MORENO, J.
Under Code of Civil Procedure section 1021.5, a litigant who acts as a private attorney general and is a successful party in the
We conclude that a litigant's personal nonpecuniary motives may not be used to disqualify that litigant from obtaining fees under Code of Civil Procedure section 1021.5. The contrary interpretation, which was adopted by the Court of Appeal in this case, has no basis in the language, legislative history, or evident purpose of section 1021.5. As discussed below, the purpose of section 1021.5 is not to compensate with attorney fees only those litigants who have altruistic or lofty motives, but rather all litigants and attorneys who step forward to engage in public interest litigation when there are insufficient financial incentives to justify the litigation in economic terms. Accordingly, we reverse the Court of Appeal's judgment and remand for proceedings consistent with this opinion.
Most of the facts, taken largely from the Court of Appeal opinion, are not in dispute. Virginia Maldonado has served for over 25 years as conservator for her brother, Roy Whitley, who is a developmentally disabled adult with epilepsy, mild cerebral palsy, and profound mental retardation. In Conservatorship of Whitley (2007) 155 Cal.App.4th 1447 [66 Cal.Rptr.3d 808] (Whitley I), the Court of Appeal considered Maldonado's challenge to a trial court order, entered over her objection, granting the North Bay Regional Center's request to move Whitley from the Sonoma Developmental Center, where he had lived for over 40 years, to Miracle Lane, a smaller, community-based facility. The trial court's decision to approve Whitley's move to Miracle Lane came after a two-day evidentiary hearing in the superior court, as contemplated in the settlement of an unrelated federal case (see Richard S. v. Dept. of Developmental Services (C.D.Cal., Mar. 27, 2000, No. SA CV 97-219-GLT(ANx)) 2000 U.S.Dist. Lexis 22750 (Richard S.), revd. on other grounds in Cable v. Dept. of Developmental Services (9th Cir. Dec. 17, 2002, No. 01-56723) 2002 U.S. App. Lexis 26316). (Whitley I, at p. 1456.)
The Court of Appeal reversed and remanded, finding that the superior court lacked jurisdiction to conduct the Richard S. hearing on the propriety of Whitley's community placement. (Whitley I, supra, 155 Cal.App.4th at p. 1464.) The Court of Appeal concluded the only means by which Maldonado's objection to the North Bay Regional Center's community placement decision could be resolved was by invoking the statutorily authorized administrative fair hearing provisions provided under the Lanterman Developmental Disabilities Services Act (Lanterman Act) ([Welf. & Inst. Code,] § 4500 et seq.). (Whitley I, supra, at pp. 1462-1463.) "In contrast to the discretionary judicial procedure forged in the Richard S. litigation, the Lanterman Act guarantees an applicant for or recipient of services or his or her representative `who is dissatisfied with any decision or action of the service agency' the right to an administrative fair hearing. (Welf. & Inst. Code, § 4710.5, subd. (a).) The statute also provides detailed provisions for claimants who wish to attempt to resolve the issue through a voluntary informal meeting or through voluntary mediation before proceeding to an administrative fair hearing." (Whitley I, supra, 155 Cal.App.4th at pp. 1459-1460.) The court cited two reasons to support its conclusion that the Lanterman Act procedures rather than the Richard S. procedures govern. First, Maldonado was not a party to the Richard S. settlement, so it was not binding on her. (Whitley I, supra, at pp. 1461-1462.) Second, the Lanterman Act's comprehensive approach to resolving disagreements concerning placement decisions— including a voluntary meeting, voluntary mediation, and an administrative fair hearing with judicial review—showed the Legislature's intent that the Lanterman Act's fair hearing procedures be the exclusive remedy for actions by legal representatives, such as Maldonado, asserting an objection to a community placement decision. (Whitley, supra, at pp. 1462-1463.)
The North Bay Regional Center did not dispute the reasonableness of the hours Maldonado's appellate counsel devoted to this case or the rates charged. Nor did it dispute that a fee award is permissible even though her appellate counsel agreed to handle the case on a pro bono basis. However, it opposed Maldonado's request for attorney fees on the ground that this case does not meet all the criteria for an award of fees under section 1021.5, arguing that even if an important public right was at issue, a significant benefit was not conferred upon the public or a large class of persons, and the financial burden imposed on Maldonado was not out of proportion to her personal interest in blocking her brother's transfer. The trial court agreed with both of these arguments and denied the attorney fee request.
Maldonado appealed, contending among other things that section 1021.5's requirement that fees be awarded only when the "necessity and financial burden of private enforcement . . . make the award appropriate" means that litigants may not be eligible for attorney fees when they have an individual pecuniary stake in the litigation, but that litigants may not be disqualified simply because they have a personal, nonpecuniary interest. Because Maldonado did not have a pecuniary interest in the litigation, but only an interest related to her brother's welfare, she argued that she met the "necessity and financial burden" requirement. The Court of Appeal disagreed, holding, in accordance with a number of Court of Appeal cases discussed below, that a strong nonpecuniary personal interest in the litigation, such as Maldonado's in the present case, could disqualify a litigant from obtaining attorney fees under section 1021.5. We granted review to address this issue.
We initially consider the proper standard of review. "`On review of an award of attorney fees after trial, the normal standard of review is abuse of discretion. However, de novo review of such a trial court order is warranted where the determination of whether the criteria for an award of attorney fees and costs in this context have been satisfied amounts to statutory construction and a question of law.'" (Connerly v. State Personnel Bd. (2006) 37 Cal.4th 1169, 1175 [39 Cal.Rptr.3d 788, 129 P.3d 1].) Here, we granted review to
The second prong of the inquiry addresses the "financial burden of private enforcement." In determining the financial burden on litigants, courts have quite logically focused not only on the costs of the litigation but also any offsetting financial benefits that the litigation yields or reasonably could have been expected to yield. "`An award on the "private attorney general" theory is appropriate when the cost of the claimant's legal victory transcends his personal interest, that is, when the necessity for pursuing the lawsuit placed a burden on the plaintiff "out of proportion to his individual stake in the matter." [Citation.]'" (Woodland Hills, supra, 23 Cal.3d at p. 941.) "This requirement focuses on the financial burdens and incentives involved in bringing the lawsuit." (Press v. Lucky Stores, Inc. (1983) 34 Cal.3d 311, 321 [193 Cal.Rptr. 900, 667 P.2d 704] (Press).)
"After approximating the estimated value of the case at the time the vital litigation decisions were being made, the court must then turn to the costs of the litigation—the legal fees, deposition costs, expert witness fees, etc., which
Press's focus on financial incentives and burdens has been followed in a number of cases. The Court of Appeal in Phipps v. Saddleback Valley Unified School Dist. (1988) 204 Cal.App.3d 1110 [251 Cal.Rptr. 720] (Phipps) upheld an award of attorney fees for obtaining injunctive relief compelling a school district to reverse its policy of denying classroom access to a student testing positive for AIDS. The court quoted approvingly the trial court's statement that "`[s]ince [Phipps] had no pecuniary interest in the outcome of the litigation, "the financial burden in this case [was] such that an attorney fee award [was] appropriate in order to assure the effectuation of an important public policy."'" (Id. at p. 1122; accord, Plumbers & Steamfitters, Local 290 v. Duncan (2007) 157 Cal.App.4th 1083, 1099 [69 Cal.Rptr.3d 184] [approving attorney fees award for union enforcing prevailing wage law when litigation costs substantially exceeded financial benefits]; Luck v. Southern Pacific Transportation Co. (1990) 218 Cal.App.3d 1, 30 [267 Cal.Rptr. 618] [no attorney fees in case involving invasion of privacy rights through random drug testing where plaintiff sought a substantial monetary damages award]; California Common Cause v. Duffy (1987) 200 Cal.App.3d 730, 751 [246 Cal.Rptr. 285] ["The fact a plaintiff has little or no personal financial interest in the outcome of the litigation and is not vindicating a private economic interest tends to show [the financial burden] requirement has been met."]; Slayton v. Pomona Unified School Dist. (1984) 161 Cal.App.3d 538, 552-553 [207 Cal.Rptr. 705] [attorney fees awarded in case in which a group of students were wrongfully disciplined, when they had no pecuniary interest at stake].)
Yet as we have seen, the "necessity . . . of private enforcement" has long been understood to mean simply that public enforcement is not available, or not sufficiently available. (See Lyons, supra, 136 Cal.App.4th at p. 1348; Pearl, Cal. Attorney Fee Awards (Cont.Ed.Bar 2d ed. 2008 update) § 4.32, pp. 125-128 and cases cited therein.) Indeed, the Hammond court's interpretation of "necessity" in this context makes little sense. What the Hammond court, and the North Bay Regional Center, seem to be arguing for is a statute that reads something like this: "The necessity of private attorney general fees as an incentive to encourage private enforcement is such as to make the award appropriate." Read this way, private attorney general fees are deemed in some cases unnecessary because the nonpecuniary motivation is determined to be sufficiently strong. But there is no justification for adding the italicized language to the statute, thereby changing its meaning. Strong personal motivation may increase the likelihood of private enforcement, but it does not, as a logical matter, affect the necessity of private enforcement— only the availability of public enforcement does that. Therefore, the term "necessity . . . of private enforcement" reasonably construed does not support the argument that a litigant's nonpecuniary interests affect his or her eligibility for section 1021.5 fees.
The Press court's focus on financial costs and burdens is also in accord with the available legislative history. As we have recounted in Woodland Hills, supra, 23 Cal.3d 917, "the Legislature adopted section 1021.5 as a codification of the `private attorney general' attorney fee doctrine that had been developed in numerous prior judicial decisions. As we explained in Serrano [v. Priest (1977) 20 Cal.3d 25 [141 Cal.Rptr. 315, 569 P.2d 1303]], the fundamental objective of the private attorney general doctrine of attorney fees is `"to encourage suits effectuating a strong [public] policy by awarding
This emphasis on remediating the infeasibility of public interest litigation is underscored in various legislative history documents. As was stated by the Department of Consumer Affairs in its enrolled bill report to the Governor on Assembly Bill No. 1310 (1977-1978 Reg. Sess.), the bill that was to become section 1021.5: "Traditionally, parties to a civil action must pay for their own attorneys fees, either directly from their own personal resources, or by contingency fee out of any recovery that may be awarded in the case. However, the cases covered by AB 1310 often result in nonpecuniary or intangible recoveries, thus precluding the possibility of a contingency fee arrangement. In addition, such cases require extensive amounts of attorney time and skill since the issues being decided are often of first impression in the courts and are without established legal precedents. Thus, these cases are prohibitively expensive for almost all citizens. Yet, such cases can have important consequences for large numbers of the public." (Dept. of Consumer Affairs, Enrolled Bill Rep. on Assem. Bill No. 1310 (1977-1978 Reg. Sess.) prepared for Gov. Brown (Sept. 28, 1977) p. 2.)
It is noteworthy that the above legislative history does not focus on litigants' initial subjective motivation—on what may cause them to want to bring a public interest lawsuit. What section 1021.5 does address is the problem of affordability of such lawsuits. Because public interest litigation often yields nonpecuniary and intangible or widely diffused benefits, and because such litigation is often complex and therefore expensive, litigants will be unable either to afford to pay an attorney hourly fees or to entice an attorney to accept the case with the prospect of contingency fees, thereby often making public interest litigation "as a practical matter . . . infeasible." (Woodland Hills, supra, 23 Cal.3d at p. 933.) Accordingly, public interest litigation prior to section 1021.5 depended on subsidies either from well-heeled litigants and their supporters, or from the pro bono work of attorneys.
The North Bay Regional Center relies principally on four Court of Appeal cases that have concluded that nonpecuniary interests can render a litigant ineligible for section 1021.5 fees. In Williams v. San Francisco Bd. of Permit Appeals (1999) 74 Cal.App.4th 961 [88 Cal.Rptr.2d 565] (Williams), the petitioner was the owner and resident of a Victorian-style house in San Francisco in a neighborhood of similar such houses, who sought section 1021.5 attorney fees after successfully opposing the construction of a four-story three-unit condominium or apartment building that would have been out of character with the neighborhood. (74 Cal.App.4th at p. 963.) The petitioner claimed that his property value would not have been affected by the construction of the apartment building. The Court of Appeal held that, even so, for reasons discussed below, his strong personal interest in maintaining the neighborhood as he saw fit precluded him from obtaining attorney fees under the "necessity and financial burden" clause of section 1021.5.
In Families Unafraid to Uphold Rural El Dorado County v. Board of Supervisors (2000) 79 Cal.App.4th 505 [94 Cal.Rptr.2d 205] (Families Unafraid), the plaintiffs successfully opposed a large development in their area. The Court of Appeal concluded, contrary to the trial court, that the plaintiffs had only a minor financial stake in the litigation, which was out of proportion to the substantial litigation costs. (Id. at pp. 518-520.) Nonetheless, the court, relying in large part on Williams, remanded the matter to the superior court on the attorney fees issue to determine whether nonpecuniary interests, such as aesthetic interests, would preclude or diminish an attorney fee award. (Id. at p. 520.)
In Hammond, supra, 99 Cal.App.4th 115, city council candidate Agran defended a challenge from a political rival contending that his candidate statement appearing in the ballot pamphlet contained impermissible matters under the governing statute, Elections Code section 13307, which specified that candidate statements in ballot pamphlets include "`a brief description, of no more than 200 words, of the candidate's education and qualifications . . . .'" (Hammond, at p. 119.) Agran had included in the ballot statement his opposition to a proposed airport, and that statement of opposition was challenged as unlawful under the statute. The accuracy of his statement that
Finally, in Punsly v. Ho (2003) 105 Cal.App.4th 102 [129 Cal.Rptr.2d 89] (Punsly), the Court of Appeal had held unconstitutional a lower court order mandating that a child's grandparents be given visitation rights pursuant to Family Code section 3102 over the objection of the sole surviving parent. In upholding the trial court's denial of the parent's request for Code of Civil Procedure section 1021.5 attorney fees because of the importance of the constitutional issue, the court observed that "[t]his was a fact-intensive case and resulted in a relatively narrow, as-applied ruling on the constitutional principles involved" and that the litigation was "intensely personal." (Punsly, supra, 105 Cal.App.4th at p. 118.) It then concluded that the necessity and financial burden requirement had not been met because the parent's personal interests although nonpecuniary were strong enough to motivate the litigation. (Ibid.)
Except for Hammond's erroneous construction of the meaning of "necessity" discussed above, these courts did not attempt to divine the meaning of section 1021.5 from its language or legislative history. Rather, they relied on interpretive language in other judicial decisions to find justification for their view that nonpecuniary interests could preclude an attorney fees award. The Williams court, for example, focused on the language in Woodland Hills that "`[a]n award on the "private attorney general" theory is appropriate when the cost of the claimant's legal victory transcends his personal interest, that is, when the necessity for pursuing the lawsuit placed a burden on the plaintiff "out of proportion to his individual stake in the matter."'" (Woodland Hills, supra, 23 Cal.3d at p. 941, quoting County of Inyo v. City of Los Angeles (1978) 78 Cal.App.3d 82, 89 [144 Cal.Rptr. 71].) It then concluded that there
Williams and its progeny also focused on this court's statement in Press discussed above: "That plaintiffs' personal interests in the outcome of the oil profits initiative were sufficient to induce them to bring this action is irrelevant. As the statute makes clear, subdivision (b) of section 1021.5 focuses not on plaintiffs' abstract personal stake, but on the financial incentives and burdens related to bringing suit. Indeed, in the absence of some concrete personal interest in the issue being litigated, the putative plaintiff would lack standing to bring an action." (Press, supra, 34 Cal.3d at p. 321, fn. 11, italics added.) These courts have seized upon the juxtaposition of the words "abstract" and "concrete," reasoning that Press stood not for the proposition that a disqualifying interest must be financial but rather that it must be concrete. As the Williams court commented after quoting the above passage: "There was nothing abstract and everything concrete about the interests so tenaciously asserted by this appellant in the court below. Those interests related directly to a specific piece of real property owned by him: his family home." (Williams, supra, 74 Cal.App.4th at p. 970.)
In Families Unafraid, supra, 79 Cal.App.4th 505, the court, with the Press quote in mind, stated that "an aesthetic or environmental interest will not be considered sufficient to block an award of attorney fees under the financial burden criterion unless certain conditions are met. That interest must be specific, concrete and significant, and these attributes must be based on objective evidence. In short, for an aesthetic or environmental interest to block an award of attorney fees under the financial burden criterion, that interest must function essentially in the same way in the comparative analysis as a financial interest, clearly an objective interest. A subjective, vaguely grounded aesthetic interest, even if `heart-felt,' will not be considered sufficient; nor will a mere abstract interest in aesthetic integrity or environmental preservation suffice to block an award of attorney fees." (Families Unafraid,
Nothing in Press supports this construction of section 1021.5. Press did not hold that a "concrete," as opposed to an "abstract," nonfinancial interest may disqualify a litigant from a fee award under section 1021.5; it merely observed that some sort of concrete interest was necessary to establish standing to bring the action. (Press, supra, 34 Cal.3d at p. 321, fn. 11.) More importantly, the amenability of that footnote to the interpretations advanced by the Courts of Appeal above is ultimately irrelevant to our task of construing the statute itself. As discussed, the statutory language focuses on "financial burden," not on the nonfinancial motives a litigant may have in bringing the suit.
The second possible reason for permitting attorney fees for cases with "abstract" but not "concrete" interests is some kind of normative concern that cases that benefit the public interest that are impelled by the litigant's selfish motives are in some way not authentic public interest cases and do not deserve the benefit of section 1021.5's fee-shifting provisions. There is no indication in the language of the statute nor in its legislative history that the Legislature shared these normative concerns. On the contrary, section 1021.5 from all indications appears to be focused, as discussed, on solving the problem of the nonaffordability of litigation that will benefit the public but cannot pay its own way. Therefore, construing section 1021.5 literally to
Furthermore, it is inherently problematic to forge a coherent doctrine around the notion that nonpecuniary interests may disqualify litigants from section 1021.5 fees. First, it is difficult to discern what interests qualify as sufficiently "concrete." (See Families Unafraid, supra, 79 Cal.App.4th at pp. 527-528 (conc. & dis. opn. of Sims, Acting P. J.).) If, for example, there is environmental litigation that results in preserving open space, does a litigant have a sufficiently concrete interest if he or she currently enjoys the use of that open space, but abstract if a litigant visits that open space rarely or not at all? What if he or she may enjoy it at some point in the future? Would county jail inmates who successfully sued to obtain at least three hours per week of exercise be precluded from obtaining attorney fees because the litigation has yielded a concrete benefit for them? (See Daniels v. McKinney (1983) 146 Cal.App.3d 42 [193 Cal.Rptr. 842] [awarding attorney fees under that circumstance].) Would a student who changes a school's policy of excluding students with AIDS from the classroom be barred from obtaining attorney fees because he or she concretely benefits from this result? (Phipps, supra, 204 Cal.App.3d 1110 [awarding attorney fees under that circumstance].) The only inquiry suggested by the Williams line of cases is whether this is the type of interest that is so strong that no other incentive would be needed to pursue the litigation. (See Punsly, supra, 105 Cal.App.4th at p. 118.) But this inquiry is inherently speculative and lacking in objective criteria. Furthermore, this inquiry entirely ignores the central problem that section 1021.5 seeks to address: the inherent unaffordability of legal services for public interest cases yielding primarily nonpecuniary benefits.
Another weakness in the position of Williams and its progeny is that such interests "are incapable of reasonably accurate valuation." (Families Unafraid, supra, 79 Cal.App.4th at p. 527 (conc. & dis. opn. of Sims, Acting P. J.).) As even the majority in Families Unafraid conceded: "Admittedly, environmental or aesthetic interests are not easily quantified so as to compare them to the cost of litigation" (Families Unafraid, supra, 79 Cal.App.4th at p. 515)—a statement equally true of other nonpecuniary interests. As explained above, the central calculus of the financial burden requirement—an evaluation of the costs of the litigation with its expected value (Los Angeles Police Protective League, supra, 188 Cal.App.3d at pp. 9-10)—depends on an ability to quantify the gains realistically expected. Without any objective basis for quantification, we are left with the subjective opinions of trial courts, which well may vary considerably. For example, in Punsly, the prevailing party requested approximately $58,000 for legal services, part of which she was responsible for, part of which had been provided pro bono. (Punsly, supra, 105
Moreover in this case, as the Court of Appeal noted, Maldonado litigated the jurisdictional issue only belatedly, after the court requested it do so. (See Whitley I, supra, 155 Cal.App.4th at p. 1458, fn. 6.) Maldonado's attorneys contend that they would have raised the jurisdictional issue without the Court of Appeal's prompting. Whatever the case, the fact remains that even if it is determined on remand that some fees should be awarded, the court may legitimately restrict the award to only that portion of the attorneys' efforts that furthered the litigation of issues of public importance. (See, e.g., Saleeby v. State Bar (1985) 39 Cal.3d 547, 574 [216 Cal.Rptr. 367, 702 P.2d 525]; Hammond, supra, 99 Cal.4th at pp. 132-133.)
The judgment of the Court of Appeal is reversed and the cause is remanded for proceedings consistent with this opinion.
George, C. J., Kennard, J., Baxter, J., Werdegar, J., Chin, J., and Corrigan, J., concurred.