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HomeMy WebLinkAboutAGENDA REPORT 1991 1002 CC REG ITEM 08JTO: FROM: DATE: MOORPARK 799 Moorpark Avenue Moorpark, Cal fornia 93021 The Honorable City Council Steven Kueny, City Manager September 27, 1991 ITEM g- (805) 529 -6864 DO-??ARK, CAL ,_ city Council of _Z4Z2 199/ 7 AC10N: - -� �y SUBJECT: Consider Opinion Request to State Attorney General Concerning Pending Litigation Exception to Brown Act The Ventura County District Attorney is seeking an opinion from the Attorney General concerning closed session discussion of settlement of a pending lawsuit. The Attorney General is soliciting the view of interested parties before issuing an opinion. As the Council is aware, the ability to discuss settlement of a lawsuit in closed session Ls important to preclude disclosing negotiating strategy and terms to the other involved party. An action to settle and to disclose the financial and legal terms of the settlement are matters appropriate to an open meeting but riot the settlement discussion. If a lawsuit cannot be avoided, the parties, whether public or private entities: should seek a settlement of their dispute. On practical terms, the opinion being sought by the District Attorney would probably lead to fewer settlements; settlements less favorable t10 the public agency; and. more costly settlements and legal. expenses. I recommend that the City Cot.,encill authorize the City Attorney, either individually oy joint-ly with other City Attorneys, to send a letter t:.o the Attorney General expressing the City Council's support that closed session discussion of settlement action for a pending lawsuit is consistent with the pending lit i -ja* i.on ex:.,eption of the Brown Act.. STAFF RECOMMENDATION Authorize the City Attorney to send a letter to express the City Council's support of the matter consistent with this report and to expend a not—X, exceed eight hours on this matter. SK:sc PAUL W LAWR.ASON JR BERNARDO M PEREZ SCOTT MONV )ME R, HOY E TALLEY JR JOHN E WOZNIAK Mayor Mayor Pro Tem Cotw(Hmeinber Councelmembe Councilmember 09/24i91 (0-26 la0213236270(i ftl'� "; k� -�- CITY OF MOORPARK 1A001i011 Law Offices BURKE, WILLIAMS & SORENSEN 611 West Sixth Street, 25th Floor Los Angeles, California 90017 2310 Ponderosa Drive 3200 Bristol Street Suite 1 Suite 640 Camarillo, California 93010 Costa Mesa, California 92625 BURKE, WILLIAMS, SORENSEN & GAAR Lighton Plaza 7300 College Boulevard, Suite 220 Overland Park, Kansas 66210 T E L 8 C O P Y TO: Steve Kueny FROM: Cheryl Kane SUBJECT: Brown Act TELECOPIER if: CITY OF MOORPARK X E 8 8 A G E (805) 529 -8270 DATE: 9/24/91 ACCOUNT 1: 01359 -001 TOTAL NUMBER OF PAGES (INCLUDING THIS PAGE) : NOTE: The A.G. is soliciting views Df interested parties before issuing an Opinion. T:iE SENT: AM /PM DATE: OPERATOR'S INITIALS: FOR ASSISTANCE PLEASE CALLt (213) 236 -2730 OUR TELECOPI$R NUIGER 181 (213) 236 -2700 The information contained in this facsimile message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney - client privilege and/or represents confidential attorney work product. If YOU are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee you. received this document through inadvertent error and amy further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU REMIT= THIS COMMUNICATION IN ERROR, PLEASE NOTIFY Us IMMEDIATELY BY TELEPHaffING THE SENDER NAMED ABOVE AT ( 213 ) 236-0600 AND RETURN TEE ORIGINAL OF THIS COMKUbiICATION TO US BY MAIL AT THE ABOVE- ADDRESS. Thank you. (19/29/91 09' 27 'U92132.362700 4t," 1,A I N - -- CITY OF MOORPARK 4� 002/01 1 OFFICE OF THE DISTRICT ATTORNEY MICHAEL D. BRADBURY District Aztamey August 1, 1991 County of Ventura, State of California The Honorable Daniel Lungren Attorney General 1515 W Street, Suite 511 P.O. Box 9442M Sacramento, CA. 94244 -2550 Attention: Opinion Unit Dear Mr. Lungren: COLLEEN TOY WHITE A Ntant Dlstrict Attorney VINCENT J.O'NEILL, )r. Chkf Deputy Distfict Attorney BRADEN McKINLEY Chkf Investigator We request an Opinion on the following question: May a local agency such as the County Board of Supervisors use the pending litigation exception to the Brown Act (Govt. Code § 54950 et seq.) for a closed session to deliberate and take action upon the settlement of a lawsuit? As described in the attached memorandum, our conclusion is that such deliberations and actions are illegal. This issue is Of importance to not only District Attorneys, but elected and appointed auditors responsible for payment on settlement agreements as well. If you have any questions, please contact Special Assistant District Attorney Donald Coleman at (805) 6545041. Thank you for your consideration. Very ft* yob MICHAEL D. BRAD y District Attorney MDB:MJH:eak Opinion13A 4 (- i i!4 , e. (a z a.o AUG 05 1991 Ro"ived by 0 09/24/91 09.2° ('92132362700 13� ',S I MA' 1N --- CITY OF MOORPARK 2003/011 OFFICE OF THE DISTRICT ATTORNEY COUNTY OF VENTUAA MEMORANDUM July 16, 1991 TO: MICHAEL D. BRADBURY DISTRICT ATTORNEY FROM: DONALD D. COLEMAN SPECIAL ASSISTANT DISTRICT ATTORNEY SUBJECT: BROWN ACT CLOSED SESSIONS ISSUE May the Board Of Supervisors use the pending litigation exception to the Brown Act (Govt. Code 3 54950 et seq.) to go into closed session to deliberate and take action upon the settlement of a lawsuit. CONCLUSION NO- The pending litigation exception to the Brown Act permits a local agency, such as the Board of Supervisors, to go into closed session for the limited purpose Of conferring with or receiving advice from its attorney When public disclosure of such advice might prejudice the agency's position in the litigation. There is no authority that Would permit the Board to either deliberate upon or take action upon a litigation settlement agreemant in closed session. 5140-1 (4., I&'") (19/2491 01) - 2 la52132362700 P W; LA Mr IN - -- CITY OF MOORPARK Z 004/011 ANALYSIS The Brown act (Govt. Code 1 54950 at sag.) sets forth the requirements for meetings conducted by local agencies such as a county board of supervisors (Govt. Code 1 54951). The general rules are set forth in Government Code sections 54950, 54953(x) and 54962. Section 54950 . . . It is the intent of the law that their (local agencies') actions be taken openly and that their deliberations be conducted openly. Section 54953(a) legislative body open and public, permitted to att, legislative body provided in this . . . All meetings of the Of a local agency shall be and all persons shall be and any meeting of the of a local agency, except as chapter. section 54962 . . . Except as expressly authorised by this chapter, no closed session may be held by any legislative body of any local agency. In aagence, the general rule is that all meetings and actions must occur in open session unless there is an express statutory provision which permits otherwise. Since 1984, the express statutory provisions for closed sessions to discuss legal issues and positions with counsel have been combined in the so- called "parading litigation" exception of Government Code section 34956.9. that: 2 This section makes it clear 09/2.4/91 09-29 $92132362700 I "` +' &S .A M.A I N - -- CITY OF MOORPARK lj� 005/01 1 For purposes of this chapter, all expressions of the lawyer- client privilege other than those'provided in this section are hereby abrogated. This section is the exclusive expression of the lavyer- client privilege for Purposes of conducting clased- session meetings pursuant to this chapter. As such, any justification for closed- session action in settlement situations must be found in the express language of section 54956.9, if it exists at all. The pending litigation exception of section 34956.9 states in Pertinent part: Section 54956.9. Nothing in this chapter shall be construed to prevent a legislative body of a local agency, based on advice of its legal counsel, from holding a closed session to confer with, or receive advice from, its legal counsel regarding pending litigation when discussion in open session concerning those matters would prejudice the position of the local agency in the litigation . . . For purposes of this section, litigation shall be considered pending when any of the following circumstances exist: (a) An adjudicatory proceeding before a court, administrative body exercising its adjudicatory authority, bearing officer, or arbitrator, to which the local agency is a party, has been initiated formally. (b)(1) R point has been raached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. 09/29/91 09.29 ''92132362700 I S I MAiN --- CITY OF MOORPARK Z 006/011 (2) Based on existing facts and circumstances, the legislative body of the local, agency is meeting only to decide whether a closed session is authorised pursuant to paragraph (1) of this subdivision. (c) Based on existing facts and circumstances, the legislative body of the local agency has decided to initiate or is deciding whether to initiate litigation. Prior to bolding a closed session pursuant to this section, the legislative body of the local agency shall state publicly to which subdivision it is pursuant. If the session is closed pursuant to subdivision (a), the body shall state the title of or otherwise specifically identify the litigation to be discussed, unless the body states that to do so would jeopardise the agency•s ability to effectuate service of process upon one or more unserved parties, or that to do so would Jeopardize its ability to conclude existing settlement negotiations to its advantage. Nothing in this section appears to justify the use of a closed session to either deliberate or take action upon the settlement of pending litigation. The first paragraph defines the scope of the exception. It applies only to situations in which (1) the session is undertaken to confer with or receive advice from legal counsel and (2) open Public discussion of this advice would prejudice the agency's Position in the litigation. There is no language in this paragraph which could be interpreted as suggesting that an agency Could deliberate or take action upon a settlement agreement while receiving advice from its attorney. Absence such express authorization, as required by Government Code section 34962, 4 09 /24 /91 (19.30 U< )2 13"2362700 '�W&S LA -A I N CITY OF MOORPARK li� 007/011 there appears to be no legitimate basis for reading such authorization into the otherwise clear wording of the section. The definition of "pending litigation" contained in the exception seems to contemplate situations preliminary to settlement (i.e., after the filing of an action oz, in contemplation of a possible filing). Indeed, this view is reinforced by the language of the paragraph following the pending litigation definition which permits the agency to withhold from public disclosure the identity of the litigation which is to be the subject of a closed session where doing so would jeopardize the ability of the agency to "conclude existing settlement negotiations to its advantage." Thus, the exception contemplates ongoing nonfinalized negotiations as a condition precedent to the use of a closed session in at least the context of subdivision (a). At any rate, nothing in the definition of "pending litigation" expressly suggests that this exception would Justify the use of a closed session to deliberate upon or actually take action upon a settlement agreement. The taking of action under other exceptions to the Brown acts open meeting rules is only permitted in narrowly defined circumstances which are obvious from the express language of those sections. The licensing exception of Government Code section 54956.7, for example, only permits action in closed session for the purpose of 5 0924/91 09.30 U92132362700 : :_A MAIN • -- CITY OF MOORPARK Z 008/011 determining whether an applicant for a particular license who has a criminal record has been sufficiently rehabilitated to be allowed to have that license. The real estate negotiation exception of Government Code section 54956.8 only permits action in closed session for the purpose of giving instructions to agency negotiators regarding the acceptable price and terms of payment in a particular real estate negotiation. The general closed session provision of Government Coda section 54957 only permits closed sessions to consider (i.e., deliberate upon and decide) matters affecting national security and various emPloYe• matters, but, any actions talon on employee matters must be reported at the next public session by express provision of Government Code section 54957.1. The employee compensation exception Of Government Code section S49S7.6 only permits action in closed session for the purpose of giving negotiating instructions to agency representatives during labor negotiations. In all of these exceptions, the scope of permissible deliberation or action is stated in a clearly- expressed manner not appearing in the pending litigation exceptior. Though there is no authority directly on point on this issue, cases and various Opinions of the attorney General that touch on 09/24/91 09 :3 1 la92132362700 161E. ,A MA W N --- - CITY OF MOORPARK Z009/011 this subject seam to reinforce the conclusion that the pending litigation exception does not authorize local agencies to take settlement action in closed session. (1984) 158 Cal-APP-3d 893, addressed the issue of whether a county board of supervisors' "settlement claim committee" could refuse to turn over the minutes of a closed session in Which the "secret" settlement or a tort claim had been reached. In rejecting the County#s position, the court noted that: The county's claims settlement committee discussed the clemens, settlement in a tension closed to the public. does nots however, authorize th The Brotim pct e holding of Closed sessions by legislative bodies for the Purpose of discussing settlement claims. Thus, the committee +s secret meeting was in clear violation of the Brown fit. Xd• at P. 907. Cf. Settlement Xegotiations, 39 Hastings Law aournal, p. 1802_Zall. Though this case arose before the passage of the pending litigation exception in 1484, it does stand still for the Proposition that nothing in the Brown Pict outside that exception permits closed sessions to consider, much less take action on, settlement Claims. Since nothing in the exception expressly permits it either, this case is consistent with the conclusion that such actions are prohibited. In 71 0ps.C41.1►tty.Gen. 96 (1988), the Attorney General's Office stated that the pending litigation exception could not be used to 7 09/24/91 09-131 'a92132362700 h',' S l A MA I N - -- CITY OF MOORPARK 0010/011 Justify any closed- session deliberations by a local agency even after a public hearing. "To conclude otherwise, would, we believe, fly in the face of the most recent legislation to be found in the act, that is section 56962 , . . " Z,Q. at p. 106. In (1985) 171 Ca1.App.3d 95, again based on a set of facts that arose before the lAgislature codified an agency's attorneyciient privilege in Government Code section 56956.9, the court disapproved the use of a series of private phone conversations between agency members to decide how to take action on the transfer of ownership of some real property. On the face of the pleadings, the single Purpose of the communications with the attorney is a legislative commitment, Which as we have stated serves only to evade the central thrust of the Public Meeting Law. Id. at P. 105. Earlier, in 62 Ops.Cal.Atty.Gen. 150 (1979), the attorney General disapproved the use of a closed session for a joint litigation settlement conference between two agencies, again because there was no express authority to do so in the grown Act. In erviMors (1968) 263 Cal.App.2d 61, dealing with a private meeting over a labor dispute, the court set out the general guidelines for interpretation of the Brown Act as it relates to discussions between an agency and its attorneys 09x29 91 09-332 X92132362700 4 I N --- CITY OF MOORPARK Z O l 11011 Public board members, sworn to uphold the law, may not arbitrarily or unnecessarily inflate confidentiality for the uose of deflating the spread of the public Meeting Law. id. at P. 58. Finally, in SURI }- s�_ (1981) 122 Ca1.App.3d 813, the court did Uphold a closed session regarding the settlement of litigation, but the closed session involved only consisted of the receipt of advice by the board from an attorney. No action was taken in closed session (Cf. 67 Ops.Cal.Atty.Cen. 112 (1984)). This appears to reflect the appropriate view of the scope of permissible conduct that an agency may engage in in contemplation of litigation. The Pending litigation eYeeption, which was enacted later, appears to Codify this position. In sun, the Brown Act was desi fined to prevent the taking of action by local agencies in closed, secret session. Thera appears to be no legal basis for permitting local agencies to subvert this general policy by bolding closed sessions to deliberate and take action upon settlements under the "pending litigation" exception. bDC: XjH: eak brown Act.M3C 9