In Allen v. San Diego Convention Center Corporation, published December 16, 2022, the Fourth District Court of Appeal, Division 1 affirmed a trial court order denying class certification. The plaintiff was a former employee of the defendant San Diego Convention Center Corporation. She alleged eight Labor Code violation claims against SDCCC. SDCCC demurred on the ground that it was exempt from liability for the alleged Labor Code violations because it is a public entity and a wholly-owned subsidiary and instrumentality of the City of San Diego. The trial court agreed that SDCCC was a public entity for purposes of seven of the Labor Code claims. The trial court then denied the plaintiff's motion for class certification, on the ground that the proposed class claims related to claims dismissed on demurrer. The plaintiff appealed the denial of certification as a "death knell" order.
The appellate court agreed that SDCCC was a public entity for purposes of the Labor Code. Governmental actors are protected from liability under the Labor Code, unless a statute specifically brings a public employee within its ambit. The Labor Code provisions at issue in this case do not apply to public employers. The undisputed facts establish that SDCCC is an extension of the City of San Diego, and thus is a public entity for purposes of the Labor Code violation. The city's municipal code defines the city as including SDCCC. The city appoints all of SDCCC's board members. Upon dissolution, SDCCC's assets revert to the city. SDCCC must publicly account for it s operations. SDCCC was formed under the authority of state law, which grants cities the authority to construct convention halls. SDCCC is therefore not an independent corporation; it is an agent and instrumentality of the city.
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