People ex rel. Harris v. Sunset Car Wash, LLC

205 Cal. App. 4th 1433, 141 Cal. Rptr. 3d 308, 19 Wage & Hour Cas.2d (BNA) 161, 2012 WL 1700450, 2012 Cal. App. LEXIS 575
CourtCalifornia Court of Appeal
DecidedMay 16, 2012
DocketNo. B233915
StatusPublished
Cited by2 cases

This text of 205 Cal. App. 4th 1433 (People ex rel. Harris v. Sunset Car Wash, LLC) 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
People ex rel. Harris v. Sunset Car Wash, LLC, 205 Cal. App. 4th 1433, 141 Cal. Rptr. 3d 308, 19 Wage & Hour Cas.2d (BNA) 161, 2012 WL 1700450, 2012 Cal. App. LEXIS 575 (Cal. Ct. App. 2012).

Opinions

Opinion

KRIEGLER, J.

Labor Code section 20501 et seq. established a regulatory scheme for carwash operators, motivated by a legislative concern that car-wash employees were not being paid in accordance with law. One component of the statutory scheme—section 2066—imposes liability upon a “successor” to a carwash employer for unpaid wages and penalties owed by a predecessor employer in four circumstances, including where the successor uses the same facilities to perform substantially the same services as the predecessor. We hold that the four circumstances of liability set forth in section 2066 determine the meaning of “successor,” and there is no need to look to other statutes and case law to further define the term. We further hold that imposition of liability against a successor who operates at the same location as a predecessor carwash employer does not constitute a violation of due process.

BACKGROUND

Plaintiff and respondent The People of the State of California ex rel. Kamala D. Harris, as Attorney General, filed an action against defendant and appellant Sunset Car Wash, LLC, seeking to recover unpaid wages and penalties owed by defendant Auto Spa Express, Inc. (Auto Spa),2 which had operated a carwash at the same location before being evicted by the property owner, Sunset Alvarado Investors, LLC. In denying a motion for summary judgment filed by Sunset Car Wash, the trial court ruled that Sunset Car Wash was a successor to Auto Spa as defined in section 2066, because it operated at the same location and performed the same services. Based on the court’s ruling, the People and Sunset Car Wash agreed to entry of a judgment in favor of the People in the amount of $120,000. Execution of the judgment was stayed pending an appeal by Sunset Car Wash on two issues—whether [1436]*1436Sunset Car Wash was a successor for purposes of section 2066, and if liability violates due process of law.

FACTS

The facts are undisputed and may be briefly stated. Auto Spa operated a carwash on Sunset Boulevard in Los Angeles. Sunset Alvarado Investors, which held a note secured by a trust deed on the Sunset Boulevard property, foreclosed on the property, evicted Auto Spa, and leased the same premises to Sunset Car Wash. Auto Spa had failed to pay minimum wage and overtime to its employees and denied paid rest breaks. The People brought this action to hold Sunset Car Wash liable for the wages and penalties owed by Auto Spa.

DISCUSSION

Sunset Car Wash contends section 2066 does not apply to its operation, because it is not a “successor” for purposes of the statute. It argues statutes are not construed in isolation, and “successor” under section 2066 should be defined by reference to court-established definitions of the word, citing to the discussions of “successor” in Ray v. Alad Corp. (1977) 19 Cal.3d 22 [136 Cal.Rptr. 574, 560 P.2d 3] {Alad Corp.) and Superior Care Facilities v. Workers’ Comp. Appeals Bd. (1994) 27 Cal.App.4th 1015 [32 Cal.Rptr.2d 918] {Superior Care). The People argue that section 2066 contains a self-executing definition of “successor” in the four categories of liability set forth in the statute and resort to external definitions would render “successor” mere surplusage.

Section 2066

The Legislature was motivated to regulate the carwash industry in 2003 by its findings that operators employed practices that sometimes resulted in violation of the state’s labor laws, and other attempts to enforce the law had proven ineffective. (Historical and Statutory Notes, 44C West’s Ann. Lab. Code (2011 ed.) foil. § 2066, p. 21.) The regulatory scheme established “ ‘a system of registration, bonding requirements, and enforcement to impose prompt and effective civil sanctions for the violation of the provisions set forth in this act or any provision of law applicable to the employment of workers in the car washing and polishing industry.’ ” (Historical and Statutory Notes, 44C West’s Ann. Lab. Code, supra, foil. § 2050, p. 8.) The provision of the scheme at issue here, section 2066, provides as follows:

“A successor to any employer that is engaged in car washing and polishing that owed wages and penalties to the predecessor’s former employee or employees is liable for those wages and penalties if the successor meets any of the following criteria:
[1437]*1437“(a) Uses substantially the same facilities or workforce to offer substantially the same services as the predecessor employer.
“(b) Shares in the ownership, management, control of the labor relations, or interrelations of business operations with the predecessor employer.
“(c) Employs in a managerial capacity any person who directly or indirectly controlled the wages, hours, or working conditions of the affected employees of the predecessor employer.
“(d) Is an immediate family member of any owner, partner, officer, or director of the predecessor employer of any person who had a financial interest in the predecessor employer.”

Standard of Review

The rules of statutory interpretation are well settled. The goal of interpretation is to determine legislative intent in order to carry out the law’s purpose. (Olson v. Automobile Club of Southern California (2008) 42 Cal.4th 1142, 1147 [74 Cal.Rptr.3d 81, 179 P.3d 882] (Olson); Green v. State of California (2007) 42 Cal.4th 254, 260 [64 Cal.Rptr.3d 390, 165 P.3d 118] (Green).) We begin our analysis by examination of the language of the statute. (Olson, supra, at p. 1147; Beal Bank, SSB v. Arter & Hadden, LLP (2007) 42 Cal.4th 503, 507 [66 Cal.Rptr.3d 52, 167 P.3d 666] (Beal Bank).) “The statute’s plain meaning controls the court’s interpretation unless its words are ambiguous. If the plain language of a statute is unambiguous, no court need, or should, go beyond that pure expression of legislative intent.” (Green, supra, at p. 260, citing DaFonte v. Up-Right, Inc. (1992) 2 Cal.4th 593, 601 [7 Cal.Rptr.2d 238, 828 P.2d 140].) However, if the statutory language is ambiguous, additional sources of information are consulted to determine the Legislature’s intent. (Olson, supra, at p. 1147; Beal Bank, supra, at p. 508.)

Interpretation of Successor Liability Under Section 2066

We agree with the trial court that the plain meaning of “successor” for purposes of section 2066 is any entity defined in the four statutory clauses establishing successor liability for unpaid wages and penalties owed by a predecessor operator of a carwash. Because the statutory language is clear on its face, there is no need to look beyond the language of section 2066 to establish the intent of the Legislature.

Sunset Car Wash is unable to identify any language in section 2066 demonstrating the Legislature intended “successor” to mean anything other [1438]

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Bluebook (online)
205 Cal. App. 4th 1433, 141 Cal. Rptr. 3d 308, 19 Wage & Hour Cas.2d (BNA) 161, 2012 WL 1700450, 2012 Cal. App. LEXIS 575, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-harris-v-sunset-car-wash-llc-calctapp-2012.