This is an appeal from an order denying appellant's request for a preliminary injunction. An order denying a preliminary injunction is appealable. (Code Civ. Proc., § 904.1, subd. (a)(6); see Right Site Coalition v. Los Angeles Unified School Dist. (2008) 160 Cal.App.4th 336, 338, fn. 1 [72 Cal.Rptr.3d 678].) Appellant Ralphs Grocery Company, contends two California laws protecting labor picketing violate constitutional protections of free speech. We agree. Accordingly, we reverse the order of the trial court and remand the matter for further proceedings on appellant's motion for preliminary injunction.
Appellant operates a large grocery store in Fresno under the name Foods Co. The store is in a commercial shopping center and the store entrance is separated from the center's parking lot by a narrow sidewalk. The employees of the Fresno Foods Co store are not employed under a union contract.
Beginning in October 2008, nonemployee representatives of respondent United Food and Commercial Workers Union Local 8 began an informational
Alleging that the picketers refused to obey the rules appellant had established for presence on the property, and alleging that the police department was unwilling to remove the picketers from the property, appellant filed a complaint in February 2009 for declaratory and injunctive relief and for damages arising from respondent's picketers' continued presence. Appellant sought a preliminary injunction to prevent respondent from "directly or indirectly using Foods Co private property for any expressive activity at a time or place or in a manner prohibited by Foods Co's Rules." After submission of declarations and other evidence in support of and in opposition to the motion, and after hearing on the motion, the trial court concluded that two statutes, Code of Civil Procedure section 527.3 and Labor Code section 1138.1, precluded it from issuing a preliminary injunction. Appellant filed a timely notice of appeal.
Section 527.3 of the Code of Civil Procedure, enacted in 1975 and known as the Moscone Act, limits the equity jurisdiction of California courts in cases involving a "labor dispute." (See Sears, Roebuck & Co. v. San Diego County Dist. Council of Carpenters (1979) 25 Cal.3d 317, 322-323 [158 Cal.Rptr. 370, 599 P.2d 676] (Sears).) The prohibition on injunctions applies to, inter alia, picketing and otherwise giving publicity to the existence of a labor dispute. (Code Civ. Proc., § 527.3, subd. (b).) The Moscone Act declares that the described labor activity "shall be legal, and no court ... shall have jurisdiction to issue any restraining order or ... injunction" prohibiting such activity. (Ibid.)
Neither statute limits its protection to activity based on where the activity occurs. The protection applies whether the labor activity occurs on public or private property.
In 1979, the California Supreme Court upheld the Moscone Act, rejecting the constitutional arguments that were raised by Sears, Roebuck & Company, which sought to enjoin union picketing on the private sidewalk outside its retail store. (See Sears, supra, 25 Cal.3d at pp. 331-332.) The court rejected a Fifth Amendment challenge to the Moscone Act under the rational basis standard, finding that "the elimination of unnecessary judicial intervention into labor disputes" bore a reasonable relationship to legitimate state objectives. (Sears, supra, at p. 332.) The court declined, however, to express an opinion on whether the California Constitution protected the picketing at issue. (Sears, supra, at p. 327.) It rested its ultimate decision on the terms of the statute. (Ibid.) After Sears, the constitutionality of the Moscone Act went largely unchallenged in California courts until recently.
The Supreme Court in Sears did not consider the constitutional implications of the Moscone Act's establishment of a statutory preference for labor picketing over all other free speech. Such a challenge is the focus of the case as presented to us and in light of applicable United States Supreme Court cases and California Supreme Court precedent, we determine that the Moscone Act and Labor Code section 1138.1 are unconstitutional under article I, section 2 of the California Constitution: The two statutes make an
In the present case, appellant does not assert a First Amendment right to be free from union picketing in front of its store, nor does such picketing violate its constitutionally protected property rights. (Sears, supra, 25 Cal.3d at p. 331.) Appellant instead contends that the statutes, by allowing labor picketing on private property such as theirs, constitute impermissible content-based discrimination prohibited by the First Amendment.
Respondent does not assert its labor picketing on appellant's property is protected by the First Amendment. Respondent asserts its activity is a statutory right prescribed by the Moscone Act and Labor Code section 1138.1.
Respondent contends the statutes do not prohibit constitutionally protected speech in any way and are not subject to First Amendment content-discrimination analysis. Respondent further contends appellant is not entitled to assert a deficiency in the Moscone Act; in particular, appellant has no standing to raise the free speech rights of picketers or petition gatherers with nonlabor messages whose rights are not protected by that statute.
We believe a different principle is paramount in the present case, however. Our concern here is with the state establishing a priority for particular speech based on its content. The point is not that labor speech is undeserving of legislative protection but, instead, that there is no compelling reason for the state to single it out as the only form of speech that can be exercised despite the objection of the owner of private property upon which the speech activity occurs.
With these three preliminary points firmly established by the United States Supreme Court and the California Supreme Court, the question that confronts us is this: When a statutory right of speech is created by the Legislature, not by the state or federal Constitution, is strict-scrutiny analysis applied to content discrimination inherent in the state legislation?
Unlike the federal statute in Hudgens, the Moscone Act and Labor Code section 1138.1 are not an incidental part of a broader scheme of regulation of labor relations.
The actual impact of the statutes is to discriminate: to provide a forum on both public and private property ("any place where any person or persons may lawfully be" (Code Civ. Proc. § 527.3, subd. (b)(1))) for speech related
Respondent also contends that even if the Moscone Act and Labor Code section 1138.1 are unconstitutional, appellant still has not met the traditional requirements for issuance of a preliminary injunction. In particular, respondent contends appellant has not established that a preliminary injunction is necessary to preserve the status quo, since the current state of affairs has respondent's agents picketing at the Foods Co property. In addition, respondent contends appellant has failed to offer any evidence to support a claim of irreparability of its potential injury from respondent's picketing activities.
These issues, as well as the various issues involved in issuing a permanent injunction, were not addressed by the trial court, which only determined that appellant had not established its right to an injunction under Labor Code section 1138.1. It is appropriate to remand this matter for further hearing, at which the trial court will consider the requirements generally applicable to injunctions against allegations of continuing trespass.
The order denying appellant's motion for preliminary injunction is reversed. The matter is remanded for further proceedings as stated in the Discussion section above. Appellant is awarded costs on appeal.
Kane, J., concurred.
I concur in the reasoning and decision of the majority opinion. I write separately to address the matter of standing, which I regard as a nonissue in this case.
It needs to be emphasized at the outset that the question of whether appellant has legal standing to bring this action is entirely separate from the question of who should prevail on the merits.
While the standing of a plaintiff to bring suit can be raised at any time during the proceedings (Common Cause v. Board of Supervisors (1989) 49 Cal.3d 432, 438 [261 Cal.Rptr. 574, 777 P.2d 610]), it is telling that respondent did not challenge appellant's standing in the trial court and most (if not all) of the appellate opinions that respondent relies upon do not raise, question or analyze the standing of the property owner to challenge picketing-related activities on its private property. An obvious conclusion emerges: a private property owner necessarily has legal standing to contest the claim by others that they have a right to use property they do not own.
As the owner of the private property on which these picketing activities occurred, appellant has clearly met the legal standard for "standing" in this case. "`The fundamental aspect of standing is that it focuses on the party seeking to get his complaint before a ... court, and not on the issues he wishes to have adjudicated.' (Flast v. Cohen [(1968) 392 U.S. 83,] 99 [20 L.Ed.2d 947, 88 S.Ct. 1942].) A party enjoys standing to bring his complaint into court if his stake in the resolution of that complaint assumes the proportions necessary to ensure that he will vigorously present his case. (Baker v. Carr (1962) 369 U.S. 186, 204 [7 L.Ed.2d 663, 82 S.Ct. 691].) As Professor Jaffe has stated, we must determine standing by a measure of the `intensity of the plaintiff's claim to justice.' (Jaffe, [Standing to Secure Judicial Review: Private Actions (1961) 75 Harv. L.Rev. 255,] 304.)" (Harman v. City and County of San Francisco (1972) 7 Cal.3d 150, 159 [101 Cal.Rptr. 880, 496 P.2d 1248].) It cannot be seriously argued that appellant has no stake in the outcome of this case or that it will not vigorously present its case. Indeed, appellant is the only one with legal standing to object to respondent's alleged violation of its private property rights.
The law has always recognized the importance of private property ownership rights. These rights have constitutional, statutory and common law roots.
This case requires judicial resolution of the conflicts that arise when free speech rights clash with private property rights. Neither set of rights is absolute. Each must be weighed and considered in relation to the other's rights. (Schwartz-Torrance Investment Corp. v. Bakery & Confectionery Workers' Union (1964) 61 Cal.2d 766, 771 [40 Cal.Rptr. 233, 394 P.2d 921] [union's right to picket not outweighed by shopping center's right to possession and enjoyment of private property]; Hudgens v. NLRB (1976) 424 U.S. 507, 517 [47 L.Ed.2d 196, 96 S.Ct. 1029] ["`To hold that store owners are compelled by law to supply picketing areas for pickets to drive store customers away is to create a court-made law wholly disregarding the constitutional basis on which private ownership of property rests in this country'" (italics added)]; Robins v. Pruneyard Shopping Center (1979) 23 Cal.3d 899, 911 [153 Cal.Rptr. 854, 592 P.2d 341] [compelling shopping center to permit solicitation of signatures and distribution of handbills "`would not markedly dilute defendant's property rights'"]; Fashion Valley Mall, LLC v. National Labor Relations Bd. (2007) 42 Cal.4th 850, 869 [69 Cal.Rptr.3d 288, 172 P.3d 742] [shopping mall's purpose to maximize profits not compelling compared to right to free expression].) Just as the union's interests are at stake when the property owner seeks to enjoin the picketers from picketing on its property, the property owner's interests are at stake when the picketers insist on using private property for their own purposes.
Respondent's belated contention that appellant lacks legal standing to challenge the validity of the Moscone Act (Code Civ. Proc., § 527.3) and Labor Code section 1138.1 because appellant's free speech is not being restricted misses the point entirely. Appellant's standing emanates from its own private property rights, not from its own free speech rights.
Respondent argues that unconstitutional discrimination can only be raised by the person who is a member of the class of persons discriminated against. While that statement reflects the general rule, it has no application here. Buchanan v. Warley (1917) 245 U.S. 60 [62 L.Ed. 149, 38 S.Ct. 16] is instructive on this point. In an action for specific performance of a real estate
"The objection is made that this writ of error should be dismissed because the alleged denial of constitutional rights involves only the rights of colored persons, and the plaintiff in error is a white person. This court has frequently held that while an unconstitutional act is no law, attacks upon the validity of laws can only be entertained when made by those whose rights are directly affected by the law or ordinance in question. Only such persons, it has been settled, can be heard to attack the constitutionality of the law or ordinance. But this case does not run counter to that principle.
"The property here involved was sold by the plaintiff in error, a white man, on the terms stated, to a colored man; the action for specific performance was entertained in the court below, and in both courts the plaintiff's right to have the contract enforced was denied solely because of the effect of the ordinance making it illegal for a colored person to occupy the lot sold.... This case does not come within the class wherein this court has held that where one seeks to avoid the enforcement of a law or ordinance he must present a grievance of his own, and not rest the attack upon the alleged violation of another's rights. In this case the property rights of the plaintiff in error are directly and necessarily involved. See Truax v. Raich [(1915)] 239 U.S. 33, 38 [60 L.Ed. 131, 36 S.Ct. 7]." (Buchanan v. Warley, supra, 245 U.S. at pp. 72-73, italics added.) Thus, it is not true, as respondent contends, that in all cases only a member of the class of persons discriminated against has standing to assert that the law is discriminatory, or in the First Amendment context, only a member of the class of persons whose free speech is affected has standing to assert that the law violates the First Amendment.
It is ludicrous for respondent to argue that appellant is precluded from challenging the validity of the very statutes that respondent brandished (and the lower court relied upon) in opposing its request for injunctive relief. Appellant's objection to these statutes is defensive, not offensive, in nature. It is being asserted as a shield, not as a sword. If due process means anything it means having the opportunity to fully defend against the assertions of fact and law made by one's opponent (and relied upon by the lower court). Here, respondent convinced the lower court to deny the request for injunctive relief on the authority of these statutes. Just as in Buchanan v. Warley, supra, 245 U.S. 60,
I agree with the majority's implicit conclusion that the shopping center in this case is not governed by the California Supreme Court's opinion in Robins v. Pruneyard Shopping Center (1979) 23 Cal.3d 899 [153 Cal.Rptr. 854, 592 P.2d 341] (Robins v. Pruneyard). As several Court of Appeal opinions have concluded (Trader Joe's Co. v. Progressive Campaigns, Inc. (1999) 73 Cal.App.4th 425, 434 [86 Cal.Rptr.2d 442]; Costco Companies v. Gallant (2002) 96 Cal.App.4th 740, 755-756 [117 Cal.Rptr.2d 344]; Albertson's, Inc. v. Young (2003) 107 Cal.App.4th 106, 110 [131 Cal.Rptr.2d 721]; Van v. Target Corp. (2007) 155 Cal.App.4th 1375, 1382 [66 Cal.Rptr.3d 497]), stand-alone stores and stores located in small shopping centers do not fall within the constitutional rule announced in Robins v. Pruneyard. The Foods Co store in this case is comparable to the stores at issue in those cases. As a result, I would hold that respondent has no state constitutional right to speak on appellant's property. It is at this point that I part company with my colleagues.
In my view, the next question is whether the union, lacking Pruneyard rights, still has a statutory right to picket on the property under the Moscone Act (Code Civ. Proc., § 527.7) (the Moscone Act) and Labor Code section 1138.1. Appellant's only argument that it does not is that these statutes violate the free-speech guarantees of the California and federal Constitutions. Therefore, if the statutes are constitutionally valid, the union has a statutory right to picket on the property and does not need a constitutional right to do so.
I would conclude that appellant lacks standing to raise a constitutional free-speech claim because it does not (and cannot) contend that its own freedom of speech is burdened. At oral argument, appellant's counsel conceded that appellant is not asserting any constitutional free-speech rights of its own. Despite multiple opportunities during briefing and oral argument, appellant has pointedly (and with good reason) not argued that its rights against compelled speech and association are implicated. Its argument by necessity is based on the constitutional rights of hypothetical speakers who might like to speak on private, non-Pruneyard property but cannot because the two statutes do not apply to them. Even the hypothetical speakers whose constitutional rights are affected, if successful, would receive no relief, as their speech would still be enjoined if the statutes are invalidated. The only benefit they would receive is the knowledge that similarly situated labor
Appellant's position is very different from that of the parties in Police Department of Chicago v. Mosley (1972) 408 U.S. 92 [33 L.Ed.2d 212, 92 S.Ct. 2286] and Carey v. Brown (1980) 447 U.S. 455 [65 L.Ed.2d 263, 100 S.Ct. 2286], the United States Supreme Court cases upon which appellant primarily relies. In those cases, the court vindicated the free-speech rights of parties to the case who were criminally prosecuted for speech. In the present case, by contrast, no party's right to speak has been burdened.
Confronted with these difficulties at oral argument, appellant's counsel suggested that appellant really intended to assert property rights under the Fifth Amendment: perhaps the two challenged statutes effectuate a taking without just compensation. Appellant's briefs contain no organized presentation of this notion, however, and cite no authority that would support it. Counsel's reference to the Fifth Amendment appears to be only an effort to mask the fact that appellant's constitutional rights are not implicated in this case.
Respondent's counsel appeared to concede at oral argument that the issue of standing was not raised in the trial court. This would not, however, bar us from basing our ruling on standing grounds. "`[T]he issue of standing is so fundamental that it need not even be raised below—let alone decided—as a prerequisite to our consideration.'" (Matrixx Initiatives, Inc. v. Doe (2006) 138 Cal.App.4th 872, 877 [42 Cal.Rptr.3d 79].) Even if there is some doubt about whether this is a universal rule (see People v. Dasilva (1989) 207 Cal.App.3d 43, 47 [254 Cal.Rptr. 563]), it applies here. The reason for the general principle that appellate courts should not address issues raised for the first time on appeal is that it is usually unfair to the trial court and the adverse party to take advantage of an error on appeal which could have been corrected during the trial. (People v. Saunders (1993) 5 Cal.4th 580, 590 [20 Cal.Rptr.2d 638, 853 P.2d 1093]; Doers v. Golden Gate Bridge etc. Dist. (1979) 23 Cal.3d 180, 184-185, fn. 1 [151 Cal.Rptr. 837, 588 P.2d 1261].) There is nothing plaintiff could have done in the trial court, however, to correct its lack of standing to assert the constitutional free-speech rights of hypothetical third parties. Further, there is no question but that appellant had the opportunity to brief the issue on appeal. Respondent raised the issue in its supplemental brief filed on September 7, 2010. Appellant had the opportunity to file, and did file, a responsive supplemental brief.
In one early case, Buchanan v. Warley (1917) 245 U.S. 60 [62 L.Ed. 149, 38 S.Ct. 16], the Supreme Court held that a White plaintiff suing to enforce against a Black defendant a contract for sale of real property had standing to challenge a local ordinance under which Black people were forbidden to own the property at issue. The court rejected the argument that the White plaintiff lacked standing to assert that the ordinance was invalid because it violated the rights of Black people under the federal Constitution and federal statutes. (Buchanan, supra, at pp. 72-73.) The court did not consider, however, whether the three elements required for third party standing had been established, since those elements had not yet been formulated by the court in 1917. "It is axiomatic that cases are not authority for propositions not considered." (People v. Ault (2004) 33 Cal.4th 1250, 1268, fn. 10 [17 Cal.Rptr.3d 302, 95 P.3d 523].) Further, the case does not support appellant's standing here in any event. In Buchanan, the White plaintiff's interests were assuredly aligned with the interests of Black people subject to the ordinance (if not the interests of the particular defendant in the case): His interest, like theirs, was to invalidate the racist law. Appellant's interests in this case are, by contrast, antithetical to those of the hypothetical third party speakers whose rights it asserts, as I have said.
Although I believe appellant lacks standing, I will address the merits of appellant's claim, which overlap substantially with issues relating to standing. Appellant expresses the frustration that many California property owners must feel when required by California law to allow peaceful labor speech— speech they obviously oppose—on their own property. Justice Chin gave voice to this feeling, in a different legal context, in his dissent in Fashion Valley Mall, LLC v. National Labor Relations Bd. (2007) 42 Cal.4th 850, 870 [69 Cal.Rptr.3d 288, 172 P.3d 742] (Fashion Valley Mall), where he urged the overruling of Robins v. Pruneyard: "It is wrong to compel a private property owner to allow an activity that contravenes the property's purpose." (Italics added.) As I will explain, however, we are not in a position to relieve this frustration in this case because appellant has not shown that the Moscone Act and Labor Code section 1138.1 are unconstitutional.
The majority opinion essentially concludes that, unless state law allows state courts to enjoin either all speech or no speech on private property at the owner's request, then the constitutional right to free expression of someone is being violated. This contention is not supported by existing constitutional principles. The challenged statutes do not burden anyone's speech. To the contrary, the effect of the statutes on the speakers at whom they are aimed, i.e., people involved in "labor disputes," is to prevent the suppression of their speech by injunction. The majority opinion apparently accepts appellant's view that there is no difference between a statute that selectively suppresses speech and a statute that selectively protects it—that this is the difference between "six in one hand" and "half a dozen in the other," as appellant's reply brief puts it. In my view, this position does not work. The state and federal Constitutions condemn the suppression of speech, not the protection of it. The hypothetical trespassing nonlabor speakers whose rights appellant is asserting would be silenced by laws relating to trespass and laws allowing the issuance of injunctions, not by the Moscone Act or Labor Code section 1138.1. The majority's position is, in effect, that the law as a whole discriminatorily burdens the hypothetical speakers' speech and that the proper
This approach is an extension of existing constitutional law. Only a single brief paragraph containing little analysis in Waremart Foods v. N.L.R.B. (D.C.Cir. 2004) 359 U.S. App.D.C. 312 [354 F.3d 870, 876] (Waremart Foods), supports it, and that opinion is not binding on us. The United States and California Supreme Courts may choose to expand existing constitutional doctrine, but mid-level appellate courts generally uphold statutes unless they conflict with existing authority.
Under existing constitutional analysis, the two statutes are valid. A statute is unconstitutional as applied if the actual application of it to the challenging party impermissibly burdens a constitutional right of that party. (See Tobe v. City of Santa Ana, supra, 9 Cal.4th at p. 1089.) There is no as-applied invalidity here because the two statutes do not burden appellant's free-speech rights at all. A statute is facially invalid if there are no circumstances under which it could be validly applied—that is, no circumstances under which its application would not impermissibly burden someone's constitutional rights. (United States v. Salerno (1987) 481 U.S. 739, 745 [95 L.Ed.2d 697, 107 S.Ct. 2095].) There is no facial invalidity here because countless applications of the challenged statutes—in fact, their normal applications—protect expression and place no burden on it.
Unlike other kinds of laws, a statute burdening speech is also subject to a facial challenge where the statute is shown to be substantially overbroad, even if some valid applications of it exist. A statute is substantially overbroad if, in addition to regulating some speech properly, it also operates to suppress or chill a substantial amount of other, protected speech. (City Council v. Taxpayers for Vincent (1984) 466 U.S. 789, 798-801 [80 L.Ed.2d 772, 104 S.Ct. 2118].) There is no overbreadth here because the challenged statutes do not suppress or chill any speech. Since appellant's free-speech argument does not show that the Moscone Act and Labor Code section 1138.1 are invalid as applied, facially invalid, or invalid due to overbreadth, appellant cannot show the statutes are unconstitutional.
For whatever reason, the California Legislature has decided to allow peaceful labor speech on private property over the owner's objection. Laws
The majority's approach attempts to drive the square peg of an invasion of property rights into the round hole of a constitutional free-speech violation. In doing so, the majority adjudicates the rights of nonparties where their interests are not at issue, establishes a new constitutional analysis, and, whether or not it intends to, exceeds its proper authority by circumventing the Legislature and establishing new constitutional law without legal necessity. For these reasons, I respectfully dissent.
The Third District Court of Appeal recently declared unconstitutional both the Moscone Act and Labor Code section 1138.1. (See Ralphs Grocery Co. v. United Food & Commercial Workers Union Local 8 (2010) 186 Cal.App.4th 1078 [113 Cal.Rptr.3d 88] (a petition for review in Ralphs was granted by the Supreme Court on Sept. 29, 2010, and the case is pending before that court as case No. S185544).)