Johnson v. Riversied Healthcare ( 2008 )


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  •                     FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    CHRISTOPHER LYNN JOHNSON, M.D.,          
    Plaintiff-Appellant,
    v.
    RIVERSIDE HEALTHCARE SYSTEM, LP,
    a California limited partnership,
    d/b/a Riverside Community
    Hospital; RIVERSIDE HEALTHCARE
    SYSTEM, LLC, a California limited               No. 06-55280
    liability corporation; COLUMBIA/                  D.C. No.
    HCA WESTERN GROUP, INC., a                   CV-03-01392-ABC
    Tennessee corporation, doing
    ORDER AND
    business in California; MEDICAL
    OPINION
    STAFF OF RIVERSIDE COMMUNITY
    HOSPITAL, a California
    unincorporated association; ROBERT
    DUNCANSON, M.D.; LIBBY MARTIN;
    BARBARA MARSHALL; GAY
    DICKINSON; PATRICIA LEMMLE; EARL
    TATE; MICHAEL RAWLINGS,
    Defendants-Appellees.
    
    Appeal from the United States District Court
    for the Central District of California
    Audrey B. Collins, District Judge, Presiding
    Argued and Submitted
    October 18, 2007—Pasadena, California
    Filed July 28, 2008
    Before: Diarmuid F. O’Scannlain and Milan D. Smith, Jr.,
    Circuit Judges, and Michael W. Mosman,* District Judge.
    *The Honorable Michael W. Mosman, United States District Judge for
    the District of Oregon, sitting by designation.
    9375
    9376   JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    Opinion by Judge O’Scannlain
    9380      JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    COUNSEL
    Dale L. Gronemeier, Gronemeier & Associates, P.C., South
    Pasadena, California, argued the cause for the plaintiff-
    appellant, and filed briefs.
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM                   9381
    James L. Payne, Payne & Fears LLP, Irvine, California,
    argued the cause for the defendants-appellees, and filed a
    brief; Laura Fleming, Payne & Fears LLP, Irvine, California,
    and Tami Smason, Foley & Lardner LLP, Los Angeles, Cali-
    fornia, were on the brief.
    ORDER
    The petition for panel rehearing is GRANTED. The opin-
    ion filed on February 13, 2008, and appearing at 
    516 F.3d 759
    (9th Cir. 2008) is withdrawn. The superseding opinion will be
    filed concurrently with this order.
    OPINION
    O’SCANNLAIN, Circuit Judge:
    We are called upon to decide whether a physician who
    asserts that he was discriminated against (based on his race,
    sexual orientation, and perceived disability) by doctors and
    nurses at the hospital where he treated patients can establish
    civil rights claims under federal and state law.
    I
    A
    Christopher Lynn Johnson worked as a physician at the
    Riverside Community Hospital (“Riverside”)1 and as a mem-
    ber of the Medical Staff of Riverside Community Hospital
    1
    Also named as defendants in this suit are Riverside Healthcare System,
    LLC (“RHCS”), a limited partnership doing business as Riverside under
    California law, and Columbia/HCA Western Group, Inc., a Tennessee cor-
    poration with an ownership interest in RHCS. Hereinafter, all three entities
    will be referred to collectively as “Riverside.”
    9382       JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    (“Medical Staff”) from October 1999 until February 2002.
    Johnson’s responsibilities included performing plastic sur-
    geries and providing trauma consultations in Riverside’s
    emergency room. Johnson identifies himself as African Amer-
    ican and bisexual. Soon after he began his tenure at Riverside,
    Johnson alleges that several physicians regularly harassed him
    because of his sexual orientation and their mistaken belief that
    he suffered from HIV/AIDS. He alleges that several nurses
    harassed him and refused to participate in surgeries with him
    for the same reasons. In addition, Johnson points to several
    incidents of racial discrimination during his time at Riverside.
    The first was particularly serious. According to Johnson, a
    colleague, Dr. Vlasak, admonished him by using a racial slur
    after Johnson performed surgery on one of Vlasak’s patients.
    As the facts are set forth in Johnson’s complaint, Vlasak
    failed to review the patient’s CT scan and consequently failed
    to realize that the patient was suffering from a skull fracture
    with an underlying brain contusion. Upon discovering the
    problem, Johnson admitted the patient for surgery and per-
    formed the necessary procedure. When Vlasak learned that
    Johnson had corrected (and therefore exposed) his oversight,
    Vlasak moved as if to strike Johnson, “charged” into the room
    where Johnson was standing and “screamed . . . ‘You fucking
    nigger—why did you do that to me?’ ”
    Second, Johnson alleges that the Medical Staff’s Residency
    Selection Committee refused to consider a residency candi-
    date because he was African-American and, after rejecting the
    application, the Chairman and other members of the commit-
    tee “stated in the presence of other physicians” that they
    would not rank the applicant because of his race and sexual
    orientation. Finally, Johnson states that a certain nurse “con-
    sistently” refused to provide him with necessary equipment
    during surgical procedures and “repeatedly” asked him to
    remove trash from the Operating Room, acting as if these
    requests were “funny.” He further alleges that these remarks
    were racially motivated, as they reflected the nurse’s view
    that he was required to act as a “maintenance man” simply
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM          9383
    because he was African-American. Johnson alleges that Riv-
    erside and the Medical Staff, of which defendant Dr. Robert
    Duncanson was the chief, were aware of all of these incidents
    and made no effort to address them.
    Johnson worked at Riverside under the terms of a profes-
    sional services agreement. The contract explicitly designated
    Johnson as a “Contractor,” rather than an employee. The con-
    tract also required Johnson to retain his membership and priv-
    ileges with the Medical Staff. Failure to do so was a cause for
    termination.
    In February 2002, Johnson’s Medical Staff privileges were
    revoked after he failed to pay his membership dues by a dead-
    line Johnson claims the Medical Staff imposed arbitrarily and
    without warning while he was traveling out of the country.
    Because full membership on the Medical Staff was a condi-
    tion of his contract, Riverside terminated Johnson soon after-
    wards. Johnson immediately applied to the Medical Staff for
    reinstatement, but was informed that he could only regain his
    status by reapplying to the Staff as a new applicant, which
    would require him to submit to a hearing before the Medical
    Staff Credentials Committee. Johnson obliged, and was con-
    fronted at the hearing with numerous complaints about his
    behavior filed by co-workers, all of which he contends were
    fabricated. After the hearing, the Committee voted to uphold
    the denial of Johnson’s Medical Staff membership. Prior to
    the completion of the hearing, Riverside filed a report describ-
    ing the complaints against Johnson with the California Medi-
    cal Board pursuant to California Business and Professions
    Code § 805. Johnson argues that the filing of this report was
    premature and cost him future opportunities for employment.
    B
    On September 26, 2002, Johnson filed a complaint against
    Duncanson with the California Department of Fair Employ-
    ment and Housing (“DFEH”) alleging that he had been
    9384         JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    harassed, denied employment, and denied privileges to admit
    patients to Riverside on account of his race and sexual orien-
    tation. On September 30, 2002, DFEH issued Johnson right
    to-sue notices for Duncanson and several other individuals on
    the Medical Staff and nursing staff.
    On September 2, 2003, Johnson filed a complaint in Cali-
    fornia state court against Riverside and several other defen-
    dants setting forth multiple civil rights claims under federal
    and state law. He voluntarily dismissed that action, however,
    on October 16, 2003. Later, on December 2, 2003, Johnson
    filed a complaint in the District Court for the Central District
    of California against Riverside, the Medical Staff, Duncanson,
    and other individuals alleging the same causes of action,
    including three relevant to this appeal: (1) racial discrimina-
    tion in violation of 
    42 U.S.C. § 1981
    ; (2) racial and sexual
    orientation discrimination in violation of California Civil
    Code § 51 (the “Unruh Civil Rights Act claim”) and § 51.5;
    and (3) racial and sexual orientation discrimination in viola-
    tion of California’s Fair Employment and Housing Act
    (“FEHA”), Cal. Gov’t. Code §§ 12940 et seq.
    The defendants moved to dismiss all claims under Federal
    Rules of Civil Procedure 12(b)(1) and 12(b)(6). The district
    court dismissed Johnson’s claims under California Civil Code
    §§ 51 and 51.5 with prejudice, finding that Johnson had failed
    to state a claim upon which relief could be granted because
    neither provision creates a cause of action for employment
    discrimination. The district court did not specifically address
    Johnson’s § 1981 claims, but dismissed his remaining claims,
    including his FEHA claims, without prejudice, granting him
    leave to amend.
    Johnson timely filed a first amended complaint which omit-
    ted, and thereby waived, all other claims except those men-
    tioned here.2 Thereafter, he reached a settlement with several
    2
    Johnson’s § 1981 claim against the Medical Staff, which included his
    contentions that the Medical Staff wrongfully revoked his staff privileges
    and that the Medical Staff created a hostile work environment, was among
    those claims waived by the first amended complaint.
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM            9385
    defendants, leaving only Riverside, Duncanson, and the Medi-
    cal Staff as defendants in this action. The district court then
    dismissed each of Johnson’s remaining claims under Rule
    12(b)(6) for failure to state a claim.
    Johnson appeals. First, he argues that the district court
    erred in dismissing his § 1981 claims against Duncanson and
    Riverside, contending that he has sufficiently alleged that the
    defendants created a racially hostile work environment in vio-
    lation of that provision. Second, Johnson argues that the dis-
    trict court erred in dismissing his §§ 51 and 51.5 claims
    against all three defendants because both statutes recognize a
    cause of action for the type of workplace discrimination John-
    son alleges here. Finally, Johnson argues that the district court
    erred in dismissing his FEHA claims against all three defen-
    dants even though the statute of limitations expired, suggest-
    ing that he was entitled to equitable tolling. We consider each
    argument in turn.
    II
    [1] We begin with Johnson’s § 1981 claim against Duncan-
    son and Riverside. The district court dismissed such claim
    without discussion. Nevertheless, we may affirm based on any
    ground supported by the record. Papa v. United States, 
    281 F.3d 1004
    , 1009 (9th Cir. 2002). A Rule 12(b)(6) dismissal
    may be based on either a “lack of a cognizable legal theory”
    or “the absence of sufficient facts alleged under a cognizable
    legal theory.” Balistreri v. Pacifica Police Dep’t, 
    901 F.2d 696
    , 699 (9th Cir. 1990). In other words, Johnson’s complaint
    must provide a “short and plain statement of the claim show-
    ing that [he] is entitled to relief.” Fed. R. Civ. P. 8(a)(2). This
    is not an onerous burden. “Specific facts are not necessary;
    the statement need only give the defendant[s] fair notice of
    what . . . the claim is and the grounds upon which it rests.”
    Erickson v. Pardus, 
    127 S. Ct. 2197
    , 2200 (2007) (internal
    quotation marks omitted). Still, Johnson’s complaint must, at
    a minimum, plead “enough facts to state a claim for relief that
    9386         JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    is plausible on its face.” Bell Atl. Corp. v. Twombly, 
    127 S. Ct. 1955
    , 1974 (2007). Finally, in reviewing the district
    court’s decision, we view Johnson’s complaint in the light
    most favorable to him, accepting all well-pleaded factual alle-
    gations as true, as well as any reasonable inferences drawn
    from them. Broam v. Bogan, 
    320 F.3d 1023
    , 1028 (9th Cir.
    2003).
    A
    [2] Among other things, § 1981 guarantees “all persons”
    the right to “make and enforce contracts.” 
    42 U.S.C. § 1981
    (a). This right includes the right to the “enjoyment of
    all benefits, privileges, terms, and conditions of the contrac-
    tual relationship,” including the relationship between
    employer and employee. 
    Id.
     § 1981(b). Johnson contends that
    Duncanson and Riverside were aware of the harassment he
    faced from his co-workers and failed to take steps to address
    it, thereby creating a hostile work environment. In this circuit,
    such claims are cognizable under § 1981. Manatt v. Bank of
    Am., 
    339 F.3d 792
    , 797 (9th Cir. 2003). A hostile work envi-
    ronment, by its “very nature involves repeated conduct.” Nat’l
    R.R. Passenger Corp. v. Morgan, 
    536 U.S. 101
    , 115 (2002).
    To state a hostile work environment claim here, Johnson must
    allege that “(1) [he] was subjected to verbal or physical con-
    duct because of [his] race, (2) the conduct was unwelcome,
    and (3) the conduct was sufficiently severe or pervasive to
    alter the conditions of [his] employment and create an abusive
    work environment.” Manatt, 
    339 F.3d at 798
     (internal quota-
    tion marks omitted).3 In considering whether the discrimina-
    tory conduct was “severe or pervasive,” we look to “all the
    circumstances, including the ‘frequency of the discriminatory
    conduct; its severity; whether it is physically threatening or
    3
    Hostile work environment claims under Title VII contain the same ele-
    ments of a § 1981 hostile work environment claim and, thus, the “legal
    principles guiding a court in a Title VII dispute apply with equal force in
    a § 1981 action.” Manatt, 
    339 F.3d at 797
    .
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM          9387
    humiliating, or a mere offensive utterance; and whether it
    unreasonably interferes with an employee’s work perfor-
    mance.’ ” Kortan v. Cal. Youth Auth., 
    217 F.3d 1104
    , 1110
    (9th Cir. 2000) (quoting Faragher v. City of Boca Raton, 
    524 U.S. 775
    , 787-88 (1998)).
    B
    [3] At the motion to dismiss stage, Johnson need not sup-
    port his allegations with evidence, but his complaint must
    allege sufficient facts to state the elements of a hostile work
    environment claim. See Twombly, 
    127 S. Ct. at 1974
    ; see also
    Williams v. Boeing Co., 
    517 F.3d 1120
    , 1130 (9th Cir. 2008)
    (“Even though heightened pleading is not required in discrim-
    ination cases, the complaint must still ‘give the defendant fair
    notice of what the plaintiff’s claim is and the grounds upon
    which it rests.’ ” (quoting Swierkiewicz v. Sorema N.A., 
    534 U.S. 506
    , 512 (2002))).
    [4] Johnson’s complaint is rife with allegations that his co-
    workers harassed him because of his sexual orientation. Nev-
    ertheless, because § 1981 creates a cause of action only for
    those discriminated against on account of their race or ethnic-
    ity, such allegations are irrelevant to his claim. See Jones v.
    Bechtel, 
    788 F.2d 571
    , 574 (9th Cir. 1986) (holding that a
    plaintiff could not assert a § 1981 claim based on gender dis-
    crimination). Still, Johnson’s complaint includes at least three
    allegations that are relevant to his claim that he was subjected
    to a hostile work environment because of his race.
    [5] First, Johnson’s encounter with Dr. Vlasak, in which
    Vlasak uttered a racial epithet and moved as if to strike him,
    was a serious act of discrimination. While “an isolated inci-
    dent of harassment by a co-worker will rarely (if ever) give
    rise to a reasonable fear that [such] harassment has become a
    permanent feature of the employment relationship,” Brooks v.
    City of San Mateo, 
    229 F.3d 917
    , 924 (9th Cir. 1999), John-
    son’s complaint contains other relevant allegations. While the
    9388          JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    complaint does not allege that Johnson was present at the time
    when the African-American residency candidate’s application
    was rejected or when the members of the Residency Selection
    Committee’s offensive remarks were made, discriminatory
    conduct directed at an individual other than the plaintiff may
    be relevant to a hostile work environment claim. See, e.g.,
    Monteiro v. Tempe Union High Sch. Dist., 
    158 F.3d 1022
    ,
    1033-34 (9th Cir. 1998). Finally, the allegations of the nurse’s
    “repeated” requests that Johnson remove trash from the Oper-
    ating Room, which she viewed as “funny,” are also relevant
    to his § 1981 claim. We have previously held that a co-
    worker’s use of a “code word or phrase” can, under certain
    circumstances, contribute to a hostile work environment.
    McGinest v. GTE Serv. Corp., 
    360 F.3d 1103
    , 1117 (9th Cir.
    2004); see also El-Haken v. BJY Inc., 
    415 F.3d 1068
    , 1073-74
    (9th Cir. 2005) (same). While we are not obligated to accept
    every conclusory allegation as true, see, e.g., Sanders v.
    Brown, 
    504 F.3d 903
    , 910 (9th Cir. 2007), we believe the
    inference that racial animus motivated the nurse’s frequent
    requests that Johnson perform the tasks of a maintenance man
    is a reasonable one that we must construe in his favor at the
    motion to dismiss stage.4
    4
    Not every conclusory allegation must be accepted as true, however.
    Johnson’s complaint also states that after he was bitten by a security dog
    stationed in Riverside’s emergency room, the dog’s trainer told him not to
    complain to the hospital administrators because the dog was “more popu-
    lar” with the nurses than Johnson was. The complaint further alleges that
    this remark “clearly reflected the trainer’s opinion that an African Ameri-
    can physician . . . was lower on the Hospital’s social scale than a dog.”
    Rule 8 requires “allegations plausibly suggesting (not merely consistent
    with) [racial animus].” Twombly, 127 S. Ct. at 1966. While we believe it
    is plausible to infer that the nurse’s comments were racially motivated, the
    dog trainer’s otherwise race-neutral insult is not so easily categorized. We,
    of course, accept as true Johnson’s allegation that such remark was made.
    Nevertheless, because the remaining allegations in his complaint are suffi-
    cient to state a hostile work environment claim, we need not decide
    whether we must accept his further allegation that the remark was moti-
    vated by race.
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM           9389
    [6] Johnson’s complaint provides Duncanson and Riverside
    with “fair notice of what [his] claim is and the grounds upon
    which it rests.” Swierkiewicz, 
    534 U.S. at 512
    . And, viewing
    the totality of the alleged circumstances in the light most
    favorable to him, the complaint puts forth “enough facts to
    state a claim for relief that is plausible on its face.” Twombly,
    
    127 S. Ct. at 1974
    . Our notice pleading requirements do not
    require more. “Indeed, it may appear on the face of the plead-
    ings that recovery is very remote and unlikely but that is not
    the test.” Swierkiewicz, 
    534 U.S. at 515
     (quoting Scheuer v.
    Rhodes, 
    416 U.S. 232
    , 236 (1974)). Accordingly, we conclude
    that Johnson’s § 1981 claim must survive Duncanson and
    Riverside’s motion to dismiss.
    III
    Our next task is to determine whether the district court
    erred in dismissing Johnson’s claims under California Civil
    Code §§ 51 and 51.5.
    A
    1
    [7] California Civil Code § 51 codifies the Unruh Civil
    Rights Act and provides that all persons within the State of
    California are “free and equal” and “no matter what their sex,
    race, color, religion, ancestry, national origin, disability, med-
    ical condition, marital status, or sexual orientation are entitled
    to the full and equal accommodations, advantages, facilities,
    privileges, or services in all business establishments of every
    kind whatsoever.” 
    Cal. Civ. Code § 51
    (b). California courts
    have interpreted the term “business establishment” in the
    “broadest sense reasonably possible,” see Burks v. Poppy
    Constr. Co., 
    57 Cal. 2d 463
    , 468 (1962), and hospitals such
    as Riverside meet the definition. O’Connor v. Vill. Green
    Owners Ass’n, 
    33 Cal. 3d 790
    , 796 (1983). Nevertheless, the
    California Supreme Court has expressly held that employment
    9390          JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    discrimination claims are excluded from § 51’s protection.
    Alcorn v. Anbro Eng’g, Inc., 
    2 Cal. 3d 493
    , 500 (1970); Rojo
    v. Kliger, 
    52 Cal. 3d 65
    , 77 (1990). The court has explained
    this exclusion by noting that the Unruh Act was designed to
    prohibit discrimination by business establishments “in the
    course of furnishing goods, services, or facilities” to its “cli-
    ents, patrons, or customers,” but does not extend to claims for
    employment discrimination because other California statutes
    are specifically tailored to provide relief for such conduct,
    most notably the FEHA, which was passed by the California
    Legislature in the very same session as the Unruh Act. Alcorn,
    2 Cal. 3d at 500.
    Twenty-six years later in Strother v. Southern California
    Permanente Medical Group, 
    79 F.3d 859
     (9th Cir. 1996), we
    interpreted the scope of liability available under § 51 in light
    of Alcorn and subsequent California cases and concluded that
    those precedents established the rule that relief under § 51
    was available when the plaintiff was in a relationship with the
    offending business establishment “similar to that of the cus-
    tomer in the customer-proprietor relationship which the Act
    and its predecessors have most commonly covered.”5 Id. at
    874.
    5
    In Strother, we acknowledged that California courts have allowed par-
    ties who were “not ‘clients, patrons, or customers,’ in the traditional
    sense” to bring claims under § 51. Id. at 873. Nevertheless, we determined
    that the plaintiffs in each of these cases stood in a position with the defen-
    dant similar to that of a customer in the “customer-proprietor relationship”
    the Unruh Act was designed to protect. Id. at 873-74 (citing O’Connor, 
    33 Cal. 3d at 796
     (holding that condominium owners could bring § 51 claims
    against their condominium owners’ association); Isbister v. Boys’ Club of
    Santa Cruz, Inc., 40 Cal. 3d. 72, 81 (1985) (holding that female children
    excluded from membership in the Boys’ Club could bring claims against
    the organization); Jackson v. Superior Court, 
    30 Cal. App. 4th 936
    , 941
    (1994) (holding that an African-American investment advisor who accom-
    panied two clients into a bank could assert a § 51 claim alleging discrimi-
    nation against the bank even though his clients were the actual customers
    of the bank); Rotary Club of Duarte v. Bd. of Dirs., 
    178 Cal. App. 3d 1035
    , 1059 (1987) (holding that a local chapter of the Rotary Club could
    challenge the National Rotary Club’s “male-only” policy under § 51)).
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM          9391
    2
    Applying these precedents, the district court dismissed
    Johnson’s § 51 claims against the defendants, reasoning that
    his allegations amounted to employment discrimination
    claims excluded from the Unruh Act’s protection. One month
    later, however, the California Court of Appeal’s decision in
    Payne v. Anaheim Memorial Hospital, 
    130 Cal. App. 4th 729
    (2005), became final. In that case, the Third Division of the
    Court of Appeal held that a physician could assert a § 51
    claim against the hospital where he treated patients because
    that physician did not have the type of employment relation-
    ship with the hospital which foreclosed § 51 relief. Id. at 748-
    49. Johnson argues that Payne has changed the applicable
    state law and requires us to reverse the district court’s dis-
    missal of his claims.
    In reviewing the district court’s judgment, we must apply
    state law as it is presently defined, even if state law has been
    altered subsequent to the district court’s decision. Vandenbark
    v. Owens-Illinois Glass Co., 
    311 U.S. 538
    , 541 (1941); Nel-
    son v. Brunswick Corp., 
    503 F.2d 376
    , 381-82 (9th Cir. 1974).
    In interpreting state law, we are bound to follow the decisions
    of the state’s highest court. Hewitt v. Joyner, 
    940 F.2d 1561
    ,
    1565 (9th Cir. 1991). When the state’s highest court has not
    spoken on an issue, we must determine what result the court
    would reach if we were standing in its shoes by examining
    “state appellate court opinions, statutes and treatises.” 
    Id.
     In
    undertaking this task, “the California Court of Appeal’s
    announcement of a rule of law ‘is a datum for ascertaining
    state law’ ” which we may not omit unless we are “ ‘con-
    vinced by other persuasive data that the highest court of the
    state would decide otherwise.’ ” Hangarter v. Provident Life
    & Accident Ins. Co., 
    373 F.3d 998
    , 1012-13 (9th Cir. 2004)
    (quoting Hicks v. Feiock, 
    485 U.S. 624
    , 630 n.3 (1988))
    (internal quotation marks omitted).
    Accordingly, we must first determine whether Payne’s
    holding applies to the facts of this case. If we answer that
    9392       JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    question in the affirmative, we must next determine whether
    there is any persuasive evidence to suggest that the California
    Supreme Court would have decided Payne differently, such
    that a contrary result would be warranted here.
    3
    Several factual distinctions between Johnson’s case and
    Payne are readily apparent. First, Johnson’s relationship with
    Riverside differed from Payne’s relationship with his hospital
    in the material respect that Johnson was compensated while
    Payne was not. In finding Payne’s claims against his hospital
    cognizable under § 51, the court in Payne explained, “Payne
    does not work for the hospital, and has no obligation to treat
    his patients there as opposed to any other hospital. Anaheim
    Memorial does not compensate Payne for his medical ser-
    vices, nor does it exercise any direct control over the manner
    in which he practices. Instead, the hospital merely provides a
    facility which a qualified physician may access in connection
    with providing medical care to his patients.” Payne, 130 Cal.
    App. 4th at 748. Riverside, on the other hand, paid Johnson
    $250 per month to be on call in its emergency room and also
    compensated him for each trauma patient he treated in an
    amount not to exceed $10,000 per month.
    Second, although Johnson’s professional services agree-
    ment referred to him as a “contractor,” Riverside retained
    control over all material aspects of his activities at the hospi-
    tal. While the parties’ affiliation did not contain every compo-
    nent of the traditional employer-employee relationship (most
    notably, Riverside was not required to pay Social Security
    taxes for Johnson or provide him with retirement benefits),
    Riverside determined the shifts Johnson was responsible to
    work, the nurses who would be assigned to work with him,
    and the credentials it would be necessary for Johnson to dis-
    play when inside the hospital. Riverside also required Johnson
    to remain a member in good standing on the Medical Staff.
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM          9393
    [8] Thus, we find Johnson’s relationship with Riverside
    distinguishable from the relationship described in Payne.
    Indeed, Johnson’s complaint is based solely on allegations of
    workplace discrimination, not discrimination in the provision
    of “goods, services, or facilities” prohibited by § 51. On the
    other hand, we find it quite similar to the relationship we held
    insufficient to state a § 51 claim in Strother. In that case we
    determined that a physician could not bring a claim under
    § 51 against the medical group in which she was a partner
    because her relationship with the group was more akin to that
    of an employee than that of a “client, patron, or customer”
    § 51 was designed to protect. Strother, 
    79 F.3d at 863
    .
    Although the plaintiff asserted that her relationship with the
    medical group entitled her to many benefits, such as “the use
    of certain medical facilities, medical supplies . . . and other
    goods, management courses, and a variety of privileges,
    advantages, and services,” we concluded that such benefits
    were no different than those that would be received by a phy-
    sician employed by the medical group, and thus determined
    that regardless of whether the plaintiff was a bona fide partner
    of the group or an employee, because her relationship with the
    group was analogous to that of an employee, California law
    precluded her from seeking relief under § 51. Id. at 874-75.
    [9] We continue to follow our decision in Strother and con-
    clude that Johnson’s § 51 claims are foreclosed by the fact
    that his relationship with Riverside was materially indistin-
    guishable from that of an employee. We find nothing in the
    California Court of Appeal’s holding in Payne to counsel
    against such a decision because the hospital in that case nei-
    ther compensated the plaintiff nor controlled the manner of
    his practice to the degree Riverside does here. Consequently,
    it is unnecessary for us to decide whether the California
    Supreme Court would have decided Payne differently. Cali-
    fornia law continues to require a plaintiff asserting a claim
    under § 51 to demonstrate that his relationship with the
    offending organization was “similar to that of the customer in
    9394       JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    the customer-proprietor relationship.” Id. at 874. Johnson has
    made no such demonstration.
    B
    [10] Johnson has also asserted claims against the defen-
    dants under California Civil Code § 51.5. Section 51.5 pro-
    vides in relevant part:
    No business establishment of any kind whatsoever
    shall discriminate against, boycott or blacklist, refuse
    to buy from, contract with, sell to, or trade with any
    person in this state on account of any characteristics
    listed or defined in subdivision (b) . . . of Section 51
    ....
    
    Cal. Civ. Code § 51.5
    (a). In Strother we interpreted § 51.5 as
    a mere extension of the Unruh Act. 
    79 F.3d at
    875 (citing
    Roth v. Rhodes, 
    25 Cal. App. 4th 530
    , 537 (1994)). Explain-
    ing that § 51.5, like § 51, is aimed only at discrimination in
    “relationships similar to the proprietor/customer relationship,”
    we held that § 51.5 required the plaintiff to make the same
    showing. Id. We see no reason to abandon that determination
    here. Thus, we conclude that a plaintiff asserting claims under
    § 51.5 must demonstrate that he stands in a relationship with
    the offending business establishment similar to that of a cus-
    tomer in a customer-proprietor relationship. As explained
    above, Johnson has failed to do so here. Accordingly, we con-
    clude that his claims under § 51.5 must meet the same fate as
    his claims under § 51.
    IV
    [11] Finally, we must determine whether the district court
    erred in dismissing Johnson’s FEHA claims as barred by the
    statute of limitations. Under California law, a plaintiff who
    intends to assert a FEHA claim must first file a complaint
    with the California DFEH, Cal. Gov’t. Code § 12960, and
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM                    9395
    then must file the claims within one year after the DFEH
    issues a right-to-sue letter for the defendants listed in the com-
    plaint, id. § 12965(b). Johnson received a right-to-sue letter
    from the DFEH on September 30, 2002 and timely filed an
    action in California state court on September 5, 2003. Never-
    theless, he voluntarily dismissed that action on October 16,
    2003 and then waited until December 2, 2003, 64 days after
    the limitations period expired, to file this action in federal
    court. Johnson contends that his timely state court filing satis-
    fies the statute of limitations under theories of equitable
    estoppel and equitable tolling. We disagree.
    Under California law, equitable tolling will be warranted
    where the defendants have induced the plaintiff to delay filing
    until after the statute of limitations has run. See Mills v. For-
    estex Co., 
    108 Cal. App. 4th 625
    , 652 (2003) (citation omit-
    ted). We discern nothing in the record to suggest that the
    defendants’ conduct caused Johnson to voluntarily dismiss his
    state court action or wait an additional 47 days before filing
    this action in federal court.
    [12] In addition, California courts have concluded that
    absent express statutory language, a plaintiff’s voluntary dis-
    missal will not entitle him to toll the statute of limitations. See
    Wood v. Elling Corp., 
    20 Cal. 3d 353
    , 359 (1977); Thomas v.
    Gilliland, 
    95 Cal. App. 4th 427
    , 433 (2002). Thus, Johnson’s
    voluntary dismissal of his state court action is not an event to
    which equitable tolling applies.6
    6
    Even if Johnson could demonstrate that he was entitled to equitable
    tolling, he would not be entitled to toll the period necessary to render his
    FEHA claim timely. The effect of equitable tolling is that “the limitations
    period stops running during the tolling event, and begins to run again only
    when the tolling event has concluded. As a consequence, the tolled inter-
    val . . . is tacked onto the end of the limitations period, thus extending the
    deadline for suit by the entire length of time during which the tolling event
    previously occurred.” Lantzy v. Centex Homes, 
    31 Cal. 4th 363
    , 370-71
    (2003) (emphasis omitted).
    9396         JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    V
    Based on the foregoing, the district court’s dismissal of
    Johnson’s § 1981 hostile work environment claim against
    defendants Duncanson and Riverside is REVERSED and
    REMANDED. The dismissal of Johnson’s claims under Cali-
    fornia Civil Code §§ 51 and 51.5 for failure to state a claim
    upon which relief can be granted and the dismissal of his
    FEHA claims for failure to comply with the statute of limita-
    tions are AFFIRMED. Each party shall bear its own costs on
    appeal.
    Johnson filed his state action on September 5, 2003, 25 days before the
    statute of limitations period expired. He voluntarily dismissed the state
    action 41 days later, on October 16, 2003. Consequently, if equitable toll-
    ing applied, Johnson would have been entitled to file his claims in federal
    court within 41 days of his voluntary dismissal. Johnson delayed filing
    until December 2, 2003, however, 47 days after his voluntary dismissal,
    and 6 days after the maximum tolling period would have expired.
    

Document Info

Docket Number: 06-55280

Filed Date: 7/28/2008

Precedential Status: Precedential

Modified Date: 10/14/2015

Authorities (29)

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mamdouh-el-hakem-v-bjy-inc-a-foreign-corporation-gregg-young-an , 415 F.3d 1068 ( 2005 )

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67-empl-prac-dec-p-43979-96-cal-daily-op-serv-1610-96-daily , 79 F.3d 859 ( 1996 )

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Lantzy v. Centex Homes , 2 Cal. Rptr. 3d 655 ( 2003 )

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