Crest Catering Co. v. Superior Court

398 P.2d 150, 62 Cal. 2d 274, 42 Cal. Rptr. 110, 1965 Cal. LEXIS 248
CourtCalifornia Supreme Court
DecidedJanuary 22, 1965
DocketL. A. No. 28185
StatusPublished
Cited by42 cases

This text of 398 P.2d 150 (Crest Catering Co. v. Superior Court) 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
Crest Catering Co. v. Superior Court, 398 P.2d 150, 62 Cal. 2d 274, 42 Cal. Rptr. 110, 1965 Cal. LEXIS 248 (Cal. 1965).

Opinions

TRAYNOR, C. J.

Carl Kirsten, as administrator of an Employee Welfare and Retirement Fund and as assignee of the trustees of the fund, brought an action against Crest Catering Company to compel payment of contributions allegedly owed to the fund under the terms of a contract with a labor union. He alleged that in June 1957 Crest orally agreed with the union to make contributions to the fund at specified hourly rates for each hour worked by each of its employees and to be bound by the terms of certain trust instruments establishing the fund. He also alleged that Crest failed to make a full and complete accounting of its indebtedness under the contract.

During discovery proceedings, Kirsten directed interrogatories to Crest as to the number of employees and the hours worked by each during the period in issue in order to ascertain the correct amount due under the alleged contract. When Crest responded that all its books and records had been destroyed by fire, Kirsten suggested that Crest obtain the requested information from copies of its employment tax returns. The completeness and accuracy of Crest’s answers to several sets of interrogatories became the subject of a sharp and acrimonious dispute. On Kirsten’s motion the court ordered Crest to produce for inspection copies of its quarterly returns submitted to the California State Department of Employment and to the federal agencies. Crest then filed this petition for a writ to prohibit enforcement of the order on the ground that copies of its employment tax returns filed with the Department of Employment are privileged under sections 1094 and 2111 of the Unemployment Insurance Code.1

Section 2031 of the Code of Civil Procedure provides that a party may be ordered to produce for inspection “any designated documents, papers, books, accounts, letters, photographs, objects or tangible things, not privileged ...” which relate to pending litigation. (Italics added.)

With exceptions not here relevant, section 1094 of the Unemployment Insurance Code provides that the information delivered to the Department of Employment by an employing unit “shall be for the exclusive use and information of the [277]*277director . .. and shall not be open to the public, nor admissible in evidence in any action or special proceeding. ...” Section 2111 provides that the information “is confidential and shall not be published or open to public inspection in any manner . . .” and declares that any employee of the department who violates this section is guilty of a misdemeanor.

These provisions manifest a clear legislative purpose to preserve the confidentiality of information submitted to the Department of Employment. (See Webb v. Standard Oil Co. (1957) 49 Cal.2d 509, 513 [319 P.2d 621].)

Amici curiae contend that we should re-examine the holding in the Webb case in the light of St. Regis Paper Co. v. United States (1961) 368 U.S. 208, 218 [82 S.Ct. 289, 7 L.Ed.2d 240], which held that statutes substantially the same as those considered in the Webb case did not create a privilege. Following the St. Regis case, however, Congress amended the relevant statutes to abrogate the rule of that case. Moreover, unlike the statutes considered in the Webb case,2 sections 1094 and 2111 leave no room for doubt that they create a privilege. Indeed, in the St. Regis opinion itself, the United States Supreme Court recognized that statutes similar to sections 1094 and 2111 created a privilege. (368 U.S. at p. 218.) We are therefore not persuaded that we should re-examine the holding in the Webb case.

There is also no merit in Kirsten’s contention that these sections do not make the information immune from discovery but merely make it privileged at the trial. Section 2016, subdivision (b) of the Code of Civil Procedure expressly provides that “All matters which are privileged against disclosure upon the trial under the law of this State are privileged against disclosure through any discovery procedure. ...”

We agree, however, with Kirsten’s contention that Crest waived its right to assert the privilege.

In its contract with the union, Crest agreed to be bound [278]*278by the trust agreement that governs the Welfare and Retirement Fund. Section 4.07 of that agreement provides: “Bach employer covered hereby shall assist in the preparation and cooperate in the execution of any and all forms, applications or other data necessary in the establishment and operation of the Plan and Fund, and in this connection shall promptly furnish all necessary information upon demand to the Trustees or the Administrator entrusted with the operation and administration of the Plan and Fund.” (Italics added.) Section 4.08 provides: “To facilitate the Trustees’ determination of full and complete reporting, the Trustees may, within their discretion, assign an auditor at the expense of the Fund (and not at the expense of either the Employers’ Council or the Union) to audit the payrolls for the sole purpose of determining the correct amount of contributions owed the Funds. . . .”

Crest contends that the foregoing provisions do not waive the privilege because there is no specific reference either to the code provisions creating the privilege or to the tax returns. A waiver does not depend upon meeting such a brittle requirement. In Torbensen v. Family Life Insurance Co. (1958) 163 Cal.App.2d 401, 404 [329 P.2d 596], the court was called upon to determine whether a clause in an application for a life insurance policy operated to waive the doctor-patient privilege. The clause in question stated: “To whom it may concern: I hereby authorize and request you to disclose any and all information and records concerning my condition when under observation by you, if requested to do so” by the life insurance company. Even though no reference was made either to the particular code provision involved or to the particular privilege involved, the court found that the applicant waived the privilege.

A waiver may occur (1) by an intentional relinquishment or (2) as “the result of an act which, according to its natural import, is so inconsistent with an intent to enforce the right as to induce a reasonable belief that such right has been relinquished.” (Rheem Mfg. Co. v. United States (1962) 57 Cal.2d 621, 626 [21 Cal.Rptr. 802, 371 P.2d 578].)

Crest’s promise to “furnish all necessary information upon demand” meets the first test enunciated in the Rheem ease. Although the employment tax returns might not be classified as “necessary information” were the payrolls available, the destruction of the payrolls left the tax returns as the only source of the information required to be furnished by the trust agreement. Inspection of copies of the tax returns is [279]*279clearly ‘1 necessary ’ ’ under these circumstances. Crest proposes that we interpret section 4.07 of the trust agreement as requiring it to furnish all necessary information unless the same be privileged. The language of section 4.07, however, is clear and explicit and does not limit Crest’s obligation.

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

Related

Yarnell v. Michael Cadillac, Inc. CA5
California Court of Appeal, 2025
Ingrande v. Autozoners, LLC
S.D. California, 2022
Arnold v. Unum Life Insurance Co. of America
726 F. Supp. 2d 1063 (N.D. California, 2010)
Fortunato v. Superior Court
8 Cal. Rptr. 3d 82 (California Court of Appeal, 2003)
Saridakis v. United Airlines
24 F. App'x 813 (Ninth Circuit, 2001)
Deary v. Superior Court
105 Cal. Rptr. 2d 132 (California Court of Appeal, 2001)
Silva v. GVF Cannery, Inc. (In Re GVF Cannery, Inc.)
188 B.R. 651 (N.D. California, 1995)
Russell v. Dopp
36 Cal. App. 4th 765 (California Court of Appeal, 1995)
Schnabel v. Superior Court
854 P.2d 1117 (California Supreme Court, 1993)
Alling v. Universal Manufacturing Corp.
5 Cal. App. 4th 1412 (California Court of Appeal, 1992)
FRESHMAN, MULVANEY, MARANTZ v. Superior Court
173 Cal. App. 3d 223 (California Court of Appeal, 1985)
Rubin v. Los Angeles Federal Savings & Loan Ass'n
159 Cal. App. 3d 292 (California Court of Appeal, 1984)
People v. McKenzie
668 P.2d 769 (California Supreme Court, 1983)
Harper v. Kaiser Cement Corp.
144 Cal. App. 3d 616 (California Court of Appeal, 1983)
Parks v. Parks
138 Cal. App. 3d 346 (California Court of Appeal, 1982)
People v. Mancheno
654 P.2d 211 (California Supreme Court, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
398 P.2d 150, 62 Cal. 2d 274, 42 Cal. Rptr. 110, 1965 Cal. LEXIS 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crest-catering-co-v-superior-court-cal-1965.