Last year, this court determined that Code of Civil Procedure section 1021.5 (section 1021.5) would not support an award of attorney fees for a remand to an administrative agency to reconsider a previously decided matter, when the remand was for a perceived procedural defect and resulted in no demonstrable substantive change in the agency's position. We held that when the remand produces nothing more than an "augmented explanation" of the agency's decision, the plaintiff there did not meet the statutory requirements of being "a successful party" which had initiated litigation that resulted in enforcement of an important public right and a significant benefit to the public. We therefore reversed an award of $138,250. (Karuk Tribe of Northern California v. California Regional Water Quality Control Bd., North Coast Region (2010) 183 Cal.App.4th 330, 363-369 [108 Cal.Rptr.3d 40] (Karuk).)
Here, we are confronted with a situation where the administrative agency was ordered to reconsider a matter because it might possibly have applied an incorrect standard of review. The agency reconsidered the matter and reiterated its earlier decision. Notwithstanding that the agency's reiteration was not shown to be legally erroneous, the trial court, not having the benefit of our Karuk decision, made a fee award under section 1021.5 of almost $258,000. We independently review the record, conclude that Karuk governs, and reverse.
A concise statement of this dispute is set out in the pleading that started this litigation:
"This lawsuit concerns the American pika, a remarkable mammal related to rabbits and hares that is at serious risk due to global warming. [The] Center for Biological Diversity (the `Center') challenges the refusal of [the] California Fish and Game Commission (the `Commission') to designate the pika as a candidate for possible protection under the California Endangered Species Act (`CESA'). (Fish & G. Code §§ 2050-2115.5.) [¶] ... [¶]
"Of the 36 American pika subspecies that inhabit North America, five can be found in the mountains of eastern California. On August 21, 2007, the Center petitioned the Commission to protect California's pika under CESA by listing them as `threatened' due to global warming. Alternatively, the Center asked the Commission to list California's five pika subspecies as either `threatened' or `endangered.'
"The Commission prejudicially abused its discretion in rejecting the Center's petition to list California's pika under CESA[,] ... misconstrued fundamentally CESA's listing process, and ... ignored and misrepresented substantial information indicating that listing may be warranted. The Center therefore asks this Court to issue a writ of mandate setting aside the Commission's rejection of the Center's petition and directing the Commission to designate California's pika as candidates for listing under CESA."
Tracking the grounds for issuance of a writ of administrative mandate (see Code Civ. Proc., § 1094.5, subd. (b)), the Center for Biological Diversity (the Center) alleged causes of action that the California Fish and Game Commission (the Commission) failed (1) to proceed in the manner required by CESA (California Endangered Species Act; Fish & G. Code, § 2050 et seq.), (2) to adopt a decision supported by its findings, and (3) to adopt findings that are supported by substantial evidence. The relief sought by the Center in all three causes of action was "that the Court issue a writ of mandate commanding the Commission to set aside its prejudicial actions of April 10, 2008 and June 27, 2008 and issue a new decision accepting the Center's petition to list California's pika and advancing the pika to candidacy; or, alternatively, a writ of mandate directing the Commission to reconsider the petition consistent with CESA, and make a timely new decision supported by substantial evidence."
After hearing argument, the trial court decided to grant the Center's petition. The relevant portions of its judgment of May 2009 give the court's reasoning:
"The legal standard the Commission must apply in determining whether to accept or reject a petition to consider listing a species under CESA is whether `the petition provides sufficient information to indicate that the petitioned action may be warranted. ...' (Fish & G. Code, § 2074.2, subd. (a)(2).) This statutory language has been interpreted to mean `that amount of information, when considered in light of the Department's written report and the comments received, that would lead a reasonable person to conclude that there is a substantial possibility that the requested listing could occur.' (Natural Resources Defense Council v. Fish & Game Com. (1994) 28 Cal.App.4th 1104, 1125 [33 Cal.Rptr.2d 904] (NRDC).)
"In the second paragraph of Section III of [the Commission's] Notice of Findings, entitled `Reason for Finding,' it states: `In order to accept the petition, the Commission is required to determine that it has information to persuade a reasonable person that there is a substantial possibility that the American pika will be listed.' (Admin. Rec., Vol. II, at p. 329; see also Id. at 330 [`The Commission is not persuaded that the decimation of some pika populations in the Great Basin constitutes sufficient information to warrant listing pikas. ...'].)
"The above-quoted portions of the Notice of Findings do not correctly state the applicable legal standard under NRDC. While the correct legal standard is set forth elsewhere in the Notice of Findings, the Court concludes that [the Commission] failed to apply, at least in part, the correct legal standard in making its decision because the incorrect language quoted above is more closely connected to the analysis that [the Commission] conducted. As a result, the Court finds that [the Commission] did not proceed in the manner required by law. (Code Civ. Proc., § 1094.5, subd. (b).)
"[The Center] may submit a Memorandum of Costs and request for attorney's fees."
The Center did so in September 2009, seeking "an award of $247,953.93. This ... includes $197,197.50 incurred on the merits of this lawsuit, $49,870.00 incurred to date pursuing the instant claim for attorneys' fees, and $886.43 in out-of-pocket expenses."
The following month, on October 16, the Commission and the Department filed opposition to the Center's attorney fee application, asserting that all of the "required elements ... for a section 1021.5 fee award" were absent. Three days earlier, in its return to the writ filed October 13, the Commission advised the court that it had set aside its decision, prepared and adopted new findings on October 1, 2009, thereby "reaffirming its decision of April 10, 2008, to reject [the Center's] petition to list the American pika as threatened or endangered under the California Endangered Species Act."
The trial court conducted a brief hearing on the Center's fee request, which had increased to $282,936.43 by reason of responding to the Commission and
Section 1021.5 provides in pertinent part: "Upon motion, a court may award attorneys' fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest if: (a) a significant benefit, whether pecuniary or nonpecuniary, has been conferred on the general public or a large class of persons, (b) the necessity and financial burden of private enforcement, or of enforcement by one public entity against another public entity, are such as to make the award appropriate, and (c) such fees should not in the interest of justice be paid out of the recovery, if any. ..."
In Karuk, we explained how an award made pursuant to this statute is reviewed:
"Put another way, courts check to see whether the lawsuit initiated by the plaintiff was `demonstrably influential' in overturning, remedying, or prompting a change in the state of affairs challenged by the lawsuit. [Citations.] `"Entitlement to fees under [section] 1021.5 is based on the impact of the case as a whole."' [Citation.] As for what constitutes a `significant benefit,' it `may be conceptual or doctrinal, and need not be actual and concrete, so long as the public is primarily benefited.' [Citation.]
Karuk was an example of why it is sometimes not a good thing to follow the old aphorism, "If at first you don't succeed, try, try again."
Karuk involved an effort by a number of private parties to secure mandate compelling a regional water quality control board to enforce the state's Porter-Cologne Water Quality Control Act to dams on the Klamath River
The trial court, on its own initiative, issued a writ of mandate that directed the regional water quality control board to reconsider its administrative decision in light of two United States Supreme Court decisions addressing state power under the federal clean water law. The board did so, reaching the exact same result, i.e., that the entire regulatory field was subject to federal preemption, leaving no opportunity for the state to enforce its clean water law. The trial court agreed with this conclusion, and denied the private parties' mandate petition. Nevertheless, the court awarded the private party plaintiffs $138,250 in attorney fees under section 1021.5, concluding that the litigation had resulted in an important public benefit in that regional water quality control board had been compelled to make a thoughtful and "`well-reasoned determination'" as to whether state or federal law applied. (Karuk, supra, 183 Cal.App.4th 330, 338-341, 361.)
We reversed, holding that the trial court's award was not warranted by section 1021.5:
As mentioned at the start of this opinion, our decision in Karuk was filed after the trial court made the award to the Center. However, it forms the keystone of the appeal by the Commission and the Department, and it consequently draws most of the responding fire from the Center. Although the Center correctly identifies Karuk as distinguishable in several minor respects,
The Center states that Karuk is fundamentally distinguishable because it, the Center, "won this case: it achieved a vacatur of the decision it challenged; it secured the remand for which it had alternatively plead [sic]; and it obtained ... precisely the relief it requested in its petition for writ of
In its petition, the Center alleged that the Commission's decision not to list the pika was defective for three reasons: (1) "the Commission fundamentally misapplied CESA's listing standards"; (2) "the Commission also failed to give `meaningful consideration' to substantial evidence indicating that listing may be warranted"; and (3) "the Commission failed to consider whether any of the five pika subspecies in California may warrant listing as threatened or endangered `throughout all, or a significant portion, of its range.' (Fish & G. Code §§ 2062, 2067.) Instead, the Commission concluded only that there was insufficient evidence `to warrant listing pikas within the Sierra Nevada ecoregion in California.' The Commission failed entirely to consider whether the subspecies that inhabit the Cascades and Great Basin within California may warrant listing as endangered or threatened."
Although the Center apparently gave equal importance to each of the three factors, an examination of the allegations demonstrates that the matter of the Commission misconstruing and misapplying the listing process was not the primary target of the petition. Considerably more attention was given to alleging that the Center had already presented the Commission with more than enough information to warrant listing the American pika, but the Commission "inexplicably" "ignored," "misrepresented," and "failed entirely to evaluate" or consider the material submitted by the Center. Even more damning, the Center alleged that the Commission "improperly demanded" evidence that "raised the bar for accepting a species as a listing candidate."
The trial court declined to grant the Center's prayer that the court order the Commission to "issue a new decision accepting the Center's petition," but it did order the alternative relief of "a writ of mandate directing the Commission to reconsider the petition consistent with CESA."
Does this qualify as a "significant benefit" or "the enforcement of an important right affecting the public interest"? No one disputes that CESA embodies a significant public policy and enforcing it constitutes an important public interest. (E.g., Fish & G. Code, §§ 2051, subd. (c), 2052, 2055); Watershed Enforcers v. Department of Water Resources (2010) 185 Cal.App.4th 969, 979 [110 Cal.Rptr.3d 876]; California Forestry Assn. v. California Fish & Game Commission (2007) 156 Cal.App.4th 1535, 1545 [68 Cal.Rptr.3d 391].) But was that interest actually "enforced" in a manner that resulted in a "significant benefit"? We think not.
The Center's petition was returned to the Commission for reconsideration because the trial court believed the Commission might have employed an
When the Commission reviewed the petition for the second time, it reached the same conclusion as it had before. The Commission's second decision was slightly longer than its first, but the bottom line result was the same.
All the Center achieved was a limited "do-over." Granted, the Center did obtain what could be considered a "final judgment."
The order is reversed.
Kline, P. J., and Haerle, J., concurred.
The paragraph for the first decision read: "The Commission has weighed all the scientific and general evidence in the petition, the Department's written report, and written and oral comments received from members of the public. Based upon that evidence, the Commission has determined that, although there may be some reason for concern, the petition provides insufficient evidence to persuade the Commission that the petitioned action may be warranted (Fish and Game Code Section 2074.2). In making this determination the Commission finds that the petition does not provide sufficient information in the categories of population trend, abundance, and degree and immediacy of threat to find that the petitioned action may be warranted. The Commission also finds that the petition provided insufficient information range-wide regarding population trends and abundance and immediacy of threat for the Commission to adequately assess the threat and conclude that there was a substantial possibility that the species will qualify for listing."
The paragraph for the second decision read: "The Commission has weighed and evaluated all information and inferences for and against accepting the petition, including the scientific and general evidence in the petition, the Department's written report, and written and oral comments received from members of the public. Based upon the record, the Commission has determined that the petition and overall record provides insufficient evidence to persuade an objective, reasonable person that the petitioned action may be warranted (Fish and Game Code Section 2074.2). In making this determination the Commission finds that the petition does not provide sufficient information in the categories of population trend, abundance, and degree and immediacy of threat for the Commission to adequately assess the threat and find that an objective, reasonable person would conclude there was a substantial possibility that listing the species could occur."