Opinion
FRANSON, J.
— This disability discrimination case was brought by Sheriff’s Deputy Dennis Wallace against the County of Stanislaus (County) under [115] Government Code section 12940.1 Wallace alleged disability discrimination based on County’s removing him from his job as bailiff and placing him on an unpaid leave of absence because of its incorrect assessment that he could not safely perform his duties as a bailiff even with reasonable accommodation.
The primary legal issue presented in this appeal is how to instruct a jury on the employer’s intent to discriminate against a disabled employee and, more specifically, what role “animus” plays in defining that intent. The trial court believed proof of animus or ill will was required and modified the version of California Civil Jury Instruction (CACI) No. 2540 in effect at the time to include a requirement that Wallace prove County regarded or treated him “as having a disability in order to discriminate.”
On appeal, Wallace challenges this instruction and the related question in the special verdict form. We conclude the instruction and special verdict form contained error. The proper standard regarding employer intent or motivation was decided by our Supreme Court in Harris v. City of Santa Monica (2013) 56 Cal.4th 203 [152 Cal.Rptr.3d 392, 294 P.3d 49] (Harris). Under Harris, Wallace could prove the requisite discriminatory intent by showing his actual or perceived disability was a “ ‘substantial motivating factor/reason’ ” for County’s decision to place him on a leave of absence. (Id. at p. 232.)2 California law does not require an employee with an actual or perceived disability to prove that the employer’s adverse employment action was motivated by animosity or ill will against the employee. Instead, California’s statutory scheme protects employees from an employer’s erroneous or mistaken beliefs about the employee’s physical condition. (§ 12926.1, subd. (d).) In short, the Legislature decided that the financial consequences of an employer’s mistaken belief that an employee is unable to safely perform a job’s essential functions should be borne by the employer, not the employee, even if the employer’s mistake was reasonable and made in good faith.
We further conclude that the instructional error was prejudicial and remand Wallace’s disability discrimination claim for a retrial. The retrial shall be limited to determining the amount of damages resulting from County’s decision to place Wallace on an unpaid leave of absence from January 5, 2011, until January 30, 2013, when Wallace returned to patrol duties. A limited retrial is appropriate because the jury found that (1) County regarded or treated Wallace as if he were disabled, (2) Wallace was able to perform the essential job functions of a deputy sheriff with or without reasonable accommodation, and (3) County failed to prove Wallace’s disability would increase [116] the danger to himself or others while he performed those job functions. In addition, we find as a matter of law that the reason County placed Wallace on a leave of absence on January 5, 2011, was its mistaken belief that he could not safely perform the essential job functions of a deputy sheriff. Thus, the substantial-motivating-reason element was proven. Also, we find as a matter of law that County’s decision to place Wallace on leave was a substantial factor in causing Wallace to suffer economic losses. Based on these findings, the retrial can be limited to the issues related to the amount of Wallace’s damages.
We therefore reverse the judgment and remand for a limited retrial.
FACTS
Wallace was born in 1963. He worked for the E & J Gallo Winery from 1986 to 1994. In 1995, Wallace was employed by the City of Hughson Police Department.
In December 1997, Wallace was hired by County as a deputy sheriff. He started in patrol and then worked in various positions with the sheriff’s department.
In October 2007, Wallace injured his left knee and filed a workers’ compensation claim for that injury. He later reinjured his left knee during a river sweep. He was treated for left knee pain by Jonathan Cohen, M.D., an orthopedic surgeon who prescribed a knee brace. Wallace wore the knee brace at work until he had knee surgery on September 9, 2008. After the surgery performed by Dr. Cohen, Wallace took a Labor Code section 48503 paid leave of absence until December 15, 2008, when he returned to light duty.
From January 2009 until April 2009, Wallace took additional paid leave because of the knee injury. After this leave, Wallace began to work a light duty assignment in the property and evidence room. His restrictions at the time were limited climbing, limited walking on uneven ground, and limited running. These limitations were part of a May 2009 report prepared by Dr. Pedram Vaezi, a chiropractor and workers’ compensation “qualified medical evaluator.” This report was approved by Dr. Cohen.
[117] Wallace worked light duty until he began another leave of absence in September 2009 because of his knee. By March 12, 2010, the one year of paid leave under Labor Code section 4850 had been exhausted.
On April 1, 2010, Wallace hand delivered a copy of Dr. Vaezi’s supplemental report dated September 16, 2009, to the sheriff’s department. Peggy Huntsinger, an assistant risk manager with County, testified that County did not receive the supplemental report earlier because the third party administrator that handled County’s workers’ compensation claims had not forwarded it to County. The restrictions for Wallace’s left knee, as clarified in the supplemental report, indicated (1) no prolonged walking in excess of 30 to 45 minutes without a five-minute break, (2) no walking on uneven ground in excess of 30 minutes without a five-minute break, and (3) no prolonged standing in excess of 30 to 45 minutes without a five-minute break.
On April 9, 2010, Wallace received and initialed a “NOTICE OF OFFER OF MODIFIED OR ALTERNATIVE WORK” on a preprinted workers’ compensation form. County offered Wallace an assignment as a bailiff for at least 12 months at his pre-injury rate of pay. County’s cover letter referred to the position as a permanent modified duty assignment with the restrictions stated in Dr. Vaezi’s supplemental report. It also stated the restrictions “are to be considered ‘Permanent’ until your Agreed Medical Exam . . . .”
During the period that Wallace worked as a bailiff, the sergeants who supervised Wallace had no issues with his performance. Sergeant Owens’s performance evaluation of Wallace rated him as above average.
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Opinion
FRANSON, J.
— This disability discrimination case was brought by Sheriff’s Deputy Dennis Wallace against the County of Stanislaus (County) under [115] Government Code section 12940.1 Wallace alleged disability discrimination based on County’s removing him from his job as bailiff and placing him on an unpaid leave of absence because of its incorrect assessment that he could not safely perform his duties as a bailiff even with reasonable accommodation.
The primary legal issue presented in this appeal is how to instruct a jury on the employer’s intent to discriminate against a disabled employee and, more specifically, what role “animus” plays in defining that intent. The trial court believed proof of animus or ill will was required and modified the version of California Civil Jury Instruction (CACI) No. 2540 in effect at the time to include a requirement that Wallace prove County regarded or treated him “as having a disability in order to discriminate.”
On appeal, Wallace challenges this instruction and the related question in the special verdict form. We conclude the instruction and special verdict form contained error. The proper standard regarding employer intent or motivation was decided by our Supreme Court in Harris v. City of Santa Monica (2013) 56 Cal.4th 203 [152 Cal.Rptr.3d 392, 294 P.3d 49] (Harris). Under Harris, Wallace could prove the requisite discriminatory intent by showing his actual or perceived disability was a “ ‘substantial motivating factor/reason’ ” for County’s decision to place him on a leave of absence. (Id. at p. 232.)2 California law does not require an employee with an actual or perceived disability to prove that the employer’s adverse employment action was motivated by animosity or ill will against the employee. Instead, California’s statutory scheme protects employees from an employer’s erroneous or mistaken beliefs about the employee’s physical condition. (§ 12926.1, subd. (d).) In short, the Legislature decided that the financial consequences of an employer’s mistaken belief that an employee is unable to safely perform a job’s essential functions should be borne by the employer, not the employee, even if the employer’s mistake was reasonable and made in good faith.
We further conclude that the instructional error was prejudicial and remand Wallace’s disability discrimination claim for a retrial. The retrial shall be limited to determining the amount of damages resulting from County’s decision to place Wallace on an unpaid leave of absence from January 5, 2011, until January 30, 2013, when Wallace returned to patrol duties. A limited retrial is appropriate because the jury found that (1) County regarded or treated Wallace as if he were disabled, (2) Wallace was able to perform the essential job functions of a deputy sheriff with or without reasonable accommodation, and (3) County failed to prove Wallace’s disability would increase [116] the danger to himself or others while he performed those job functions. In addition, we find as a matter of law that the reason County placed Wallace on a leave of absence on January 5, 2011, was its mistaken belief that he could not safely perform the essential job functions of a deputy sheriff. Thus, the substantial-motivating-reason element was proven. Also, we find as a matter of law that County’s decision to place Wallace on leave was a substantial factor in causing Wallace to suffer economic losses. Based on these findings, the retrial can be limited to the issues related to the amount of Wallace’s damages.
We therefore reverse the judgment and remand for a limited retrial.
FACTS
Wallace was born in 1963. He worked for the E & J Gallo Winery from 1986 to 1994. In 1995, Wallace was employed by the City of Hughson Police Department.
In December 1997, Wallace was hired by County as a deputy sheriff. He started in patrol and then worked in various positions with the sheriff’s department.
In October 2007, Wallace injured his left knee and filed a workers’ compensation claim for that injury. He later reinjured his left knee during a river sweep. He was treated for left knee pain by Jonathan Cohen, M.D., an orthopedic surgeon who prescribed a knee brace. Wallace wore the knee brace at work until he had knee surgery on September 9, 2008. After the surgery performed by Dr. Cohen, Wallace took a Labor Code section 48503 paid leave of absence until December 15, 2008, when he returned to light duty.
From January 2009 until April 2009, Wallace took additional paid leave because of the knee injury. After this leave, Wallace began to work a light duty assignment in the property and evidence room. His restrictions at the time were limited climbing, limited walking on uneven ground, and limited running. These limitations were part of a May 2009 report prepared by Dr. Pedram Vaezi, a chiropractor and workers’ compensation “qualified medical evaluator.” This report was approved by Dr. Cohen.
[117] Wallace worked light duty until he began another leave of absence in September 2009 because of his knee. By March 12, 2010, the one year of paid leave under Labor Code section 4850 had been exhausted.
On April 1, 2010, Wallace hand delivered a copy of Dr. Vaezi’s supplemental report dated September 16, 2009, to the sheriff’s department. Peggy Huntsinger, an assistant risk manager with County, testified that County did not receive the supplemental report earlier because the third party administrator that handled County’s workers’ compensation claims had not forwarded it to County. The restrictions for Wallace’s left knee, as clarified in the supplemental report, indicated (1) no prolonged walking in excess of 30 to 45 minutes without a five-minute break, (2) no walking on uneven ground in excess of 30 minutes without a five-minute break, and (3) no prolonged standing in excess of 30 to 45 minutes without a five-minute break.
On April 9, 2010, Wallace received and initialed a “NOTICE OF OFFER OF MODIFIED OR ALTERNATIVE WORK” on a preprinted workers’ compensation form. County offered Wallace an assignment as a bailiff for at least 12 months at his pre-injury rate of pay. County’s cover letter referred to the position as a permanent modified duty assignment with the restrictions stated in Dr. Vaezi’s supplemental report. It also stated the restrictions “are to be considered ‘Permanent’ until your Agreed Medical Exam . . . .”
During the period that Wallace worked as a bailiff, the sergeants who supervised Wallace had no issues with his performance. Sergeant Owens’s performance evaluation of Wallace rated him as above average.
In October 2010, Wallace underwent the agreed medical exam with Richard Baker, M.D., an orthopedic surgeon, whose practice is limited to workers’ compensation agreed medical exams. During the exam, Wallace told Dr. Baker about weakness and intermittent pain in his left knee, back pain, daily pain and occasional popping in his left ankle, pain in his shoulders, and daily, continuous mild pain in his neck. Dr. Baker’s diagnosis of Wallace’s left knee described medial and lateral meniscus tears, subluxation of the patella, synovitis, cartilaginous defect, femoral condyle, partial tear of the anterior cruciate ligament (ACL) and a tear of the medial collateral ligament (MCL).
Based on his examination of Wallace, Dr. Baker issued a report dated October 25, 2010, that listed various “preclusions” including (1) no lifting more than 50 pounds, (2) no bilateral overhead work or repetitive right over shoulder work, (3) no forceful pushing, pulling, torquing with the right upper extremity, (4) no weight bearing more than 75 percent of the time, (5) no more than occasional climbing, squatting, kneeling, crouching, crawling or pivoting, and (6) no walking on uneven ground more than 75 percent of the [118] day. Dr. Baker used the terms “preclusion” and “precluded” to mean something that should be avoided 90 to 100 percent of the time, with 90 percent being a reasonable estimate.
Based on Dr. Baker’s report, a disability coordinator for County wrote a letter to Captain Tim David listing Wallace’s work restrictions, to which Captain David responded, “No, we do not have modified or alternative work available.” Undersheriff William Heyne was made aware of the restrictions in Dr. Baker’s report and was involved in the decision to remove Wallace from his bailiff position on the grounds that Wallace could not perform the job with those restrictions. Heyne relied on Dr. Baker’s restrictions, thought County was bound by those restrictions, and did not ask Wallace’s supervisors if he was able to perform the job. Heyne explained the decision by stating, “The issue is, once [Dr. Baker] puts the restrictions down, we have to do something. Because if we don’t do something, then we are liable because, if [Wallace] gets injured, if somebody else gets injured because [Wallace is] unable to perform his job, because everybody would say, wait a second, [with] his physical injuries [Wallace] can’t wrestle with a suspect; yet you put him in an environment where he would have to.”
On January 5, 2011, Wallace attended a meeting with County human resources consultant Brandi Welsh, Lieutenant Mick Hardenbrook and other representatives from the sheriff’s department. Welsh testified the purpose of the meeting was to discuss medical work restrictions with Wallace, to explain the department’s conclusions based on those work restrictions, and to start the discussion with Wallace about whether he was interested in looking at other County positions. As to the department’s conclusions, Wallace was told that (1) he was to be removed from his position as bailiff that day and (2) the department had not identified any assignment as deputy sheriff that could accommodate his work restrictions. Wallace stated that he could perform the functions of a bailiff and also mentioned working as a detective or school resource officer. County did not alter its decision to place Wallace on leave. Welsh described County’s treatment of Wallace following the January 5, 2011, meeting by stating, “He had been accommodated with a leave of absence.” Following this statement, counsel asked Welsh: “You are saying an unpaid leave of absence is an accommodation to an employee who may have a disability?” Welsh answered, “Yes.”
On January 10, 2011, Welsh and Wallace met again. Welsh stated the purpose of the meeting was to determine if Wallace wanted to look at other County positions after he had had an opportunity to consider the information [119] provided at the earlier meeting. In discussing other positions, Wallace stated that he was interested only in positions with safety retirement.4
From January 10, 2011, to February 2012, Welsh had no communications with Wallace about his work status.5 In a letter to Wallace dated February 9, 2012, Welsh set forth a history of Wallace’s case, including the work restriction identified by Dr. Baker, and addressed Wallace’s statement at his January 2012 deposition that his employment with County had been terminated. The letter stated Wallace had not been terminated, but was on a leave of absence and his deposition testimony “demonstrated a misunderstanding regarding County’s obligation to follow your medical work restrictions.” The letter stated County had not received any updated medical information about Wallace’s ability to work and asked Wallace to provide County with information about (1) any changes in his medical work status or (2) any interest he had in alternative County employment (i.e., not as a deputy sheriff) so that he and County could engage in the interactive process.
Welsh and Wallace communicated sporadically from February to July 2012. On July 3, 2012, shortly before the first trial, County offered to send Wallace to a fitness-for-duty examination to obtain updated medical information. County offered the examination because time had passed since Dr. Baker’s October 2010 report and Wallace continued to maintain that he could perform the essential functions of a deputy sheriff. County also offered Wallace a job as a welfare fraud investigator, a nonsafety retirement position.
Dr. LaRoche performed the fitness-for-duty examination and issued a report dated January 25, 2013. Based on Dr. LaRoche’s report, County placed Wallace back at work. On January 30, 2013, over three months before the second trial, Wallace returned to full duty as a patrol office.
PROCEEDINGS
The Complaint
On May 20, 2011, a few days before his accruals for sick leave and vacation were exhausted, Wallace filed a complaint against County and the sheriff’s department alleging causes of action under the California Fair Employment and Housing Act (FEHA) (§ 12900 et seq.) for (1) disability discrimination, (2) failure to accommodate his disability, (3) failure to engage in the interactive process, and (4) failure to prevent discrimination.
[120]
First Jury Trial
In July 2012, the first jury trial began. On August 7, the trial court instructed the jury on the four causes of action and counsel presented their closing arguments. The jury concluded its deliberations on August 15, after resolving the first cause of action and deadlocking on the other three.
As to the disability discrimination claim, the jury’s answers to the first three questions in the special verdict show it found (1) County treated Wallace as if he had a disability that limited his ability to engage in a major life activity; (2) Wallace was able to perform the essential job duties of a deputy sheriff with or without reasonable accommodation; and (3) County failed to prove Wallace would endanger himself or others in performing the essential job duties of a deputy sheriff. The jury answered “No” to the fourth question, which asked: “Did the County of Stanislaus regard or treat Dennis Wallace as having a physical disability in order to discriminate?” This finding resolved the disability discrimination cause of action in favor of County.
The jurors were not able to resolve the remaining three causes of action because they deadlocked on questions No. 7, No. 12 and No. 14 of the special verdict with votes of six to six, seven to five, and seven to five, respectively.6 As to question No. 11 (the first element of Wallace’s claim that County failed to engage in the interactive process), the jury found that Wallace had been willing to participate in the interactive process to determine whether a reasonable accommodation would allow him to perform the essential functions of a deputy sheriff. Based on the jury’s inability to resolve the final three causes of action, the court declared a mistrial as to those claims.
Motions for Summary Adjudication
After the first trial, each side filed a motion for summary adjudication. The trial court granted County’s motion and eliminated the fourth cause of action (failure to prevent discrimination) based on the jury’s resolution of the discrimination claim in favor of County. The trial court denied Wallace’s motion for summary adjudication, which sought an order that the direct estoppel doctrine (i.e., issue preclusion) barred County from relitigating the [121] questions on which Wallace prevailed in the first trial — namely, questions No. 1, No. 2, No. 3 and No. 11 of the special verdict.
Second Jury Trial
In May 2013, a second jury trial was held on the remaining causes of action for (1) failure to accommodate and (2) failure to engage in the interactive process. Using a general verdict, the jury unanimously found in favor of County on both claims.
In July 2013, the trial court implemented the jury’s verdict by filing a judgment in favor of County. Wallace filed a timely appeal from the judgment and the orders on the motions for summary adjudication. County did not file a protective cross-appeal with respect to the first jury’s findings that were favorable to Wallace.
DISCUSSION
I. Overview of FEHA ’s Prohibition of Discrimination
A. Section 12940
Section 12940 defines various unlawful employment practices, including certain types of employment discrimination. Wallace’s disability discrimination cause of action is based on subdivision (a) of section 12940 and that statute is the primary source of the elements to Wallace’s claim. Therefore, we quote a substantial portion of the text of that subdivision:
“It is an unlawful employment practice, unless based upon a bona fide occupational qualification, or, except where based upon applicable security regulations established by the United States or the State of California:
“(a) For an employer, because of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status of any person, to refuse to hire or employ the person or to refuse to select the person for a training program leading to employment, or to bar or to discharge the person from employment or from a training program leading to employment, or to discriminate against the person in compensation or in terms, conditions, or privileges of employment.
“(1) This part does not prohibit an employer from refusing to hire or discharging an employee with a physical or mental disability, or subject an [122] employer to any legal liability resulting from the refusal to employ or the discharge of an employee with a physical or mental disability, where the employee, because of his or her physical or mental disability, [(A)] is unable to perform his or her essential duties even with reasonable accommodations, or [(B)] cannot perform those duties in a manner that would not endanger his or her health or safety or the health or safety of others even with reasonable accommodations.”7 (Italics added.)
Except for the terms “physical disability” and “mental disability,” the foregoing statutory text defines both disability discrimination causes of action and discrimination claims based on race, religion, color, national origin, age and sex. In distilled form, section 12940 makes it unlawful for an employer “to discriminate against” a person “in terms, conditions, or privileges of employment” “because of’ the listed factors. Therefore, from the perspective of the wording of subdivision (a) of section 12940, disability discrimination claims would appear to be similar to other types of discrimination claims. This appearance is misleading.
B. Disability Discrimination Claims
Although the same statutory language that prohibits disability discrimination also prohibits discrimination based on race, age, sex, and other factors, we conclude that disability discrimination claims are fundamentally different from the discrimination claims based on the other factors listed in section 12940, subdivision (a). These differences arise because (1) additional statutory provisions apply to disability discrimination claims, (2) the Legislature made separate findings and declarations about protections given to disabled persons, and (3) discrimination cases involving race, religion, national origin, age and sex, often involve pretexts for the adverse employment action — an issue about motivation that appears less frequently in disability discrimination cases.
1. Direct Evidence of Motive — No Shifting Burdens
The distinction between cases involving direct evidence of the employer’s motive for the adverse employment action and cases where there is only circumstantial evidence of the employer’s discriminatory motive is critical to the outcome of this appeal. There is a vast body of case law that addresses proving discriminatory intent in cases where there was no direct evidence that the adverse employment action taken by the employer was motivated by race, religion, national origin, age or sex. In such cases, proof of discriminatory [123] motive is governed by the three-stage burden-shifting test established by the United States Supreme Court in McDonnell Douglas Corp. v. Green (1973) 411 U.S. 792 [36 L.Ed.2d 668, 93 S.Ct. 1817] (McDonnell Douglas).