HomeMy WebLinkAboutItem 2e: Introduce: Ordinance No. 2298 - Prohibiting class action claims against the CityDATE: May 15, 2012
TO: Honorable Mayor and City Council
FROM: Stephen P. Deitsch, City Attorney
M N;MORAN DL M
Office of the City Attorney
SUBJECT: ORDINANCE NO. 2298 AMENDING SECTION 1903 OF CHAPTER 9 OF
ARTICLE I OF THE ARCADIA MUNICIPAL CODE TO PROHIBIT CLASS
ACTION CLAIMS AGAINST THE CITY
Recommended Action: Introduce
SUMMARY
It is recommended the City Council introduce the attached Ordinance No. 2298 amending
Section 1903 of Chapter 9 of Article I of the Arcadia Municipal Code to prohibit class action
claims against the City. This Ordinance can enhance the City's fiscal stability by limiting its
legal exposure to this potentially costly form of litigation.
BACKGROUND
Chapter 9 of Article I of the Arcadia Municipal Code sets forth a procedure by which
persons may file claims against the City to recover money or damages. Chapter 9
references the California Government Claims Act (Government Code, Sections 900 et seq.)
(the "Act "). The Act provides detailed procedures for how and when a claim must be
presented, deadlines for when the City must act upon a claim, and statutes of limitations to
file a lawsuit after the City denies a claim.
Last July, the California Supreme Court ruled that a local tax refund claim filed under the
Act could proceed as a class action. Ardon v. City of Los Angeles, (2011) 52 Cal. 4th 241.
However, the Court did not address whether class actions could be prohibited by local
ordinance.
Honorable Mayor and City Council
May 15, 2012
Page 2of2
Therefore, an amendment to the Municipal Code is being proposed to explicitly state that
all claims for money against the City must be filed on an individual basis, and not as a class
or group. This amendment is intended to prohibit class action claims for any money
against the City, including damages, taxes, assessments, charges and fees. Although it is
impossible to predict how future courts will ultimately rule on this language, it can only help
in limiting the City's financial exposure.
FISCAL IMPACT
By prohibiting class action claims against the City, the proposed amendment is intended to
limit the City's financial exposure by (i) requiring individual claimants to pursue their own
actions against the City and (ii) reducing the financial incentive for class action attorneys to
file claims against the City. By doing so, it will increase fiscal stability.
RECOMMENDED ACTION
It is recommended the City Council introduce Ordinance No. 2298 amending Section 1903
of Chapter 9 of Article I of the Arcadia Municipal Code to prohibit class action claims
against the City.
CONCUR:
ominic Lazza
City Manager
Attachment: Ordinance No. 2298
ORDINANCE NO. 2298
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ARCADIA, CALIFORNIA, AMENDING SECTION 1903
OF CHAPTER 9 OF ARTICLE I OF THE ARCADIA
MUNICIPAL CODE TO PROHIBIT CLASS ACTION CLAIMS
AGAINST THE CITY
THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 1903 of Chapter 9 of Title I of the Arcadia Municipal Code
is hereby amended to read as follows:
"1903. - CONTENTS OF CLAIM - REVIEW FOR
SUFFICIENCY.
A claim shall be in writing, verified by the claimant or by his
or her guardian, conservator, executor or administrator, and
shall be presented to the City Clerk by the claimant or by a
person acting on the claimant's behalf. and-The claim shall
show all information as required by Government Code
Section 910. The foregoing reference to Government Code
Section 910 shall not be construed to authorize a class
action, and no claim may be filed on behalf of a class of
persons unless verified by every member of that class. The
City Manager, or his or her designee, shall review all claims
for sufficiency of information. The City Manager, or his or her
designee, may, within twenty (20) days of receipt of a claim,
either personally deliver or mail to claimant a notice stating
deficiencies in the claim presented. If such notice is
delivered or sent to claimant, the City shall not act upon the
claim until at least fifteen (15) days after such notice is sent."
SECTION 2. This ordinance shall take effect thirty -one (31) days following its
adoption.
SECTION 3. If any section, subsection, subdivision, paragraph, sentence,
clause or phrase of this Ordinance, or any part thereof is for any reason held to be
unconstitutional, such decision shall not affect the validity of the remaining portion of
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this ordinance or any part thereof. The City Council hereby declares that it would have
passed each section, subsection, subdivision, paragraph, sentence, clause or phrase
thereof, irrespective of the fact that any one or more section, subsection, subdivision,
paragraph, sentence, clause or phrase be declared unconstitutional.
SECTION 4. The City Clerk shall certify to the adoption of this Ordinance and
shall cause a copy of the same to be published in the official newspaper of said City
within fifteen (15) days after its adoption
Passed, approved and adopted this day of , 2012.
ATTEST:
City Clerk
APPROVED AS TO FORM:
P6e,t/a-c-4
Stephen P. Deitsch
City Attorney
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Mayor of the City of Arcadia