San Ramon Valley Fire Protection District v. Contra Costa County Employees' Retirement Ass'n

22 Cal. Rptr. 3d 724, 125 Cal. App. 4th 343, 2004 Daily Journal DAR 15285, 2004 Cal. Daily Op. Serv. 11363, 2004 Cal. App. LEXIS 2226
CourtCalifornia Court of Appeal
DecidedDecember 28, 2004
DocketA105588
StatusPublished
Cited by77 cases

This text of 22 Cal. Rptr. 3d 724 (San Ramon Valley Fire Protection District v. Contra Costa County Employees' Retirement Ass'n) 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
San Ramon Valley Fire Protection District v. Contra Costa County Employees' Retirement Ass'n, 22 Cal. Rptr. 3d 724, 125 Cal. App. 4th 343, 2004 Daily Journal DAR 15285, 2004 Cal. Daily Op. Serv. 11363, 2004 Cal. App. LEXIS 2226 (Cal. Ct. App. 2004).

Opinion

Opinion

RUVOLO, J.

This case requires us to decide whether litigation seeking judicial review of an action or decision by a public entity is subject to a special motion to strike under the anti-SLAPP statute, Code of Civil Procedure section 425.16, 1 merely because the challenged action or decision was taken by vote after discussion at a public meeting. Our answer is no. Even if the conduct of individual public officials in discussing and voting on *347 a public entity’s action or decision could constitute an exercise of rights protected under the anti-SLAPP statute—an issue we need not and do not reach—this does not mean that litigation challenging a public entity’s action or decision always arises from protected activity. In the present case, the litigation does not arise from the speech or votes of public officials, but rather from an action taken by the public entity administered by those officials. Moreover, that action was not itself an exercise of the public entity’s right of free speech or petition. We therefore affirm the trial court’s order denying the entity’s special motion to strike.

I.

Facts and Procedural Background

All of the parties to this appeal are public entities. 2 Appellant Contra Costa County Employees’ Retirement Association (CCCERA) is a county retirement system established under article XVI, section 17 of the California Constitution and the County Employees Retirement Law of 1937 (CERL). (Gov. Code, §§ 31450-31899.9.) Appellant Board of Retirement of Contra Costa County Employees’ Retirement Association (the Board) is the governing body of the Board. 3 Respondent San Ramon Valley Fire Protection District (District) is a special district within Contra Costa County.

The Board administers retirement benefits for employees of Contra Costa County and of various government entities within that county, including the District. In December 2000, the District entered into a memorandum of understanding with the union representing the District’s employees, under which the employees’ retirement benefits were increased. As both the Board and the District recognized, CERL required that the increased benefits be funded through increased contributions to the Board from the District and/or its employees. The Board therefore retained an actuary to determine the amount of those contributions. 4 In December 2002, the Board notified the District that in order to fund the increased benefits, the District would have to *348 pay nearly $2.3 million in accrued contributions as of January 31, 2003, plus interest from that date. 5

In February 2003, the District retained its own actuary, who disagreed with the methodology used by the Board’s actuary. Meanwhile, the Board retained a different actuary, who ultimately confirmed that the methodology of the Board’s first actuary was appropriate, though also recognizing that an alternative methodology could appropriately be used that would decrease the amount of the additional contribution to just under $1 million.

At a publicly noticed Board meeting on April 16, 2003, the Board’s actuary made a presentation regarding the alternative methods of calculating what the District owed for the increased benefits. He characterized the original actuary’s calculations as “accurate and consistent with the Board’s rating policies and past practices.” After discussion, the Board voted to adopt the original actuary’s methodology, with the correction it had already agreed to make, thus determining that the District would have to pay nearly $2.3 million to fund the increased benefits.

The District promptly requested reconsideration. At the Board’s meeting on May 7, 2003, a motion for reconsideration was moved and seconded, but the vote on the motion was split evenly at four votes in favor and four votes against. Under the Board’s regulations, the motion was deemed to have failed because it did not receive five affirmative votes.

On July 8, 2003, the District initiated the litigation out of which this appeal arose by filing a combined petition for mandamus (Code Civ. Proc., § 1085 6 ), petition for administrative mandamus (§ 1094.5), and complaint for declaratory relief against the Board. 7 The Board stipulated to the District’s filing of an amended petition and complaint in October 2003.

The basis for the District’s suit, as alleged in the petition, is the Board’s “failing to comply with the mandatory duties set forth in provisions of [CERE], . . . [and] abusing its discretion by acting without the guidance of any policy or precedent in the . . . Board’s April 16, 2003 action regarding imposing a higher alternative contribution on [the District] for implementation of retirement benefits, and the . . . Board’s May 7, 2003 action regarding denying the District’s motion for reconsideration based upon a four-to-four . . . vote.” The petition also alleges that the Board “violated clear ministerial *349 duties by refusing to exercise their fiduciary duty to [the District] in minimizing its employer contribution consistent with the principles of [CERE]”; complains of the Board’s failure to keep a verbatim record and swear in witnesses at board meetings; and asserts that the tie vote on the District’s motion for reconsideration should have been treated as a failure to act on the motion rather than as a denial.

The District’s petition seeks the issuance of writs of mandate, declaratory judgments, and associated equitable remedies requiring the Board to implement the increased retirement benefits based on a contribution by the District in the amount of $999,000; to void the adoption of the higher contribution rate for the District; to promulgate a consistent policy to guide the Board’s decisionmaking process in setting employer contribution rates; to provide adequate findings and evidence when choosing between actuarial valuations; to comply with its own regulations to ensure a fair hearing when reviewing employer contribution valuations; and to rehear the District’s motion for rehearing rather than deeming it denied by the evenly split vote.

On November 4, 2003, the Board filed a special motion to strike the petition under the anti-SLAPP statute. The District opposed the motion, and after a hearing on December 11, 2003, the trial court issued a minute order denying the motion in its entirety. The Board appealed, as permitted by section 425.16, subdivision (j).

n.

Motion to Dismiss

Before addressing the merits of the Board’s appeal, we must first consider the District’s motion to dismiss the appeal, which was taken under submission and deferred for consideration together with the merits.

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22 Cal. Rptr. 3d 724, 125 Cal. App. 4th 343, 2004 Daily Journal DAR 15285, 2004 Cal. Daily Op. Serv. 11363, 2004 Cal. App. LEXIS 2226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-ramon-valley-fire-protection-district-v-contra-costa-county-employees-calctapp-2004.