California Ass'n of Health Facilities v. Department of Health Services

940 P.2d 323, 16 Cal. 4th 284, 65 Cal. Rptr. 2d 872, 97 Daily Journal DAR 10295, 97 Cal. Daily Op. Serv. 6292, 1997 Cal. LEXIS 4412
CourtCalifornia Supreme Court
DecidedAugust 7, 1997
DocketNo. S056559
StatusPublished
Cited by88 cases

This text of 940 P.2d 323 (California Ass'n of Health Facilities v. Department of Health Services) 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
California Ass'n of Health Facilities v. Department of Health Services, 940 P.2d 323, 16 Cal. 4th 284, 65 Cal. Rptr. 2d 872, 97 Daily Journal DAR 10295, 97 Cal. Daily Op. Serv. 6292, 1997 Cal. LEXIS 4412 (Cal. 1997).

Opinion

Opinion

MOSK, J.

Health and Safety Code section 14241 provides that long-term health care facility licensees, including operators of nursing homes, may receive citations for violations of state and federal statutes and regulations, and that such citations may include the imposition of civil monetary penalties. Section 1424 also provides that the citation “shall be dismissed” if the licensee proves that despite the fact that the violation occurred, it “did what might reasonably be expected of a long-term health care facility licensee, acting under similar circumstances, to comply with the regulation.”

We are now called upon to construe the meaning of this part of the statute, which we will designate the “reasonable licensee defense.” Plaintiff, the California Association of Health Facilities (CAHF), an association representing the licensees of nursing homes and other long-term health care facilities, contends that the reasonable licensee defense was intended to relieve licensees of vicarious liability for their employees. The Department of Health Services (Department), the agency charged with enforcing patient care regulations in long-term health care facilities, contends to the contrary that the reasonable licensee defense does not apply whenever an employee who is the agent of a long-term health care facility licensee has acted unreasonably, and that the reasonable licensee defense is intended to preclude not vicarious liability but rather strict liability. We conclude that the Department’s position is the correct one.

I.

The Department is charged with responsibility for the administration and enforcement of the Long-Term Care, Health, Safety, and Security Act of 1973 (the Act) and for the enforcement of the regulations promulgated pursuant to the Act. (Health & Saf. Code, § 1417 et seq.; Cal. Code Regs., tit. 22, § 72001 et seq.)

On August 25, 1993, CAHF filed a complaint for declaratory relief, requesting a declaration of rights and duties arising under the “reasonable [289]*289licensee defense” set forth in section 1424. There was no particular citation at issue in the case, but merely a request to declare the proper interpretation of the statute. The complaint alleged that the Department’s policy was to interpret and enforce the statute so as to improperly hold the licensee liable for the unreasonable actions of its employees, and that such policy was contrary to its statutory authority under the Act.

Both parties filed motions for summary judgment. The trial court denied both motions and dismissed CAHF’s complaint pursuant to Code of Civil Procedure section 10612 because the action did not present an actual controversy and was therefore not justiciable. The Department initially supported the trial court’s position, but CAHF appealed. In an unpublished decision, the Court of Appeal held that declaratory relief was in fact appropriate, and that the trial court had abused its discretion by dismissing the claim. The cause was remanded to the trial court for determination on the merits.

On remand, the trial court granted CAHF’s motion for summary judgment and issued the following declaratory relief order: “When a citation is issued against a licensee for conduct which does not involve unreasonable conduct of an employee of the institution, the reasonable conduct defense clearly applies. When a citation is issued for the conduct of an employee which is unreasonable and the conduct of the institution is otherwise in all aspects reasonable, the statute requires that the citation be dismissed when the following conditions are present: (1) The conduct involved must not be so outrageous, so heinous, that it must, as a matter of law, be imputed to the licensee. (For example, if an employee murdered numerous patients, etc.) (2) The conduct in question must be by a primary caregiver. (3) The primary caregiver involved must not be a management employee.” The Department filed a timely notice of appeal and CAHF subsequently filed a notice of cross-appeal.

The Court of Appeal modified the judgment and affirmed it as so modified. It agreed with the trial court that the reasonable licensee defense does not impose on a licensee vicarious liability for its employees, and that the unreasonable conduct of an employee is not to be imputed to the licensee unless the licensee has done something that itself is unreasonable. But it disagreed with the trial court inasmuch as it placed the three conditions enumerated above on the licensee’s ability to assert the reasonable licensee defense. It concluded that such categorical conditions were unwarranted, and [290]*290that the reasonableness of the licensee is a factual question that must be determined from the totality of the circumstances in each case. We granted review to determine the meaning of the reasonable licensee defense.3

II.

A.

In order to interpret the meaning of the reasonable licensee defense, we must first understand the nature of the statutory scheme of which that defense is part. As discussed, section 1424 is one section of the Act. The declared legislative intent of the Act is to “establish (1) a citation system for imposition of prompt and effective civil sanctions against long-term health care facilities in violation of the laws and regulations of this state . . . relating to patient care; (2) an inspection and reporting system to ensure that long-term health care facilities are in compliance with state statutes and regulations pertaining to patient care; and (3) a provisional licensing mechanism to ensure that full-term licenses are issued only to those long-term health care facilities that meet state standards relating to patient care.” (§ 1417.1.) The Act covers skilled nursing facilities as well as intermediate care facilities of various types. (§ 1418.)

We summarized the licensing enforcement regime under the Act in Kizer v. County of San Mateo (1991) 53 Cal.3d 139, 142 [279 Cal.Rptr. 318, 806 P.2d 1353]: “Licensed health care facilities must demonstrate an ability to comply with statutory requirements. (See, generally, § 1250 et seq.) The Act authorizes the Department to inspect such facilities for compliance with statutes and regulations on patient care and to issue citations to noncomply^ing facilities. (§§ 1421, 1423; Myers v. Eastwood Care Center, Inc. (1982) 31 [291]*291Cal.3d 628, 631 [183 Cal.Rptr. 386, 645 P.2d 1218]; Lackner v. St. Joseph Convalescent Hospital, Inc. (1980) 106 Cal.App.3d 542, 546 [165 Cal.Rptr. 198].) The Department is authorized to enter any facility for inspection (§ 1421), and must inspect every facility at least once every two years (§ 1422, subd. (b)) or upon receipt of a complaint (§§ 1419, 1420). When the Department observes a violation of a statute or regulation, it issues a citation to the facility. (§ 1423.) Citations are classified according to the seriousness of the violation, and a penalty range is prescribed for each class.

“Among the criteria that define a class AA violation, the most serious class, is a determination by the Department that the violation was a ‘direct proximate cause of death of a patient.’ (§ 1424, subd. (b).) The penalty for a class AA violation is not less than $5,000 and not more than $25,000. (Ibid.)

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Taking Offense v. State of California
California Supreme Court, 2025
Taking Offense v. State of Cal.
California Supreme Court, 2025
Fischl v. Pacific Life Ins. Co.
California Court of Appeal, 2023
Ramirez v. Gilead Sciences, Inc.
California Court of Appeal, 2021
Jarman v. HCR ManorCare, Inc.
471 P.3d 1001 (California Supreme Court, 2020)
King v. CompPartners, Inc.
423 P.3d 975 (California Supreme Court, 2018)
McMillin Albany LLC v. Superior Court of Kern Cnty.
408 P.3d 797 (California Supreme Court, 2018)
Gold Coast Neighborhood Association v. State.
403 P.3d 214 (Hawaii Supreme Court, 2017)
Mahan v. Charles W. Chan Ins. Agency
California Court of Appeal, 2017
City of San Jose v. Superior Court of Santa Clara Cnty.
389 P.3d 848 (California Supreme Court, 2017)
Travis Gonzales v. Carmax Auto Superstores, LLC
840 F.3d 644 (Ninth Circuit, 2016)
Pacific Gas & Electric Co. v. Public Utilities Commission
237 Cal. App. 4th 812 (California Court of Appeal, 2015)
Lemaire v. Covenant Care California, LLC
234 Cal. App. 4th 860 (California Court of Appeal, 2015)
State Department of Public Health v. Superior Court
342 P.3d 1217 (California Supreme Court, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
940 P.2d 323, 16 Cal. 4th 284, 65 Cal. Rptr. 2d 872, 97 Daily Journal DAR 10295, 97 Cal. Daily Op. Serv. 6292, 1997 Cal. LEXIS 4412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-assn-of-health-facilities-v-department-of-health-services-cal-1997.