HOFFSTADT, J. —
A monsignor in the Catholic church allegedly molested two teenage boys in the late 1970's and early 1980's; while doing so, he allegedly lavished them with meals, clothes, travel and money. The victims, now both men in their 50's, sued the archdiocese for damages in 2014. Insurance Code section 11583 tolls the statute of limitations period once a "person" makes an "advance payment or partial payment of damages" unless he notifies the recipient of the applicable statute of limitations period or until the recipient hires a lawyer. (§ 11583.)
We draw the following recitation of facts from the operative first amended complaint (FAC).
Plaintiff Juan HJ Doe (J. Doe) was born in 1962 or 1963, and plaintiff Juan HL Doe (L. Doe) was born in 1964. Monsignor Benjamin Hawkes sexually abused J. Doe between 1976 and 1981; he sexually abused L. Doe between 1978 and 1984 or 1985. The abuse of J. Doe started when he was 13 or 14 years old, and ended when he was 18 or 19; the abuse of L. Doe started when he was 14 years old, and ended when he was 20 or 21. Hawkes died in 1985. From "shortly after he began grooming and molesting" J. Doe and L. Doe until an unspecified time prior to his death in 1985, Hawkes "[p]aid for lavish meals, clothes and entertainment" for both young men; "[p]aid for [them] to go on trips"; "paid for the private school education of [J. Doe]"; and gave each thousands of dollars in cash. "While Hawkes was paying [J. Doe and L. Doe] and providing for them, he communicated in words and deeds that the compensation he was providing them was for the abuse that he was committing upon them, and that by providing for [them] in this manner Hawkes
While this abuse was occurring, Hawkes "ran" defendant Roman Catholic Archbishop of Los Angeles (the Archdiocese). He acted pursuant to a power of attorney that granted him "`full power and authority to do and perform all and every act and thing whatsoever requisite, necessary or appropriate to be done'" and "`ratif[ied] all that [he] shall lawfully do or cause to be done.'" Hawkes used his "authority" "to conduct any and all transactions that had a monetary cost" to become "the managing agent for all financial affairs of the" Archdiocese and to "control[] the finances of the" Archdiocese.
In 1996, J. Doe contacted the Archdiocese and reported the abuse Hawkes had inflicted upon him. The Archdiocese paid for psychological counseling.
In 2014, J. Doe and L. Doe retained a lawyer.
On October 21, 2014, J. Doe and L. Doe (collectively, plaintiffs) sued the Archdiocese civilly for damages. In the FAC, they sought to recover on theories of (1) child sexual abuse and (2) negligence. The Archdiocese demurred on the ground that the complaint, filed approximately 30 years after the abuse ended, was untimely.
After entertaining briefing, the trial court sustained the demurrer without leave to amend and dismissed plaintiffs' complaint. The court reasoned that the statute of limitations on plaintiffs' claims expired when they turned 26 in the mid-1980's, and plaintiffs never filed a lawsuit during the one-year window in 2003 when the Legislature revived the expired claims of child abuse victims. The court further found that Hawkes's gifts to plaintiffs did not trigger the tolling provisions of section 11583 because "Hawkes was not acting on behalf of the Archdiocese when he provided compensation to plaintiffs while demanding sexual contact with them in order to ... `own them,'" so his payments did not toll the limitations period as to the Archdiocese. The court lastly concluded that the Archdiocese's payment for J. Doe's counseling in 1996 came after the limitations period had expired and did not revive it.
Plaintiffs timely appeal.
Plaintiffs argue that the trial court erred in sustaining a demurrer to the FAC without leave to amend. A demurrer may be sustained on statute of limitations grounds if the time bar "`"`clearly and affirmatively appear[s] on the face of the complaint.'"'" (Lee v. Hanley (2015) 61 Cal.4th 1225, 1232 [191 Cal.Rptr.3d 536, 354 P.3d 334], quoting Committee for Green Foothills v. Santa Clara Bd. of Supervisors (2010) 48 Cal.4th 32, 42 [105 Cal.Rptr.3d 181, 224 P.3d 920]; see Code Civ. Proc., § 430.30, subd. (a) ["[w]hen any ground for objection to a complaint ... appears on the face thereof, ... the objection on that ground may be taken by a demurrer to the pleading"].) We must accept as true all "well-pleaded facts" in the complaint, but need not accept allegations containing "legal conclusions," "adjectival descriptions" (Ellis v. County of Calaveras (2016) 245 Cal.App.4th 64, 70 [199 Cal.Rptr.3d 368]) or "unsupported speculation" (Chicago Title Ins. Co. v. Great Western Financial Corp. (1968) 69 Cal.2d 305, 327 [70 Cal.Rptr. 849, 444 P.2d 481]). Because "[t]he application of the statute of limitations on undisputed facts is a purely legal question," our review is de novo. (Aryeh v. Canon Business Solutions, Inc. (2013) 55 Cal.4th 1185, 1191 [151 Cal.Rptr.3d 827, 292 P.3d 871] (Aryeh).) Further, because we are reviewing the trial court's ruling and not its reasoning, we may affirm on any ground supported by the record regardless of whether the trial court relied upon it. (Small v. Fritz Companies, Inc. (2003) 30 Cal.4th 167, 201 [132 Cal.Rptr.2d 490, 65 P.3d 1255].) In deciding whether a plaintiff whose complaint is barred should be granted further leave to amend, we ask "`whether there is a reasonable possibility that the defect can be cured by amendment'"; if so, the trial court has abused its discretion in denying leave to amend and we must reverse. (Zelig v. County of Los Angeles (2002) 27 Cal.4th 1112, 1126 [119 Cal.Rptr.2d 709, 45 P.3d 1171] (Zelig).)
If the time between the date of accrual and the date the plaintiff files suit is greater than the time period prescribed by our Legislature, the plaintiff's claim is barred unless he can show that (1) the running of the time period was "tolled" (that is, the time period's "clock" was "stopped") and the total amount of untolled time is less than the legislatively-prescribed time period (e.g., Pearson Dental Supplies, Inc. v. Superior Court (2010) 48 Cal.4th 665, 674 [108 Cal.Rptr.3d 171, 229 P.3d 83]), or (2) our Legislature later "revived" the barred claim by expressly declaring that persons with expired claims can once again sue (see Quarry v. Doe I (2012) 53 Cal.4th 945, 955 [139 Cal.Rptr.3d 3, 272 P.3d 977] (Quarry)).
To assess whether plaintiffs' claims were brought within the applicable time period, we need to know (1) when they accrued, and (2) what the applicable time period is.
Fixing the applicable time period is more complicated. That is because the limitations period for child sexual abuse has changed a lot over the last
This case presents an unusual wrinkle because the alleged abuse occurred before and after J. Doe's and L. Doe's age of majority. J. Doe turned 18 in 1980 or 1981, L. Doe turned 18 in 1982; at that time, they ceased being the victims of childhood sexual abuse (see Code Civ. Proc., § 340.1, subd. (e) [defining "`[c]hildhood sexual abuse'" as an "act ... that occurred when the plaintiff was under the age of 18"]) and started being the adult victims of assault, battery and unlawful injury. We need not decide whether we must evaluate the accrual of plaintiffs' childhood sexual abuse claims separately from the accrual of their assault, battery and wrongful injury claims or whether the "continuing violation" doctrine serves to postpone the date of accrual for both types of claims until the continual abuse stopped. (Accord, Aryeh, supra, 55 Cal.4th at p. 1198 ["[a]llegations of a pattern of reasonably frequent and similar acts may, in a given case, justify treating the acts as an indivisible course of conduct actionable in its entirety, notwithstanding that the conduct occurred partially outside and partially inside the limitations
Because plaintiffs did not bring suit until 2014, their claims were filed more than one year after the end of their childhood abuse and one year after the end of their adulthood abuse; their claims are consequently untimely under any scenario absent tolling or revival.
In this case, Hawkes and/or the Archdiocese allegedly provided both plaintiffs money and gifts from the time their molestation began until an unspecified time prior to Hawkes's death in 1985, and provided J. Doe with psychological counseling in 1996. Because neither Hawkes nor the Archdiocese provided plaintiffs with written notice of the limitations period for sexual abuse claims, the applicability of section 11583 turns on (1) whether the money and gifts given contemporaneously with the sexual abuse, and the counseling provided in 1996, constituted the "advance payment or partial payment of damages," and (2) whether, as to the money and gifts provided by Hawkes, those payments were made by the Archdiocese rather than Hawkes in his personal capacity.
First, construing section 11583 to encompass money and gifts paid to facilitate crimes as well as to compensate leads to an absurd result we must avoid. (California Charter Schools Assn., supra, 60 Cal.4th at p. 1237.) Payments a child molester makes to seduce and keep his victims open to future abuse — so-called "grooming" payments — are part and parcel of the sexual abuse itself. (E.g., U.S. v. Long (D.C. Cir. 2003) 356 U.S. App.D.C. 117 [328 F.3d 655, 665] ["the `seduction process'" of a sex offender includes the use of "attention, kindness, gifts, and money to lower his or her victims' inhibitions"]; Los Angeles County Dept. of Children & Family Services v. Superior Court (2013) 222 Cal.App.4th 149, 158 [166 Cal.Rptr.3d 67] ["[s]exual grooming consists of planning and deliberate behaviors to befriend and establish an emotional connection with a child to have the child lower and abandon whatever inhibitions the child might have against inappropriate sexual activities"].) Sexual abuse of a child is a crime. (Pen. Code, §§ 288, 288.5, 288a, 289.) So is paying a child not to report the sexual abuse. (Id., §§ 136.1, subd. (b)(1) [efforts to "dissuade" a victim or witness not to report the offense to law enforcement], 138 [payments not to testify].) People who make payments in furtherance of a crime cannot sue to recover those payments. (See General Motors Acceptance Corp. v. Kyle (1960) 54 Cal.2d 101, 112 [4 Cal.Rptr. 496, 351 P.2d 768] [noting "the general rule that the guilty party to an illegal contract cannot enforce it or recover on principles of quasi contract benefits he has conferred under the contract"]; Asmus v. Pacific Bell (2000) 23 Cal.4th 1, 31 [96 Cal.Rptr.2d 179, 999 P.2d 71] [party to an illegal contract may not sue to enforce that contract]; Potvin v. Metropolitan Life Ins. Co. (2000) 22 Cal.4th 1060, 1081 [95 Cal.Rptr.2d 496, 997 P.2d 1153] [same].) Because Insurance Code section 11583 provides that any prepayment of "damages" that tolls the limitations period must also be offset against any subsequent judgment or settlement, interpreting "damages" to encompass the payments Hawkes allegedly made in part to "groom" plaintiffs and to keep them quiet would entitle the Archdiocese to offset those payments against any award plaintiffs eventually obtained. The Archdiocese cannot sue to recover those payments, so it is inconsistent and therefore absurd to let the Archdiocese accomplish the same result by reducing any subsequent damages award by those payments.
Lastly, reading section 11583 to encompass payments that facilitate crimes as well as compensate is inconsistent with that section's purpose. That purpose is straightforward: Give putative defendants an incentive to compensate putative plaintiffs early by precluding evidence of such payments at trial and by crediting any payments against any future award, and ensure that the plaintiffs are not misled into viewing the defendants' largesse as an excuse not to diligently pursue litigation. (Evans, supra, 234 Cal.App.3d at p. 54.) Its purpose is not to give defendants who engage in criminal acts the right to recover payments made in pursuit of those acts. Its purpose is also not to exclude evidence relevant to show the defendant's substantive liability. However, if "damages" include payments made in part to "groom" or "hush" sexual abuse victims, then section 11583 would be co-opted to serve both of these impermissible goals, goals that are at odds with our Legislature's true
Applying what we have determined to be the proper definition of "damages," we conclude that Hawkes's payments to J. Doe and L. Doe, contemporaneous with their sexual abuse, were not an "advance payment or partial payment of damages." Plaintiffs allege that Hawkes "lavish[ed]" them with meals, clothes, entertainment, travel, tuition, and cash to "compensat[e] ... for the abuse he was commit[ting] upon them" and to "own" them. By these allegations, Hawkes's payments were designed both to compensate and to facilitate Hawkes's crimes of sexual abuse and dissuading a victim to report a crime (as aspects of Hawkes's "own[ership]" of them). Because these payments are not solely compensatory, they were not an "advance payment or partial payment of damages."
Here, Hawkes's alleged control over the Archdiocese's finances and his power to spend the Archdiocese's money were within the scope of his employment. Plaintiffs allege that for many years Hawkes "controlled the finances of the" Archdiocese and had the authority "to conduct any and all transactions that had a monetary cost." His cash and other gifts to plaintiffs fall within this grant of authority, regardless of whether those payments also constituted a tort or crime and regardless of whether the Archdiocese ever authorized or ratified those payments. Plaintiffs argue that the power of attorney limited Hawkes's authority to act to conduct that was "lawful[]." However, the express language of the power of attorney did two things — it granted Hawkes the "full power and authority to do and perform all and every act" and it ratified his "lawful[]" acts. The "lawful[]" limitation constrained the Archdiocese's ratification, but not its initial conferral of authority, and it is this authority that forms the basis for the Archdiocese's liability here. Because Hawkes's payments are attributable to the Archdiocese on this basis, we have no occasion to examine whether Hawkes's actions were also directly authorized or otherwise ratified by the Archdiocese.
As explained above, J. Doe had until 1981 or 1982 to file suit for Hawkes's sexual abuse and L. Doe had until 1982 or 1986. Because our Legislature has the power to revive expired claims (Quarry, supra, 53 Cal.4th at pp. 955, 970), we must examine whether any of our Legislature's subsequent amendments to the statute of limitations for childhood sexual abuse claims revived plaintiffs' claims. (The Legislature extended the statute
In 1986, 1990 and 1994, the Legislature extended the limitations period against the persons who perpetrated the child sexual abuse, and revived any claims that were timely under the amendment even if they had expired prior to the amendment. (See Code Civ. Proc., § 340.1, former subds. (a) & (e)(1), added by Stats. 1986, ch. 914, § 1, p. 3165 [extending period from one to three years for perpetrators who were "household or family member(s)"]; Code Civ. Proc., § 340.1, subds. (r) & (s); § 340.1, former subd. (a) [extending period to plaintiff's 26th birthday or within three years of discovery of psychological injury]; § 340.1, former subds. (o) & (p) [reviving claims that would be timely under the 1990 amendment]; Stats. 1994, ch. 288, § 1, p. 1928; Stats. 1990, ch. 1578, § 1, p. 7550.) Because these amendments did not alter the time period involving third parties, such as the Archdiocese, they are irrelevant.
In 1998 and 1999, the Legislature extended the limitations period for suing third parties for childhood sexual abuse, but only if the lawsuit was filed before the victim's 26th birthday, and revived any claims that were timely under this new rule, even if they had previously expired. (Code Civ. Proc., § 340.1, subd. (u); Quarry, supra, 53 Cal.4th at p. 967; Stats. 1999, ch. 120, § 1, p. 1735; § 340.1, former subds. (a)(2), (3) & (b); Stats. 1998, ch. 1032, § 1, p. 7785; Quarry, at p. 965 [noting how 1998 amendment "for the first time included certain third party defendants"].) Plaintiffs cannot avail themselves of this revival period because, in 1998, they were both well over age 26 (J. Doe was 35 or 36, and L. Doe was 34).
In 2002, the Legislature carved out an exception to the rule that a plaintiff suing for sexual abuse always had to sue a third party before the victim's 26th birthday. This exception authorized suit "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," even after the plaintiff's 26th birthday, if the third party "knew or had reason to know, or was otherwise on notice, of any unlawful sexual conduct by an employee, volunteer, representative, or agent, and failed to take reasonable steps, and to implement reasonable safeguards, to avoid acts of unlawful sexual conduct in the future by that person." (Code Civ. Proc., § 340.1, subds. (a) & (b)(2); Stats. 2002, ch. 149, § 1, p. 752.) The Legislature expressly stated that plaintiffs whose claims would be timely under this amendment could bring suit "within one year of January 1, 2003," even if their claims had expired. (§ 340.1, subd. (c).) Although plaintiffs' claims may
As noted above, plaintiffs must be granted leave to amend if "there is a reasonable possibility that the defect can be cured by amendment." (Zelig, supra, 27 Cal.4th at p. 1126.) Although the gifts and money Hawkes gave to plaintiffs contemporaneous with their sexual abuse were not an "advance payment or partial payment of damages," the operative complaint indicates that the abuse of J. Doe stopped in 1981 and the abuse of L. Doe stopped in 1984 or 1985. The complaint alleges when the payments started, but is silent as to when they stopped. To the extent Hawkes made payments that were not in part for purposes of grooming or encouraging plaintiffs not to report the abuse, there is a "reasonable possibility" that those payments may be solely compensatory and thus subject to tolling under section 11583. We remand to give plaintiffs the opportunity to so plead, if the facts support such an allegation and are consistent with the allegations pled in earlier complaints.
The order of the trial court is reversed and remanded. Each party to bear its own costs on appeal.
Boren, P. J., and Chavez, J., concurred.