Supershuttle Internat., Inc v. Lab. & Workforce Development Agency

CourtCalifornia Court of Appeal
DecidedOctober 7, 2019
DocketB292054
StatusPublished

This text of Supershuttle Internat., Inc v. Lab. & Workforce Development Agency (Supershuttle Internat., Inc v. Lab. & Workforce Development Agency) 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
Supershuttle Internat., Inc v. Lab. & Workforce Development Agency, (Cal. Ct. App. 2019).

Opinion

Filed 10/7/19 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

SUPERSHUTTLE B292054 INTERNATIONAL, INC., et al., (Los Angeles County Plaintiffs and Respondents, Super. Ct. No. BC700385)

v.

LABOR AND WORKFORCE DEVELOPMENT AGENCY et al.,

Defendants and Appellants.

APPEAL from an order of the Superior Court of Los Angeles County, Elizabeth A. White, Judge. Affirmed.

Deborah D. Graves for Defendants and Appellants.

Marron Lawyers, Paul J. Marron and Steven C. Rice for Plaintiffs and Respondents. _________________________ The general question presented is whether an employer can sue for declaratory relief to enforce a superior court judgment unfavorable to the Labor Commissioner without violating the anti-SLAPP statute. The answer is yes, where, as here, the lawsuit does not arise out of activity protected by the statute. Supershuttle International, Inc., Supershuttle Los Angeles, Inc., and Supershuttle of San Francisco, Inc., (collectively Supershuttle) filed an action for declaratory and injunctive relief against the Labor and Workforce Development Agency; its Secretary; the Division of Labor Standards Enforcement; and the Chief of the Division and Labor Commissioner (the Labor defendants). The civil action seeks a declaration that the doctrine of collateral estoppel precludes the Labor Commissioner from considering wage claims filed by drivers of Supershuttle vans because the Sacramento Superior Court previously found the drivers were independent contractors, not employees. The trial court denied the Labor defendants’ motion to strike pursuant to Code of Civil Procedure 1 section 425.16 et. seq. (the anti-SLAPP laws). The Labor defendants appeal, contending Supershuttle’s claims arise from statements and writings by the Department of Labor Standards and Enforcement (DLSE) made in connection with an official proceeding (§ 425.16, subd. (e)(2)) or were made in connection with a public issue or issue of public interest. (§ 425.16, subd. (e)(4).) They further contend the Labor Commissioner’s act of setting hearings on the wage claims is not an illegal act within the meaning of the anti-SLAPP law.

1 Further undesignated statutory references are to the Code of Civil Procedure.

2 We find the gravamen of Supershuttle’s complaint is the harm it will suffer from the intended decision of the Labor defendants to deny collateral estoppel effect to a final decision of the Sacramento Superior Court, not from the Labor defendants’ writing or statements preceding or communicating that decision. We also find the Labor defendants have not identified speech or writings made in connection with a public issue or issue of public importance from which the causes of action arise. Finally we find the trial court here did not conclude that the Labor defendants acted illegally as a matter of law within the meaning of the anti- SLAPP law. Most importantly, the trial court did not rely on any illegality to deny the Labor defendants’ motion to strike. Nor do we rely on any illegality to affirm the trial court’s order, which we now do.

BACKGROUND 2 When it began operations more than 25 years ago, Supershuttle provided shared-ride van transportation to and from airports in California; the vans were owned by Supershuttle and the drivers were Supershuttle employees. At some time prior to 2007, Supershuttle switched to a franchise model for its businesses. Most employee drivers elected to become franchisees; others took buyouts. Supershuttle viewed its franchisee drivers as independent contractors. (¶ 26.) In 2007, the Employment Development Division (EDD) began an audit of Supershuttle to determine whether the franchisee drivers were de facto employees. In 2010, the EDD determined that the drivers were employees and it imposed an

2 The background information in this opinion is taken from the allegations of Supershuttle’s complaint.

3 assessment on Supershuttle for unpaid employment taxes. (¶ 42-43.) Supershuttle filed an administrative appeal, which was denied. Supershuttle then appealed to the California Unemployment Insurance Appeals Board (CUIAB). (The EDD and the CUIAB are part of defendant Labor and Workforce Development Agency.) (¶ 44.) After CUIAB denied the appeal, Supershuttle filed an action against EDD in Sacramento County Superior Court. (¶¶ 46-47.) In August 2017, following a four-month trial and extensive post-trial briefing, the Superior Court issued a Statement of Decision concluding the drivers were independent contractors. (¶¶ 51–53.) On December 7, 2017, CUIAB sua sponte set aside its 2012 findings and issued a new decision that Supershuttle “franchisees were not employees but independent contractors.” Supershuttle alleges in its complaint that the “franchise structure and organization has not materially changed since the audit, lawsuit, EDD Judgment or CUIAB Final Decision, other than to increase the independence of its franchisees.” (¶ 59.) The same week CUIAB reversed its position, the DLSE served Supershuttle with notices of 13 Berman hearings to be held in February 2018. 3 Supershuttle alleged in its complaint that “DLSE proposed to relitigate the proper classification of

3 In California if an employer fails to pay wages in the amount, time or manner required by contract or statute, the employee may seek administrative relief by filing a wage claim with the Labor Commissioner. Those claims are adjudicated at “Berman” hearings, so named after the sponsor of the legislation creating the procedure. (Cuadra v. Millan (1998) 17 Cal.4th 855, 858.)

4 [Supershuttle’s] franchisees in [hearings of] approximately two hours per claimant.” (Boldface omitted.) (¶ 67.) The Supershuttle complaint alleges various actions it took to stop these hearings. Some were stayed pending petitions by Supershuttle to compel arbitration. The status and outcome of the others are not clear from the allegations of the complaint. Supershuttle alleges it raised the issue of collateral estoppel of the driver classification issue and the DLSE’s resulting lack of jurisdiction in its answers in the Berman hearing notices. DLSE stated the hearings would go forward. (¶ 69.) Supershuttle alleges “DLSE has demonstrated its unequivocal intent to proceed with a redetermination of the classification of [Supershuttle] franchisees and associate operators, without any regard for [the superior court’s] careful analysis and the subsequent determination, by [DLSE’s] sister agency, that franchisees and associated operators are independent contractors.” (¶ 74.) Supershuttle alleges drivers have continued to file wage claims with DLSE and by March 2018 about 34 drivers had pending wage claims naming Supershuttle as their employer. (¶ 60.) In April 2018, Supershuttle filed the present action seeking declaratory and injunctive relief against the Labor defendants. 4 It seeks a determination that the doctrine of collateral estoppel applies to the drivers’ wage claims and precludes the Labor defendants from re-determining the independent contractor

4 Both sets of parties agree that for purposes of the anti- SLAPP motion, the cause of action for injunctive relief depends on the viability of the two causes of action for declaratory relief. We do not discuss it further.

5 status of the drivers. It also seeks a determination that the Labor Commissioner would be acting outside her jurisdiction if she set or held Berman hearings on the drivers’ wage claims because the drivers are independent contractors and the Labor Commissioner has jurisdiction to hear claims by employees only.

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Bluebook (online)
Supershuttle Internat., Inc v. Lab. & Workforce Development Agency, Counsel Stack Legal Research, https://law.counselstack.com/opinion/supershuttle-internat-inc-v-lab-workforce-development-agency-calctapp-2019.