Curcini v. County of Alameda

• Decision Date: 05 June 2008
• Docket Number: No. A115652.,A115652.
• Citation: 79 Cal. Rptr. 3d 383,164 Cal.App.4th 629
• Court: California Court of Appeals Court of Appeals
• Parties: CARSON CURCINI et al., Plaintiffs and Appellants, v. COUNTY OF ALAMEDA et al., Defendants and Respondents.

164 Cal.App.4th 629

79 Cal. Rptr. 3d 383

CARSON CURCINI et al., Plaintiffs and Appellants, v. COUNTY OF ALAMEDA et al., Defendants and Respondents.

No. A115652.

Court of Appeals of California, First District., Division Two.

June 5, 2008.

Mosley & Gearinger and Stephen F. Henry for Plaintiffs and Appellants.

Boornazian, Jensen & Garthe, Gregory J. Rockwell and Jill P. Sazama for Defendants and Respondents.

OPINION

KLINE, P. J.

INTRODUCTION

Appellants, former chaplains at Santa Rita Jail in Alameda County and an entity incorporated by them,¹ appeal from the judgment of the Alameda County Superior Court entered against them and in favor of respondents County of Alameda, and five Alameda County Sheriff's Office employees. The judgment followed the sustaining of demurrers to appellants' causes of action for alleged violations of state laws regarding wage and hour requirements covering overtime, meal breaks and rest breaks, as well as to three fraud causes of action (intentional misrepresentation, concealment, and false promise). Appellants contend the trial court erred in granting respondents' demurrers to these causes of action.

Specifically, appellants contend the trial court erred in ruling that Labor Code sections 510,² 512, 226.7 and 1194 do not apply to charter counties such as the County of Alameda in the circumstances presented. Appellants also contend the court erred in sustaining the demurrer as to their fraud causes of action, arguing that the complaint sufficiently alleges the requisite corruption and malice to overcome the qualified immunity provided by Government Code section 822.2. We shall affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

Allegations of the Complaints³

As alleged in the complaints, appellants Curcini, Devore and Jones (chaplains) are chaplains who worked at the Santa Rita Jail.⁴ Appellant Community Chaplains, Inc., is a corporation that the individual appellants formed in August 2004, at the encouragement of certain members of the county sheriff's office. Appellant chaplains alleged they were employees of the County of Alameda who were entitled to, but did not receive, overtime pay, meal breaks or rest breaks. They were "not paid overtime for any [of their] work in excess of eight hours a day and/or 40 hours per week," nor were they "compensated for the one-half hour of work or for the break periods, despite the fact that [they were] required to work through them."

Beginning in early 2004, respondent sheriff's office employees recognized that there was a shortfall in excess of $2 million in the Inmate Welfare Fund, because of mismanagement and misuse of the funds by respondent employees and others. Respondents sought to find areas where inmate services could be cut to offset this deficit. One substantial area of savings was the $500,000 budget for the chaplain services program.

In early 2004, certain members of the county sheriff's office began advising the chaplains and others that the sheriff's office was going to privatize the provision of religious services for the adult inmate population in the County of Alameda facilities and select the provider through a public bidding process. They began encouraging the chaplains to set up their own private entity in order to be able to bid on the provision of religious services. As a result of this encouragement, the chaplains and others incorporated appellant Community Chaplains as a California corporation.

During this time, respondents knew they could save a significant amount of money by bringing in Good News Jail & Prison Ministry⁵ (Good News), a low-cost private contract chaplaincy service, but also knew that Good News was unprepared to bid for the program and/or to take over the chaplain services program in accordance with the terms of the requirements set forth by respondents. Therefore, respondents developed a scheme to keep the chaplains on the job, while waiting for Good News to prepare a bid. Respondents always intended to accept the bid of Good News, regardless of that entity's qualifications or lack thereof. Because that entity was not prepared to take over the chaplain services program in accordance with the terms and requirements of the county sheriff's office, respondents schemed to encourage the chaplains to go to work for Good News and, if they refused to work for Good News, respondents determined to fire them. (Appellants also alleged, somewhat inconsistently, that in early 2004 respondent "Sheriff's Office Employees also wanted to prevent [chaplain Devore and another chaplain] from continuing to serve as chaplains at the Santa Rita County Jail as part of Community Chaplains or as employees of Good News ... once Good News ... took over the Chaplain Services program in accordance with [respondent] Sheriff's Office employees' scheme.")

In August and September 2004, the county sheriff's office issued a request for interest (RFI) and a request for proposal (RFP) for inmate chaplain services for the Sheriff's Office, stating the intent to award a three-year contract with an option to renew to the most qualified responsible bidder meeting the county sheriff's office requirements. On October 7, 2004, Community Chaplains submitted a proposal in response and subsequently made a presentation to the sheriff's selection committee. The county sheriff's office informed appellants that it was awarding the contract to Good News. On January 6, 2005, appellant Community Chaplains filed a formal protest and appeal of the recommendation. Respondent Eilers of the county sheriff's office responded on January 12, 2005, stating there was no favoritism in the bid selection process and that the award to Good News "stands." Nevertheless, the county sheriff's office continued to consider and review the bids submitted by Community Chaplains and Good News. On April 19, 2005, respondent Commander Bond wrote a letter to the chaplains informing them that during the course of a second-level review of the appeal to protest the decision, "it was determined that all bids received for this service were not in compliance with all requirements. As such, the Alameda County Sheriff's Office will reject all bids and will not award a contract. We have reevaluated our needs and do not anticipate rebidding this project in the near future." Ultimately, the contract was not awarded. Appellants did not allege they were ever fired.

Appellants alleged in their cause of action for "deceit—intentional misrepresentation" that respondent sheriff's office employees represented important facts to appellants such as if appellants responded to the RFP issued by the county sheriff's office, then respondents would equally and fairly evaluate the proposal under the terms of the RFP. These representations were false; respondents knew they were false when made; and they made these false statements for corrupt purposes and/or with malice to cause injury to appellants; and such conduct was despicable conduct and was carried on by respondents with a willful and conscious disregard of appellants' rights. Similar allegations were made with respect to the causes of action for "deceit—concealment" and for "deceit—false promise"

Procedural History

Appellants filed their initial complaint on June 17, 2005, and a first amended complaint on September 22, 2005. The first amended complaint alleged nine causes of action. The first three causes of action against the County of Alameda only were for violations of Labor Code sections 1194, 226.7 and 203, for the alleged failure to pay overtime, failure to provide rest and meal breaks, and for related penalties. The next four causes of action were against all respondents for various types of fraud and misrepresentation. The last two causes of action were for defamation, and are not here relevant.

Respondents demurred to the first amended complaint on October 21, 2005, arguing that the Labor Code sections did not apply to the County of Alameda in part because it was a charter county. Respondents also argued that the fraud and misrepresentation claims were barred by immunities granted under Government Code sections 818.8 and 822.2. On November 21, 2005, the superior court sustained the demurrer without leave to amend as to the first and third causes of action (which were against the county only) for failure to pay overtime (Lab. Code, §§ 1194, 203); as to the fourth, fifth, and sixth causes of action as to the county only, for intentional misrepresentation and concealment and false promise, appellants having conceded the county could not be held liable on these claims; and the seventh cause of action for negligent misrepresentation as to all parties. The court sustained the demurrers as to the remaining causes of action, but granted leave to amend.

On December 12, 2005, appellants filed a second amended complaint containing six causes of action: A cause of action under Labor Code section 512 against the County of Alameda for failure to provide meal and rest periods; three causes of action for fraud-related claims including claims against respondent county sheriff's office employees for misrepresentation, concealment and false promise and against the County of Alameda for false promise; and two defamation claims.

Respondents again demurred. On January 30, 2006, the superior court sustained in part and overruled in part the demurrer to the second amended complaint. It sustained the demurrer to the first cause of action under Labor Code section 512 without leave to amend. It sustained the demurrer to the fraud claims against respondent county sheriff's office employees with leave to amend. It overruled the demurrer to the two defamation claims.

On February 14, 2006, appellants filed their third amended complaint. It alleged five causes of action: three fraud-based causes of action against the county sheriff's office employees for intentional misrepresentation, concealment and false promise, and two defamation claims.

Respond...