American National Insurance v. Fair Employment & Housing Commission

651 P.2d 1151, 32 Cal. 3d 603, 186 Cal. Rptr. 345, 1 Am. Disabilities Cas. (BNA) 384, 1982 Cal. LEXIS 237, 30 Empl. Prac. Dec. (CCH) 33,181, 34 Fair Empl. Prac. Cas. (BNA) 818
CourtCalifornia Supreme Court
DecidedOctober 21, 1982
DocketL.A. 31408
StatusPublished
Cited by68 cases

This text of 651 P.2d 1151 (American National Insurance v. Fair Employment & Housing Commission) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American National Insurance v. Fair Employment & Housing Commission, 651 P.2d 1151, 32 Cal. 3d 603, 186 Cal. Rptr. 345, 1 Am. Disabilities Cas. (BNA) 384, 1982 Cal. LEXIS 237, 30 Empl. Prac. Dec. (CCH) 33,181, 34 Fair Empl. Prac. Cas. (BNA) 818 (Cal. 1982).

Opinions

Opinion

NEWMAN, J.

Succinctly, the proceedings below and facts concerning us here were summarized by the Presiding Justice of Divison Four in the Second District of the California Courts of Appeal as follows:

[606]*606“This is an appeal by an employer from a judgment of the superior court upholding a decision of the State Fair Employment Practice Commission on review by administrative mandamus. The issue before the commission was whether the employer violated Labor Code section 1420 in refusing employment to a man because of his elevated blood pressure which did not impair his ability to work but which the employer believed, upon medical advice, would expose him to a greater than normal risk of disability or death. . . .
“In June 1975, American National Insurance Company (hereafter Company) employed Dale Rivard as a sales and debit agent, subject to approval of the home office. Between 1963 and 1968, Rivard had been employed by the Company for similar work. After six weeks, the Company terminated the employment because he did not meet the Company’s health requirements for that position.
“The work of a sales and debit agent is to go door-to-door in a specified residential district selling insurance and collecting premiums. Agents are expected to meet certain sales quotas and to be current in the collection of premiums. The Company regards the work of a sales and debit agent as stressful, and as a matter of policy does not hire persons with elevated blood pressure for that work. When the Company terminated his 1975 employment, Rivard filed a complaint wih the commission alleging that he had suffered discrimination because of a physical handicap in violation of Labor Code section 1420.1
“Following an administrative hearing, the commission decided that the Company had discriminated unlawfully against Rivard and ordered his reinstatement with back pay. The Company then petitioned the superior court for review of the commission’s decision. The court found that the commission’s findings were supported by the evidence and concluded that ‘high blood pressure is a protected physical handicap under the California Fair Employment Practice Act, Labor Code section 1410 et seq. [FEHA].’ Accordingly, the superior court denied the Company’s petition. This appeal is from that judgment. ”

[607]*607Substantial Evidence

The Company contends that the superior court erred first, because it refused to exercise its independent judgment on the evidence and, instead, used the substantial evidence test; second, because, regardless of the evidence, the FEHA does not apply to high blood pressure.

Northern Inyo Hospital v. Fair Empl. Practice Com. (1974) 38 Cal.App.3d 14, 23 [112 Cal.Rptr. 872] states: “Applying Bixby guidelines, Hospital’s right to establish its employment practices and procedures and to impose conditions of employment can in no sense be termed a fundamental vested right. While the right to pursue a lawful business or occupation is a fundamental right [citing cases], there is no vested right to conduct a business free of reasonable governmental rules and regulations (see Bixby v. Pierno, supra, 4 Cal.3d 130, 145-46 [93 Cal.Rptr. 234, 481, P.2d 242]; Beverly Hills Fed. S & L Assn. v. Superior Court, 259 Cal.App.2d 306, 316-317 [66 Cal.Rptr. 183]).” We agree with that conclusion, and use here of the substantial evidence test therefore was appropriate. (Cf. Steams v. Fair Employment Practice Com. (1971) 6 Cal.3d 205, 211 [98 Cal.Rptr 467, 490 P.2d 1155].)

The trial court found as a fact that “[t]he record did not support petitioner’s contention that the real party in interest could not perform his duties or that he could not perform such duties in a manner which would not endanger his health or safety or the health or safety of others.” We agree with that finding, and the following excerpt from respondent’s brief illuminates reasons that to us seem persuasive: “Despite appellant’s doctor’s claim that Rivard would not take his medicine, it was uncontroverted that the appellant had a general policy of excluding all persons from the debit agent category if they manifested high blood pressure. It was also uncontroverted that the appellant’s policy had nothing to do with the ability of [Rivard] to do the job. Inasmuch as these facts were undisputed, the trial court did not have to apply any standard of review with respect to them. There was never any personal examination of Rivard by the appellant’s physician. There was no prediction as to how long Rivard could work. Instead, appellant’s physician assumed that once Rivard fit into a specific category, he was to be summarily disqualified. There was absolutely no evidence to qualify the employer’s physician as a heart specialist. Indeed, at one point in the hearing the appellant’s physician admitted to relying on morbidity tables which insurance companies use to adjust insurance rates. Such a person could hardly be considered an expert [608]*608in determining the possibility of danger to Rivard’s health except in general and stereotypical terms.”2

Physical Handicap

What next we must decide is whether the Legislature intended that in certain cases high blood pressure may be a “physical handicap” under the FEHA. That statute proscribes unjustified discrimination based on “race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age . . . .”3

Section 12926, subdivision (h) of the act tells us that the phrase “‘[pjhysical handicap’ includes [1] impairment of sight, hearing or speech, or [2] impairment of physical ability because of amputation or loss of function or coordination . . . .” (Italics added.) Because in that clause the word the drafters chose was “includes” (rather than “means” or “refers to,” say) we infer that the Legislature did not endorse a restrictive definition. Instead it appears to have contemplated that the cognizant administrative officials and judges would consider all handicaps that are physical. Nonphysical handicaps—mental, economic, etc.—by implication are excluded.4 Also excluded are various ills or defects that in fact are not handicapping; for example, certain kinds of digestive, respiratory, or skin disorders.

[609]*609The Company concedes that the list of handicaps in section 12926, subdivision (h) does not “purport to be exhaustive . . . .” Yet its efforts to distinguish between covered and noncovered handicaps disclose how useless in this case are the maxims ejusdem generis and noscitur a sociis. For example, the Company says that “additional handicaps [i.e., those covered though not listed] must be similar in nature to those ... set forth.” (Italics added.) To us, “similar in nature” means (1) that the illness or defect is physical, and (2) that it is handicapping.

Further, the Company urges, “the protected ‘physical handicaps’ are major physical impairments similar to those listed in the definition.” (Italics in original.) By no means, though, do the Legislature’s words imply that only major ills or defects are covered.

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Bluebook (online)
651 P.2d 1151, 32 Cal. 3d 603, 186 Cal. Rptr. 345, 1 Am. Disabilities Cas. (BNA) 384, 1982 Cal. LEXIS 237, 30 Empl. Prac. Dec. (CCH) 33,181, 34 Fair Empl. Prac. Cas. (BNA) 818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-national-insurance-v-fair-employment-housing-commission-cal-1982.