Opinion ID: 844211
Heading Depth: 3
Heading Rank: 2

Heading: Plaintiffs' Claims Lapsed Prior to 2002

Text: We have demonstrated how important it is, for the purpose of deciding whether a legislatively enlarged limitations period applies to a given case, to determine whether the claim had lapsed prior to the effective date of the new enactment, and to determine what effect the Legislature decided to accord to the lapsing of a claim. Accordingly, as to section 340.1 we review the Legislature's treatment of questions of accrual and lapsing of claims, ultimately concluding that plaintiffs' claims expired by 1998 at the latest. (10) A cause of action accrues, and the limitations period begins to run, when `the cause of action is complete with all of its elements' ( Fox v. Ethicon Endo-Surgery, Inc. (2005) 35 Cal.4th 797, 806 [27 Cal.Rptr.3d 661, 110 P.3d 914]). Under certain circumstances, however, the accrual of the action may be postponed and the running of the limitations period tolled until the plaintiff discovers, or has reason to discover, the cause of action. [Citations.] [¶] A plaintiff has reason to discover a cause of action when he or she `has reason at least to suspect a factual basis for its elements.' [Citations.] Under the discovery rule, suspicion of one or more of the elements of a cause of action, coupled with knowledge of any remaining elements, will generally trigger the statute of limitations period. ( Id. at p. 807; see also Grisham v. Philip Morris U.S.A., Inc. (2007) 40 Cal.4th 623, 634 [54 Cal.Rptr.3d 735, 151 P.3d 1151].) The Legislature handled the timeliness of claims relating to childhood sexual abuse in a number of ways during the period in which it enacted and amended section 340.1. We review the applicable limitations periods to determine when, if at all, plaintiffs' claims lapsed, and to illustrate how the Legislature has handled the problems of lapsed claims and delayed discovery of claims.
In 1972 and 1973, when it is alleged that the abuse occurred, the applicable limitations period for claims alleging sexual abuse of a child was one year from the time the cause of action accrued (former § 340, par. 3, as amended by Stats. 1968, ch. 150, § 1, p. 373; DeRose v. Carswell (1987) 196 Cal.App.3d 1011, 1015, 1018 [242 Cal.Rptr. 368] ( DeRose )), and ordinarily the cause of action accrued at the time of the alleged abuse. ( John R. v. Oakland Unified School Dist. (1989) 48 Cal.3d 438, 443 [256 Cal.Rptr. 766, 769 P.2d 948]; see also Shirk v. Vista Unified School Dist. (2007) 42 Cal.4th 201, 210 [64 Cal.Rptr.3d 210, 164 P.3d 630] ( Shirk ).) For persons who were minors when the alleged abuse occurred, the limitations period was tolled until one year after the time the plaintiffs reached the age of majority, that is, until the age of 19. (§ 352, subd. (a); Hightower v. Roman Catholic Bishop of Sacramento (2006) 142 Cal.App.4th 759, 765 [48 Cal.Rptr.3d 420] ( Hightower ); Tietge v. Western Province of the Servites, Inc. (1997) 55 Cal.App.4th 382, 385 [64 Cal.Rptr.2d 53]; DeRose, supra, at p. 1015.) Thus the claim of the youngest of the plaintiffs, who was born in 1963, [4] lapsed in 1982 when he turned 19 years of age. At the time of the alleged abuse and subsequently there was some authority for applying the common law discovery rule under certain circumstances to delay the accrual of a cause of action based upon childhood sexual abuse. [5] As we shall see, however, even if this authority were applied to third party defendants it would not assist plaintiffs' claim that accrual of their cause of action was delayed until they discovered that their adult injuries were caused by the childhood abuse. This is because ultimately the Legislature substituted its own rules for the common law discovery rule, and in 1998 restricted claims against third parties to plaintiffs who had not yet reached the age of 26even if they could allege a delay in discovery that their adult psychological injuries were caused by childhood abuse.
Section 340.1 was enacted in 1986, and it extended to three years the limitations period for actions alleging sexual abuse of a minor when the perpetrator was a member of the minor's household. (Former § 340.1, added by Stats. 1986, ch. 914, § 1, pp. 3165-3166.) Because of this limitation, it would not have applied to plaintiffs' claims. [6] Although the 1986 statute did not apply to third party claims such as plaintiffs', we believe it is significant to our understanding of the Legislature's intent regarding delayed discovery to note that the statute specifically referred to common law delayed discovery principles, providing that [n]othing in this bill is intended to preclude the courts from applying delayed discovery exceptions to the accrual of a cause of action for sexual molestation of a minor. (Former § 340.1, subd. (d), added by Stats. 1986, ch. 914, § 1, pp. 3165, 3166.) As further evidence that the Legislature provides expressly for the revival of lapsed claims even when a statute embraces a delayed discovery rule, we observe that the 1986 enactment provided: This section shall apply to both of the following: [¶] (1) Any action commenced on or after January 1, 1987, including any action which would be barred by application of the period of limitation applicable prior to January 1, 1987. [¶] (2) Any action commenced prior to January 1, 1987, and pending on January 1, 1987. (Former § 340.1, subd. (e), added by Stats. 1986, ch. 914, § 1, pp. 3165, 3166.)
In 1990, section 340.1 was amended to extend beyond members of the minor's household to reach any perpetrator of sexual abuse against a child. (Stats. 1990, ch. 1578, § 1, p. 7550 et seq.) Although the amended statute applied to direct perpetrators and not third party defendants such as those involved in the present case, the Legislature's expansion of the limitations period, along with its treatment of the delayed discovery rule and the revival of claims again is relevant to our inquiry. The Legislature amended section 340.1 to significantly enlarge the limitations period from three to eight years following the age of majority (i.e., to age 26). (Stats. 1990, ch. 1578, § 1, p. 7550 et seq.) The amendment also created its own statutory delayed discovery rule, evidencing intent to provide a new rule that would extend delayed discovery principles beyond what had been recognized in the case law. (See DeRose, supra, 196 Cal.App.3d at pp. 1017-1018 [delayed discovery principles did not extend to the plaintiff's failure to recognize that adult psychological injury was caused by childhood abuse]; see also Evans, supra, 216 Cal.App.3d at pp. 1618-1620 [same].) As amended, subdivision (a) of section 340.1 provided: (a) In any civil action for recovery of damages suffered as a result of childhood sexual abuse, the time for commencement of the action shall be within eight years of the date the plaintiff attains the age of majority or within three years of the date the plaintiff discovers or reasonably should have discovered that psychological injury or illness occurring after the age of majority was caused by the sexual abuse, whichever occurs later.  (Former § 340.1, subd. (a), as amended by Stats. 1990, ch. 1578, § 1, p. 7550, italics added.) As one court commented, The obvious goal of amended section 340.1 is to allow sexual abuse victims a longer time period in which to become aware of their psychological injuries and remain eligible to bring suit against their abusers. ( Debbie Reynolds Prof. Rehearsal Studios v. Superior Court (1994) 25 Cal.App.4th 222, 232 [30 Cal.Rptr.2d 514] ( Debbie Reynolds ); see id. at p. 231 [also confirming that the 1990 amendments did not apply to claims against third parties].) Further, the language of the original 1986 statute that had embraced common law delayed discovery principles[n]othing in this bill is intended to preclude the courts from applying delayed discovery exceptions to the accrual of a cause of action for sexual molestation of a minor (former § 340.1, subd. (d), added by Stats. 1986, ch. 914, § 1, pp. 3165, 3166)was deleted. However, for actions brought prior to the effective date of the 1990 amendment, common law delayed discovery principles were maintained: Nothing in the amendments specified in subdivision (k) [(making the amendments applicable to actions commenced on or after Jan. 1, 1991)] shall be construed to preclude the courts from applying equitable exceptions to the running of the applicable statute of limitations, including exceptions relating to delayed discovery of injuries, with respect to actions commenced prior to January 1, 1991. (Former § 340.1, subd. ( l ), added by Stats. 1990, ch. 1578, § 1, pp. 7550, 7552.) The 1990 amendment also provided that [t]he amendments to this section enacted at the 1990 portion of the 1989-90 Regular Session shall apply to any action commenced on or after January 1, 1991. (Former § 340.1, subd. (k), added by Stats. 1990, ch. 1578, § 1, pp. 7550, 7552.) Because this language did not constitute express language of revival, it was held to be insufficient to revive lapsed claims. ( David A., supra, 20 Cal.App.4th at p. 286; see also Lent v. Doe (1995) 40 Cal.App.4th 1177, 1183 [47 Cal.Rptr.2d 389].)
Section 340.1 was amended for a second time in 1994, and again, although the amendments did not render the statute applicable to third party defendants, the amendments are of interest because of the Legislature's efforts to use express and unmistakable language to govern revival of lapsed claims, as well as for the Legislature's elimination of the remaining reference to common law delayed discovery principles. (Stats. 1994, ch. 288, § 1, pp. 1928-1931.) The 1994 amendment added express language of revival, responding to the David A. decision that had determined that the 1990 amendments had not revived lapsed claims. (Legis. Counsel's Dig., Assem. Bill No. 2846 (1993-1994 Reg. Sess.) 5 Stats. 1994, Summary Dig., p. 111; see Sen. Com. on Judiciary, Analysis of Assem. Bill No. 1651 (1997-1998 Reg. Sess.) as amended July 16, 1998, p. 8; see also David A., supra, 20 Cal.App.4th at pp. 286-287.) Thus the Legislature added to the language previously providing that [t]he amendments to this section enacted at the 1990 portion of the 1989-90 Regular Session shall apply to any action commenced on or after January 1, 1991, the additional phrase  including any action otherwise barred by the period of limitations in effect prior to January 1, 1991, thereby reviving those causes of action which had lapsed or technically expired under the law existing prior to January 1, 1991. (Former § 340.1, subd. ( o ), added by Stats. 1994, ch. 288, § 1, pp. 1928, 1930, italics added.) With respect to its own 1994 amendments, the Legislature declared its intent in enacting the amendments to this section enacted at the 1994 portion of the 1993-94 Regular Session, that the express language of revival added to this section by those amendments shall apply to any action commenced on or after January 1, 1991. (Former § 340.1, subd. (p), added by Stats. 1994, ch. 288, § 1, pp. 1928, 1930-1931.) At the same time, the Legislature deleted former subdivision ( l ), with its reference to the equitable exceptions to the statute of limitations and common law delayed discovery principles. (See Stats. 1994, ch. 288, § 1, pp. 1928, 1930; Historical and Statutory Notes, 13C West's Ann. Code Civ. Proc. (2006 ed.) foll. § 340.1, p. 173.)
(11) We now reach the 1998 amendments that for the first time included certain third party defendants within the scope of the enlarged limitations period that was established by the 1990 amendmentsthat is, by former section 340.1, subdivision (a), providing that the time to bring an action for childhood sexual abuse may be extended until three years after the plaintiff recognized the connection between adult psychological injury and the childhood abuse (Stats. 1990, ch. 1578, § 1, p. 7550). The 1998 amendment stipulated that the limitations period of subdivision (a) applied for any of the following actions: [¶] (1) An action against any person for committing an act of childhood sexual abuse. [¶] (2) An action for liability against any person or entity who owed a duty of care to the plaintiff, where a wrongful or negligent act by that person or entity was a legal cause of the childhood sexual abuse which resulted in the injury to the plaintiff. [¶] (3) An action for liability against any person or entity where an intentional act by that person or entity was a legal cause of the childhood sexual abuse which resulted in the injury to the plaintiff. (Former § 340.1, subd. (a), as amended by Stats. 1998, ch. 1032, § 1, p. 7785.) Although the 1998 amendments now included certain third party defendants within the scope of the provision recognizing that the limitations period for child sexual abuse claims could run from the discovery that psychological injury was caused by the childhood abuse, at the same time the amendments provided a separate subdivision directing that no claim against a third party covered by subdivision (a) could be brought once the plaintiff reached the age of 26. Specifically, the 1998 amendment added a new subdivision (b), providing that [n]o action described in paragraph (2) or (3) of subdivision (a) may be commenced on or after the plaintiff's 26th birthday. (Former § 340.1, subd. (b), added by Stats. 1998, ch. 1032, § 1, p. 7785.) [7] Finally, the amendments also declared that the 1998 enactment lengthening the limitations period for claims against third parties did not create a new theory of liability. (Former § 340.1, subd. (r), added by Stats. 1998, ch. 1032, § 1, pp. 7785, 7788.) (12) For a number of reasons, we are confident that the 1998 amendment imposed an absolute bar against instituting a lawsuit against third party defendants once the plaintiff reached the age of 26. Contrary to the suggestion of Justice Liu's dissent that undiscovered claims were not subject to the age 26 cutoff (dis. opn. of Liu, J., post, at p. 998), the 1998 amendment expressed the limit in absolute terms. It did not distinguish between discovered and undiscovered claims, but rather made plain that no third party action brought under section 340.1, subdivision (a)a provision that itself provided a limitation period that could be measured from the time of discoverymay be brought once the plaintiff reaches the age of 26. Absent from subdivision (b)'s absolute language is any reference to delayed discovery once a plaintiff with a third party claim reached age 26despite the Legislature's evident familiarity with the problem of delayed discovery in the 1990 and 1994 versions of the statute and its awareness of the need for express revival provisions. The Legislature made an obvious choice to use language for claims against third party defendants that differed markedly from the language it still used for claims against direct perpetrators. (See Moore, supra, 112 Cal.App.4th at p. 382 [An express legislative provision for circumstances which will toll a statute [of limitations] excludes, by necessary implication, all other exceptions.].) As to plaintiffs with claims against these third party defendants, the Legislature elected to toll the limitations period to age 26, but no longer. Our interpretation was shared by the court in Hightower ( Hightower, supra, 142 Cal.App.4th at p. 767; see also Shirk, supra, 42 Cal.4th at p. 208), and indeed, the Court of Appeal in the present case interpreted the 1998 amendments as we have done. Describing the law prior to the 2002 amendments, it observed that unlike for claims against direct perpetrators, as against third parties, ... the outside limit was age 26. [Citation.] Thus, under the prior law, any person discovering after age 26 that childhood abuse was the cause of his or her adulthood injuries was barred from suing responsible third parties. Plaintiffs' brief on the merits describes the effect of the 1998 amendments in the same way. Finally, legislative history supports the same interpretation. Attempting to strike a balance between the interests of the victims and the purpose behind the statute of limitations, the original bill was narrowed to carefully define the third party claims to which it applied and to require commencement of the action before the plaintiff's 26th birthday. (Sen. Com. on Judiciary, Analysis of Assem. Bill No. 1651 (1997-1998 Reg. Sess.) as amended July 30, 1998, p. 4, underscoring omitted; see also Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Assem. Bill No. 1651 (1997-1998 Reg. Sess.) as amended Aug. 19, 1998, pp. 1, 3, 4, 7.) Plaintiffs were 26 years of age or older on the effective date of the 1998 legislation. When the 1998 amendment went into effect, it is certain that their claims had lapsed.
In 1999, section 340.1 was amended for the fourth time, but these amendments did nothing to revive plaintiffs' lapsed claims. (Former § 340.1, as amended by Stats. 1999, ch. 120, § 1, pp. 1735-1739.) In language then lettered as subdivision (s) (but now appearing in subd. (u)) of the statute, the 1999 amendment extended the changes effected by the 1998 amendment to any action commenced on or after January 1, 1999, and to any action filed prior to January 1, 1999, and still pending on that date, including any action or causes of action which would have been barred by the laws in effect prior to January 1, 1999. Nothing in this subdivision is intended to revive actions or causes of action as to which there has been a final adjudication prior to January 1, 1999. (Former § 340.1, subd. (s), added by Stats. 1999, ch. 120, § 1, pp. 1735, 1738-1739.) This language had the effect of reviving, for potential plaintiffs still under the age of 26, previously lapsed claims. There is no reference to the discovery rule or permitting claims to be made after the age of 26. Plaintiffs, having already passed the age of 26, and not having instituted an action prior to January 1, 1999, were not aided by this amendment, and their claims remained lapsed. [8]