue presented by Petitioners' motion to strike-the scope of the District Attorney's authority to seek restitution and civil penalties under the UCL-is one of law that we review de novo. (Accord, Cal-Western Business Services, Inc. v. Corning Capital Group (2013) 221 Cal.App.4th 304 , 309, 163 Cal.Rptr.3d 911 [though a court's ruling on a motion to strike generally is reviewed for abuse of discretion, review is de novo where the issue involves the proper interpretation of a statute and its application to undisputed facts]; see, e.g., Pitts v. County of Kern (1998) 17 Cal.4th 340 , 345, 70 Cal.Rptr.2d 823 , 949 P.2d 920 [whether district attorney acts on behalf of the state or county is a question of law].) We independently determine the proper interpretation of the Constitution and the relevant provisions of statutes including the UCL, and are not bound by the lower court's ruling. ( California Cannabis Coalition v. City of Upland (2017) 3 Cal.5th 924 , 933, 934, 222 Cal.Rptr.3d 210 , 401 P.3d 49 ; Burden v. Snowden (1992) 2 Cal.4th 556 , 562, 7 Cal.Rptr.2d 531 , 828 P.2d 672 ;
We also consider the doctrine of constitutional avoidance, under which "a statute should not be construed to violate the Constitution ' " 'if any other possible construction remains available.' " ' " ( People v. Garcia , supra , 2 Cal.5th at p. 804, 216 Cal.Rptr.3d 75 , 391 P.3d 1153 .) "The theory underlying the canon rests not only on a preference for avoiding the unnecessary resolution of constitutional questions, but also on the presumption that the Legislature (whose members have sworn to uphold the Constitution) did not 'intend[ ] to infringe constitutionally protected liberties or usurp power constitutionally forbidden it.' " ( Ibid . ) " '[W]hatever the Legislature's intent may have been, "the ultimate constitutional interpretation must rest, of course, with the judiciary." ' " ( City of San Buenaventura v. United Water Conservation District (2017) 3 Cal.5th 1191 , 1209, fn. 6, 226 Cal.Rptr.3d 51 , 406 P.3d 733 .)
B. Powers of the Attorney General and District Attorneys
The California Constitution defines the powers and responsibilities of the executive branch and its principal officers, and appoints the Attorney General as "the chief law officer of the State ...." ( Cal. Const., art. V, § 13 ; see Steen v. Appellate Div., Superior Court (2014) 59 Cal.4th 1045 , 1053, 175 Cal.Rptr.3d 760 , 331 P.3d 136 .) The California Supreme Court has summarized the Attorney General's function and powers as follows: "The Attorney General ... is the chief law officer of the state ( Cal. Const., art. V, § 13 ). As such he possesses not only extensive statutory powers but also broad powers derived from the common law relative to the protection of the public interest. [Citations.] '[H]e represents the interest of the people in a matter of public concern.' [Citation.] Thus, 'in the absence of any legislative restriction, [he] has the power to file any civil action or proceeding directly involving the rights and interests of the state, or which he deems necessary for the enforcement of the laws of the state, the preservation of order, and the protection of public rights and interest.' [Citation.] Conversely, he has the duty to defend all cases in which the state ... is a party. ( Gov. Code, § 12512.)" ( D'Amico v. Board of Medical Examiners (1974) 11 Cal.3d 1 , 14-15, 112 Cal.Rptr. 786 , 520 P.2d 10 , disapproved on other grounds in
A district attorney, in turn, is a " 'public prosecutor, except as otherwise provided by law,' who ... 'within his or her discretion shall initiate and conduct on behalf of all people all prosecutions for public offenses' " in the name of the People of the State of California. ( Steen v. Appellate Div., Superior Court , supra , 59 Cal.4th at p. 1053, 175 Cal.Rptr.3d 760 , 331 P.3d 136 , quoting Gov. Code, §§ 100, subd. (b) ["The style of all process shall be 'The People of the State of California,' and all prosecutions shall be conducted in their name and by their authority"]; 26500; Pen. Code, § 684 [criminal actions are prosecuted in the name of the people of the State of California "as a party" against the person charged with the offense]; People v. Subramanyan (2016) 246 Cal.App.4th Supp. 1 , 8, 201 Cal.Rptr.3d 443 .) As a matter of state law, a district attorney represents the state when preparing to prosecute and when prosecuting criminal violations of state law. ( Pitts v. County of Kern , supra , 17 Cal.4th at pp. 361-362, 364, 70 Cal.Rptr.2d 823 , 949 P.2d 920 [holding for purposes of determining whether a county was liable in a title 42 United States Code section 1983 action]; see Graham v. Municipal Court (1981) 123 Cal.App.3d 1018 , 1022, 177 Cal.Rptr. 172 ["A county district attorney prosecuting a criminal action within a county, acts as a state officer, exercising ultimately powers which may not be abridged by a county board of supervisors"].)
A district attorney, however, is designated by both the Constitution ( Cal. Const., art. XI, § 1, subd. (b) ) and by statute ( Gov. Code, § 24000 ) as a county officer.[6] He or she is elected by the county voters, and the county board of supervisors
5 That section of the Constitution also provides that the Attorney General "may require [the district attorney] to make reports concerning the investigation, detection, prosecution, and punishment of any crime in their respective jurisdictions as to the Attorney General may seem advisable." (Cal. Const., art. V, § 13.)
6 Article XI, section 1, subdivision (b) of the California Constitution provides: "The Legislature shall provide for county powers, an elected county sheriff, an elected district attorney, an elected assessor, and an elected governing body in each county." Government Code section 24000 states in part that "[t]he officers of a county are: [¶] (a) A district attorney." (See also Harvey v. County of Butte (1988) 203 Cal.App.3d 714 , 720, 250 Cal.Rptr. 65 .)
The duties of a district attorney can extend beyond those of a public prosecutor ( Gov. Code, § 26500 ) to the prosecution and defense of civil causes of action. ( County of Sutter v. Board of Administration (1989) 215 Cal.App.3d 1288 , 1293, 264 Cal.Rptr. 233 , citing Gov. Code, §§ 26520 - 26530.) But with respect to civil actions, a district attorney has no plenary power. (See Solus Industrial , supra , 224 Cal.App.4th at p. 41, 168 Cal.Rptr.3d 286 [district attorney's authority to act as the prosecutor for all public offenses does not
7 Counties of course are "legal subdivisions of the state" (Cal. Const., art. XI, § 1 ) and their police powers may be enforced only within their territorial limits. (Cal. Const., art. XI, § 7 ; see Candid Enterprises, Inc. v. Grossmont Union High School Dist. (1985) 39 Cal.3d 878 , 885, 218 Cal.Rptr. 303 , 705 P.2d 876 ["Under the police power granted by the Constitution, counties and cities have plenary authority to govern, subject only to the limitation that they exercise this power within their territorial limits and subordinate to state law"]; San Diego County Veterinary Medical Assn. v. County of San Diego (2004) 116 Cal.App.4th 1129 , 1134, 10 Cal.Rptr.3d 885 .)
Section 17204 is the UCL's standing provision. ( Korea Supply , supra , 29 Cal.4th at p. 1143, 131 Cal.Rptr.2d 29 , 63 P.3d 937 [referring to section 17204 as conferring standing]; Cruz v. PacifiCare Health Systems, Inc. (2003) 30 Cal.4th 303 , 315, 133 Cal.Rptr.2d 58 , 66 P.3d 1157 ;
Section 17206 expressly confers authority on the Attorney General and district attorneys, as well as other local prosecutors under specified circumstances,[9] to bring an action for civil penalties "in the name of the people of the State of California." The section provides in part: "(a) Any person who engages, has engaged, or proposes to engage in unfair competition shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General [or] by any district attorney .... in any court of competent jurisdiction." ( § 17206, subd. (a).) Additionally, section 17206 provides: "If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered." ( § 17206, subd. (c).) That section requires that these penalty "funds 'shall be for the exclusive use by the Attorney General, the district attorney, [and other public officials] for the
9 These other local prosecutors are the same as specified in section 17204. (§ 17206, subd. (a) ; see footnote 8, ante .)
D. Analysis
Invoking the limitations on district attorneys' ability to bring civil actions as well as the territorial limits of their jurisdiction, petitioners argue absent a specific statutory grant of extraterritorial authority, a district attorney of a single county may not unilaterally seek civil relief under the UCL for conduct occurring outside his or her county. They point out that neither the Government Code nor section 17204 of the UCL authorizes recovery of statewide relief or civil penalties by a county district attorney. Petitioners, along with the Attorney General, the California District Attorneys Association, and the Chambers of Commerce as amici curiae, assert Hy-Lond , supra , 93 Cal.App.3d at 734 , 155 Cal.Rptr. 880 addresses the reach of local prosecutors' enforcement authority and specifically prohibits " 'the right of the district attorney to surrender the powers of the Attorney General and his fellow district attorneys to commence, when appropriate, actions in other counties under [the UCL].' "[10]
10 Petitioners also rely on the federal district court's decision in M & P Investments , supra , 213 F.Supp.2d 1208 , in which the court, citing Hy-Lond , stated "a city attorney's authority is limited to the geographical boundaries of the constituency which he or she represents." ( M & P Investments , at p. 1216, citing City of Oakland v. Brock (1937) 8 Cal.2d 639 , 641, 67 P.2d 344 .) In M & P Investments , the district court considered a city attorney's authority to abate a public nuisance under Code of Civil Procedure section 731"in the name of the people of the State of California" and held the statute did not elevate him to the status of a State agent with full authority commensurate with such a position. ( Id . at p. 1213 [citing People v. City of Los Angeles (1958) 160 Cal.App.2d 494 , 500, 325 P.2d 639 for the proposition that " 'the only authority given to the city council of Manhattan Beach or its city attorney by [Code of Civil Procedure] section 731... is to bring an action to abate a public nuisance existing within that city' "].) But the statute at issue expressly limited the authority to bring a civil action under its provision to a " 'district attorney of any county in which such nuisance exists ....' " ( M & P Investments , at p. 1212, fn. 11, quoting Code Civ. Proc, § 731.) We need not rely on M & P Investments to reach our conclusions.
The Attorney General (on behalf of himself and other district attorneys in other counties where the defendant had facilities) and the California Department of Health (the department) intervened to set aside the judgment. ( Hy-Lond , supra , 93 Cal.App.3d at pp. 739, 743, 155 Cal.Rptr. 880 .) After the court declined to do so, they then appealed, contending the judgment was void as it precluded them from performing their statutory duties. ( Id . at p. 739, 155 Cal.Rptr. 880 .) On appeal, the defendant took the position that the Attorney General and department lacked standing to bring the challenge, but were barred in any event by the judgment because the district attorney had statutory authority to enter into it. ( Id . at p. 739, 155 Cal.Rptr. 880 .) Pointing out the Attorney General's motion challenged the district attorney's authority to stipulate away the rights and duties reserved to the Attorney General and the department ( id . at p. 745, 155 Cal.Rptr. 880 ), the Court of Appeal stated it was to decide whether section 17204's grant of authority on the district attorney embraced the right to restrain the powers of other public officials and agencies. ( Id . at p. 752, 155 Cal.Rptr. 880 .)
The Hy-Lond court held it did not; the district attorney had no right "to surrender the powers of the Attorney General and his fellow district attorneys to commence, when appropriate, actions in other counties" under the UCL (the former provisions of 17200 to 17204, 17206, and 17207). ( Hy-Lond , supra , 93 Cal.App.3d at p. 753, 155 Cal.Rptr. 880 .) The court rejected the notion that the authority to restrain the Attorney General and other public agencies was conferred by the mere fact the district attorney was authorized to prosecute state law violations on behalf of the people: Government Code section 100, providing that "[t]he style of all process shall be 'The People of the State of California,' " and that all prosecutions shall be conducted in their name, did not "tell us who is authorized to represent the [People] in any particular action, or the limits to which such authority extends." ( Hy-Lond , supra , 93 Cal.App.3d at p. 751, 155 Cal.Rptr. 880 , citing Gov. Code, §§ 100, 26500.)
Hy-Lond explained that though "in conducting the prosecution of violations of state law on behalf of the people, the district
We have no difficulty applying Hy-Lond 's principles to bar a district attorney's unilateral effort to seek restitution and civil penalties for UCL violations occurring outside his or her own county jurisdiction. To be sure, the UCL's scope is broad; it reaches any unlawful business act or practice committed in California. (See § 17200 ["As used in this chapter, unfair competition shall mean and include any unlawful, unfair or fraudulent business act or practice"]; People ex rel. Harris v. Pac Anchor Transp., Inc. (2014) 59 Cal.4th 772 , 783, 174 Cal.Rptr.3d 626 , 329 P.3d 180 ; Sullivan v. Oracle Corp. (2011) 51 Cal.4th 1191 , 1208, 127 Cal.Rptr.3d 185 , 254 P.3d 237 .) And the law, as stated above, expressly confers standing on district attorneys to bring civil law enforcement actions in the People's name when prosecuting UCL violations. But that grant of standing, as in criminal actions, cannot reasonably or constitutionally be interpreted as conferring statewide authority or jurisdiction to recover such monetary remedies beyond the county the district attorney serves, or restricting the Attorney General's constitutional power to obtain relief on behalf of the entire state. (Accord, Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310 , 336, 120 Cal.Rptr.3d 741 , 246 P.3d 877 [refusing to "conflate[ ] the issue of standing with the issue of the remedies to which a party may be entitled"].) Thus, the law does not grant the District Attorney in this case authority to unilaterally pursue statewide monetary relief in the name of the state, as such a grant would permit the Legislature to usurp the Attorney
We therefore construe the authority conferred on the District Attorney by the UCL as subject to the constitutional and statutory jurisdictional limitations described above. (See, e.g., Steen v. Appellate Div., Superior Court , supra , 59 Cal.4th at pp. 1053-1054, 175 Cal.Rptr.3d 760 , 331 P.3d 136 [interpreting statute governing conduct of judicial branch employee raising constitutional separation of powers issues to avoid defeating or impairing function of executive branch; "[w]hen an ambiguous statute raises serious constitutional questions, our task is not to resolve such questions in the abstract but rather to ' " 'endeavor to construe the statute in a manner which avoids any doubt concerning its validity' " ' "]; Tex-Cal Land Management, Inc. v. Agricultural Labor Relations Bd. (1979) 24 Cal.3d 335 , 346, 156 Cal.Rptr. 1 , 595 P.2d 579 ["[t]he Legislature may not give to courts a jurisdiction beyond that conferred or authorized by the Constitution"]; Gananian v. Wagstaffe (2011) 199 Cal.App.4th 1532 , 1540-1543, 132 Cal.Rptr.3d 487 [construing Education Code so as not to infringe on district attorney's prosecutorial discretion, an executive branch function rooted in the separation of powers].) As stated, in construing the UCL's provisions, we must preserve its constitutional validity, and thus we "presume ... the Legislature understands the constitutional limits on its power and intends that legislation respects those limits." (
11 "Res judicata, or claim preclusion, prevents relitigation of the same cause of action in a second suit between the same parties or parties in privity with them." ( Mycogen Corp. v. Monsanto Co. (2002) 28 Cal.4th 888 , 896, 123 Cal.Rptr.2d 432 , 51 P.3d 297 .) "Claim preclusion arises if a second suit involves (1) the same cause of action (2) between the same parties (3) after a final judgment on the merits in the first suit. [Citations.] If claim preclusion is established, it operates to bar relitigation of the claim altogether." ( DKN Holdings LLC v. Faerber (2015) 61 Cal.4th 813 , 824, 189 Cal.Rptr.3d 809 , 352 P.3d 378 .) Accepting the District Attorney's argument that it possesses statewide jurisdiction in UCL actions, a final judgment for restitution and civil penalties on behalf of the People for statewide violations would preclude the Attorney General and sister district attorneys, because in all such cases the state is the party. (§ 17204 ; see, e.g., Citizens for Open Access etc. Tide, Inc. v. Seadrift Assn. (1998) 60 Cal.App.4th 1053 , 71 Cal.Rptr.2d 77 [settlement of a prior action by the attorney general and other state agencies barred under the doctrine of res judicata another representative suit by a public interest group, who sued " 'on behalf of the public' "]; Hy-Lond , supra , 93 Cal.App.3d at p. 751, 155 Cal.Rptr. 880 [in prosecuting violations of state law on behalf of the People, the "district attorney acts for the state within the territorial limits of the county for which he was elected"]; Pitts v. County of Kern , supra , 17 Cal.4th at p. 361, 70 Cal.Rptr.2d 823 , 949 P.2d 920 [district attorneys are often considered state officials despite limited jurisdictions].)
13 Despite this argument, the District Attorney has neither summarized nor provided any legislative history on the issue. Nor have petitioners presented us with any legislative history materials.
14 Whether the UCL empowers a district attorney to obtain statewide injunctive relief was not a subject of petitioners' motion to strike below, and it is not before us. We do not address the issue of injunctive relief or the attendant civil penalties authorized in section 17207 for violations of UCL injunctions.
We reject the District Attorney's assertion that he has a broad "legislative mandate" to seek restitution on behalf of individuals throughout the state. The District Attorney cites
We cannot agree with the District Attorney and other amici that the UCL's policy objectives counter the result we reach. The District Attorney argues that to prevent a district attorney from seeking statewide relief "would arbitrarily shield Defendants from liability for the full extent of their illegal misconduct and/or require district attorney suits in all California counties in order to secure any form of statewide relief ...." He asserts that private parties may secure statewide relief, and there is "no logical reason" why public prosecutors may not, since prosecutors do not stand in the victims' shoes and relief is awarded to consumers, not to the prosecutor. But a private plaintiff suing under the UCL is not entitled to seek civil penalties, and after Proposition 64, such a plaintiff must not only show he or she has " 'suffered injury in fact and has lost money or property
Dissent
Finally, the construction urged by the District Attorney would incentivize public prosecutors, acting in their respective county's financial self-interest, to withhold pertinent information from their sister agencies as to the scope of violations, then "race[ ] [their colleagues] to the courthouse" ( State ex rel. Harris v. PricewaterhouseCoopers, LLP , supra , 39 Cal.4th at p. 1232, 48 Cal.Rptr.3d 144 , 141 P.3d 256 ) in hopes of obtaining all of the civil penalties that would otherwise be deposited in those other county treasuries. The Legislature reasonably could decide to avoid such a scheme, and there is no indication it intended this result.
Our foregoing conclusions are not broad policy pronouncements; we simply interpret the UCL in the light of constitutional and statutory jurisdictional limitations so as to avoid doubts concerning the UCL's validity.
DISPOSITION
Let a writ issue directing the respondent court to vacate its order denying the motion to strike of petitioners Abbott Laboratories, AbbVie Inc., Teva Pharmaceuticals USA, Inc., Barr Pharmaceuticals, Inc., Duramed Pharmaceuticals, Inc. and Duramed Pharmaceuticals Sales Corp., and to enter a new and different order striking the allegations by which the Orange County District Attorney seeks statewide monetary relief under the UCL. The stay issued will be vacated when the opinion is final as to this court.
I CONCUR:
HUFFMAN, Acting P.J.
As an intermediate appellate court, our primary role is to review
A
Let's start with what is really going on here. As is expressly authorized by statute ( Bus. & Prof. Code, § 17204[1] ), the Orange County District Attorney has charged defendant pharmaceutical manufacturers with engaging in a statewide unfair business practice in violation of the Unfair Competition Law. (UCL;§ 17200 et seq.) This statewide practice has allegedly harmed consumers in Orange County and throughout California in a similar fashion. The parties agree that should the court ultimately find the allegations of the complaint have been proved, it has the authority to issue statewide injunctive relief. But for a defendant in a state the size of California, a law enforcement action alleging a statewide unlawful business practice and seeking monetary relief creates, at least potentially, a substantial economic exposure. To the extent law enforcement can be Balkanized and monetary relief limited to local jurisdictions-especially early in the litigation-a defendant's "management" of the exposure is greatly facilitated. It is hardly surprising, then, that defendants in this case sought to craft a motion to "strike claims for restitution and civil penalties to the extent that those are not limited to Orange County."
But there is an immediate problem with use of the motion-to-strike mechanism, for nowhere in the motion do defendants identify any language they seek to excise from the complaint that specifically seeks restitution or civil penalties for acts and practices that occurred entirely outside Orange County. Tellingly, the motion to strike nowhere references the complaint's prayer for relief, which simply requests "restitution of any money acquired by Defendants' unlawful and unfair business practices," as well as "civil penalties for each act of unfair and unlawful competition."[18] Instead, defendants' motion sought to strike all references in the complaint to "California" users of defendants' products and/or events that occurred "in California." But these descriptive statements are plainly relevant to the request for statewide
1 Statutory references are to the Business and Professions Code unless otherwise specified.
2 The majority assert that the District Attorney's complaint "specifically sought [civil] penalties for sales occurring throughout California" (maj. opn., ante , at p. 737), but nowhere specify where in the complaint they find this "specific" request.
3 Significantly, although it takes no formal position on defendants' motion to strike, the Attorney General's amicus brief agrees that allegations in the complaint regarding defendants' statewide misconduct may be entirely proper.
B
It is well settled that an appellate court will review rulings on pleadings by writ only "rarely" ( Taylor v. Superior Court (1979) 24 Cal.3d 890 , 894, 157 Cal.Rptr. 693 , 598 P.2d 854 ) and "with extreme reluctance" ( Babb v. Superior Court (1971) 3 Cal.3d 841 , 851, 92 Cal.Rptr. 179 , 479 P.2d 379 ). While "writs are occasionally used to provide expedited interlocutory review of pleading issues, some extraordinary reason for this kind of priority treatment must appear." ( Burrus v. Municipal Court (1973) 36 Cal.App.3d 233 , 236, 111 Cal.Rptr. 539 , italics added.) These words of caution are particularly applicable to a motion to strike that does not challenge the plaintiff's ability to plead a valid claim, but merely seeks to edit the language of the
As justification for reaching out at the pleading stage to prematurely decide a major public policy issue not squarely presented or addressed by the trial court, the majority allude to vague notions of interference with the Attorney General's constitutional authority. They suggest that if a local district attorney can seek restitution on behalf of residents of other counties, or civil penalties attributable to violations in other counties, this would allow the district attorney "to impermissibly compromise and bind the Attorney General and the district attorneys of other counties," preventing them "from seeking further relief for violations occurring in their own communities." (Maj. opn., ante , at p. 747.) They then purport to interpret the relevant sections of the UCL to avoid a constitutional issue. (Maj. opn., ante , at p. 747-48.) Respectfully, the majority rely on a phantom constitutional concern to craft a cure that is worse than even the perceived disease.
The UCL is an exceedingly broad remedial statute designed to encourage multiple avenues of enforcement. (See Kasky v. Nike, Inc. (2002) 27 Cal.4th 939 , 949-950, 119 Cal.Rptr.2d 296 , 45 P.3d 243 .) Indeed, a district attorney can prosecute a UCL claim based even on alleged violations of a statute that provides a different government agency with the sole authority to bring enforcement actions. ( People v. McKale (1979) 25 Cal.3d 626 , 632-633, 159 Cal.Rptr. 811 , 602 P.2d 731 .) And as the majority recognize, "the civil remedies of the [UCL] were enacted because criminal
the filing of § 17200 actions. Every §§ 17200/17500 investigation must be logged onto the computer database under the name of the prospective defendant. That puts other DA offices and the AG on notice of the investigation, and gives the AG the opportunity to intervene, assume jurisdiction, and take control of the investigation and proceeding where the matter is deemed sufficiently important to warrant it, or where there appears to be a conflict among offices. (Stern, Cal. Practice Guide: Business & Professions Code Section 17200 Practice (The Rutter Group 2018) ¶ 9:6.)
Accordingly, there is no practical risk that a local district attorney will "compromise and bind" the Attorney General or district attorneys from other counties. Even if the Attorney General does not elect to formally intervene at the outset and take over a case, it can monitor and take appropriate action if and when the prosecuting district attorney proposes to settle.[22] Similarly district attorneys in other affected counties could consult with the Attorney General or ask the court to be heard as to any eventual settlement.
The majority's heavy reliance on People v. Hy-Lond Enterprises, Inc. (1979) 93 Cal.App.3d 734 , 155 Cal.Rptr. 880 ( Hy-Lond ) is significantly misplaced. In that case, the Napa County District Attorney brought a UCL action against the operator of numerous skilled nursing facilities located throughout the state, only one of which was in Napa. Restitution was not at issue, and no one challenged the District Attorney's ability to seek civil penalties for violations occurring outside of Napa County.
The issue in the case involved the scope of a stipulated settlement between the District Attorney and the defendant. In exchange for general injunctive relief (i.e., comply with applicable laws in the future) and payment of civil penalties, the settlement made the Napa County District Attorney the "exclusive government agency" for enforcing the injunction. ( Hy-Lond, supra, 93 Cal.App.3d at p. 741, fn. 1, 155 Cal.Rptr. 880 .) It further precluded anyone acting on behalf of the State of California
6 The trial judge in this case was particularly sensitive to this issue. She told defense counsel, "If you reach a settlement with the District Attorney ... and if the [Attorney General] comes in and says I want to be heard about this, you bet I'm going to let them be heard on this. ..."
C
The resounding theme so far is that we should not be deciding anything about a local district attorney's authority to request restitution and civil penalties attributable to victims and conduct outside the county. The issues the defendants seek to frame by means of their motion to strike are not squarely-or even unsquarely-presented. And certainly, there are no exceptional circumstances that warrant a departure from the general rule that we do not review undeveloped legal issues at the pleading stage of a lawsuit.
But even if the issues were properly presented in a procedural context that demanded their resolution, the majority opinion reaches the wrong result. If the Orange County District Attorney succeeds in proving his case, there is nothing inherently problematic about the court awarding restitution to statewide victims of defendants' unlawful business practice. As already noted, even absent a request by the District Attorney the court is empowered by section 17203 to award restitution to "to any person " adversely affected by the defendants' unlawful conduct. This includes, potentially, residents of counties other than Orange. And it is well established that the District Attorney's action will have no res judicata effect on a private party's restitution claim, except to the extent that the party signs a release. ( Payne v. National Collection Systems, Inc. (2001) 91 Cal.App.4th 1037 , 1047, 111 Cal.Rptr.2d 260 ["traditional res judicata principles have no application to a judgment resulting from an unlawful competition law lawsuit filed by the Attorney General or another public prosecutor in a subsequent lawsuit
D
Well-tested principles underlie the traditional reticence of intermediate appellate courts to engage in interlocutory writ review of trial court procedural rulings such as the one at issue in this case. (See Omaha Indemnity Co. v. Superior Court (1989) 209 Cal.App.3d 1266 , 1273, 258 Cal.Rptr. 66 .) Rarely do those principles so uniformly counsel against issuance of writ relief as they do here. In choosing to ignore these sound prudential considerations, the majority
FACTUAL AND PROCEDURAL BACKGROUND
Petitioners are companies or wholly-owned subsidiaries involved in the manufacture, distribution or sale of pharmaceuticals or generic prescription drugs, including the prescription drug Niaspan. In October 2016, the Orange County District Attorney, representing "the People of the State of California" in association with private counsel, filed a complaint for violations of the UCL, alleging that petitioners either entered into agreements or otherwise engaged in conduct that prevented other generic manufacturers from launching their own Niaspan equivalent, causing purchasers and others in California to overpay for the drug. The District Attorney filed a first amended complaint, the operative pleading, in December 2016. In part, the operative complaint alleges that "[e]ach sale of Niaspan in violation of Section 17200 constitutes a separate violation," and purchasers in California sustained substantial losses in the form of overcharges on each sale based on the petitioners' unlawful and unfair business practices, which violated federal, state, and/or common
During arguments on the motion, the trial court stated its view that the appellate court in Hy-Lond did not address the Napa County district attorney's ability in that case to recover statewide civil penalties; in its opinion, Hy-Lond addressed only whether the district attorney could bind the Attorney General in a settlement relating to misconduct spanning more counties than just Napa County. The court explained that if a settlement occurred in the present case, the Attorney General would be permitted to appear and be heard. The court also questioned Hy-Lond 's reliance on Singh v. Superior Court (1919) 44 Cal.App. 64 , 185 P. 985 in which the Court of Appeal
The District Attorney fails to point out that on September 11, 2017, before we issued the order to show cause in this matter, petitioners submitted their
" '[T]he ripeness doctrine is primarily bottomed on the recognition that judicial decisionmaking is best conducted in the context of an actual set of facts so that the issues will be framed with sufficient definiteness to enable the court to make a decree finally disposing of the controversy.' " ( Vandermost v. Bowen (2012) 53 Cal.4th 421 , 452, 137 Cal.Rptr.3d 1 , 269 P.3d 446 .) Here, the cited remarks do not support the District Attorney's assertion that the court did not rule on the issue presented.[4] By denying petitioners' motion to strike the broad allegations as to violations of the UCL for "purchases of, and reimbursements for, the prescription drug Niaspan occurring in California ," the court necessarily determined that the District Attorney in its UCL action was permitted to pursue restitution and civil penalties for violations occurring throughout California, including outside the geographical limits of Orange County. The issues were sufficiently framed in the motion, are definite and concrete, and the court's ruling is ripe for judicial review.
4 The record shows that when the court stated "we are not worried about damages in a demurrer, so I think your concerns are a little premature," and "[w]hat kind of remedies plaintiff may be entitled to down the line, there's no reason to reach that now," it was referring to petitioners' demurrer on statute of limitations grounds and their arguments as to the continuous accrual doctrine, under which a series of wrongs may be viewed as each triggering its own limitations period. (See Aryeh v. Canon Business Solutions, Inc. (2013) 55 Cal.4th 1185 , 1192, 151 Cal.Rptr.3d 827 , 292 P.3d 871 .) The other cited remarks occurred when the court informed the parties that if they reached a settlement, the Attorney General "is going to know about it" and "have a voice." The court remarked: "It seems to me that you would all be better served if you recognized that and include the AG-If, indeed, we are looking at civil penalties and what you want to do. But that's kind of a ways down the road." These remarks in no way suggest the court declined to reach the issue presented by petitioners' motion to strike.
E. Important Question of Law
Finally, the District Attorney argues that this matter does not present, and petitioners have not identified, conflicting lower court decisions or an important issue of law that that should be settled by a ruling on their petition. The District Attorney argues that the proper remedy is "fact specific," and "[s]uch matters cannot be determined in one broad sweeping statement of the law ...."
The arguments are without merit. We have already determined by issuing an alternative writ that there is no adequate legal remedy in this case. (Accord, Smith v. Superior Court , supra , 10 Cal.App.4th at p. 1037, 13 Cal.Rptr.2d 133 , citing Robbins v. Superior Court (1985) 38 Cal.3d 199 , 205, 211 Cal.Rptr. 398 , 695 P.2d 695 .) And this court has granted petitioner's request that we judicially notice the existence of conflicting superior court decisions on the issue. (See Linda Vista Village San Diego Homeowners Association, Inc. v. Tecolote Investors, LLC (2015) 234 Cal.App.4th 166 , 185, 183 Cal.Rptr.3d 521 [judicial notice is properly taken of existence of court orders to establish the legal effect of the results reached]; Shersher v. Superior Court (2007) 154 Cal.App.4th 1491 , 1501, fn. 5, 65 Cal.Rptr.3d 634 .) Whether a district attorney acting in the name of the People of the State of California may obtain restitution and civil penalties for UCL violations occurring outside his or her county is in our view an important legal issue, and one that implicates constitutional principles. (See Omaha Indemnity Co. v. Superior Court (1989) 209 Cal.App.3d 1266 , 1273, 258 Cal.Rptr. 66 [general criteria for
In construing a statute or constitutional provision, we give the language used its ordinary meaning, and " '[i]f the language is clear and unambiguous there is no need for construction, nor is it necessary to resort to indicia of the intent of the Legislature ....' [Citation.] To that end, we generally must 'accord [ ] significance, if possible, to every word, phrase and sentence in pursuance of the legislative purpose,' and have warned that '[a] construction making some words surplusage is to be avoided.' [Citation.] [¶] But '[t]he words of the statute must be construed in context, keeping in mind the statutory purpose, and statutes or statutory sections relating to the same subject must be harmonized, both internally and with each other, to the extent
When specifying a county district attorney's duties with respect to civil matters, the Legislature recognizes the aforementioned jurisdictional limitations. In Government Code section 26507 (entitled "Joint prosecution in other jurisdictions"), the Legislature authorizes a county district attorney to enter into agreements to "act jointly" with other district attorneys "in prosecuting a civil cause of action of benefit to his own county in the court of another jurisdiction" as long as there is an agreement with the district attorney of the other county. ( Gov. Code, § 26507.) A district attorney of one county may provide legal or investigative services to a district attorney of another county "pertaining to the prosecution of a civil cause of action in the other county," but only "with the concurrence of the district attorney of [the other] county and the boards of supervisors of both affected counties ...." ( Gov. Code, § 26508.)
The foregoing constitutional and statutory provisions demonstrate that in civil matters, as in criminal matters, a district attorney lacks authority to function outside his or her county jurisdiction absent the consent of the district attorney of the other county. Even when a district attorney acts in a matter within the jurisdiction of the superior court, he or she is subject to oversight and direct supervision by the Attorney General, the state's chief law enforcement officer obligated to ensure the uniform and adequate enforcement of state law.
C. Relevant Provisions of the Unfair Competition Law
The UCL addresses unfair competition, and "proscrib[es] 'any unlawful' business act or practice ...." (
Section 17203, authorizing injunctive relief and orders of restitution, reads in part: "Any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction. The court may make such orders or judgments, ... as may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of such unfair competition." Restitution is made " ' "in order to deter future violations of the unfair trade
8 Section 17204 provides: "Actions for relief pursuant to this chapter shall be prosecuted exclusively in a court of competent jurisdiction by the Attorney General or a district attorney or by a county counsel authorized by agreement with the district attorney in actions involving violation of a county ordinance, or by a city attorney of a city having a population in excess of 750,000, or by a city attorney in a city and county or, with the consent of the district attorney, by a city prosecutor in a city having a full-time city prosecutor in the name of the people of the State of California upon their own complaint or upon the complaint of a board, officer, person, corporation, or association, or by a person who has suffered injury in fact and has lost money or property as a result of the unfair competition."
An action seeking injunctive relief and civil penalties filed by a public prosecutor on behalf of the People is not primarily concerned with restoring property or benefitting private parties; it is fundamentally a law enforcement action with a public, penal objective. ( State v. Altus Finance, S.A. , supra , 36 Cal.4th at p. 1308, 32 Cal.Rptr.3d 498 , 116 P.3d 1175 ; People v. Pacific Land Research Co. (1977) 20 Cal.3d 10 , 17, 141 Cal.Rptr. 20 , 569 P.2d 125 [action seeking civil penalties under the UCL "is fundamentally a law enforcement action designed to protect the public and not to benefit private parties"]; accord, People ex rel. Harris v. Aguayo , supra , 11 Cal.App.5th at p. 1159, 218 Cal.Rptr.3d 221 .) Civil penalties paid to the government " 'are designed to penalize a defendant for past illegal conduct.' " ( State v. Altus Finance, S.A. , at p. 1308, 32 Cal.Rptr.3d 498 , 116 P.3d 1175 ; People v. Pacific Land Research Co. , at p. 17, 141 Cal.Rptr. 20 , 569 P.2d 125 .) Likewise, in an action filed by the People "[r]estitution is not intended to benefit the [recipient] by the return of money, but instead is designed to penalize a defendant for past unlawful conduct and thereby deter future violations." ( People v. Toomey (1984) 157 Cal.App.3d 1 , 26, 203 Cal.Rptr. 642 , citing Pacific Land Research Co. , at p. 17, 141 Cal.Rptr. 20 , 569 P.2d 125 .) "While restitution would benefit the [recipient] by the return of the money illegally obtained, such repayment is not the primary object of the
The District Attorney argues Hy-Lond is inapposite because it involves the enforceability of a settlement and judgment in which the defendant received immunity and restrictions were placed on the powers of the Department of Health relating to nursing homes; he maintains the decision is limited to its unusual facts and cannot impede the efforts of district attorneys in protecting California consumers.[12] The District Attorney suggests another authority, People v. Mendez (1991) 234 Cal.App.3d 1773 , 286 Cal.Rptr. 216 , more directly holds that a district attorney has power to bind the state contrary to Hy-Lond , as a UCL treatise author has suggested. In Mendez , the Court of Appeal declined to estop the Attorney General from challenging a stipulation in a criminal action entered into by a district attorney, who was under a significant misapprehension of the law. ( Id . at p. 1784, 286 Cal.Rptr. 216 ; see People v. Ford (2015) 61 Cal.4th 282 , 289, 187 Cal.Rptr.3d 919 , 349 P.3d 98 .) In so holding, Mendez recognized that the State would ordinarily be bound by the stipulation, since a criminal action is prosecuted in the name of the People of the State of California as a party. ( Id . at p. 1783, 286 Cal.Rptr. 216 .) But the issue in that case was estoppel and the court declined to apply the doctrine; to the extent Mendez says anything about a district attorney's power to bind the state, it stands for the unremarkable proposition that in criminal cases, the state is the party regardless of whether it is represented by the district attorney or the Attorney General. It says nothing about a district attorney's authority-extraterritorially or otherwise-to bring civil actions generally or under the UCL specifically and does not impact our reading of Hy-Lond .
Even absent Hy-Lond , a sound interpretation of the UCL defeats the District Attorney's arguments. Contrary to the assertions of the District Attorney and amici city attorneys, the text of the UCL provides no basis to conclude the Legislature intended to grant local prosecutors extraterritorial jurisdiction to recover statewide monetary relief. The District Attorney points to the UCL's silence on the issue; he asserts the UCL's text contains no geographical limitation on the remedies district attorneys may recover, nor
12 Amici city attorneys likewise argue that Hy-Lond is a narrow decision that does not bar a district attorney from seeking statewide remedies. They, and apparently our dissenting colleague, characterize its discussion of a district attorney's geographic limitations as dicta, and any extension to actions for monetary relief as a distortion of its ruling. We disagree for the reasons stated in this opinion.
Additionally, the UCL's structure reflects the Legislature's understanding of public prosecutors' jurisdictional limitations as to monetary relief. As the Attorney General points out, section 17206, subdivision (c), which distributes penalties depending on which agency obtains them, requires the Attorney General's Office to deposit half of its collected civil penalties into the state's general fund, with the other half going to the county in which the judgment is entered, while district attorneys must deposit collected penalties only to the treasurer of their respective counties. According to the Attorney General, in drafting this provision, the Legislature contemplated that only the Attorney General may seek redress for statewide violations, and local prosecutors, absent a joint prosecution agreement, may address only misconduct occurring within their city or county. We agree that by structuring the statute so that penalties collected by a district attorney go only to the treasurer of the
15 The District Attorney further points out that the UCL does not define a "violation" for purposes of assessing civil penalties, and it argues the question is not determined by a "strict 'geographic boundaries' test." It is established that the question of what constitutes a violation, as well as the amount of penalties, is left for the court to decide in its discretion on a case-by-case basis. ( People ex rel. Kennedy v. Beaumont Investment, Ltd. (2003) 111 Cal.App.4th 102 , 127-128, 3 Cal.Rptr.3d 429 , quoting People v. Superior Court ( Jayhill ), supra , 9 Cal.3d at p. 288, 107 Cal.Rptr. 192 , 507 P.2d 1400 ; see People ex rel. Harris v. Sarpas (2014) 225 Cal.App.4th 1539 , 1566, 172 Cal.Rptr.3d 25 .) In this case, the nature and scope of a violation, and whether such violations have occurred within the territorial jurisdiction of Orange County, are matters for the trial court to decide in the first instance. (Accord, People v. Superior Court of Los Angeles County ( Cahuenga's The Spot ), supra , 234 Cal.App.4th at p. 1384, 184 Cal.Rptr.3d 809 .)
Nor can we draw a different conclusion, as the amici city attorneys would have us do, from the Legislature's use of limiting language in other statutes such as Code of Civil Procedure section 731 allowing a district attorney, county counsel or city attorney to abate nuisances "of any
16 The California District Attorneys Association points out there are already protective mechanisms in place for statewide UCL enforcement, including multi-office joint investigations, and multi-agency prosecutions. Even if such matters were judicially noticeable, it does not ask this court to take judicial notice of any such agreements or their existence. Our dissenting colleague thus relies on matters outside the record to dispute the risk that the District Attorney's action could compromise other district attorneys or the Attorney General. ( State Compensation Ins. Fund v. WallDesign, Inc. (2011) 199 Cal.App.4th 1525 , 1528, fn. 1, 132 Cal.Rptr.3d 352 ["if [a fact] is not in the record, it did not happen"]; see also In re Valerie A. (2007) 152 Cal.App.4th 987 , 1002-1003, 61 Cal.Rptr.3d 403 ; In re Marriage of Wilcox (2004) 124 Cal.App.4th 492 , 498-499, 21 Cal.Rptr.3d 315 .)
Nor did the thoughtful trial judge make any overly broad or unnecessary pronouncements that require correction. Contrary to the majority's assertion, she never specifically ruled that the District Attorney could recover restitution or civil penalties for acts that took place entirely outside Orange County. She simply denied the motion and ordered defendants to answer the complaint. Indeed, responding to defense counsel's comment during oral argument about the supposed importance of determining "what damages are at issue in the case", the judge characterized those concerns as "a little premature."[20] Later she acknowledged that issues of monetary relief would be addressed, if necessary, in the future: "[I]f ... we are looking at civil penalties ..., that's kind of aways [ sic ] down the road."[21]
"Aways [ sic ] down the road," if I may be so bold to suggest, would be the proper time to address the proper scope of monetary relief in this case. Specifically, if and when the trial court decides to award restitution to consumers outside of Orange County or civil penalties based entirely on acts occurring in other parts of the state, that will be the time when this issue is
4 The fact that this comment was made in the context of argument on the demurrer rather than the motion to strike (maj. opn., ante , at p. 737, fn. 4) hardly changes the substance of the statement. The court was clearly stating that questions regarding the scope of monetary relief would be addressed at a later date, not now.
5 The majority opinion inexplicably concludes that this statement "in no way suggest[s] the court declined to reach the issue presented by petitioners' motion to strike." (Maj. opn., ante , at p. 737, fn. 4.) I see no way to read the statement other than as indicating the court was not ruling on the proper scope of monetary relief. And even assuming the statement was in some way ambiguous, why would we reach out at the pleading stage to issue an extraordinary writ correcting an implication that might or might not have been intended by the trial judge?
The propriety of extraordinary writ review aside, the decision to prematurely intervene in this case has unnecessarily placed this court in the middle of a jurisdictional turf spat between public prosecutors. In doing so the majority attempt to construct a solution in search of a problem. The alleged "problem" here is an overzealous district attorney who seeks to recover (1) restitution on behalf of residents of other counties, and (2) civil penalties based on business practices that have no connection to the district attorney's local jurisdiction. Apparently, this bothers the Attorney General, who wishes to limit and control all litigation involving statewide unlawful business practices, and perhaps other district attorneys in other counties, who may view the actions of the Orange County District Attorney as "poaching" on their ability to recover civil penalties that would otherwise flow into their own county's treasury.
Business and Professions Code section 17204 broadly permits UCL enforcement actions to be "prosecuted ... by the Attorney General or a district attorney ...." Either way, the action is pursued "in the name of the people of the State of California," just as in criminal cases. ( § 17204.) Section 17203 permits the court, ancillary to its injunctive power, "to restore to any person in interest any money or property, real or personal, which may have been acquired by means of" the unlawful or unfair practice. ( § 17203, italics added.) Section 17206 similarly authorizes the court to award a civil penalty for each UCL violation, "recover[able] in a civil action brought ... by the Attorney General [or] by any district attorney ...." ( § 17206, subd. (a).) Nothing in any of these
Moreover, the concern about a local district attorney binding other prosecutors to an improper or inadequate settlement is as fanciful as it is premature. Where, as here, a district attorney brings a UCL enforcement action alleging a statewide unlawful business practice, the Attorney General as the state's chief law enforcement officer always has the authority to intervene and take over the case. As a prominent treatise explains:
[T]he Attorney General and the 58 district attorney offices have entered into an arrangement to coordinate
Nor should there be a problem with the court awarding civil penalties based on any statewide violations ultimately proven in this action. The penalties are the punishment imposed for each violation proved in a law enforcement action brought on behalf of the People of the State of California. If the violation is proved, the penalties are appropriately imposed. Assume a criminal defendant is charged with multiple offenses as part of a single crime spree that spanned several counties. Convicted of all offenses following a trial in one of the counties, surely the defendant would not be heard to argue that the district attorney could not request punishment and the court could not sentence him on any of the crimes he committed in a different county. (See, e.g., People v. Sering (1991) 232 Cal.App.3d 677 , 684-685, 283 Cal.Rptr. 507 .) And this would be true regardless whether the punishment is incarceration or a monetary fine. The result in this case, involving civil penalties, should be no different.[23]
The Attorney General is the "chief law enforcement officer of the State" with supervisory authority over district attorneys. ( Cal. Const. art. V, § 13.) District attorneys are county officers. ( Cal. Const. art. XI, § 1, subd. (b).) From these broad conceptual provisions the majority somehow infer a constitutional impediment to interpreting the UCL as allowing a district attorney to seek statewide monetary relief. (Maj. opn., ante , at p. 748.) But constitutional restrictions and limitations on the Legislature's power "are to be construed strictly, and are not to be extended to include matters not covered by the language used." ( Collins v. Riley (1944) 24 Cal.2d 912 , 916, 152 P.2d 169 .) "If there is any doubt as to the Legislature's power to act in any given case, the doubt should be resolved in favor of the Legislature's action." ( Ibid. ; Methodist Hosp. of Sacramento v. Saylor (1971) 5 Cal.3d 685 , 691, 97 Cal.Rptr. 1 , 488 P.2d 161 .) Indeed, in seeking to avoid a supposed constitutional conflict, the majority's expansive interpretation of these constitutional provisions may have unwittingly created one. (
7 It makes no difference that the penalties are allocated by statute to the county treasurer when the enforcement action is prosecuted by the local district attorney. (§ 17206, subd. (c).) It is certainly reasonable for the Legislature to conclude that revenue from the penalties should benefit the county whose resources were used to prosecute the action and recover the penalties. This is particularly true where the statute specifies that the funds thus recovered are to be used exclusively for the enforcement of consumer protection laws. ( Ibid. )
I would deny the petition.
Footnotes
- 1 Statutory references are to the Business and Professions Code unless otherwise specified.
Cases cited
- People v. Hy-Lond Enterprises, Inc. 93 Cal.App.3d 734 p. 11, p. 36
- Agricultural Labor Relations Board v. Superior Court of Sacramento County 4 Cal.App.5th 675 p. 12
- Black v. Financial Freedom Senior Funding Corp. 92 Cal.App.4th 917 at 924 p. 13
- Californians for Population Stabilization v. Hewlett-Packard Co. 58 Cal.App.4th 273 p. 13
- Cortez v. Purolator Air Filtration Products Co. 23 Cal.4th 163 p. 13
- Commodore Home Systems, Inc. v. Superior Court 32 Cal.3d 211 p. 13
- Clauson v. Superior Court 67 Cal.App.4th 1253 p. 13
- Smith v. Superior Court 10 Cal.App.4th 1033 p. 13
- Britt v. Superior Court 20 Cal.3d 844 p. 16
- Cal-Western Business Services, Inc. v. Corning Capital Group 221 Cal.App.4th 304 p. 16
- Pitts v. County of Kern 17 Cal.4th 340 p. 16
- Coalition v. City of Upland 3 Cal.5th 924 p. 16
- Burden v. Snowden 2 Cal.4th 556 p. 16
- People v. Valencia 3 Cal.5th 347 p. 17
- People v. Garcia 2 Cal.5th 792 p. 17
- City of San Buenaventura v. United Water Conservation Dist. 3 Cal.5th 1191 at 1209 p. 17
- Steen v. Appellate Division, Superior Court 59 Cal.4th 1045 p. 17
- D'Amico v. Board of Medical Examiners 11 Cal.3d 1 p. 17
- People v. Dehle 166 Cal.App.4th 1380 p. 18
- Graham v. Municipal Court 123 Cal.App.3d 1018 p. 18
- People v. Superior Court 224 Cal.App.4th 33 p. 19
- People v. Eubanks 14 Cal.4th 580 p. 19
- People v. Superior Court 40 Cal.App.4th 9 p. 19
- Singh v. Superior Court 44 Cal.App. 64 p. 19, p. 735
- County of Los Angeles v. Superior Court 68 Cal.App.4th 1166 p. 19
- County of Sutter v. Board of Administration 215 Cal.App.3d 1288 p. 19
- People v. Superior Court 43 Cal.4th 737 p. 20
- People v. McKale 25 Cal.3d 626 p. 20, p. 35
- Safer v. Superior Court 15 Cal.3d 230 p. 20
- Zhang v. Superior Court 57 Cal.4th 364 p. 21
- McGill v. Citibank, N.A. 2 Cal.5th 945 p. 21
- Korea Supply Co. v. Lockheed Martin Corp. 29 Cal.4th 1134 p. 21
- Cruz v. Pacificare Health Systems, Inc. 30 Cal.4th 303 p. 21
- People ex rel. Harris v. Aguayo 11 Cal.App.5th 1150 p. 22
- People v. Superior Court 9 Cal.3d 283 p. 23
- People ex rel. Harris v. Pac Anchor Transportation, Inc. 59 Cal.4th 772 p. 25
- Sullivan v. Oracle Corp. 51 Cal.4th 1191 p. 25
- Kwikset Corp. v. Superior Court 51 Cal.4th 310 p. 25
- Tex-Cal Land Management, Inc. v. Agricultural Labor Relations Board 24 Cal.3d 335 p. 26
- Gananian v. Wagstaffe 199 Cal.App.4th 1532 p. 26
- Kraus v. Trinity Management Services, Inc. 23 Cal.4th 116 p. 27
- Arias v. Superior Court 46 Cal.4th 969 p. 27
- State ex rel. Harris v. PricewaterhouseCoopers, LLP 39 Cal.4th 1220 p. 29
- Howard Jarvis Taxpayers Ass'n v. Padilla 62 Cal.4th 486 p. 30
- California Air Resources Board v. Hart 21 Cal.App.4th 289 p. 31
- Taylor v. Superior Court 24 Cal.3d 890 p. 34
- Babb v. Superior Court 3 Cal.3d 841 p. 34
- Burrus v. Municipal Court 36 Cal.App.3d 233 p. 34
- Kasky v. Nike, Inc. 27 Cal.4th 939 p. 35
- Avco Community Developers, Inc. v. South Coast Regional Commission 17 Cal.3d 785 p. 37
- Payne v. National Collection Systems, Inc. 91 Cal.App.4th 1037 p. 37
- Omaha Indemnity Co. v. Superior Court 209 Cal.App.3d 1266 p. 39, p. 738
- Vandermost v. Bowen 53 Cal.4th 421 p. 737
- Robbins v. Superior Court 38 Cal.3d 199 p. 738
- Linda Vista Village San Diego Homeowners Ass'n v. Tecolote Investors, LLC 234 Cal.App.4th 166 p. 738
- Shersher v. Superior Court 154 Cal.App.4th 1491 at 1501 p. 738
- Southern California Underground Contractors, Inc. v. City of San Diego 108 Cal.App.4th 533 p. 739
- Woodland Hills Residents Ass'n v. City Council of Los Angeles 23 Cal.3d 917 p. 740
- In re Stier 152 Cal.App.4th 63 at 73 p. 740
- Alameda County Social Services Agency v. Willis H. 88 Cal.App.4th 94 p. 742
- Feitelberg v. Credit Suisse First Boston 134 Cal.App.4th 997 p. 743
- State v. Altus Finance, S.A. 36 Cal.4th 1284 p. 743
- People v. E.W.A.P. Inc. 106 Cal.App.3d 315 p. 743, p. 755
- People v. Pacific Land Research Co. 20 Cal.3d 10 p. 744, p. 750, p. 753
- People v. Toomey 157 Cal.App.3d 1 p. 744
- People v. Mendez 234 Cal.App.3d 1773 p. 748
- People v. Ford 61 Cal.4th 282 p. 748
- People ex rel. Lockyer v. Fremont Life Insurance 104 Cal.App.4th 508 p. 750
- People v. Sering 232 Cal.App.3d 677 p. 757
- Collins v. Riley 24 Cal.2d 912 p. 757
- Methodist Hospital v. Saylor 5 Cal.3d 685 p. 757