Court Opinion

ID: 9539820
Source: CourtListenerOpinion
Date Created: 2023-08-07 16:10:43.675235+00
Date Added: 2024-06-11T14:59:22.859453
License: Public Domain

PANELLI, J.
I concur fully in the judgment and its underlying reasoning. I write separately to emphasize that we do not in this case decide the validity of an administrative scheme that, in the guise of advancing “public” rights or the general welfare, permits an agency to award substantial general compensatory damages to an aggrieved individual on grounds such dam*387ages further the agency’s regulatory purposes, or are merely “incidental” to other equitable or restitutive relief.
In Labor Board v. Jones & Laughlin (1937) 301 U.S. 1 [81 L.Ed. 893, 57 S.Ct. 615, 108 A.L.R. 1352], cited by the majority {ante, at p. 382), the high court rejected an employer’s Seventh Amendment jury trial challenge to the administrative award of backpay. The court stated, “The Amendment. . . has no application to cases where recovery of money damages is an incident to equitable relief even though damages might have been recovered in an action at law.” (301 U.S. at p. 48 [81 L.Ed. at p. 918].) However, the damages at issue—backpay—were restitutive and quantifiable, analogous to special damages in an action at law. In context, therefore, the high court’s statement cannot be read as upholding the administrative award of general compensatory damages.
In determining the application of our constitutional jury trial provision (Cal. Const., art. I, § 16) to the administrative award of damages, the majority adopts the substantive-limitations test earlier applied in the context of the judicial powers doctrine. Pursuant to that test, if the challenged activities (i.e., the remedy or damages award) “are authorized by statute or legislation, and are reasonably necessary to, and primarily directed at, effectuating the administrative agency’s primary, legitimate regulatory purposes—then the state constitution’s jury trial provision does not operate to preclude administrative adjudication.” {Ante, at p. 380.)
As in Jones, supra, the damages at issue in the instant case—excess rent— are restitutive in kind and limited in amount. Resolution of the jury trial issue, as the majority suggests, “might be different in a situation in which an agency purports to adjudicate substantial ‘damage’ claims such that recovery of damages becomes the primary focus, as opposed to merely an incidental aspect of the regulatory scheme.” {Ante, at p. 381, fn. 53.)
Although the award of general compensatory damages may have substantive effect, in that it deters violation of the regulatory scheme, and thus arguably may meet the substantive-limitations requirement, when the damages awarded advance a substantial private interest in remuneration that is disproportionate to the concept of public relief, the right to jury trial is implicated and a jury is required. Regardless of the substantive effect of a general damages award in effectuating an agency’s legitimate regulatory purposes, an administrative hearing cannot, consistent with the right to trial by jury, be transformed into a forum for adjudicating general damages. Neither the substantive-limitations test, nor our opinion, should be understood as sanctioning an administrative award of unlimited general compensatory damages.
Eagleson, J., concurred.