Sinnamon v. McKay

• Decision Date: 10 May 1983
• Court: California Court of Appeals Court of Appeals
• Parties: , 26 Wage & Hour Cas. (BNA) 427 Shandra SINNAMON, Respondent. v. Gregory McKAY and Gem Productions, Inc., etc., Appellants, Civ. 65148.

Page 295

191 Cal.Rptr. 295

142 Cal.App.3d 847, 26 Wage & Hour Cas. (BNA) 427

Shandra SINNAMON, Respondent. v. Gregory McKAY and Gem Productions, Inc., etc., Appellants,

Civ. 65148.

Court of Appeal, Second District, Division 5, California.

May 10, 1983.

Hearing Denied June 29, 1983.

Irvin O. Spiegel Law Corp., Horvitz & Greines, Ellis J. Horvitz and Marilyn L. Hoffman, Encino, for appellants.

Engel & Engel, Donald S. Engel and James P. Cinque, Los Angeles, for respondent.

STEPHENS, Associate Justice.

Appellants Gregory McKay and Gem Productions, Inc. (hereinafter appellants) appeal from an order dismissing their request for a trial de novo in the superior court. At issue is whether Labor Code section 1700.44, ¹ which provides that the Labor Commissioner's determination regarding labor-related disputes is subject to an appeal to the superior court for a trial de novo "within 10 days after determination," should be construed to require the appeal to be filed within ten days after service of notice of the Labor Commissioner's determination. We believe the latter interpretation is in order and accordingly reverse the decision of the trial court.

The relevant facts are as follows: On March 18, 1980, respondent Sinnamon (petitioner below and respondent hereinafter), filed a Petition to Determine Controversy with the Labor Commissioner pursuant to section 1700.44. Respondent alleged that appellants violated provisions of the Talent Agencies Act. (§§ 1700 et seq.)

Upon conclusion of a hearing before the Labor Commissioner, the matter was submitted for determination on September 23, 1980. On May 8, 1981, the Labor Commissioner filed its Determination and Award in favor of respondent. That Determination and Award was served upon the parties some four days later. After its receipt, appellants' attorneys contacted the Division of Labor Standards Enforcement and inquired about the appropriate format for an appeal to the superior court for a trial de novo. The division replied by mailing appellants' attorneys a "Notice of Appeal" form "pursuant to Labor Code section 98.2." ²

On May 18, 1981, 10 days after the Labor Commissioner's determination (§ 1700.44), the statutory period during which appellants could have timely filed their appeal of the Labor Commissioner's ruling expired. On May 20, 1981, appellants filed their "Notice of Appeal and Request for Trial de Novo." Appellants relied upon the appeal form sent by the Labor Division as well as their own mistaken belief that section 98.2 was applicable and allotted them until May 22, 1981 to file their appeal.

On August 20, 1981, appellants' appeal and request for trial de novo was dismissed for failure to file a timely notice pursuant to section 1700.44. Ergo, the superior court considered itself lacking jurisdiction to entertain the appeal. Appellants thereafter initiated this appeal.

DISCUSSION

Section 1700.44 allows for any party discontented with the decision of the Labor Commissioner in an administrative proceeding regarding controversies arising under that section to seek review of that decision "within 10 days after determination" by filing an appeal to the superior court. Appellants maintain that section 1700.44 must be construed as requiring an appeal to be filed within 10 days after service of notice of such determination. A contrary interpretation, they insist, would deprive those parties who never receive notice, or those parties who receive late notice of the determination, such as themselves, due process. ³ Respondent takes the opposite position that the time to file the appeal begins immediately upon filing of the Labor Commissioner's determination and that there is no notice requirement.

In construing section 1700.44, it is fundamental that we ascertain the intent of the Legislature in order to effectuate the purpose of the law. (California Teachers Assn. v. San Diego Community College Dist. (1981) 28 Cal.3d 692, 698, 170 Cal.Rptr. 817, 621 P.2d 856; Moyer v. Workmen's Comp. Appeals Bd. (1973) 10 Cal.3d 222, 230, 110 Cal.Rptr. 144, 514 P.2d 1224.) " 'An equally basic rule of statutory construction is ... that courts are bound to give effect to statutes according to the usual, ordinary import of the language employed in framing them.' (Rich v. State Board of Optometry (1965) 235 Cal.App.2d 591, 604 ; Moyer v. Workmen's Comp. Appeals Bd., supra, 10 Cal.3d at p. 230 [110 Cal.Rptr. 144, 514 P.2d 1224].) Although a court may properly rely on extrinsic aids, it should first turn to the words of the statute to determine the intent of the Legislature. [Citations] 'If the words of the statute are clear, the court should not add to or alter them to accomplish a purpose that does not appear on the face of the statute or from its legislative history.' " (People v. Knowles, supra, 35 Cal.2d, at p. 183 ; Rich v. State Board of Optometry, supra, 235 Cal.App.2d, at p. 604 .)" (California Teachers Assn. v. San Diego Community College Dist., supra, 28 Cal.3d, at p. 698, 170 Cal.Rptr. 817, 621 P.2d 856.)

Turning first to the language of section 1700.44, we find it is clear on its face. In pertinent part, section 1700.44 states that:

"In cases of controversy arising under this chapter the parties involved shall refer the matters in dispute to the Labor Commissioner, who shall hear and determine the same, subject to an appeal within 10 days after determination, to the superior court where the same shall be heard de novo." (Emphasis added.)

Addressing the literal meaning of the language used, the time to appeal a Labor Commissioner's determination runs immediately from the moment that determination is rendered. Therefore, a strict interpretation of section 1700.44 leads us to conclude that appellants' notice was not timely filed. However, though clear on its face, " 'the literal meaning of the words of a statute may be disregarded to avoid absurd results or to give effect to manifest purposes that, in light of the statute's legislative history, appear from its provisions considered as a whole. [Citation.]' " (Estate of Grigsby (1982) 134 Cal.App.3d 611, 618, 184 Cal.Rptr. 886, quoting from Silver v. Brown (1966) 63 Cal.2d 841, 845, 48 Cal.Rptr. 609, 409 P.2d 689.)

The legislative history of section 1700.44 is far from revealing. ⁴ However, the general intent of the Legislature in according section 1700.44 with a right to a trial de novo is identifiable.

Reflecting on the Legislature's underlying intent in granting a trial de novo right, the provision for a trial de novo in section 1700.44 is both clear and essential to the validity of the statute. This is so because the Legislature lacked the power, absent a constitutional provision authorizing same, to confer judicial functions upon the Labor Commissioner. ⁵ (Cf. Tex-Cal. Land Management, Inc. v. Agricultural Labor Relations Bd. (1979) 24 Cal.3d 335, 343, 156 Cal.Rptr. 1, 595 P.2d 579; Collier & Wallis, Ltd. v. Astor (1937) 9 Cal.2d 202, 206, 70 P.2d 171; Standard Oil Co. v. State Board of Equal, (1936) 6 Cal.2d 557, 559, 59 P.2d 119.) Thus, the need for a trial de novo right was both recognized and established. Therefore, what was created was not the right to a review of the Labor Commissioner's decision, but " '... a complete trial of the controversy, the same as if no previous hearing had ever been held.' " (Rea Enterprises v. California Coastal Zone Conservation Com. (1975) 52 Cal.App.3d 596, 612, 125 Cal.Rptr. 201, quoting from Collier & Wallis, Ltd. v. Astor, supra, 9 Cal.2d at p. 205, 70 P.2d 171. See also Pressler v. Donald L. Bren Co. (1982) 32 Cal.3d 831, 835, 187 Cal.Rptr. 449, 654 P.2d 219; Buchwald v. Katz, supra, 8 Cal.3d at p. 501, 105 Cal.Rptr. 368, 503 P.2d 1376.) With such a right, the courts have historically applied the rules governing conventional appeals. (Pressler v. Donald L. Bren Co., supra, 32 Cal.3d at p. 836, 187 Cal.Rptr. 449, 654 P.2d 219.) Consequently, inherent in that right to a trial de novo must be the reasonable opportunity for the parties to pursue that right.

In interpreting section 1700.44, we presume the Legislature intended to enact a valid statute. Commensurate with that presumption, an interpretation consistent with the statutory language and purpose must be applied which eliminates doubts as to the provision's constitutionality. (State Compensation Ins. Fund v. Workers' Comp. Appeals Bd. (1979) 88 Cal.App.3d 43, 53, 152 Cal.Rptr. 153.)

Within this notion of constitutionality is the presumption that section 1700.44 meets minimum requirements of due process. "Notice is fundamental to due process: 'Engrained in our concept of Due Process is the requirement of notice.... Notice is required in a myriad of situations where a penalty or forfeiture might be suffered for mere failure to act.' (Lambert v. California (1958) 355 U.S. 225, 78 S.Ct. 240, 2 L.Ed.2d 228 ... [citation.] )" (5 Witkin, Summary of California Law (8th ed. 1974) Constitutional Law, § 291, p. 3581.)

Section 1700.44 expressly provides for an appeal to the superior court within 10 days after the determination of the Labor Commissioner. However, unlike other sections of the Labor Code which also provide a trial de novo right, section 1700.44 does not explicitly allow an interested party reasonable time to notice a determination.

Sections 98.2, subdivision (a), and 2681, subdivision (b), provide for a trial de novo following a Labor Commissioner's decision conditioned upon an appeal being filed "within 10 days after service of notice " of the decision. ⁶

Respondent contends, citing Simmons v. Superior Court (1959) 52 Cal.2d 373, 376, 341 P.2d 13, that "[P]etitioner was not entitled by law to any notice of the court's ruling, and the fact that he did not have actual notice of the ruling is therefore immaterial. Arens v. Superior Court, 45 Cal.2d 623, 625, 290 P.2d 257 .... It is a litigant's duty to protect his own record in each step of the proceedings, and his failure to do so, in the absence...