Stop Youth Addiction, Inc. v. Lucky Stores, Inc.

950 P.2d 1086, 17 Cal. 4th 553, 98 Cal. Daily Op. Serv. 1280, 71 Cal. Rptr. 2d 731, 98 Daily Journal DAR 1765, 1998 Cal. LEXIS 902
CourtCalifornia Court of Appeal
DecidedFebruary 23, 1998
DocketNo. S055373
StatusPublished
Cited by234 cases

This text of 950 P.2d 1086 (Stop Youth Addiction, Inc. v. Lucky Stores, Inc.) 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
Stop Youth Addiction, Inc. v. Lucky Stores, Inc., 950 P.2d 1086, 17 Cal. 4th 553, 98 Cal. Daily Op. Serv. 1280, 71 Cal. Rptr. 2d 731, 98 Daily Journal DAR 1765, 1998 Cal. LEXIS 902 (Cal. Ct. App. 1998).

Opinions

[558]*558Opinion

WEKDEGAR, J.

The question presented is whether a private, for-profit corporation may maintain on behalf of the general public an unfair competition action against a retailer that, in violation of the Penal Code, sells cigarettes to minors. We conclude such an action is authorized under Business and Professions Code1 sections 17200 through 17209 (the unfair competition law, or UCL).2 Accordingly, we affirm the judgment of the Court of Appeal.

Facts

“Because this matter comes to us after the trial court sustained the defendant’s demurrer, ‘we must, under established principles, assume the truth of all properly pleaded material allegations of the complaint in evaluating the validity’ of the decision below.” (Lazar v. Superior Court (1996) 12 Cal.4th 631, 635 [49 Cal.Rptr.2d 377, 909 P.2d 981], quoting Tameny v. Atlantic Richfield Co. (1980) 27 Cal.3d 167, 170 [164 Cal.Rptr. 839, 610 P.2d 1330, 9 A.L.R.4th 314].) Plaintiff Stop Youth Addiction, Inc. (SYA) alleges, inter alia:

SYA, a California corporation, brings this action in the public interest.

Defendant Lucky Stores, Inc. (Lucky) and numerous other retailers in Northern California sell cigarettes to minor children in violation of Penal Code section 308. Many of these children become addicted to cigarettes, as they would not have had Lucky not illegally sold them cigarettes. Lucky profits from addicting such children to cigarettes because many, unable to overcome their addiction, return to buy cigarettes as both children and adults.

Approximately 90 percent of cigarette sales in northern California are to children or to adults who were addicted as children and who would like, but [559]*559are unable, to quit smoking. Consequently, Lucky has unjustly enriched itself in an amount equal to 90 percent of its gross profits from the sale of cigarettes. Every dollar Lucky obtains through such cigarette sales results, on average, in more than a dollar spent on health care by the State of California.

SYA prays for $10 billion in restitution to be paid to the State of California, an injunction forbidding Lucky to sell cigarettes to children, costs and reasonable attorney fees.

The superior court sustained Lucky’s general demurrer without leave to amend, opining that section 308, which prohibits the knowing sale of cigarettes to minors, “preempts” all private enforcement of section 308. The Court of Appeal, relying on our decisions in People v. McKale (1979) 25 Cal.3d 626 [159 Cal.Rptr. 811, 602 P.2d 731] and Committee on Children’s Television, Inc. v. General Foods Corp., supra, 35 Cal.3d 197 (Children’s Television), reversed the superior court’s order sustaining Lucky’s demurrer. We granted Lucky’s petition for review.

Discussion

We note at the outset what is not before us on review. Lucky and supporting amici curiae have attempted to call into question plaintiff’s and its counsel’s motives in prosecuting this action. Lucky points to plaintiff’s for-profit status, requests judicial notice of similar actions plaintiff has filed, and notes that plaintiff names many retailer defendants. Lucky also notes one court in a different case filed by plaintiff noted with concern evidence of attempts by plaintiff’s counsel to obtain monetary payments from certain defendants prior to filing the lawsuit. Lucky also suggests plaintiff’s methods of gathering evidence were unlawful and that plaintiff brings this case for its own and its attorney’s financial gain.

These are important concerns. As discussed below, no conclusion we reach respecting the viability of this action at demurrer stage should be taken as countenancing the illegal gathering of evidence. Generally, however, we agree with amicus curiae the California District Attorneys Association (CDAA) that only the sufficiency of plaintiff’s complaint, not the seemliness of its litigation strategy or its counsel’s motives, is properly before us on review at this time.3

As a threshold matter, it is plain that SYA, in alleging Lucky violates Penal Code section 308 in its retailing activities, adequately alleges unfair [560]*560competition.4 The UCL defines “unfair competition” as “. . . any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising . . . .” (§ 17200.) As we recently explained in reviewing the scope and purpose of the unfair competition law and its remedial provisions, “[t]he Legislature intended this ‘sweeping language’ to include ‘ “anything that can properly be called a business practice and that at the same time is forbidden by law.” ’ ” (Bank of the West v. Superior Court, supra, 2 Cal.4th at p. 1266, quoting Barquis v. Merchants Collection Assn. (1972) 7 Cal.3d 94, 111, 113 [101 Cal.Rptr. 745, 496 P.2d 817].)

Indeed, in expressly conceding “the right of . . . public prosecutors to bring claims under section 17200 such as those at issue here, to supplement the prosecutors’ enforcement rights under Penal Code section 308,” Lucky impliedly concedes claims- under section 17200 such as those at issue here are properly stated, i.e., that selling cigarettes to minors is unfair competition under the statute.

Lucky nevertheless contends the Court of Appeal erred in ruling this action may proceed. Lucky argues SYA’s suit is barred both by the UCL (because, according to Lucky, SYA lacks standing to bring a UCL action predicated on violation of a statute for the direct enforcement of which there is no private right of action) and by Penal Code section 308 (because, Lucky asserts, section 308, together with the Stop Tobacco Access to Kids Enforcement Act, Business and Professions Code sections 22950-22959 (STAKE Act), embodies the Legislature’s intent to create a comprehensive, exclusive scheme for combating the sale of tobacco to minors). Lucky also contends various public policy considerations militate against permitting this action to survive demurrer.

1. Standing

Section 17204 provides, in full: “Actions for any relief pursuant to this chapter shall be prosecuted exclusively in a court of competent jurisdiction by the Attorney General or any district attorney or by any county counsel [561]*561authorized by agreement with the district attorney in actions involving violation of a county ordinance, or any city attorney of a city, or city and county, having a population in excess of 750,000, and, with the consent of the district attorney, by a city prosecutor in any city having a full-time city prosecutor or, with the consent of the district attorney, by a city attorney in any city and county in the name of the people of the State of California upon their own complaint or upon the complaint of any board, officer, person, corporation or association or by any person acting for the interests of itself its members or the general public.” (Italics added.)

Amicus curiae Association for California Tort Reform (ACTR) suggests that, from a grammatical perspective, section 17204 confers UCL standing only on the public prosecutors listed therein.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pacific Gas & Electric Co. v. Public Utilities Commission
237 Cal. App. 4th 812 (California Court of Appeal, 2015)
Lindsey v. City of Fontana CA4/2
California Court of Appeal, 2014
Sierra Industries West v. Hosseinioum CA1/4
California Court of Appeal, 2014
HSBC Bank USA, Nat. Assn. v. Cappello CA2/2
California Court of Appeal, 2014
Market Lofts Community Ass'n v. 9th Street Market Lofts, LLC
222 Cal. App. 4th 924 (California Court of Appeal, 2014)
City of Carlsbad v. Shah
850 F. Supp. 2d 1087 (S.D. California, 2012)
Grayson v. AT & T CORP.
15 A.3d 219 (District of Columbia Court of Appeals, 2011)
Robinson v. HSBC BANK USA
732 F. Supp. 2d 976 (N.D. California, 2010)
Greene v. Marin County Flood Control & Water Conservation District
231 P.3d 350 (California Supreme Court, 2010)
Zermeno v. Precis, Inc.
180 Cal. App. 4th 773 (California Court of Appeal, 2009)
Smith v. Chase Mortgage Credit Group
653 F. Supp. 2d 1035 (E.D. California, 2009)
Arias v. Superior Court
209 P.3d 923 (California Supreme Court, 2009)
C.R. v. Tenet Healthcare Corp.
169 Cal. App. 4th 1094 (California Court of Appeal, 2009)
Stone Street Capital, LLC v. California State Lottery Commission
165 Cal. App. 4th 109 (California Court of Appeal, 2008)
Sutter's Place Inc. v. Superior Court
75 Cal. Rptr. 3d 9 (California Court of Appeal, 2008)
In Re eBay Seller Antitrust Litigation
545 F. Supp. 2d 1027 (N.D. California, 2008)
Animal Legal Defense Fund v. Mendes
72 Cal. Rptr. 3d 553 (California Court of Appeal, 2008)
Farm Raised Salmon Cases
175 P.3d 1170 (California Supreme Court, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
950 P.2d 1086, 17 Cal. 4th 553, 98 Cal. Daily Op. Serv. 1280, 71 Cal. Rptr. 2d 731, 98 Daily Journal DAR 1765, 1998 Cal. LEXIS 902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stop-youth-addiction-inc-v-lucky-stores-inc-calctapp-1998.