Saint Francis Mem'l Hosp. v. Cal. Dep't of Pub. Health
Saint Francis Mem'l Hosp. v. Cal. Dep't of Pub. Health
Opinion of the Court
*362*619Saint Francis Memorial Hospital (Saint Francis) petitioned for a writ of administrative mandate after being fined by the California Department of Public Health (Department). The trial court sustained the Department's demurrer based on the statute of limitations, and judgment was entered in the Department's favor. On appeal, Saint Francis argues that the court erred by sustaining the demurrer because the petition was timely under the applicable statutes, the limitations period was equitably tolled, and the Department is equitably estopped from claiming the petition was filed late. We affirm.
*620I.
FACTUAL AND PROCEDURAL BACKGROUND
This case arose after surgical staff at Saint Francis left a sponge in a patient during the patient's back surgery in 2010. The patient was required to endure a second surgery and be treated with powerful intravenous antibiotics. As a result of this incident, the Department imposed a $50,000 fine on Saint Francis for not having appropriate sponge-count policies and for not effectively training on, and ensuring compliance with, such policies. Saint Francis challenged the fine, and a hearing was held before an Administrative Law Judge (ALJ). The ALJ issued a proposed decision finding no basis for the fine because Saint Francis had adequate policies and procedures to guard against the mistakes that led to the incident.
On December 15, 2015, after receiving further briefing and evidence, the Department issued a final decision that rejected the ALJ's proposed decision, determined that Saint Francis had not implemented an appropriate sponge-count policy, and affirmed the fine. The decision was "effective immediately," and it was served on Saint Francis by certified mail the next day, December 16.
On December 30, 2015, Saint Francis submitted a request for reconsideration. The Department answered the request without "notif[ying Saint Francis] that the request ... was void or otherwise invalid," and then denied it on January 14, 2016. Also on January 14, apparently not knowing that the request for reconsideration had been or was being denied, counsel for Saint Francis e-mailed a Department attorney that Saint Francis intended to file a writ petition. In the e-mail, St. Francis's counsel also stated, "As I read the statute [the Department] has until today to accept or reject the request [for reconsideration]. If no action is taken it is deemed denied. I think the additional five days for mailing arguably applies; do you agree? This would extend to next Tuesday to decide the request." The Department attorney responded by e-mail, "I believe you are correct."
Saint Francis filed its writ petition in the trial court on January 26, 2016. The Department demurred on the basis that the petition was not timely. The court sustained the demurrer with "leave to amend to allege additional facts necessary to assert the equitable tolling of the statute of limitations."
Saint Francis then filed an amended petition, to which the Department also demurred. The trial court again sustained the demurrer, this time without leave to amend. It found that the Department's decision "was effective immediately and was thus not subject to a Request for *363Reconsideration" and *621that the subsequent writ petition "was not filed within the thirty days required by Government Code section 11521."
II.
DISCUSSION
A. The Request for Reconsideration Did Not Extend the Deadline to File a Writ Petition.
We begin with an overview of the statutes governing the timing for filing a request to reconsider an agency decision and for filing a petition for a writ of administrative mandate challenging an agency's final decision. Section 11521 sets forth the time period governing a party's request to reconsider an agency decision. It states, "The power to order a reconsideration shall expire 30 days after the delivery or mailing of a decision to a respondent, or on the date set by the agency itself as the effective date of the decision if that date occurs prior to the expiration of the 30-day period." ( § 11521, subd. (a) ; see also § 11519, subd. (a).) Thus, when an agency makes its decision effective immediately, as the Department did here, it "eliminat[es] the 30-day period for reconsideration." ( De Cordoba v. Governing Board (1977)
Section 11523 sets forth the limitations period that applies to a writ petition to challenge an agency's final decision. It requires the petition to "be filed within 30 days after the last day on which reconsideration can be ordered." (§ 11523.) Where, as here, reconsideration is unavailable, "the earliest date upon which an ... agency's decision can become effective, thereby commencing the limitations period of section 11523, is the date on which the decision is mailed or delivered." ( Koons v. Placer Hills Union Sch. Dist. (1976)
Here, the Department's decision was issued on December 15, 2015, and it was mailed to the parties the next day. Because the decision stated it was effective immediately, there was no period in which to file a request for *622reconsideration, and the 30-day period for filing a writ petition started to run on the day the decision was mailed, December 16. The last day to file any such petition was therefore January 15, 2016.
Saint Francis insists that January 15, 2016, was not the deadline for filing the writ petition because it filed its request for reconsideration. It contends that under section 11518.5, "the service of a request for reconsideration extends the time to file a Petition for Administrative Mandamus by 15 days." We are not persuaded. The statute provides that "[w]ithin 15 days after service of a copy of the decision on a party, but not later than the effective date of the decision, the party may apply to the agency for correction of a mistake or clerical error in the decision." (§ 11518.5, subd. (a).) This provision is plainly inapplicable. Not only did Saint Francis request reconsideration "later than" the effective date of the Department's decision, it sought substantive *364changes, not correction of a mistake or clerical error.
Rather, the provision authorizing a request for reconsideration of the merits of an agency's decision is section 11521, which, as we have explained, establishes that the time to request reconsideration expires "on the date set by the agency itself as the effective date of the decision." ( § 11521, subd. (a).) Since the effective date of the Department's decision here was December 15, and since the decision was served on the parties the next day, there was effectively no period in which to seek reconsideration.
B. The Trial Court Properly Rejected Saint Francis's Claims that Equitable Tolling and Equitable Estoppel Apply.
Saint Francis next argues that it is entitled to a tolling of the 30-day time period to file its writ petition or to equitably estop the Department from claiming that the petition was untimely. These arguments present closer questions, but we conclude that they are ultimately unavailing.
1. Saint Francis is not entitled to a tolling of the 30-day period.
Saint Francis's first equitable argument is that it is entitled to a tolling of the 30-day period because there was "an underlying mistake, which led to the running of the [period]." We accept that there was an underlying mistake, *623but we disagree that it justifies a tolling of the 30-day period. "The Administrative Procedure Act ( Gov. Code, § 11500 et seq. ) sets strict time deadlines for judicial challenges to administrative decisions." ( Hansen v. Board of Registered Nursing (2012)
The doctrine of equitable tolling applies " ' "[w]hen an injured person has several legal remedies and, reasonably and in good faith, pursues one." ' " ( McDonald v. Antelope Valley Community College Dist. (2008)
In Hansen , the Court of Appeal rejected a claim that section 11523's 30-day period was tolled based on an untimely request for reconsideration. ( Hansen, supra , 208 Cal.App.4th at pp. 672-673,
Hansen concluded that "[t]he Board's delay in responding to [the petitioner's] reconsideration request did not toll the 30-day limitations period of ... section 11523." ( Hansen, supra , 208 Cal.App.4th at p. 672,
Saint Francis attempts to distinguish Hansen on various grounds. First, it points out that the Board's decision in Hansen was the result of a default, while the Department's decision here came after a two-day hearing followed by the submission of additional briefing and evidence. We see no reason, however, why it would matter for purposes of tolling the 30-day period whether an agency's decision was the result of a default as opposed to active litigation: if anything, the position of the Hansen petitioner was stronger because she did not have actual notice of the proceedings until it was too late to file a request for reconsideration. Second, Saint Francis claims that, unlike the request for reconsideration in Hansen , its request for reconsideration was timely. But as we have already discussed, reconsideration was simply unavailable, as the Department's decision was effective immediately. Finally, Saint Francis maintains that it acted in good faith and that, unlike the Board in Hansen , the Department was notified "that there would be a writ petition pursued." We accept that Saint Francis's mistake about the availability of reconsideration was made in good faith, and we agree that Saint Francis notified the Department of its intent to file a writ petition, but these circumstances are insufficient to toll the running of the 30-day period.
2. The Department was not equitably estopped from claiming the petition was untimely.
Saint Francis's second equitable argument is that the trial court erred in refusing to equitably estop the Department from claiming that the petition was untimely. Again, we are not persuaded.
There are four basic elements of equitable estoppel: (1) the party to be estopped must have known the facts; (2) the party to be estopped must have intended that its conduct would be acted upon, or it must have acted so as to have given the party asserting estoppel the right to believe *366that it was so intended; (3) the party asserting estoppel must have been ignorant of the true state of facts; and (4) the party asserting estoppel must have relied on the conduct to its injury. ( Schafer v. City of Los Angeles (2015)
Saint Francis insists that the Department "lulled [it] into a false sense of security" by not promptly informing it that its reconsideration request was untimely. But this argument ignores Saint Francis's own responsibility for its mistaken conclusion that reconsideration was available. True enough, the Department seems to have also been confused about its authority, demonstrated by both its attorney's response to Saint Francis's counsel's e-mail and its answering the reconsideration request without mentioning that the request was "void or otherwise invalid." But this is not the type of conduct upon which estoppel may be based.
To begin with, the Department made no affirmative representations to incite Saint Francis's mistaken understanding of the law. (See Elliott v. Contractors' State License Bd. (1990)
*626III.
DISPOSITION
The judgment is affirmed. Respondent is awarded its costs on appeal.
We concur:
Dondero, J.
Banke, J.
All subsequent statutory references are to the Government Code.
Saint Francis claims the Department waived the argument that reconsideration was unavailable by failing to say so when it answered the request for reconsideration. Saint Francis cites no authority in support of its position, and we therefore do not consider it. (See Badie v. Bank of America (1998)
Reference
- Full Case Name
- SAINT FRANCIS MEMORIAL HOSPITAL, and v. CALIFORNIA DEPARTMENT OF PUBLIC HEALTH, and
- Cited By
- 4 cases
- Status
- Published