Johnson v. Riverside Healcare ( 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/
    HCA WESTERN GROUP, INC., a                      D.C. No.
    CV-03-01392-ABC
    Tennessee corporation, doing
    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 February 13, 2008
    1295
    1296        JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    Before: Diarmuid F. O’Scannlain and Milan D. Smith, Jr.,
    Circuit Judges, and Michael W. Mosman,* District Judge.
    Opinion by Judge O’Scannlain
    *The Honorable Michael W. Mosman, United States District Judge for
    the District of Oregon, sitting by designation.
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM        1299
    COUNSEL
    Dale L. Gronemeier, Gronemeier & Associates, P.C., South
    Pasadena, California, argued the cause for the plaintiff-
    appellant, and filed briefs.
    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.
    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.
    1300         JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    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
    (“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 one par-
    ticularly serious incident of racial discrimination during his
    time at Riverside. According to Johnson, a colleague, Dr. Vla-
    sak, admonished him by using a racial slur after Johnson per-
    formed 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 performed 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?’ ”
    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.”
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM          1301
    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 privi-
    leges were revoked after he failed to pay his membership dues
    by a deadline Johnson claims the Medical Staff imposed arbi-
    trarily and without warning while he was traveling out of the
    country. Because full membership on the Medical Staff was
    a condition of his contract, Riverside terminated Johnson soon
    afterwards. 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
    Robert Duncanson, the Chief of the Medical Staff, with the
    California Department of Fair Employment and Housing
    (“DFEH”) alleging that he had been harassed, denied employ-
    ment, and denied privileges to admit patients to Riverside on
    account of his race and sexual orientation. On September 30,
    2002, DFEH issued Johnson right-to-sue notices for Duncan-
    son and several other individuals on the Medical Staff and
    nursing staff.
    1302       JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    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. Thereafter, he reached a settlement with several
    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 all three defen-
    dants, contending that he raised a triable issue of fact as to
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM           1303
    whether the defendants created a racially hostile work envi-
    ronment in violation of that provision. Second, Johnson
    argues that the district court erred in dismissing his §§ 51 and
    51.5 claims because both recognize a cause of action for the
    type of workplace discrimination Johnson alleges here.
    Finally, Johnson argues that the district court erred in dismiss-
    ing his FEHA claims against all three defendants even though
    the statute of limitations expired, suggesting that he was enti-
    tled to equitable tolling. We consider each argument in turn.
    II
    The district court dismissed without discussion Johnson’s
    § 1981 claim. Nevertheless, we may affirm the district court’s
    determination on any ground supported by the record. Papa
    v. United States, 
    281 F.3d 1004
    , 1009 (9th Cir. 2002) (citing
    Vestar Dev. II v. Gen. Dynamics Corp., 
    249 F.3d 958
    , 960
    (9th Cir. 2001)). 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.” Bal-
    istreri v. Pacifica Police Dep’t, 
    901 F.2d 696
    , 699 (9th Cir.
    1990) (citation omitted). In reviewing the district court’s deci-
    sion, we view Johnson’s complaint in the light most favorable
    to him, accepting all well-pleaded factual allegations as true,
    as well as any reasonable inferences drawn from them. Broam
    v. Bogan, 
    320 F.3d 1023
    , 1028 (9th Cir. 2003) (citations omit-
    ted).
    A
    [1] Among other things, § 1981 guarantees “all persons”
    the right to “make and enforce contracts.” 42 U.S.C.
    § 1981(a). Section 1981(b) defines that right to include the
    right to the “enjoyment of all benefits, privileges, terms, and
    conditions of the contractual relationship.” As a consequence,
    we have found claims alleging a hostile work environment
    cognizable under § 1981. Manatt v. Bank of America, 
    339 F.3d 792
    , 797 (9th Cir. 2003). Nevertheless, § 1981 only
    1304       JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    creates a cause of action for those plaintiffs discriminated
    against on the basis of their race or ethnicity. 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) (citations omitted); see also Magana v. N. Mari-
    ana Islands, 
    107 F.3d 1436
    , 1446-47 (9th Cir. 1997) (holding
    that plaintiff’s claim that she was “Filipino” was a sufficient
    basis for § 1981 relief). Thus, although Johnson’s complaint
    alleges numerous incidents of sexual orientation discrimina-
    tion, only his allegations of racial discrimination are relevant
    to his § 1981 claim.
    A prima facie claim for hostile work environment under
    § 1981 must raise triable issues of fact as to whether “(1) [the
    plaintiff] was subjected to verbal or physical conduct because
    of [his] race, (2) the conduct was unwelcome, and (3) the con-
    duct was sufficiently severe or pervasive to alter the condi-
    tions of [the plaintiff’s] employment and create an abusive
    work environment.” 
    Manatt, 339 F.3d at 798
    (quoting Kang
    v. U. Lim Am., Inc., 
    296 F.3d 810
    , 817 (9th Cir. 2002)) (inter-
    nal quotation marks omitted). Moreover, the work environ-
    ment must be perceived as abusive from both a subjective and
    objective point of view. Brooks v. City of San Mateo, 
    229 F.3d 917
    , 923 (9th Cir. 2000). In examining whether the
    workplace was objectively abusive, we consider the perspec-
    tive of a reasonable person with the plaintiff’s same funda-
    mental characteristics. See Fuller v. City of Oakland, 
    47 F.3d 1522
    , 1527 (9th Cir. 1995). Finally, in considering whether
    the discriminatory conduct was sufficiently severe or perva-
    sive, we look to “all the circumstances, including the ‘fre-
    quency of the discriminatory conduct; its severity; whether it
    is physically threatening or humiliating, or a mere offensive
    utterance; and whether it unreasonably interferes with an
    employee’s work performance.’ ” 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)).
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM          1305
    B
    [2] Johnson alleges one particularly serious incident of dis-
    crimination. Johnson’s encounter with Dr. Vlasak, in which
    Vlasak used a racial epithet and moved as if to strike Johnson,
    is unquestionably evidence of discrimination standing alone.
    Consequently, our task becomes to determine whether this
    incident, combined with Johnson’s other allegations, raises a
    triable issue of fact as to whether the discrimination Johnson
    faced at Riverside was so “severe or pervasive” as to alter the
    conditions of his employment and create an abusive work
    environment. 
    Manatt, 339 F.3d at 798
    ; see also 
    Brooks, 229 F.3d at 923
    (noting that “the required showing of severity or
    seriousness of the harassing conduct varies inversely with the
    pervasiveness or frequency of the conduct”) (citations omit-
    ted).
    [3] Turning to these allegations, however, we find no indi-
    cation that Johnson was subjected to racial discrimination on
    any other occasion aside from the incident with Dr. Vlasak.
    Johnson contends that a particular nurse frequently asked him
    to remove trash from the Operating Room and, on one occa-
    sion, refused to provide him with the necessary surgical
    equipment to perform a procedure. He also contends that after
    he was bitten by the 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 pop-
    ular” with the nurses than Johnson. Although these comments
    and actions may have been offensive, Johnson provides no
    evidence to suggest that they were motivated by racial animus
    rather than mere personal dislike.
    [4] Johnson also alleges that the Medical Staff’s Residency
    Selection Committee refused to consider an African-
    American candidate because of his race and, after rejecting
    the application, the Chairman and other members of the com-
    mittee “stated in the presence of other physicians” that they
    would not consider the applicant because he was African-
    1306       JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    American and might be gay. Johnson’s complaint does not
    allege that he was present at the time the candidate’s applica-
    tion was denied or at the time the Committee members’
    racially offensive remarks were made. It is true that discrimi-
    natory conduct directed at an individual other than the plain-
    tiff may be relevant to a plaintiff’s hostile work environment
    claim in certain circumstances. See Monteiro v. Tempe Union
    High Sch. Dist., 
    158 F.3d 1022
    , 1033-34 (9th Cir. 1998)
    (“[R]acist attacks need not be directed at the complainant in
    order to create a hostile educational environment [under Title
    VI].” (citations omitted)); see also Vinson v. Taylor, 
    753 F.2d 141
    , 146 (D.C. Cir. 1985) (“[E]vidence tending to show [a
    supervisor’s] harassment of other women working alongside
    [the plaintiff] is directly relevant to the question whether [the
    supervisor] created an environment violative of Title VII”)
    (citation omitted). In this case, however, the Committee mem-
    bers’ conduct was not directed at Johnson, and he alleges that
    he only learned about it indirectly. Thus, Johnson points to
    just two incidents of discriminatory conduct over the course
    of his twenty-eight-month tenure at Riverside, and only one
    in which he was the victim.
    [5] In the past, we have held that isolated incidents, unless
    “extremely serious,” are insufficient to state a claim for hos-
    tile work environment. 
    Manatt, 339 F.3d at 798
    (quoting
    
    Faragher, 524 U.S. at 788
    ); Vasquez v. County of Los Ange-
    les, 
    349 F.3d 634
    , 642-43 (9th Cir. 2002) (concluding that
    employee failed to state a hostile work environment claim
    under Title VII where he was yelled at in front of others and
    told that he had “a typical Hispanic macho attitude,” and that
    he should work in the field because “Hispanics do good in the
    field”); 
    Kortan, 217 F.3d at 1110-11
    (holding that a plaintiff
    failed to state a hostile work environment claim where her
    supervisor referred to other females as “castrating bitches,”
    “Madonnas,” or “Regina” in her presence and called the
    plaintiff “Medea” at least once). Thus, to establish the severe
    or pervasive discrimination necessary for a hostile work envi-
    ronment claim, we have required plaintiffs to allege that the
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM        1307
    offending conduct occurred with a greater frequency than
    Johnson has here. See Craig v. M & O Agencies, Inc., 
    496 F.3d 1047
    , 1056-57 (9th Cir. 2007) (determining that a female
    employee established a prima facie case for hostile work envi-
    ronment where her boss repeatedly solicited her to perform
    sexual favors over several months and engaged in five signifi-
    cant incidents of harassing conduct, including one in which he
    followed her into a women’s restroom and kissed her); Nich-
    ols v. Azteca Rest. Enters., 
    256 F.3d 864
    , 872-73 (9th Cir.
    2001) (concluding that an employee had stated a hostile work
    environment claim where co-workers and supervisors called
    him a “faggot” and a “fucking female whore” at least once a
    week and often several times a day).
    Our decision in Manatt is particularly instructive. In that
    case, a bank employee of Chinese descent filed a hostile work
    environment claim against the bank where she was employed.
    Manatt alleged that she frequently overheard co-workers
    make jokes about China and “communists from Beijing” and
    that she was the victim of two particularly serious incidents
    of discrimination: an occasion in which two of her co-workers
    made jokes about China in her presence and then pulled their
    eyes back with their fingers in an attempt to mock the appear-
    ance of Asians, and a separate incident in which another co-
    worker told her that her enunciation of the word “Lima” was
    “ridiculous,” later shouted, “China woman, China woman,
    China woman, . . . get your butt over here” and instructed
    Manatt to repeat the word for a colleague listening over the
    telephone and, when Manatt complied, broke out in laughter,
    attributing Manatt’s mispronunciation to the fact that she was
    a “China 
    woman.” 339 F.3d at 795-96
    .
    [6] In reviewing Manatt’s allegations, we acknowledged
    the severity of both events, but nevertheless concluded that
    “two regrettable incidents occurring over a span of two-and-a-
    half years, coupled with other offhand remarks made by Man-
    natt’s co-workers and supervisor, did not alter the conditions
    of Manatt’s employment.” 
    Id. at 799.
    Our reasoning in Manatt
    1308        JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    compels a similar result in this case. Johnson alleges that he
    was the victim of only one incident of discrimination over the
    course of his twenty-eight-month tenure at Riverside, and that
    he learned indirectly of another. While both incidents were
    serious and undoubtedly caused Johnson to suffer, particularly
    the incident in which he was the victim, our precedents
    require a plaintiff to allege more than two isolated events to
    establish that he was subjected to a hostile work environment
    in violation of § 1981.
    [7] Accordingly, we conclude that Johnson has not raised
    a triable issue of fact as to whether he suffered “severe and
    pervasive” discrimination at Riverside and that, as a conse-
    quence, his § 1981 claims against the defendants must fail.
    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
    [8] 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
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM                    1309
    California Supreme Court has expressly held that employment
    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
    .
    [9] Twenty-six years later in Strother v. Southern Califor-
    nia 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.”2 
    Id. at 874.
      2
    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)).
    1310       JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    2
    [10] 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
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM           1311
    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.
    1312       JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    Thus, we find Johnson’s relationship with Riverside distin-
    guishable from the relationship described in Payne. Indeed,
    Johnson’s complaint is based solely on allegations of work-
    place 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.
    [11] We continue to follow our decision in Strother and
    conclude 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
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM              1313
    the customer-proprietor relationship.” 
    Id. at 874.
    Johnson has
    made no such demonstration.
    B
    [12] 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
    [13] 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
    1314          JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM
    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.
    [14] Under California law, equitable tolling will be war-
    ranted where the defendants have induced the plaintiff to
    delay filing until after the statute of limitations has run. See
    Mills v. Forestex Co., 
    108 Cal. App. 4th 625
    , 652 (2003)
    (citation omitted). 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.
    [15] 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.3
    3
    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).
    JOHNSON v. RIVERSIDE HEALTHCARE SYSTEM                  1315
    V
    Based on the foregoing, the district court’s dismissal of
    Johnson’s claims against the defendants under § 1981 and
    under California Civil Code §§ 51 and 51.5 for failure to state
    a claim upon which relief can be granted and the district
    court’s dismissal of Johnson’s FEHA claims for failure to
    comply with the statute of limitations are
    AFFIRMED.
    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: 2/13/2008

Precedential Status: Precedential

Modified Date: 10/14/2015

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