City and County of San Francisco
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1 DENNIS J. HERRERA, State Bar#l39669 City Attorney ELECTRONICALLY 2 YVONNE R. MERE, StateBar#l73594 Chief of Complex and Affirmative Litigation F I L E D 3 OWEN J. CLEMENTS, State Bar#l41805 Superior Court of California, County of San Francisco KRISTINE A. POPLAWSKI, State Bar#l60758 4 KENNETH M. WALCZAK, State Bar #247389 12/06/2019 MARC PRICE WOLF, State Bar #254495 Clerk of the Court BY: RONNIE OTERO 5 Deputy City Attorneys Deputy Clerk 1390 Market Street, 6th Floor 6 San Francisco, California 94102-5408 Telephone: (415) 554-3944 7 Facsimile: (415) 437-4644 E-Mail: [email protected] 8 kristine. [email protected] kenneth. [email protected] 9 [email protected] 10 Attorneys for Plaintiff PEOPLE OF THE STATE OF CALIFORNIA, acting by and through DENNIS 11 J. HERRERA AS CITY ATTORNEY OFSAN FRANCISCO and Cross-Defendant CITY AND 12 COUNTY OF SAN FRANCISCO 13 SUPERIOR COURT OF THE STATE OF CALIFORNIA 14 COUNTY OF SAN FRANCISCO 15 UNLIMITED JURISDICTION 16 PEOPLE OF THE STATE OF CALIFORNIA, Case No. CGC-18-563803 acting by and through DENNIS J. HERRERA 17 AS CITY ATTORNEY OF SAN Reservation No: 012050302-17 FRANCISCO, 18 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF 19 Plaintiff, SAN FRANCISCO'S AND THE PEOPLE'S MOTION FOR SUMMARY ADJUDICATION 20 vs. OF THE FIRST AND SIXTH CLAIMS IN TURO'S FIRST AMENDED 21 TURO INC., and DOES 1-100, inclusive, CROSS-COMPLAINT FOR DECLARATORY RELIEF AND THE SIXTEENTH 22 Defendants. AFFIRMATIVE DEFENSES IN TURO'S VERIFIED AMENDED ANSWER 23 TUROINC., Hearing Date: February 21, 2020 24 Hearing Judge: Hon. Ethan P. Schulman Cross-Complainant, Time: 9:30a.m. 25 Place: Dept. 302 vs. 26 CITY AND COUNTY OF SAN Date Action Filed: January 24, 2018 Trial Date: March 23, 2020 27 FRANCISCO, Cross-Defendant. 28 Ps and As ISO MSA Case No. CGC-18-563803 N:ICXLI1\Ll20181180640101406582.DOCX 1 TABLE OF CONTENTS 2 TABLE OF AUTHORITIES ........................................................................................................... 3 INTRODUCTION ........................................................................................................................... 6 3 FACTUAL BACKGROUND .......................................................................................................... ? 4 I. TURO IS A RENTAL CAR COMPANY THAT CONDUCTS 5 UNPERMITTED COMMERCIAL ACTIVITY AT SFO DIRECTLY AND THROUGH ITS AGENTS ...................................................................................... ? 6 A. Turo Is A Rental Car Company................................................................... ? 7 B. Turo Conducts Its Business At SFO............................................................ 9 8 C. Turo Does Not Have A Permit To Conduct Its Rental Car Business At SF0 ............................................................................................................ 10 9 LEGAL STANDARD ................................................................................................................... 11 10 LEGAL ARGUMENT ................................................................................................................... 11 11 I. SFO HAS THE RIGHT TO REGULATE OFF-AIRPORT RENTAL CAR COMPANIES AND TO CHARGE THEM FEES ................................................ 11 12 II. SAN FRANCISCO IS ENTITLED TO SUMMARY ADJUDICATION ON 13 TURO' S FIRST CROSS CLAIM BECAUSE TURO IS A RENTAL CAR COMPANY........................................................................................................... 13 14 A. Turo Is A Business That Enables The Public To Rent Passenger Cars 15 And Therefore Falls Within The Statutory Definition Of "Rental Company." ................................................................................................. 13 16 B. Because Rental Transactions Are Not Merely Incidental To Turo's 17 Business Model, Turo Is In The Business Of Renting Passenger Vehicles To The Public ............................................................................................ 15 18 C. Even Assuming Many Turo Users Are Engaged In Personal Vehicle 19 Sharing, That Does Not Prevent Turo From Still Being A Rental Car Company .................................................................................................... 17 20 III. SAN FRANCISCO IS ENTITLED TO SUMMARY ADJUDICATION ON 21 TURO'S SIXTH CROSS CLAIM, AND THE PEOPLE ARE ENTITLED TO SUMMARY ADJUDICATION ON TURO'S SIXTEENTH AFFIRMATIVE 22 DEFENSE, BECAUSE SAN FRANCISCO HAS SEVERAL RATIONAL BASES FOR TREATING TURO DIFFERENTLY THAN PERMITTED 23 TNCs ...................................................................................................................... 20 24 A. Turo Is Not Similarly Situated To TNCs, Taxis, or Limousines ............... 22 25 B. Treating Turo As A Rental Car Company serves Legitimate Government Interests ................................................... 23 26 CONCLUSION .............................................................................................................................. 25 27 28 Ps and As ISO MSA, Case No. CGC-18-563803 N:\CXLIT\LI20181180640101406582.DOCX 1 TABLE OF AUTHORITIES State Cases 2 Alamo Rent-A-Car, Inc. v. Bd. of Supervisors 3 221 Cal. App. 3d 198 (1990) ..................................................................................................... 13 4 Arnett v. Cal Cielo 5 14 Cal. 4th 4 (1996) ................................................................................................................... 14 6 Bodenhamer v. Superior Court 178 Cal. App. 3d.180 (1986) ..................... :............................................................................... 19 7 Briggs v. Brown 8 3 Cal. 5th 808, 842 (2017) ......................................................................................................... 21 9 City of Sacramento v. Pub. Employees' Ret. Sys. lO 22 Cal. App. 4th 786 (1994) ...................................................................................................... 14 11 Kimel v. Fla. Bd. of Regents 528 U.S. 62 (2000) ..................................................................................................................... 21 12 Las Lomas Land Co., LLC v. City of Los Angeles 13 177 Cal. App. 4th 837 (2009) .................................................................................................... 21 14 Manduley v. Superior Court 27 Cal. 4th 537 (2002) ............................................................................................................... 21 15 16 Mercer v. Perez 68 Cal. 2d 104 (1968) ................................................................................................................ 18 17 Mission Ins. Co. v. Hartford Accident & Indem. Co. 18 160 Cal. App. 3d 97 (1984) ........................................................... ,........................................... 16 19 People ex rel. Dept. of Transportation v. Muller 36 Cal. 3d 263 (1984) ................................................................................................................ 15 20 21 People v. Jefferson 21Cal.4th86 (1999) ......................................................................... :........................................ 14 22 Preach v. Monter Rainbow 23 (1993) 12 Cal.App.4th 1441 ....................................................................................................... 11 24 Schnall v. Hertz Corp. 78 Cal. App. 4th 1144 (2000) .................................................................................................... 14 25 Sentry Select Ins. Co v. Fidelity & Guaranty Ins. Co. 26 46 Cal.4th 204 (2009) .................................................................................................... 15, 16, 17 27 Stagg v. Mun. Court 28 · 2 Cal. App. 3d 318 (1969) ......................................................................................................... 11 3 Ps and As ISO MSA, Case No. CGC-18-563803 N:ICXLl1\LI20181180640101406582.DOCX Travelers Indem. Co. v. Maryland Cas. Co. 1 41 Cal.App.4th 1538 (1996) .......................................................................................... 15, 16, 17 2 Western Carriers Ins. Exchange v. Pacific Ins. Co. 3 211 Cal. App. 3d 112 (1989) ......................................................................................... 15, 16, 17 4 State Statutes & Codes 5 Cal. Civ. Code§ 1931.01 ................................. .-............................................................................. 14 6 Cal. Civ. Code§ 1936 .................................................................................................................... 14 7 Cal. Civ. Code§ 1939.01.. ........... :........................................................................... 6, 13, 14, 17, 20 8 Cal. Civ. Code§ 1939.13 ............................................................................................................... 15 9 Cal. Ins·. Code§ 11580.24 ....................................... ,......................................................... 18, 19, 20 10 Cal. Ins. Code§ 11580.9 ......................................................................................................... 15, 16 11 Cal. Ins. Code§ 1758.89 ............................................................................................................... 13 12 Cal. Veh. Code§ 11752 ................................................................................................................. 13 13 Government Code§ 50474 ...........................................................................................................