Sandoval v. Nippon Life Ins. Co. of America CA4/2

CourtCalifornia Court of Appeal
DecidedDecember 12, 2022
DocketE077245
StatusUnpublished

This text of Sandoval v. Nippon Life Ins. Co. of America CA4/2 (Sandoval v. Nippon Life Ins. Co. of America CA4/2) 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
Sandoval v. Nippon Life Ins. Co. of America CA4/2, (Cal. Ct. App. 2022).

Opinion

Filed 12/12/22 Sandoval v. Nippon Life Ins. Co. of America CA4/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION TWO

MICHAEL SANDOVAL,

Plaintiff and Appellant, E077245

v. (Super.Ct.No. RIC2003903)

NIPPON LIFE INSURANCE OPINION COMPANY OF AMERICA,

Defendant and Respondent.

APPEAL from the Superior Court of Riverside County. Craig Riemer, Judge.

Affirmed.

Apex Trial Law and Ryan M. Ferrell for Plaintiff and Appellant.

Nippon Life Benefits, Justin Wax Jacobs; Hinshaw & Culbertson; Maynard

Cooper and Gale and Misty A. Murray for Defendant and Respondent.

1 I. INTRODUCTION

Plaintiff and appellant, Michael Sandoval, sued defendant and respondent, Nippon

Life Insurance Company of America (Nippon), alleging a single cause of action for

“violations of the Unruh Civil Rights Act” (Civ. Code, §§ 51, 52)1 (the UCRA).

Sandoval dismissed his complaint, without prejudice, after the parties exchanged written

discovery and Nippon sought further responses to its written discovery. Nippon then

moved to recover $45,419.50 in attorney fees pursuant to two attorney fee shifting

statutes: (1) Civil Code section 55, and (2) section 2000a-3b of the Americans with

Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.) (the ADA).

Section 55 is part of the Disabled Persons Act (the DPA) (§§ 54-55.3) and is a

mandatory, bilateral fee shifting provision (Jankey v. Lee (2012) 55 Cal.4th 1038, 1045

(Jankey)). Section 55 entitles the prevailing party in an action to enjoin a violation of

section 54 or 54.1 (provisions of the DPA) to reasonable attorney fees. (Ibid.) Under the

UCRA, a prevailing defendant may not recover attorney fees. (Jankey, at pp. 1044-1045;

§ 52, subd. (b)(3).) Under the ADA, a prevailing defendant may recover attorney fees

only if the ADA claim was frivolous. (See Jankey, at p. 1047; 42 U.S.C. § 12205.)

In an April 23, 2021 order, the court awarded Nippon its requested $45,419.50 in

attorney fees pursuant section 55. The court did not determine whether Nippon was also

entitled to fees under the ADA. Sandoval appeals from the April 23 order, claiming the

1 Undesignated statutory references are to the Civil Code. Although the UCRA is set forth in section 51, remedies for violating section 51 (the UCRA) are set forth in section 52. (Flowers v. Prasad (2015) 238 Cal.App.4th 930, 937-938.)

2 fee award must be reversed for two reasons: (1) Nippon is not the prevailing party

because the complaint was dismissed without prejudice, and (2) section 55 does not apply

because the complaint did not allege a cause of action or seek any relief under the DPA.

For its part, Nippon argues that the April 23 order is not appealable, and Nippon was

entitled to attorney fees under section 55 and the ADA.

We affirm the order awarding Nippon attorney fees under section 55. As we first

explain, the order is appealable, and Nippon is the prevailing party in this action for

purposes of recovering its costs of suit, including attorney fees authorized by statute.

(Code Civ. Proc., §§ 1032, subd. (a)(4), 1033.5.) Second, Nippon was entitled to recover

reasonable attorney fees under section 55. The complaint alleged a single cause of action

under the UCRA, but it did not limit its request for injunctive relief to injunctive relief

under the UCRA. (§ 52, subd. (a).) Instead, it sought a form of injunctive relief that is

only available under section 55 and that is not available under the UCRA. (Ibid.)2 Thus,

the fee award was authorized under section 55.

II. FACTUAL AND PROCEDURAL BACKGROUND

A. Nippon’s Website

Nippon is an insurance company incorporated in the State of Iowa, and its

principal place of business is in New York, New York. Nippon’s only form of business

is “the sale of employer based (ERISA) group insurance policies for medical, dental,

2 In addition to its $45,419.50 in attorney fees, Nippon was awarded $1,450.99 in costs pursuant to Nippon’s unopposed memorandum of costs. (Cal. Rules of Court, rule 3.1700(a).) Sandoval did not move to tax these costs and does not challenge the $1,450.99 cost award in this appeal.

3 vision, disability and life products.” Nippon does not sell individual insurance policies,

nor does it sell group insurance policies “directly to individuals.” It only sells group

insurance policies to employers, usually through brokers or general agents. Individuals

are ineligible to be “ ‘ members’ ” of any Nippon-issued policy unless they are “part of

an employer offered insurance group.”

Nippon has been licensed to sell its group insurance policies in 47 states and the

District of Columbia. Nippon does business in California and owns and maintains a

website that is available in California, but Nippon does not sell insurance products or

services on its website. Nippon also has no “brick and mortar” locations that are open or

accessible to the public.

B. The Complaint

The complaint alleges Sandoval is completely blind and uses a screen reader to

access the internet and its content. In early 2020, Sandoval visited Nippon’s website but

was denied access “due to numerus barriers” in the website that “negated the use of a

screen reader.” The website did not comply with “nearly universally accepted” “Web

Content Accessibility Guidelines” known as “ ‘WCAG 2.0.’ ” The website was a

“ ‘public accommodation’ ” within the meaning of the ADA (42 U.S.C. §12181(7)) and a

“ ‘business establishment’ ” within the meaning of the UCRA (Civ. Code, § 51,

subd. (b)). The website’s inaccessibility to blind persons violated Title III of the ADA,

which prohibits discrimination against disabled individuals in places of public

accommodation (42 U.S.C. § 12182(a)), and the UCRA, which decrees that any violation

4 of any right of any disabled individual under the ADA is also a violation of the UCRA

(Civ. Code, § 51, subd. (f)).

Based on these allegations, the complaint alleged a single cause of action for

“violations” of the UCRA. The complaint more specifically alleged that Nippon’s

actions in creating the inaccessible website constituted “intentional discrimination” for

purposes of the UCRA and an ADA violation, which “also equates to” a UCRA

violation.3 The complaint expressly alleged “[p]ursuant to the Unruh Civil Rights Act”

that Sandoval was entitled to injunctive relief requiring Nippon to “remove the barriers”

on its website “in order to provide full and equal access to Plaintiff and other blind

consumers.” The complaint claimed Sandoval was entitled to statutory damages “for

each discriminatory event,” “[p]ursuant to Civil Code § 52.”

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