Ghost Golf, Inc. v. Newsom

CourtCalifornia Court of Appeal
DecidedMay 20, 2024
DocketF085403
StatusPublished

This text of Ghost Golf, Inc. v. Newsom (Ghost Golf, Inc. v. Newsom) 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.

Bluebook
Ghost Golf, Inc. v. Newsom, (Cal. Ct. App. 2024).

Opinion

Filed 5/20/24

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIFTH APPELLATE DISTRICT

GHOST GOLF, INC., et al., F085403 Plaintiffs and Appellants, (Super. Ct. No. 20CECG03170) v.

GAVIN NEWSOM, as Governor, etc., et al., OPINION Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Fresno County. D. Tyler Tharpe, Judge. Pacific Legal Foundation and Luke A. Wake for Plaintiffs and Appellants. NFIB Small Business Legal Center, Elizabeth Milito, Rob Smith; Benbrook Law Group, Bradley A. Benbrook and Stephen M. Duvernay, for National Federation of Independent Business Small Business Center as Amicus Curiae on behalf of Plaintiffs and Appellants. Competitive Enterprise Institute, Dan Greenberg, Devin Watkins; Scharf Norton Center for Constitutional Litigation at the Goldwater Institute and Timothy Sandefur for Competitive Enterprise Institute and Goldwater Institute as Amici Curiae on behalf of Plaintiffs and Appellants. Dhillon Law Group, Harmeet K. Dhillon and Krista L. Baughman for Association of American Physicians and Surgeons as Amicus Curiae for Plaintiffs and Appellants. Rob Bonta, Attorney General, Thomas S. Patterson, Assistant Attorney General, Paul Stein and Aaron Jones, Deputy Attorneys General, for Defendants and Respondents. -ooOoo- In August 2020, Governor Gavin Newsom and the California Department of Public Health (CDPH) introduced the Blueprint for a Safer Economy, which implemented a color-coded, risk-based framework for tightening and loosening restrictions on activities during the COVID-19 pandemic. The Governor and CDPH issued the Blueprint under the authority granted to the Governor under the Emergency Services Act (Gov. Code, § 8550 et seq.) 1 (ESA) and the authority granted to CDPH under Health and Safety Code section 120140. 2 The Blueprint regime included restrictions on business activities, including customer capacity limitations. Plaintiffs are Central California businesses and their owners. Ghost Golf, Inc. operates an indoor mini-golf course in Fresno County and Daryn Coleman is a shareholder. 3 Sol y Luna is a Mexican restaurant in Kern County owned by Nieves Rubio. In October 2020, plaintiffs filed suit against the Governor and three other persons they claim were each responsible in some way for creating and enforcing the Blueprint. Plaintiffs alleged causes of action for declaratory and permanent injunctive relief, contending the Blueprint’s creation and enforcement are unlawful. They alleged the Governor and CDPH lacked statutory authority to implement the Blueprint, and

1 Undesignated statutory references are to the Government Code.

2 Health and Safety Code section 120140 reads: “Upon being informed by a health officer of any contagious, infectious, or communicable disease the department may take measures as are necessary to ascertain the nature of the disease and prevent its spread. To that end, the department may, if it considers it proper, take possession or control of the body of any living person, or the corpse of any deceased person.” 3 The complaint identifies Coleman as the “owner” of Ghost Golf, Inc. We assume this means he is a shareholder, but we do not know if he is the only shareholder.

2. alternatively, that broadly interpreting the ESA and Health and Safety Code section 120140 conferred unfettered discretion on defendants to impose restrictions on businesses, violating the California Constitution’s non-delegation doctrine. Their complaint included a request for nominal damages. They claimed their businesses were put in jeopardy of permanently closing because the Blueprint’s restrictions prevented them from operating at profitable levels. Shortly after suing, plaintiffs moved for a preliminary injunction seeking to enjoin the enforcement of the Blueprint, which the trial court denied. Plaintiffs appealed from the order denying their motion. On June 11, 2021, after appellate briefing was completed, the Governor issued an executive order rescinding the Blueprint. In a written opinion, we dismissed the appeal as moot because we could no longer grant plaintiffs effective relief on their motion for a preliminary injunction. (Ghost Golf, Inc. v. Newsom 2021 WL 3483271, at p. 1 (Ghost Golf I).) After Ghost Golf I, the parties cross-moved for summary judgment. The trial court granted defendants’ motion and denied plaintiffs’ motion, holding that the Third District Court of Appeal’s decision in Newsom v. Superior Court (Gallagher) (2021) 63 Cal.App.5th 1099, review denied (Aug. 11, 2021) (Gallagher), had rejected the same challenges to the Governor’s emergency powers that plaintiffs assert. Finding the Blueprint was authorized by the ESA, the trial court found it did not need to address whether the Health and Safety Code independently authorized CDPH to implement the Blueprint. The court entered judgment in defendants’ favor. Before any briefs on the merits were submitted, defendants moved to dismiss this appeal as moot because the Blueprint has been rescinded. Plaintiffs opposed the motion. We deferred ruling on the motion, and the parties went on to submit briefs. We deny defendants’ motion to dismiss this appeal as moot but affirm the judgment. We follow Gallagher and conclude it governs the outcome of this appeal.

3. BACKGROUND In Ghost Golf I, we set forth the background of the filing of this action: “In response to the COVID-19 pandemic, Governor Newsom declared a state of emergency in California on March 4, 2020. He then issued a general stay-at-home order on March 19, 2020, that indefinitely prohibited ‘non-essential businesses’ from operating. All non-essential businesses remained closed until May 4, 2020, when Governor Newsom issued Executive Order N-60-20, which allowed the State of California to begin reopening non-essential businesses in phases. Executive Order N-60-20 delegated authority to the California Public Health Officer ‘to take any action she deems necessary to protect public health in the face of the threat posed by COVID-19.” “On July 1, 2020, Governor Newsom ordered many businesses, including dine-in restaurants and family entertainment centers, to cease indoor operations in counties on the ‘State’s County Monitoring List,’ which then included Fresno and Kern Counties. On July 13, 2020, Governor Newsom required closure of indoor operations for dine-in restaurants and family entertainment centers statewide, and imposed restrictions on indoor operations for various other businesses in the counties on the State’s County Monitoring List.” “On August 28, 2020, the Governor and [CDPH] announced they were replacing the County Monitoring List with the Blueprint. The Blueprint created a color-coded, tiered system that assigned each California county a color (purple, red, orange, or yellow) based on its assessed risk level for COVID-19 transmission and imposed corresponding restrictions for different sectors. The color-coding for each county was updated weekly.” “Under the Blueprint regime, indoor family entertainment centers were required to remain closed completely so long as a county was classified as either ‘purple’ or ‘red.’ They could operate at 25 percent capacity in counties in the ‘orange’ tier and 50 percent capacity in the ‘yellow’ tier.”

4. “Similarly, the Blueprint prohibited indoor dining in ‘purple’ counties and imposed restrictions on indoor operations in the other tiers. Restaurants in ‘red’ counties were limited to operating at 25 percent capacity and could not, under any condition, seat more than 100 people. Restaurants in ‘orange’ counties were prohibited from operating at more than 50 percent capacity and could not, under any condition, seat more than 200 people. Restaurants in ‘yellow’ counties were also limited to 50 percent capacity.” “On October 26, 2020, plaintiffs filed suit against defendants in Fresno County Superior Court.

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Ghost Golf, Inc. v. Newsom, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ghost-golf-inc-v-newsom-calctapp-2024.