Holmgren v. County of Los Angeles

71 Cal. Rptr. 3d 611, 159 Cal. App. 4th 593, 27 I.E.R. Cas. (BNA) 194, 2008 Cal. App. LEXIS 148
CourtCalifornia Court of Appeal
DecidedJanuary 30, 2008
DocketB194130
StatusPublished
Cited by11 cases

This text of 71 Cal. Rptr. 3d 611 (Holmgren v. County of Los Angeles) 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
Holmgren v. County of Los Angeles, 71 Cal. Rptr. 3d 611, 159 Cal. App. 4th 593, 27 I.E.R. Cas. (BNA) 194, 2008 Cal. App. LEXIS 148 (Cal. Ct. App. 2008).

Opinion

Opinion

VOGEL, J.

As expressly authorized by its charter and by section 31000 of the Government Code, the County of Los Angeles outsourced engineering work to two firms which over the course of many years provided engineers to perform specified work for the county. The engineers were employees of the contracting firms and paid by the contracting firms, and all signed written acknowledgements that they were not employees of the county and not entitled to any of the benefits available to county employees. Three of these engineers nevertheless filed this class action against the county, contending they were the county’s “common law employees” and, as such, entitled to civil service and retirement benefits under the county’s retirement plan. The trial court disagreed and so do we.

FACTS

A.

In 1989, the county entered into “Master Agreements” with MiniSystems Associates and TAD Resources International, Inc. (the contractors), pursuant to which the county agreed to (and did) solicit bids from the contractors for specific work to be accomplished by telecommunications engineers and support staff for a specific period of time. In response, the contractors agreed to (and did) bid specific individuals (engineers and support staff the contractors had hired as their own employees), and the county then executed work orders with the contractor submitting the lowest qualified bid (there were many of these contracts over a period of years). In every instance, the contractors billed the county for the work performed, and the county paid the contractors, not the engineers. The Master Agreements made the contractors “solely liable” for the engineers’ compensation and benefits, and expressly prohibited the county from soliciting the engineers except through public hiring announcements.

John Holmgren, Michael Sheppa, and Keith Johnston were hired by the contractors, and in that capacity all three performed engineering services for *598 the county between 1989 and 2000. Holmgren, Sheppa and Johnston (henceforth collectively Holmgren) each acknowledged in writing that he was not a county employee, and all were paid only by the contractors, not by the county. 1

B.

In September 2000, Holmgren filed a government tort claim (Gov. Code, § 940 et seq.) with the county, asserting that the county had “improperly, inaccurately and falsely mislabeled [him] as [a] ‘contract employee[],’ ‘leased employee[],’ ‘independent contractor[],’ ‘temporary employee[],’ and/or employee[] of various employment agencies, even though both factually and legally [he is] and/or [was a] common law employee[] of the County.” The county denied the claim. In November, Holmgren (on behalf of himself and others similarly situated) filed this class action against the county and, in March 2002, filed his second amended complaint, the operative pleading, petitioning for a writ of mandate and alleging four causes of action—denial of equal protection, breach of the county’s duty to properly designate employees, breach of statutory and third party beneficiary contracts, and other statutory violations. 2

The theme of the second amended complaint is that Holmgren, although “pay-rolled” through one of the contractors and “misdesignated” as a contract employee, was screened, interviewed, and effectively hired by the county; worked solely on county business; had his salary fixed by the county; was subject to the direct supervision and control of the county; and used county facilities, equipment and supplies to perform county business. More specifically, he alleged that the work he performed was the same as or similar to that performed by “recognized County employees” with whom he worked side by side—but that he was nevertheless paid lower wages and did not receive the benefits received by the county’s “recognized” workers (including retirement pensions, paid vacation and sick leave, grievance procedures, and step salary increases). 3

*599 The county answered, discovery ensued, and in July 2005 the trial court certified a class defined as all “persons who, currently or in the past, have performed services for the County, where the performance of such services was not of a temporary (less than one year), emergency or recurrent nature, who were not treated as classified County employees (e.g., ‘contract employees,’ ‘leased employees,’ ‘temporary employees,’ and/or ‘independent contractors,’ who were not on the County’s classified employees payroll and who did not receive retirement or customary employee benefits under the County Charter or County Code), but who worked for the County as part of an integrated work force with classified County employees subject to supervision by County employees, under common law principles, and who have been paid by entities other than the County and/or directly by the County with payments reported on IRS Form 1099. Excluded from this class are members of the class certified in Shiell v. County of Los Angeles, BC208582, and all officers and unclassified positions as defined by the County Charter and County Code.” 4

C.

Based on a stipulated case management plan, stipulated facts, and some (but not much) additional evidence, the trial court heard and decided three “threshold issues,” as follows.

Threshold Issue No. 1 asked: “Is plaintiffs’ lawsuit (or any of the individual causes of action alleged in their complaint) time-barred, or are recoverable remedies, damages or money limited, in whole or in part, under applicable statutes of limitations or Government Claims Act presentation requirements?”

In October 2005, the trial court, applying the three-year period of limitations (Code Civ. Proc., § 338, subd. (a)), ruled (1) that the period of limitations began to run from the date each class member was first hired as a contractor or rehired by the county, and (2) that the class members’ monetary claims were “central” to this litigation (not merely incidental to the writ relief *600 sought by way of mandamus) and subject to the Government Tort Claims Act, thus barring claims for damages outside the one-year claim period.

Threshold Issue No. 2 asked: “In the event the plaintiffs are found to be common law employees of the County upon application of common law employment factors, are they entitled to salary, benefits . . . and protections provided classified employees under the County Charter, the County Code, and the Los Angeles County Civil Service Commission Rules?”

In May 2006, the trial court ruled that county employment is not governed by the common law definition of employment, and that the class members were not entitled to salary benefits or protections provided to the county’s civil service employees. The court held that the county’s comprehensive civil service scheme “determine[s] who is a civil service employee, and how one is to become a civil service employee”—and that “compliance with the civil service system is the only way to attain civil service status, as well as its salary, benefits .

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Cite This Page — Counsel Stack

Bluebook (online)
71 Cal. Rptr. 3d 611, 159 Cal. App. 4th 593, 27 I.E.R. Cas. (BNA) 194, 2008 Cal. App. LEXIS 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmgren-v-county-of-los-angeles-calctapp-2008.