Consumer Advocacy Group, Inc. v. Kintetsu Enterprises of America

58 Cal. Rptr. 3d 778, 150 Cal. App. 4th 953, 37 Envtl. L. Rep. (Envtl. Law Inst.) 20111, 2007 Cal. Daily Op. Serv. 5310, 2007 Cal. App. LEXIS 736
CourtCalifornia Court of Appeal
DecidedMay 14, 2007
DocketB158840
StatusPublished
Cited by8 cases

This text of 58 Cal. Rptr. 3d 778 (Consumer Advocacy Group, Inc. v. Kintetsu Enterprises of America) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Consumer Advocacy Group, Inc. v. Kintetsu Enterprises of America, 58 Cal. Rptr. 3d 778, 150 Cal. App. 4th 953, 37 Envtl. L. Rep. (Envtl. Law Inst.) 20111, 2007 Cal. Daily Op. Serv. 5310, 2007 Cal. App. LEXIS 736 (Cal. Ct. App. 2007).

Opinion

*960 Opinion

COOPER, P. J.

INTRODUCTION

Pursuant to the order of the Supreme Court of California, we vacated our opinion filed May 17, 2005. We hereby issue the following opinion which considers Californians for Disability Rights v. Mervyn’s, LLC (2006) 39 Cal.4th 223 [46 Cal.Rptr.3d 57, 138 P.3d 207] and Branick v. Downey Savings & Loan Assn. (2006) 39 Cal.4th 235 [46 Cal.Rptr.3d 66, 138 P.3d 214].

Three of the four consolidated appeals require us to apply Health and Safety Code section 25249.7 and California Code of Regulations, title 22, section 12903 (section 12903) to review the notice served by Consumer Advocacy Group, Inc: (CAG), on hundreds of hotels and retail establishments. In its notice, CAG alleged that respondents violated Proposition 65 by exposing individuals to secondhand smoke, tobacco, and tobacco products without providing a reasonable warning. Respondents persuaded the trial court that CAG’s notices were overbroad and therefore invalid. As a result, the court dismissed CAG’s numerous complaints.

We hold that notice, for purposes of Proposition 65, must be specific and must inform the targeted hotels and retail establishments and the public prosecutor of the nature of the alleged violation. The inclusion of superfluous material in the notice does not invalidate an otherwise lawful notice. However, notice that is so broad it renders the specific violation impossible to discern fails to achieve its function. It neither affords the hotels and retail establishments an opportunity to cure a violation nor provides the public prosecutor the means to meaningfully investigate the alleged violations. .

In addition to alleging violations of Proposition 65, CAG also alleged respondents violated Business and Professions Code section 17200 et seq., also known as the unfair competition law (UCL). We reject CAG’s argument that it may pursue its UCL claims—which are based on the identical allegations as its Proposition 65 claims—regardless of the validity of the notice required by Proposition 65. We conclude that Proposition 64, which amended the requirements for standing to bring a UCL action, applies to CAG, even though the case was pending prior to the passage of Proposition 64. *

*961 We affirm the judgment of dismissal in favor of the respondents upon which CAG served invalid notice. We reverse the judgment of dismissal in favor of those respondents upon which CAG served valid notice.*

FACTUAL AND PROCEDURAL BACKGROUND I (CAG APPEALS) *

CAG describes itself as an organization acting in the public interest to enforce the Proposition 65 warning requirements. Center for Biological Diversity is amicus curiae in support of CAG. Respondents in the three CAG appeals are numerous hotels and retail establishments.

The subject of these appeals are CAG’s Proposition 65 notices alleging consumer product, environmental and occupational exposures to tobacco smoke and tobacco products. A “consumer product” exposure “is an exposure which results from a person’s acquisition, purchase, storage, consumption, or other reasonably foreseeable use of a consumer good, or any exposure that results from receiving a consumer service.” (Cal. Code Regs., tit. 22, § 12601, subd. (b).) An “occupational exposure” is “an exposure, in the workplace of the employer causing the exposure, to any employee.” (Cal. Code Regs., tit. 22, § 12601, subd. (c).) An “environmental exposure” is “an exposure which may foreseeably occur as the result of contact with an environmental medium, including, but not limited to, ambient air, indoor air, drinking water, standing water, running water, soil, vegetation, or manmade or natural substances, either through inhalation, ingestion, skin contact or otherwise.” (Cal. Code Regs., tit. 22, § 12601, subd. (d).)

CAG served its first set of notices alleging violations of Proposition 65 in August 1998. (Yeroushalmi v. Miramar Sheraton (2001) 88 Cal.App.4th 738, 743 [106 Cal.Rptr.2d 332] (Miramar).) That first set of notices was held invalid by Division Four of this court in Miramar. (Id. at p. 738.) While that appeal was pending, CAG served a second set of notices. The trial court initially found the allegations of consumer product exposures in CAG’s second set of notices were sufficient. Yet it found the claims of occupational and environmental exposures were overbroad and therefore invalid.

CAG then served a third set of notices on many, but not all, of the same respondents. Respondents served with the third set of notices, like those served with the second set of notices, moved for judgment on the pleadings *962 or filed demmrers. A new judge considered CAG’s second and third set of notices. This time,' the judge found that both sets were invalid in their entirety primarily because the allegations were too general. Subsequently, the court entered several judgments of dismissal, dismissing CAG’s complaints. CAG filed three notices of appeal from the judgments, some of which concern the same respondents. 1

In addition to dismissing the case, the court granted a motion for sanctions brought by Comfort Inn Santa Monica, E-Z 8 Motels, Inc., Kings Inn, R&R Hotel Group, Ramada Maingate-Saga Inn, Sterling Hotels, and Vasona Management Company. The . court found, “Plaintiff offered no evidence of any investigation or documentation supporting claims asserted in the 60-Day Notices or in the Complaints.” It refused to consider an untimely declaration. Counsel was ordered to pay sanctions of $750. CAG did not appeal from the order awarding sanctions. 2

DISCUSSION I (CAG APPEALS)

Whether Proposition 65 notice complies with the statutory requirements is reviewed de novo. (Miramar, supra, 88 Cal.App.4th at p. 744.) We begin with background information regarding Proposition 65. We then consider respondents’ argument that CAG’s notice is invalid due to overbreadth. Finding that the notice is invalid only where the overbreadth renders' it impossible to discern the specific' violation, we consider exemplar notices to apply this rule. We then discuss issues raised by a subset of respondents including (1) the severability of those San Jose located respondents due to CAG’s failure to serve the San Jose City Attorney; (2) the effect of the postjudgment sanctions award; and (3) the statute of limitations as applied to Good Nite Inn. Finally, we consider the viability of CAG’s causes of action under Business and Professions Code section 17200 et seq.

*963 I. Background

In 1986, voters passed Proposition 65, which was designed to warn the public of harmful exposures to chemicals. (Ballot Pamp., Gen. Elec. (Nov. 4, 1986) analysis of Prop. 65 by the Legislative Analyst, p.

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58 Cal. Rptr. 3d 778, 150 Cal. App. 4th 953, 37 Envtl. L. Rep. (Envtl. Law Inst.) 20111, 2007 Cal. Daily Op. Serv. 5310, 2007 Cal. App. LEXIS 736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consumer-advocacy-group-inc-v-kintetsu-enterprises-of-america-calctapp-2007.