Serrano v. Stefan Merli Plastering Co., Inc.

262 P.3d 568, 52 Cal. 4th 1018, 132 Cal. Rptr. 3d 358, 2011 Cal. LEXIS 10963
CourtCalifornia Supreme Court
DecidedOctober 31, 2011
DocketS183372
StatusPublished
Cited by52 cases

This text of 262 P.3d 568 (Serrano v. Stefan Merli Plastering Co., Inc.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Serrano v. Stefan Merli Plastering Co., Inc., 262 P.3d 568, 52 Cal. 4th 1018, 132 Cal. Rptr. 3d 358, 2011 Cal. LEXIS 10963 (Cal. 2011).

Opinions

Opinion

CORRIGAN, J.

Code of Civil Procedure section 1021.5 authorizes an award of attorney fees to a “private attorney general,” that is, a party who secures a significant benefit for many people by enforcing an important right affecting the públic interest.1 In Adoption of Joshua S. (2008) 42 Cal.4th 945 [70 Cal.Rptr.3d 372, 174 P.3d 192] (Joshua S.), we decided that a section 1021.5 fee award may not be imposed on a litigant who did nothing to adversely affect the public interest, but simply lost an important appellate case in the course of pursuing his or her private rights. (Joshua S., at p. 958.)

In this case, plaintiffs objected to paying an extra fee for an expedited transcript of a deposition noticed by defendant. They won an appeal establishing that trial courts have the authority to determine the reasonableness of [1021]*1021fees charged by deposition reporters to nonnoticing parties. On remand, the trial court found that the fee charged to plaintiffs was unreasonable, but denied their motion for an award of attorney fees under section 1021.5. Relying on Joshua S., the court concluded that plaintiffs had acted in their own interest and only incidentally conferred a benefit on other litigants. The Court of Appeal, in a split decision, affirmed. We granted plaintiffs’ petition for review, in order to clarify the scope of our holding in Joshua S.

We conclude that Joshua S. has no application here. Deposition reporters are officers of the court, regulated by statute, who perform a public service of considerable importance to litigants and members of the public. The reporting service here did not merely seek to vindicate its private rights. It defended its institutional interest in controlling the fees it charges, and sought to shield itself from judicial review of its conduct as a ministerial officer of the court. Moreover, it was found to have charged plaintiffs an unreasonable fee. The courts below erred by concluding that the service did nothing adverse to the public interest, and that plaintiffs’ appeal did not involve an important right affecting the public interest.

BACKGROUND

In the underlying personal injury action, which eventually settled, defendant took the deposition of a plaintiffs’ expert and requested an expedited transcript. The reporting service, Coast Court Reporters, Inc. (Coast), asked plaintiffs’ counsel whether he too wanted an expedited transcript. He did, and Coast sent counsel a bill including a fee for expediting the copy.2 Counsel objected to the additional charge. Coast refused to expedite the transcript without payment of the fee. Counsel asked the trial court to require Coast to provide the transcript without the extra cost. Coast and plaintiffs’ counsel agreed that the court’s ruling would determine the validity and reasonableness of its fee, and would govern the fees for other expedited transcripts in the action. Coast delivered the transcript to plaintiffs, deferring payment until the court ruled.

The trial court found that Coast’s practice of charging the nonnoticing party a fee for expedited transcripts was “unconscionable.” However, the court believed it had no authority to determine how much a deposition reporter may charge for transcripts. It ordered plaintiffs to pay the full amount [1022]*1022charged by Coast, but invited them to seek appellate review. Plaintiffs did so, and prevailed. (Serrano v. Stefan Merli Plastering Co., Inc. (2008) 162 Cal.App.4th 1014, 1037 [76 Cal.Rptr.3d 559] (Stefan I).)

In Stefan I, the Court of Appeal observed that depositions must be conducted under the supervision of an officer qualified to administer an oath. (§ 2025.320.) While the officer and the stenographer who records the testimony need not be the same person, they usually are, and that practice was followed here.3 (Stefan I, supra, 162 Cal.App.4th at p. 1033.) The court further observed that deposition officers are ministerial officers of the court (Burns v. Superior Court (1903) 140 Cal. 1, 9 [73 P. 597]), who are subject to the court’s statutory and inherent authority over judicial proceedings (§ 128, subd. (a)(5); Walker v. Superior Court (1991) 53 Cal.3d 257, 266-267 [279 Cal.Rptr. 576, 807 P.2d 418]).4 (Stefan I, supra, 162 Cal.App.4th at p. 1035.)

Section 2025.510, subdivision (c) allows a nonnoticing party to obtain a copy of a deposition transcript at its own expense. Stefan I reasoned that the trial court “obviously should be able to enforce this statutory right by ordering the deposition reporter to provide a copy of the transcript ... on condition of the party’s payment of the ‘expense’ of the copy.” (Stefan I, supra, 162 Cal.App.4th at p. 1035, citing § 128.5, subd. (a)(5).) Coast argued that while the court could order a reporter to provide a copy of a transcript, it could not regulate the amount of the fee charged by the reporter. The Court of Appeal disagreed, pointing out that the nonnoticing party has no contractual relationship with the reporter, who is selected by the noticing party. Thus, the nonnoticing party is in no position to bargain for lower rates. Indeed the reporter may have an incentive to offer lower rates to the noticing party while shifting some of its costs of service to the nonnoticing party. (Stefan I, supra, 162 Cal.App.4th at pp. 1035-1036.)

“In light of the importance of deposition testimony in a pending action and the nonnoticing party’s lack of bargaining power, a trial court must be cautious not to lend assistance to overreaching by the deposition reporter. For a deposition reporter to refuse to provide a copy of a transcript to a nonnoticing party in a pending action unless the party agrees to pay an unreasonable fee would be grossly unfair.” (Stefan I, supra, 162 Cal.App.4th [1023]*1023at p. 1036.) Thus, “the only monetary condition that the court may properly place upon the nonnoticing party’s right to receive a copy of the deposition transcript would be payment of a reasonable fee.” (Ibid..) The court found support for this conclusion in section 2025.570, subdivision (a), which applies to nonparties, and specifies that the fee charged to “any person requesting a copy” of a deposition transcript must be “reasonable.”5 6It would be “anomalous indeed,” said the court, “for the Legislature to require a deposition officer to provide a copy of a deposition transcript to a nonparty for a reasonable fee while denying the same protection for a litigating party.” (Stefan I, at pp. 1036-1037.)

Stefan I distinguished and disagreed with Urban Pacific Equities Corp. v. Superior Court (1997) 59 Cal.App.4th 688 [69 Cal.Rptr.2d 635] (Urban Pacific), which had led the trial court to believe it had no authority to set Coast’s fee. The Urban Pacific court rejected a nonnoticing party’s argument that it was entitled to obtain a copy of a deposition transcript by serving a “business records subpoena.” (Urban Pacific, supra, 59 Cal.App.4th at p.

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Cite This Page — Counsel Stack

Bluebook (online)
262 P.3d 568, 52 Cal. 4th 1018, 132 Cal. Rptr. 3d 358, 2011 Cal. LEXIS 10963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serrano-v-stefan-merli-plastering-co-inc-cal-2011.