Opinion

Bruni v. The Edward Thomas Hospitality Corporation

Court
California Court of Appeal
Filed
May 14, 2021
Status
Published
Cited by
0 cases
Authority
More cited than 15.5%

The opinion

Filed 5/14/21

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION THREE

THEODORE BRUNI, B305689

Plaintiff and Appellant, (Los Angeles County

Super. Ct.

v. No.19STCV35693)

THE EDWARD THOMAS

HOSPITALITY

CORPORATION, et al.,

Defendants and

Respondents.

APPEAL from a judgment of the Superior Court of Los

Angeles County, Michael L. Stern, Judge. Affirmed.

Hennig Ruiz & Singh, Hennig Kramer Ruiz & Singh,

Rob A. Hennig, Sereena J. Singh, Samuel Marion Brown and

Helen Mei You for Plaintiff and Appellant.

Ballard Rosenberg Golper & Savitt, John J. Manier,

David J. Fishman and Janet S. Soultanian for Defendants and

Respondents.

________________________________

Plaintiff and appellant Theodore Bruni (Bruni) appeals a

judgment of dismissal following the sustaining of a demurrer by

defendants and respondents The Edward Thomas Hospitality

Corporation and Neptune’s Walk, LLC, dba Hotel Casa del Mar

(collectively, the Hotel).

Bruni was a restaurant server who alleged he was laid off

after about four months when his employer, the Hotel, eliminated

all part-time positions. Bruni brought this action alleging a

violation of Santa Monica Municipal Code section 4.66.010 et

seq.1 (the recall ordinance), which provides laid off employees

that have been employed by the employer for six months or more

with a right to be rehired in certain circumstances. We conclude,

as did the trial court, that the right of recall does not apply here

because Bruni did not work for the Hotel for “six months or more”

before he was involuntarily separated from employment for

economic reasons. (Ibid.)

Bruni had a prior stint of employment with the Hotel that

lasted about ten months, which ended when he voluntarily

resigned due to scheduling difficulties. However, the purpose of

the recall ordinance is to protect employees who were

involuntarily laid off due to economic circumstances—not to

protect employees who quit for personal reasons. Therefore, we

conclude that Bruni’s earlier period of employment that ended

with his voluntary resignation does not count toward the six-

month minimum period of employment, leaving him ineligible for

recall under the ordinance. Accordingly, Bruni failed to state a

cause of action under the recall ordinance.

1 All undesignated section references are to the Santa

Monica Municipal Code.

2

Additionally, Bruni attempted to state a Tameny2 tort

claim based on the Hotel’s allegedly wrongful failure to rehire

him in violation of public policy. We conclude the Tameny claim

was not well pled because there was no violation of the recall

ordinance on which the Tameny claim was based. Moreover, a

Tameny claim must be predicated on a fundamental public policy

that is expressed in a constitutional or statutory provision (Gantt

v. Sentry Insurance (1992) 1 Cal.4th 1083, 1995 (Gantt)), as

opposed to a public policy that finds expression in a municipal

ordinance.

Therefore, the judgment of dismissal is affirmed.

FACTUAL AND PROCEDURAL BACKGROUND

1. Overview of the recall ordinance.

In the wake of the economic downturn following the

September 11, 2001 terrorist attacks, the City of Santa Monica

adopted the recall ordinance, which established a preference for

laid off employees and gave them the right to be rehired in

specified circumstances.3 The recall ordinance, which is now

2 Tameny v. Atlantic Richfield Co. (1980) 27 Cal.3d 167

recognized a cause of action in tort where an employee is

wrongfully discharged in contravention of fundamental public

policy.

3 We note that certain California municipalities, including

Los Angeles and San Diego, have recently instituted ordinances

that provide a laid-off employee with the right to be recalled to

work. (See, e.g., L.A. Ord. No. 186,602 (COVID-19 Right of

Recall), eff. June 14, 2020, adding § 200.30 et seq. to the L.A.

Muni. Code; San Diego Ord. No. 0-21231, relating to COVID-19

worker recall and retention, eff. Sept. 8, 2020, and adding

§ 311.0101 et seq. to S.D. Muni. Code.) Also, during the pendency

of this appeal, on April 16, 2021, the Governor signed Senate Bill

3

found in chapter 4.66 of the Santa Monica Municipal Code,

applies to employers doing business at a location in areas of the

City of Santa Monica that are defined as “the Coastal Zone or

Extended Downtown Core with gross receipts over five million

dollars in the year 2000 for that location.” (§ 4.66.020.)

The ordinance defines the term “laid off employee” as “[a]ny

employee who was employed by the employer for six months or

more and whose most recent separation from active service

occurred after September 11, 2001, and was due to lack of

business, a reduction in force or other, economic, non-disciplinary

reason.” (§ 4.66.010.)4

No. 93 (2021-2022 Reg. Sess.), which requires covered employers

to offer employees laid off due to the COVID-19 pandemic

available positions on a preference basis. (Lab. Code, § 2810.8,

added by Stats. 2021, ch. 16, § 1, eff. Apr. 16, 2021.) The newly

enacted statute expressly provides that it does not “prohibit a

local government agency from enacting ordinances that impose

greater standards than, or establish additional enforcement

provisions to, those prescribed by this section.”

(Lab. Code, § 2810.8, subd. (f).)

4 Although the recall ordinance had its genesis in the events

of September 11, 2001, the text of the ordinance does not limit its

reach to employees who were laid off as a consequence of that

economic downturn. The parties disagree as to whether the

recall ordinance was intended to apply to separations such as

Bruni’s, which was concededly unrelated to the attacks of

September 11, 2001. We do not address that issue because we

affirm the judgment of dismissal based on Bruni’s failure to

satisfy the “six months or more” work requirement (§ 4.66.010),

which made him ineligible for recall under the ordinance.

4

Section 4.66.030, which creates a right of recall, states in

relevant part: “(a) Preference for Laid Off Employees. An

employer shall offer in writing, to the last known address of laid

off employees, all positions which are or become available after

the effective date of this Chapter for which the laid off employees

are qualified. A laid off employee is qualified for a position if the

employee: (1) held the same or similar position at the same site

of employment at the time of the employee’s most recent

separation from active service with the employer; or (2) is or can

be qualified for the position with the same training that would be

provided to a new employee hired into that position. The

employer shall offer positions to laid off employees in an order of

preference corresponding to categories (1) and (2) in the

preceding sentence. Where more than one employee is entitled to

preference for a position, the employer shall offer the position to

the employee with the greatest length of service with the

employer at the employment site.”5

5 With respect to remedies, section 4.66.050 states: “Any

person, including the City, may enforce the provisions of this

Chapter by means of a civil action for injunctive and monetary

relief. The burden of proof in such cases shall be preponderance

of the evidence. Any person who violates or aids another person

to violate the provisions of this Chapter is liable for each and

every such offense for the actual damages suffered by any

aggrieved party or for statutory damages in the sum of five

hundred dollars, whichever is greater, and shall be liable for such

attorneys’ fees and costs as may be determined by the court in

addition thereto. The court may also award punitive damages to

any plaintiff, including the City, in a proper case as defined by

Civil Code Section 3294. The burden of proof for purposes of

punitive damages shall be clear and convincing evidence.” We

note the City is not a party to this case.

5

2. Pleadings: the original complaint.

On October 7, 2019, Bruni filed this action against the

Hotel alleging two causes of action: violation of the recall

ordinance; and a Tameny tort claim for failure to rehire him in

violation of public policy. The complaint included the following

allegations:

Bruni worked for the Hotel as a part-time server from

approximately June 2017 to September 2017, and as a full-time

server from then to April 2018, at which time he voluntarily

resigned due to scheduling difficulties.

In July 2018, Bruni was hired by the Hotel as a part-time

server. Less than four months later, on October 31, 2018, he was

laid off on the ground the company was eliminating all part-time

positions in its food and beverage operations. Thus, Bruni was

laid off by the Hotel for an economic, non-disciplinary reason.

Based on information and belief, at least two server

positions became available at the Hotel after Bruni was laid off,

and he was qualified for those positions. Taking into account

Bruni’s earlier period of employment with the Hotel that ended

with his voluntary resignation in April 2018, at the time of the

layoff Bruni had been an employee of the Hotel for more than six

months. However, after Bruni was laid off, the Hotel did not

extend to him any written offers of employment for available

server positions.

3. The Hotel’s demurrer.

The Hotel demurred to the complaint in its entirety. It

contended Bruni’s first cause of action for violation of the recall

ordinance failed as a matter of law because Bruni did not satisfy

the ordinance’s “six months or more” employment requirement.

The Hotel argued, inter alia, that the necessary period of

6

employment of six months cannot be aggregated because the

purpose of the ordinance was to promote stability in the

workforce. “Workforce stability is not promoted by forcing an

employer to rehire an employee who works intermittently for the

employer. Here, [Bruni] voluntarily quit his employment with

[the Hotel], returned for three months, and is now claiming an

entitlement to rehire in the name of workforce stability. He is

clearly not among the employees that the [o]rdinance seeks to

protect.”

As for the Tameny claim, the Hotel contended no cause of

action was stated because even assuming the recall ordinance

has been violated, the ordinance did not inure to the benefit of

the general public because of its extremely limited application to

layoffs in the tourism industry following the September 11, 2001

terrorist attacks.

4. The trial court’s ruling.

On January 6, 2020, the matter came on for hearing. The

trial court sustained the Hotel’s demurrer to both causes of action

with leave to amend. With respect to the first cause of action for

violation of the recall ordinance, the trial court ruled: “The

employee worked less than 6 months and the Ordinance does not

apply.” With respect to the second cause of action for wrongful

failure to rehire in violation of public policy, the court stated:

“There is no violation of public policy.”

5. Subsequent proceedings.

On January 16, 2020, Bruni filed a first amended complaint

that realleged the same two causes of action. On February 10,

2020, the parties stipulated that the first amended complaint

would be stricken so as to enable Bruni to proceed with an appeal

from the order sustaining the demurrer to the original complaint.

7

Pursuant to the stipulation, the trial court struck the first

amended complaint, and thereafter entered a judgment of

dismissal. Bruni filed a timely notice of appeal from the

judgment.

CONTENTIONS

Bruni contends: the trial court misconstrued the clear and

unambiguous language of the recall ordinance by adding an

eligibility requirement of employment continuity, and assuming

arguendo the language of the ordinance is ambiguous, the

ambiguity cannot be resolved on demurrer; and the ordinance

codifies fundamental public policy and therefore gives rise to a

Tameny tort claim for failure to rehire him in violation of public

policy.

DISCUSSION

1. Standard of appellate review.

This appeal requires us to determine whether the recall

ordinance’s provision that a laid off employee must have been

employed for “six months or more” (§ 4.66.010) may be satisfied

by aggregating separate periods of employment. The

interpretation of the ordinance presents a question of law that we

review de novo. (Tower Lane Properties v. City of Los Angeles

(2014) 224 Cal.App.4th 262, 268.)

Likewise, our review of the order sustaining the demurrer

is de novo (T.H. v. Novartis Pharmaceuticals Corp. (2017) 4

Cal.5th 145, 162), with the plaintiff bearing the burden of

demonstrating that the demurrer was sustained erroneously.

(Allen v. City of Sacramento (2015) 234 Cal.App.4th 41, 52.)6

6 Bruni elected to stand on his pleadings in the trial court

and does not contend in his appellate briefs that leave to amend

is warranted. Therefore, there is no issue in that regard. (See

8

2. No cause of action stated for violation of the recall

ordinance.

a. Principles of statutory interpretation.

The principles of statutory construction apply equally to

the construction of ordinances. (Russ Bldg. Partnership v. City &

County of San Francisco (1988) 44 Cal.3d 839, 847, fn. 8.) Thus,

the usual rules guide our interpretation of the recall ordinance,

and specifically, its requirement that to be eligible for recall, an

employee must have worked for the employer for “six months or

more” before being laid off. (§ 4.66.010.)

“As in any case involving statutory interpretation, our

fundamental task is to determine the [legislative] intent so as to

effectuate the law’s purpose. [Citation.] ‘We begin with the text

of the statute as the best indicator of legislative intent’ [citation]),

but we may reject a literal construction that is contrary to the

legislative intent apparent in the statute or that would lead to

absurd results. [Citation.]” (Simpson Strong-Tie Co., Inc. v. Gore

(2010) 49 Cal.4th 12, 27 (Simpson).)

Fischer v. Time Warner Cable Inc. (2015) 234 Cal.App.4th 784,

790 [an appellant bears the burden on appeal of showing a

reasonable possibility exists that the complaint can be

successfully amended].)

9

b. Bruni’s theory that his two periods of employment

should be aggregated would contravene the intent of the ordinance

and would lead to an absurd result.

As indicated, the recall ordinance defines the term “laid off

employee” as “[a]ny employee who was employed by the employer

for six months or more and whose most recent separation from

active service . . . was due to lack of business, a reduction in force

or other, economic, non-disciplinary reason.” (§ 4.66.010, italics

added.) Under a literal reading of the ordinance, which is

essentially what Bruni urges, it is arguable that it is sufficient if

(1) the employee worked for the employer an aggregate time of six

months or more, and (2) the employee’s most recent separation

from employment was due to an economic decision by the

employer. However, we may reject a literal construction that is

contrary to the legislative intent apparent in the ordinance, or

that would lead to absurd results. (Simpson, supra, 49 Cal.4th at

p. 27.)

Santa Monica Ordinance No. 2031, adopted on December

11, 2001, and presently codified at section 4.66.010 et seq.,

declared the intent of the ordinance as follows: “WHEREAS, the

nation has, for many months, been in economic decline; and [¶]

WHEREAS, the terrorist attacks of September 11, 2001

exacerbated the adverse economic conditions; and [¶] WHEREAS,

tourism and visitor-serving industries have suffered particularly

dire economic consequences; and [¶] WHEREAS, many low-

income Santa Monica workers are employed in visitor-serving

industries; and [¶] WHEREAS, in Santa Monica, these industries

are concentrated in the Coastal Zone and extended downtown

core; and [¶] WHEREAS, most low-income workers employed by

visitor-serving businesses in these areas are heads of household

10

who bear primary responsibility for supporting their families;

and [¶] WHEREAS, in recent weeks, many of these workers have

been laid off without any reassurance that they will be recalled to

their jobs when economic conditions improve; and [¶] WHEREAS,

the City has an interest in promoting a stable workforce within

the community and within its primary industries; and [¶]

WHEREAS, heads of household and others who are unemployed

and therefore cannot support their families must rely on public

resources to meet their basic needs; and [¶] WHEREAS,

requiring the fair recall of Santa Monica workers will promote

the community’s welfare, [¶] NOW, THEREFORE, THE CITY

COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY

ORDAIN AS FOLLOWS.”

Thus, the clear intent of the recall ordinance was to protect

workers who were involuntarily laid off due to economic

circumstances beyond their control. The recall ordinance was not

intended to protect individuals who voluntarily quit for personal

reasons; such individuals are not within the class of persons that

the recall ordinance was intended to protect. This conclusion

militates against including a previous period of employment that

ended with a voluntary resignation in calculating whether the

employee worked for “six months or more” before being laid off.

As indicated, the complaint alleged that Bruni’s earlier

period of employment, about 10 months spanning June 2017

through April 2018, ended when he “voluntarily resigned from

his position due to scheduling difficulties.” As discussed,

however, the ordinance was not intended to protect employees

who voluntarily quit their jobs. We therefore conclude that

Bruni’s earlier period of employment, which ended with his

voluntary resignation, cannot be combined with his subsequent

11

shorter period of employment to satisfy the “six months or more”

requirement. (§ 4.66.010.)

We also observe that Bruni’s theory that his earlier period

of employment that ended in his resignation should be counted

toward the six-month period would lead to an absurd result.

Under his approach, an individual who worked for an employer

decades ago for at least six months, before quitting, and then

returned to the same employer and worked for a single day,

before being laid off, would be entitled to recall under the

ordinance. Clearly, that is not what the ordinance was intended

to accomplish.

It is unnecessary, for purposes of this case, to reach the

issue of whether discrete periods of employment may ever be

aggregated to satisfy the “six months or more” requirement of

section 4.66.010. We simply conclude that an earlier period of

employment that ended in a voluntary resignation cannot be

aggregated with a later period of employment that ended in a

layoff to meet the six-month minimum period of employment.

c. Other issues not reached.

In view of Bruni’s failure to satisfy the recall ordinance’s

six-month work requirement, it is unnecessary to address the

Hotel’s arguments concerning the ordinance’s applicability or

inapplicability to seasonal workers.

We also note that because the ordinance applies to

“employers doing business at a location in the Coastal Zone or

Extended Downtown Core with gross receipts over five million

dollars in the year 2000 for that location” (§ 4.66.020), the

question arises as to whether the ordinance has become

unworkable because its benchmark is based on a business’s

revenues more than two decades ago, and without any indication

12

as to how the ordinance would apply to newly established

businesses. However, those issues are also beyond the scope of

the case at bench.

3. No cause of action stated against the Hotel for its alleged

failure to rehire Bruni in accordance with the public policy

expressed in the recall ordinance.

Bruni’s second cause of action alleged a wrongful failure by

the Hotel to rehire him in violation of the public policy expressed

in the recall ordinance of “promoting a stable workforce in the

Santa Monica community.”

As discussed in the preceding section, Bruni failed to allege

facts showing his eligibility for recall under the ordinance. Given

Bruni’s inability to allege that the recall ordinance applies to

him, it necessarily follows that he cannot state a Tameny claim

predicated on an alleged violation of the public policy expressed

in the recall ordinance.

Moreover, the Tameny claim fails because a municipal

ordinance cannot serve as the predicate for a Tameny tort claim.

In Gantt, our Supreme Court recognized that courts in Tameny

actions “may not declare public policy without a basis in either

constitutional or statutory provisions. A public policy exception

carefully tethered to fundamental policies that are delineated in

constitutional or statutory provisions strikes the proper balance

among the interests of employers, employees and the public.[7]

The employer is bound, at a minimum, to know the fundamental

public policies of the state and nation as expressed in their

7 Statutorily authorized regulations that effectuate the

Legislature’s purpose may also be included as a source of

fundamental public policy. (Green v. Ralee Engineering Co.

(1998) 19 Cal.4th 66, 82.)

13

constitutions and statutes; so limited, the public policy exception

presents no impediment to employers that operate within the

bounds of law. Employees are protected against employer actions

that contravene fundamental state policy. And society's interests

are served through a more stable job market, in which its most

important policies are safeguarded.” (Gantt, supra, 1 Cal.4th at

p. 1095, italics added.)

Additionally, the mere nonrenewal of an employment

contract—as opposed to the unlawful termination of an

employment contract in violation of public policy—is not a basis

for a Tameny claim. (Motevalli v. Los Angeles Unified School

Dist. (2004) 122 Cal.App.4th 97, 112-113; Touchstone Television

Productions v. Superior Court (2012) 208 Cal.App.4th 676, 684.)

For all these reasons, the Hotel’s alleged failure to rehire

Bruni in accordance with the recall ordinance cannot give rise to

a Tameny claim.

14

DISPOSITION

The judgment of dismissal is affirmed. Respondents shall

recover their costs on appeal.

CERTIFIED FOR PUBLICATION

SALTER, J.*

We concur:

EDMON, P. J.

EGERTON, J.

________________________________

* Judge of the Orange County Superior Court, assigned by

the Chief Justice pursuant to article VI, section 6 of the

California Constitution.

15

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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