Scott v. City of San Diego

250 Cal. Rptr. 3d 432, 38 Cal. App. 5th 228
CourtCalifornia Court of Appeal, 5th District
DecidedAugust 1, 2019
DocketD074061
StatusPublished
Cited by14 cases

This text of 250 Cal. Rptr. 3d 432 (Scott v. City of San Diego) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scott v. City of San Diego, 250 Cal. Rptr. 3d 432, 38 Cal. App. 5th 228 (Cal. Ct. App. 2019).

Opinion

GUERRERO, J.

*434*231In 2015, San Diego Police Department Sergeant Arthur Scott sued the City of San Diego (City), alleging race discrimination and retaliation in violation of the Fair Employment and Housing Act ( Gov. Code, § 12900 et seq. (FEHA)). Scott rejected a $7,000 offer to compromise made by the City under Code of Civil Procedure section 9981 and proceeded to trial, where the City prevailed. The trial court awarded the City a total of $51,946.96 in costs incurred after it served its Code of Civil Procedure section 998 offer, even though the trial court had found that plaintiff's FEHA claims were not frivolous. While this appeal was pending, the Legislature amended FEHA's cost provision statute to specifically state that, notwithstanding section 998 of the Code of Civil Procedure , a prevailing defendant may not recover attorney fees and costs against a plaintiff asserting non-frivolous FEHA claims. (See Gov. Code, § 12965, subd. (b), as amended *232by Stats. 2018, ch. 955, § 5, eff. Jan. 1, 2019.) We conclude that, with this amendment, the Legislature sought to clarify existing law, rather than to change it. "A statute that merely clarifies, rather than changes, existing law is properly applied to transactions predating its enactment." ( Carter v. California Dept. of Veterans Affairs (2006) 38 Cal.4th 914, 922, 44 Cal.Rptr.3d 223, 135 P.3d 637 ( Carter ).) We therefore apply the amended statute here and reverse the trial court's award of costs to the City.

FACTUAL AND PROCEDURAL BACKGROUND

A. Trial Court Proceedings

In 2015, Scott sued the City, alleging race discrimination, harassment, and retaliation in violation of FEHA. ( Gov. Code, § 12940, subds. (h), (k).) Scott's central allegation was that he was passed over for promotion and ultimately forced to transfer after complaining about the police department's use of a racist cartoon during a mandatory training session.

The City denied Scott's allegations and moved for summary judgment or summary adjudication of his claims. The trial court determined procedural defects in the motion barred the City from obtaining summary adjudication, and further determined triable issues of material fact supported Scott's retaliation claim and precluded summary judgment.

The City served Scott with an offer to compromise under section 998, offering "$7,000 in satisfaction of all claims for damages, including costs and attorney's fees." Scott did not accept this offer.

In February 2017, a jury determined that Scott reasonably believed he was opposing racial discrimination or harassment by engaging in two of five alleged actions: reporting certain locker room posters and complaining about the use of a racist cartoon during training. The jury further determined Scott had been subjected to adverse employment actions as a result of *435engaging in these two actions. However, the jury concluded that Scott's engagement in protected FEHA activity was not a substantial motivating reason for the adverse employment actions. The trial court entered judgment for the City.

The City filed a memorandum of costs seeking recovery of nearly $70,000. Scott filed a motion to tax costs, contending the City was not entitled to costs because it could not show his lawsuit was objectively without merit when brought. In a tentative opinion, the trial court agreed with Scott that a prevailing defendant in a FEHA action was entitled to costs-including postoffer costs under section 998-only upon a showing, not made here, that plaintiff's claims were frivolous.

*233However, before making its tentative decision final, and at the City's request, the trial court continued Scott's motion to tax costs pending the City's request for publication of this court's decision in Sviridov v. City of San Diego (2017) 14 Cal.App.5th 514, 521, 223 Cal.Rptr.3d 1, which held that a court may award a prevailing defendant costs under section 998 in a FEHA case even when the action does not objectively lack merit.

Upon Sviridov 's publication, the trial court reversed its tentative decision and entered an order granting in part and denying in part Scott's motion to tax costs. The trial court found the City had not shown that Scott's action was objectively without foundation when brought or that Scott continued to litigate after it clearly became so. The trial court thus concluded the City was not entitled to costs incurred prior to serving its section 998 offer. The trial court further found Scott had not established that the City's section 998 offer was nominal, token, or made in bad faith. The trial court awarded the City a total of $51,946.96 in costs incurred after it served its section 998 offer, comprised of $32,328.28 of ordinary, nonexpert witness, postoffer court costs; $418.68 in discretionary postoffer costs; and $19,200 in discretionary postoffer expert witness fees.

Scott moved for reconsideration of the cost award based on the subsequently published decision in Arave v. Merrill Lynch, Pierce, Fenner & Smith, Inc. (2018) 19 Cal.App.5th 525, 228 Cal.Rptr.3d 120 ( Arave ), which disagreed with Sviridov. The trial court confirmed its ruling allowing the City to recover postoffer costs, noting that Arave did not persuade the court to change its ruling.

B. Arguments on Appeal

Scott challenges the trial court's order awarding costs to the City pursuant to section 998. In his initial briefing on appeal, Scott argues a defendant who prevails in a FEHA action is not entitled to costs or expert witness fees under section 998 absent a showing that plaintiff's action was objectively groundless.2 Scott alternatively contends the City's section 998 offer was nominal and not made in good faith, such that it should not trigger section 998's cost allocation provisions. In response, the City maintains the trial court properly awarded costs under section 998, subdivision (c), and its $7,000 offer was not made in bad faith. These arguments by both parties are based on the version of section 12965, subdivision (b), which was in effect when the trial court ruled.

*234

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Cite This Page — Counsel Stack

Bluebook (online)
250 Cal. Rptr. 3d 432, 38 Cal. App. 5th 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-city-of-san-diego-calctapp5d-2019.