Consumer Protection Group, LLC v. Signal Brands, LLC
CourtCalifornia Court of Appeal
Date FiledJuly 31, 2026
DocketB345531
StatusPublished
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Full Opinion
Filed 7/31/26
CERTIFIED FOR PUBLICATION
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION ONE
CONSUMER PROTECTION B345531
GROUP, LLC,
(Los Angeles County
Plaintiff and Appellant, Super. Ct. No. 24STCV09608)
v.
SIGNAL BRANDS, LLC, et al.,
Defendants and Respondents.
APPEAL from an order of the Superior Court of
Los Angeles County, Christopher K. Lui, Judge. Affirmed.
Blackstone Law, Jonathan M. Genish and Sage S. Stone for
Plaintiff and Appellant.
Jeffer Mangels Butler & Mitchell, Jeffer Mangels &
Mitchell, Susan Allison and Matthew Kenefick for Defendants
and Respondents.
____________________________
This is an appeal from an order dismissing an action after
the trial court sustained a demurrer without leave to amend as to
an amended complaint filed by plaintiff and appellant Consumer
Protection Group, LLC (CPG) under the Safe Drinking Water and
Toxic Enforcement Act of 1986 (Prop. 65; Health & Saf. Code,
§ 25249.5, et seq.) against defendants and respondents Signal
Brands, LLC; Ross Stores, Inc.; and Guess ?, Inc. (collectively,
respondents).
CPG alleges Proposition 65 claims against respondents
arising out of the failure to warn consumers they had been
exposed to Diisononyl phthalate (DINP) in certain clutch and
wallet products. The trial court sustained respondents’ demurrer
without leave to amend on two independent grounds: (1) the
res judicata effect of the consent judgment entered in another
Proposition 65 action initiated by a different private enforcer (CA
Citizen Protection Group, LLC or CCPG) that included the clutch
and wallet products at issue here; and (2) a defect in CPG’s
presuit Proposition 65 notices.
On appeal, CPG contends the trial court erred in applying
res judicata because CPG is not in privity with CCPG.
Specifically, according to CPG, because CCPG’s presuit notice
identified only a cosmetic bag and not the wallet and the clutch
products at issue here, CCPG did not have authority to bind CPG
to the settlement. CPG also contests the court’s ruling that
CPG’s own Proposition 65 notices were defective.
The trial court correctly ruled CPG is in privity with CCPG.
Common-law res judicata principles apply to Proposition 65
consent judgments. Applying those principles here, CPG is in
privity with CCPG because they both purport to represent the
public interest. CPG’s contention that CCPG failed to identify
2
the wallet and the clutch products in CCPG’s Proposition 65
notice is not a ground for avoiding the res judicata effect of the
consent judgment. Because CPG fails to demonstrate the other
elements of res judicata are not met or that it could amend the
operative complaint to avoid the res judicata effect of the CCPG
settlement, we affirm. We thus do not address whether CPG’s
own presuit notices were defective.
PROCEDURAL BACKGROUND1
We summarize only those facts pertinent to our disposition
of this appeal.
CPG avers that on June 7, 2022, it served a 60-day notice of
violation on respondents Signal Brands, LLC and Guess ?, Inc.,
as well as the Attorney General and certain other public
enforcement agencies, in which CPG alleged Proposition 65
violations arising from exposure to DINP in a Guess clutch. CPG
further avers that on June 13, 2022, it served a 60-day notice of
violation on respondent Signal Brands, LLC, respondent Ross
Stores, Inc., the Attorney General, and other public enforcement
agencies in which it alleged Proposition 65 violations arising from
exposure to DINP in a Nine West wallet.
In September 2022, CCPG served respondents and certain
public enforcement agencies, including the Attorney General,
1 We derive our description of the procedural history in
part from undisputed portions of the trial court’s order sustaining
respondents’ demurrer to the operative complaint, the parties’
admissions in their filings, and respondents’ assertions that CPG
does not dispute in its reply brief. (See Association for
Los Angeles Deputy Sheriffs v. County of Los Angeles (2023)
94 Cal.App.5th 764, 772, fn. 2, 773–774 (Association for
Los Angeles Deputy Sheriffs) [employing this approach].)
3
with a 60-day notice under Proposition 65 for allegedly failing to
warn individuals of exposure to DINP in Guess cosmetic bags. In
March 2023, CCPG filed a complaint in Alameda County
Superior Court against respondent Signal Brands, LLC and an
entity named Signal Products, Inc., alleging violations of
Proposition 65 for failure to warn consumers of potential
exposure to DINP in Guess cosmetic bags “ ‘and other similar
bags[.]’ ”
The parties to the Alameda action later settled and
reported the terms of a proposed consent judgment to the
Attorney General. The Attorney General suggested changes that
respondents claim were incorporated into the amended proposed
consent judgment.2 CCPG then moved for approval of the
amended consent judgment, and CCPG served the motion for
approval and the documents supporting the motion on the
Attorney General.
On April 16, 2024, CPG filed a complaint against
respondents, alleging two causes of action under Proposition 65
for exposing consumers to DINP; one cause of action regarding
the Guess clutch and the other, the Nine West wallet.
On May 14, 2024, the Alameda court, without objection
from the Attorney General, approved and entered the amended
consent judgment. The amended consent judgment applies to the
following products, which it identifies as “Covered Products”:
“Guess ?, Inc. or ‘Guess’ branded cosmetic bags sold,
manufactured, imported or distributed by either of the
Defendants (‘Cosmetic Bags’); [¶] . . . Guess ?, Inc. or ‘Guess’
2Respondents do not identify the changes proposed by the
Attorney General that they claim were made to the amended
proposed consent judgment.
4
branded clutches sold, manufactured, imported or distributed by
either of the Defendants (‘Clutches’); and/or [¶] . . . Guess ?, Inc.,
‘Guess’ or ‘Nine West’ branded wallets sold, manufactured,
imported or distributed by either of the Defendants (‘Wallets’).”3
The amended consent judgment released Proposition 65 claims
against respondents for failure to provide warnings regarding
exposure to DINP from the Covered Products.4 The amended
3 The amended consent judgment states that CCPG
alleged in its 60-day notice and its complaint Proposition 65
violations arising out of exposure to DINP from the Covered
Products. CPG argues the amended consent judgment thus
“misrepresented to the [Alameda c]ourt that, in addition to the
Cosmetic Bag, CCPG had served a statutory Proposition 65
60-day notice as to the Wallet and Clutch, and that CCPG’s
Complaint alleged violations regarding all three products.”
4 Although the amended consent judgment releases all
three respondents from these Proposition 65 claims, the amended
consent judgment indicates Signal Products, Inc. and respondent
Signal Brands, LLC were the only named defendants in the
Alameda action. The Alameda court’s April 24, 2026 order
denying CPG’s motion to vacate the amended consent judgment
likewise indicates Signal Products, Inc. and respondent Signal
Brands, LLC were the only two named defendants in that action.
(See Discussion, part A, post [taking judicial notice of the
Alameda court’s Apr. 24, 2026 order].)
CPG does not argue the fact CCPG had not named
respondents Guess ?, Inc. and Ross Stores, Inc. as defendants in
the Alameda action bars the latter entities from arguing the
amended consent judgment precludes CPG’s Proposition 65
claims against them. We thus do not address that issue sua
sponte. (See Standards of Review & Res Judicata Principles, post
[noting the appellant bears the burden of overcoming the
presumption that the trial court’s ruling is correct].)
5
consent judgment required the Covered Products to be
reformulated or labeled with the detailed warnings specified in
the judgment, and ordered the defendants to that action to pay
$18,000 in civil penalties, $13,500 (i.e., 75 percent) payable to
California’s Office of Environmental Health Hazard Assessment
(OEHHA) and $4,500 (i.e., 25 percent) payable to CCPG.
In September 2024, the trial court sustained respondents’
demurrer to CPG’s initial complaint based on the res judicata
effect of the amended consent judgment in the Alameda action
but granted CPG leave to amend.
On October 3, 2024, CPG filed its first amended complaint,
asserting the two Proposition 65 causes of action alleged in its
initial complaint. CPG attached several documents to its first
amended complaint, including a letter, dated
September 24, 2024, from the Attorney General to counsel for
CCPG and respondents, respectively. In that letter, the Attorney
General asserted the amended consent judgment “included
products (a wallet and a clutch) that were beyond the scope of
[CCPG’s] original 60-day notice,” claimed CCPG “lacked
authority to act in the public interest as to [those] unnoticed
products,” “urge[d] the parties to amend the [amended c]onsent
[j]udgment to limit its scope to the cosmetic bags,” and opined
that judgment “cannot bar another action brought by a
Proposition 65 enforcer[ ] concerning” “unnoticed wallets and
clutches . . . .”
On March 4, 2025, the trial court sustained respondents’
demurrer to CPG’s first amended complaint without leave to
amend. The court agreed with respondents that CPG’s “causes of
action are barred by res judicata in that each [respondent] is
covered . . . by the terms of the [a]mended [c]onsent [j]udgment.”
6
As for CPG’s argument CCPG did not identify the Guess clutch
and Nine West wallet in CCPG’s presuit notice, the court stated,
“[E]ven an erroneous judgment has res judicata effect, and the
defective notice [issue] should have been raised before the
[amended] consent judgment was entered.” The court added,
“The fact that the Attorney General claims the [amended
c]onsent [j]udgment is not valid [citation] is not dispositive, as
the Attorney General cannot declare a judgment invalid and
unenforceable — only a Court can do that.”
The trial court also found CPG’s “pre-lawsuit notice[s] in
this action [were] defective because” they included the contact
information for CPG’s outside counsel rather than that of “the
noticing individual or a responsible individual within the noticing
entity as required by [California Code of Regulations, title 27,]
§ 25903[, subdivision ](b)(2)(A)(1).”
At the conclusion of its order sustaining the demurrer to
the first amended complaint, the trial court observed: “[CPG]
may file a new lawsuit if the [amended consent judgment] is
amended in a way which would negate [the] res judicata effect
upon the new lawsuit, and if [CPG] strictly complies with the pre-
lawsuit notice requirements of [California Code of Regulations,
title 27, §] 25903.”
On March 14, 2025, the trial court dismissed the action
with prejudice in accordance with its order sustaining
respondents’ demurrer to the first amended complaint without
leave to amend. CPG timely appealed from the dismissal order.
LEGAL BACKGROUND REGARDING PROPOSITION 65
“ ‘ “Proposition 65, which was passed as a ballot initiative
in 1986, requires the state to develop and maintain a list of
chemicals ‘known to the state to cause cancer or reproductive
7
toxicity.’ ” ’ [Citation.] It provides, with certain exceptions, that
‘[n]o person in the course of doing business shall knowingly and
intentionally expose any individual to a chemical known to the
state to cause cancer or reproductive toxicity without first giving
clear and reasonable warning to such individual.’ [Citation.]”
(Consumer Advocacy Group v. Walmart Inc. (2025)
112 Cal.App.5th 679, 687–688 (Walmart Inc.), quoting, inter alia,
Health & Saf. Code, § 25249.6.)
Before a private individual may bring suit in the public
interest to enforce Proposition 65,5 Health and Safety Code
section 25249.7, subdivision (d) requires that the private enforcer
first provide notice to the alleged violator, the Attorney General,
and certain public prosecutors, and that no prosecutor, including
the Attorney General, has brought an enforcement action.6
5 Proposition 65 suits are “qui tam actions” that “are
brought on behalf of the state,” which is “the real party in
interest . . . .” (See Walmart Inc., supra, 112 Cal.App.5th at
pp. 691–693.) “ ‘An individual may sue under the Act only in the
public interest; there is no provision for an individual to sue on
[the individual’s] own behalf. [Citation.]’ [Citation.]” (Id. at
p. 688.)
6 “Actions [under Proposition 65] may be brought by a
person in the public interest if both of the following requirements
are met: [¶] (1) The private action is commenced more than
60 days from the date that the person has given notice of an
alleged violation . . . that is the subject of the private action to the
Attorney General and the district attorney, city attorney, or
prosecutor in whose jurisdiction the violation is alleged to have
occurred, and to the alleged violator. . . . [¶] (2) Neither the
Attorney General, a district attorney, a city attorney, nor a
prosecutor has commenced and is diligently prosecuting an action
8
Regarding the contents of the presuit notice required for
enforcement of Health and Safety Code section 25249.6’s warning
mandate (see Health & Saf. Code, § 25249.6), Proposition 65
requires the presuit notice to be accompanied by a “certificate of
merit . . . stat[ing] that the person executing the certificate has
consulted with one or more persons with relevant and
appropriate experience or expertise who has reviewed facts,
studies, or other data regarding the exposure to the listed
chemical that is the subject of the action, and that, based on that
information, the person executing the certificate believes there is
a reasonable and meritorious case for the private action” (see
Health & Saf. Code, § 25249.7, subd. (d)(1)).
A regulation that implements Proposition 65 requires
presuit notices to include additional information. (See 27 Cal.
Code Regs., § 25903, subd. (b).) For instance, a notice must
include “the name, address, and telephone number of the noticing
individual or a responsible individual within the noticing entity
and the name of the entity.” (See id., subd. (b)(2)(A)(1).)
Significant to this appeal, the regulation adds: “[N]otices of
violation of [s]ection 25249.6 of the [Health and Safety Code]
involving consumer product exposures” shall include “the name of
the consumer product or service, or the specific type of consumer
product or services, that cause the violation, with sufficient
specificity to inform the recipients of the nature of the items
allegedly sold in violation of the law and to distinguish those
products or services from others sold or offered by the alleged
violator for which no violation is alleged.” (See 27 Cal. Code
Regs., § 25903, subd. (b)(2)(D).)
against the violation.” (See Health & Saf. Code, § 25249.7,
subd. (d).)
9
A private enforcer of Proposition 65 must give notice to the
Attorney General of any settlement submitted for court approval
and “ ‘the Attorney General may participate in court proceedings
regarding approval. [Citation.]’ [Citation.] . . . The Attorney
General has standing to appeal a settlement even without
intervening in the action.” (Walmart Inc., supra, 112 Cal.App.5th
at p. 688.) If civil penalties are recovered in a Proposition 65 suit,
75 percent must be deposited in the Safe Drinking Water and
Toxic Enforcement Fund, and 25 percent is paid to the plaintiff,
regardless of “whether the plaintiff is a law enforcement agency
or a person acting in the public interest.” (Ibid.) Plaintiffs may
also recover declaratory and injunctive relief. (See ibid.)
STANDARDS OF REVIEW AND RES JUDICATA
PRINCIPLES
A general demurrer tests whether the plaintiff has stated
facts sufficient to constitute a cause of action. (Holiday Matinee,
Inc. v. Rambus, Inc. (2004) 118 Cal.App.4th 1413, 1420.) We
review a trial court’s ruling on a demurrer de novo and treat as
admitted all material, well-pleaded facts, but not contentions or
conclusions of fact or law. (Id. at pp. 1420–1421.) We may also
consider matters that are subject to judicial notice. (Id. at
p. 1421.) A general demurrer may be sustained when the
pleading discloses a defense or bar to recovery. (Ibid.)
One such defense is res judicata. (See Association of
Irritated Residents v. Department of Conservation (2017)
11 Cal.App.5th 1202, 1218 (Association of Irritated Residents).)
“Three elements must exist for res judicata (or claim preclusion)
to apply: ‘ “(1) the decision in the prior proceeding is final and on
the merits; (2) the present proceeding is on the same cause of
action as the prior proceeding; and (3) the parties in the present
10
proceeding or parties in privity with them were parties to the
prior proceeding.” ’ [Citation.]” (Id. at pp. 1218–1219.)
As for the first element, “A court-approved settlement acts
as a final judgment on the merits for the purposes of res
judicata.” (Consumer Advocacy Group, Inc. v. ExxonMobil Corp.
(2008) 168 Cal.App.4th 675, 694 (ExxonMobil Corp.).) Regarding
the second element, “Two proceedings are on the same cause of
action if they are based on the same ‘primary right.’ [Citations.]
Under this theory, a cause of action is ‘ “comprised of a ‘primary
right’ of the plaintiff, a corresponding ‘primary duty’ of the
defendant, and a wrongful act by the defendant constituting a
breach of that duty. [Citation.] . . . . [Citation.]” ’ . . . .
[Citation.]” (Association of Irritated Residents, supra,
11 Cal.App.5th at p. 1228, fn. 24.)
“In the context of a res judicata determination, privity
‘ “refers ‘to a mutual or successive relationship to the same rights
of property, or to such an identification in interest of one person
with another as to represent the same legal rights [citations] and,
more recently, to a relationship between the party to be estopped
and the unsuccessful party in the prior litigation which is
“sufficiently close” so as to justify application of the doctrine of
collateral estoppel.’ ” ’ [Citation.] ‘ “[T]he determination of
privity depends upon the fairness of binding appellant with the
result obtained in earlier proceedings in which it did not
participate. [Citation.] ‘ “Whether someone is in privity with the
actual parties requires close examination of the circumstances of
each case.” ’ ” ’ [Citation.] ‘This requirement of identity of parties
or privity is a requirement of due process of law.’ [Citation.]”
(ExxonMobil Corp., supra, 168 Cal.App.4th at pp. 689–690.)
11
We note that res judicata is intended to safeguard the
parties’ interest in the finality of a judgment. (See ExxonMobil
Corp., supra, 168 Cal.App.4th at p. 683.) Thus, as a general rule,
“ ‘ “[a]n erroneous judgment is as conclusive as a correct one” ’ for
the purpose of claim preclusion. [Citation.]” (See id. at p. 687.)
We review a trial court’s decision not to grant leave to
amend for abuse of discretion, specifically, we determine whether
the appellant has satisfied its burden of showing a reasonable
possibility of curing the defects in its pleading. (Black v. Los
Angeles County Metropolitan Transportation Authority (2025)
116 Cal.App.5th 677, 685.)
We presume a trial court’s judgment or order to be correct
on appeal, and all intendments and presumptions are indulged in
favor of its correctness. (County of Los Angeles v. Niblett (2025)
116 Cal.App.5th 454, 462–463 (Niblett).) To rebut that
presumption, appellant has the burden to show error with cogent
argument supported by legal authority and citation to the record.
(Id. at p. 463.) “ ‘The appellant bears this burden of rebutting the
presumption of correctness accorded to the trial court’s decision,
regardless of the applicable standard of review.’ [Citation.]”
(Ibid.)
DISCUSSION
CPG argues the trial court erred in sustaining respondents’
demurrer based on (1) their res judicata defense, and (2) the
failure to include in CPG’s presuit Proposition 65 notices the
contact information for the noticing individual or a responsible
individual within the noticing entity as required by California
Code of Regulations, title 27, section 25903,
subdivision (b)(2)(A)(1). CPG also challenges the court’s denial of
leave to amend.
12
As explained below, CPG does not show the trial court
erred in concluding CPG’s claims are barred by res judicata.
(Discussion, parts B–C, post.) CPG also fails to demonstrate
there is a reasonable possibility CPG could amend its pleading to
overcome respondents’ res judicata defense. (Discussion, part D,
post.) We thus do not address the court’s other ground for
sustaining the demurrer, that is, the adequacy of CPG’s presuit
notices.
We first turn to CPG’s request for judicial notice.
A. We Grant CPG’s Request for Judicial Notice of the
Alameda Court’s Denial of CPG’s Motion To Vacate
the Amended Consent Judgment But Deny the
Remainder of CPG’s Request
Shortly before CPG filed its opening brief, CPG moved for
judicial notice of 19 trial court rulings (exhibits 1 to 19), two
publications issued by OEHHA (exhibits 20 and 21), an analysis
of Senate Bill No. 471 (exhibit 22), a copy of CPG’s motion to
vacate the amended consent judgment and of CPG’s ex parte
application to advance the hearing date on that motion
(exhibits 23 and 24), and the motion to approve the amended
consent judgment in the Alameda action (exhibit 25).
Concurrent with its reply, CPG requested judicial notice of
two additional documents: (1) the original proposed consent
judgment in the Alameda action that was submitted to the
Attorney General (exhibit 26), and (2) the Alameda court’s
April 24, 2026 order denying CPG’s motion to vacate the
amended consent judgment (exhibit 27). Respondents did not file
an opposition to this request for judicial notice.
We deny CPG’s request for judicial notice as to exhibits 1
to 26 because those documents are not relevant to our disposition
13
of this appeal. (See Association for Los Angeles Deputy Sheriffs,
supra, 94 Cal.App.5th at pp. 792–793, fn. 23 [noting that an
appellate court may decline to take “judicial notice of
‘materials . . . not relevant to [the appellate court’s]
determination of the issues on appeal’ ”].)
We grant CPG’s unopposed request for judicial notice of the
Alameda court order in exhibit 27. (Evid. Code, §§ 452, subd. (d),
459.) In that order, the Alameda court concluded, inter alia, that
CPG did not show a nonparty could move to vacate the amended
consent judgment. The Alameda court “l[eft] unresolved the
issue of the legal effect of the [amended c]onsent [j]udgment
concerning the clutch bags and wallets that . . . were not included
within [CCPG’s] 60-day notice,” and “l[eft] the door open for the
Attorney General — who is a party [to the] litigation — to
attempt to void the . . . Judgment.” CPG does not claim the
Attorney General thereafter moved to amend or vacate the
amended consent judgment.
B. CPG Is In Privity with CCPG
CPG’s principal argument is that CCPG lacked authority to
represent the public interest as to the Guess clutch and Nine
West wallet in the Alameda action because CCPG did not identify
those products in its presuit Proposition 65 notice. CPG thus
maintains it is not in privity with CCPG.
ExxonMobil Corp. holds that defects in a private enforcer’s
presuit Proposition 65 notice have no bearing on whether that
private enforcer’s settlement with a defendant has res judicata
effect. (See Discussion, part B.1, post.) We also reject CPG’s
reliance on LaCour v. Marshalls of California, LLC (2023)
94 Cal.App.5th 1172 — a case involving the res judicata effect of
a settlement of claims brought under the Labor Code Private
14
Attorneys General Act of 2004 (PAGA; Lab. Code, § 2698 et seq.)
— to argue otherwise. (Discussion, part B.2, post.) We do so
because CPG has not shown the electorate or the Legislature
intended to allow a private enforcer to invoke Proposition 65’s
notice requirements as a basis for attacking collaterally the scope
of a settlement of another private enforcer’s Proposition 65
action. (See ibid.)7
1. Under ExxonMobil Corp., CPG is in privity with
CCPG
Our colleagues in Division Four held Proposition 65’s
legislative history demonstrates, “[C]laim preclusion applies to
private enforcement actions [under that statute], as long as due
process and the traditional elements of res judicata are satisfied.”
7 CPG also argues, “Walmart[, supra, 112 Cal.App.5th
679,] confirms that Proposition 65’s notice requirement — like
PAGA’s [Labor and Workforce Development Agency] notice
requirement — defines the scope of a private enforcer’s delegated
authority to act on the state’s behalf. This shared representative
structure reinforces why deficiencies in a prior plaintiff’s
statutory authorization prevent that plaintiff from binding later
enforcers through preclusion principles.” (Italics added.) Insofar
as CPG is arguing Walmart holds that defects in a Proposition 65
presuit notice nullify the claim preclusive effect of a settlement of
the ensuing action, CPG does not direct us to any portion of
Walmart supporting such an expansive interpretation of the
decision. Because CPG fails to show the Walmart decision has
any bearing on our privity analysis, we decline to address that
issue further. (See Cruz v. Tapestry, Inc. (2025) 113 Cal.App.5th
943, 953–954 [“ ‘ “Even when our review on appeal ‘is de novo, it
is limited to issues which have been adequately raised and
supported in [the appellant’s opening] brief.” ’ ”].)
15
(See ExxonMobil Corp., supra, 168 Cal.App.4th at pp. 684–685.)
There, the reviewing court concluded the appellant-private
plaintiff who sued a defendant under Proposition 65 was in
privity with another private plaintiff who had settled a
Proposition 65 action against that defendant. (See id. at pp. 680–
681, 689, 693.) As explained below, ExxonMobil Corp. supports
the trial court’s finding that CPG and CCPG are in privity.
In ExxonMobil Corp., an entity named Communities for a
Better Environment (CBE) sued ExxonMobil Corporation under
Proposition 65 for allegedly knowingly and intentionally allowing
benzene and toluene to leak into drinking water sources. (See
ExxonMobil Corp., supra, 168 Cal.App.4th at pp. 680–681.)8 CBE
and ExxonMobil later agreed to a proposed settlement intended
to cover all sites in California in which water or soil was allegedly
contaminated by benzene or toluene. (See ExxonMobil Corp.,
supra, 168 Cal.App.4th at pp. 681, 688.) The Attorney General
reviewed the terms of the proposed settlement, and the trial court
presiding over CBE’s action entered a judgment approving it.
(See id. at pp. 681, 684, 694.)
Prior to entry of judgment in CBE’s action against
ExxonMobil, Consumer Advocacy Group (CAG) sued ExxonMobil
under Proposition 65 for knowingly and intentionally allowing
8 In addition to its proscribing knowingly and intentionally
exposing individuals to certain chemicals without a proper
warning (see Legal Background Regarding Proposition 65, ante),
Proposition 65 provides, with certain exceptions, “No person in
the course of doing business shall knowingly discharge or release
a chemical known to the state to cause cancer or reproductive
toxicity into water or onto or into land where such chemical
passes or probably will pass into any source of drinking
water . . . .” (see Health & Saf. Code, § 25249.5).
16
benzene, toluene, and lead to leak into drinking water sources.
(See ExxonMobil Corp., supra, 168 Cal.App.4th at pp. 680–681.)
After judgment was entered in CBE’s action, the trial court in
CAG’s action entered summary judgment in favor of ExxonMobil
on the ground the court-approved settlement in CBE’s action
barred CAG’s suit under the doctrine of res judicata. (See id. at
pp. 680–681.)
On appeal, the ExxonMobil Corp. court ruled “the trial
court erred in granting full summary judgment based on
res judicata” “[b]ecause the issues in [CAG’s] action are not
identical to those resolved in the prior action.” (See ExxonMobil
Corp., supra, 168 Cal.App.4th at p. 680.) The Court of Appeal
reasoned, “ExxonMobil is not entitled to full summary judgment
or to summary adjudication that CAG’s entire action is barred by
res judicata . . . because the CBE action did not resolve claims
relating to lead.” (See id. at p. 689.) Because ExxonMobil’s
res judicata defense could have affected the course of further trial
court proceedings upon remand, the appellate court addressed
whether the other elements of res judicata were satisfied,
including whether CAG was in privity with CBE. (See id. at
pp. 685–686, 689.)9
The ExxonMobil Corp. court “conclude[d] that CAG [was] in
privity with CBE for the purposes of res judicata” “due to [the]
‘adequate representation’ of CAG’s interests by CBE.” (See
9 The reviewing court also found “the settlement between
CBE and ExxonMobil [was] . . . a final judgment on the merits”
because “ ‘ “ ‘[a] judgment entered . . . by consent or stipulation[ ]
is as conclusive a . . . bar as a judgment rendered after trial.’
[Citation]” ’ [Citation.]” (See ExxonMobil Corp., supra,
168 Cal.App.4th at p. 694.)
17
ExxonMobil Corp., supra, 168 Cal.App.4th at pp. 692–693.) The
reviewing court explained, CBE “sue[d] on behalf of . . . the
public” by invoking “the citizen enforcement provision of
Proposition 65.” (ExxonMobil Corp., at p. 692.) The appellate
court further reasoned, “[T]he settlement agreement’s failure to
mention the public as a party to be bound is not sufficient to show
that CBE abandoned its intention to represent the interests of
the general public,” and “the settlement agreement itself involved
remedial measures to be taken by ExxonMobil at alleged
violation sites, not payments of penalties to CBE.” (See id. at
p. 692.)10 Because CAG alleged in its complaint that it had
likewise “ ‘br[ought] this action in the public interest[,]’ ” the
appellate court found “CBE adequately represented CAG’s
interests.” (See ExxonMobil Corp., supra, 168 Cal.App.4th at
pp. 692–693.)
Although the appellate court noted there was a “factual
dispute over whether CAG had notice” “of the impending
settlement between ExxonMobil and CBE,” the court found
10 The amended consent judgment in the CCPG action
obligated the defendants to pay a civil penalty of $18,000, $4,500
of which was payable to CCPG. (Procedural Background, ante.)
This distinction between the amended consent judgment and
CBE’s settlement is immaterial, given the ExxonMobil Corp.
court’s observations that “[a]n individual may sue under
[Proposition 65] only in the public interest,” and “private
enforcers[’] . . . entitle[ment] to 25 percent of all penalties” is not
“an individual property right . . . .” (See ExxonMobil Corp.,
supra, 168 Cal.App.4th at pp. 692–693.) We further note CPG
does not argue CCPG’s entitlement to civil penalties under the
amended consent judgment has any bearing on our privity
analysis.
18
CBE’s “adequate representation of CAG’s interests” had “cured
any lack of notice.” (See ExxonMobil Corp., supra,
168 Cal.App.4th at p. 693.) The court further noted that “[a]n
individual must provide the Attorney General any settlement
agreement being submitted for court approval, and the Attorney
General may participate in court proceedings regarding
approval.” (See id. at pp. 692–693.)11
Here, the trial court cited CCPG’s complaint and CPG’s
first amended complaint for the proposition that “both Plaintiffs
brought the[ir respective] action[s] as private attorneys general
pursuant to Health [and] Safety Code [section] 25249.7[,
subdivision] (d), on behalf of the public interest.” Because “the
general public was represented by private attorneys general in
both actions,” the court ruled that CPG is in privity with CCPG.
Applying ExxonMobil Corp. here, we agree.
CPG argues ExxonMobil Corp. is inapposite because in that
case, “the first enforcer indisputably” “serv[ed] . . . a valid 60-day
notice identifying the products and exposures alleged,” “thereby
acquiring authority under Health and Safety Code
section 25249.7, subdivision (d), to act in the public interest as to
the very violations later asserted by the subsequent plaintiff.”
CPG maintains, “It was this valid statutory authorization, not
any general similarity of products or chemical exposures, that
11 Given the state is the real party in interest in
Proposition 65 actions (see Legal Background Regarding
Proposition 65, ante), these procedural safeguards afforded to the
Attorney General prior to settlement approval further support
ExxonMobil Corp.’s finding that “application of the privity
doctrine to preclude CAG’s claim” did not offend due process (see
ExxonMobil Corp., supra, 168 Cal.App.4th at p. 693).
19
formed the basis for the privity analysis in that case.” CPG
concludes, “As CCPG lacked such [valid statutory] authority
here, given that CCPG did not notice the wallet and the clutch,
ExxonMobil provides no support for the trial court’s ruling.”
CPG’s assertion there was no dispute that CBE had served
a valid presuit notice is belied by the ExxonMobil Corp. opinion.
The Court of Appeal observed, “CAG also argues that the
settlement is invalid as to the overlapping sites [i.e., the
contamination sites covered by both CBE’s settlement and CAG’s
complaint] because CBE’s intent to sue notices for those sites
did not comply with the requirements of Proposition 65. The
notice requirements under Proposition 65 are intended to give
notice to potential defendants, as well as giving public
prosecutors such as the Attorney General the opportunity to file
suit themselves. ([Health & Saf. Code,] § 25249.7, subd. (d)(1).)
CAG is neither a defendant nor a public prosecutor and is not
entitled to notice under this provision. Thus, even if the
Proposition 65 notice requirements were violated, a question on
which we express no opinion, CAG has not shown that it has
standing to complain of the violation. These questions should
have been raised before the judgment in the CBE action became
final; we decline to address them on collateral review.” (See
ExxonMobil Corp., supra, 168 Cal.App.4th at p. 687, fn. 4; see
also id. at pp. 681–682 [defining the “overlapping sites” and
noting they were covered by CBE’s settlement].)
The passage from footnote 4 of the ExxonMobil Corp.
decision in the above paragraph reveals that although CAG had
argued CBE’s presuit notice was defective, the Court of Appeal
treated this alleged defect as one only ExxonMobil or the public
prosecutor could raise. (See ExxonMobil Corp., supra,
20
168 Cal.App.4th at p. 687, fn. 4.) Further, even though the
ExxonMobil Corp. court assumed arguendo that CBE served a
defective presuit notice (see ibid.), the reviewing court still found
privity “due to ‘adequate representation’ of CAG’s interests by
CBE” (see id. at pp. 692–693). Accordingly, we reject CPG’s claim
that ExxonMobil Corp.’s finding of privity was predicated on
CBE’s compliance with Proposition 65’s presuit notice
requirements.
In sum, the ExxonMobil Corp. decision supports the trial
court’s finding CPG is in privity with CCPG. We next address
CPG’s argument that LaCour compels a contrary conclusion.
2. CPG’s reliance on LaCour is unavailing
CPG argues LaCour “establishes a mandatory analytical
sequence for any claim preclusion analysis involving a
representative enforcement scheme: a court must begin by
determining whether the first plaintiff lawfully acquired
statutory authority to pursue the alleged violations. Only if
statutory authority existed may a court then evaluate whether
the plaintiff adequately represented the public interest; and only
if adequate representation is established may privity — and
therefore claim preclusion — arise.” Although the LaCour
decision addressed whether the settlement of a PAGA suit had
claim preclusive effect on a subsequent PAGA action (see LaCour,
94 Cal.App.5th at pp. 1181–1183), CPG maintains LaCour
applies to this case because “Proposition 65 [is] ‘not meaningfully
distinguishable from comparable qui tam statutes,’ ” including
PAGA.
In essence, CPG seeks to import LaCour’s privity analysis
from the PAGA context into a different legal setting (i.e., a
Proposition 65 suit) and reverse the trial court’s finding of privity
21
using LaCour’s approach. As we have explained, ExxonMobil
Corp. establishes that CCPG is CPG’s privity for the purposes of
res judicata. (Discussion, part B.1, ante.) Thus, CPG is asking us
to follow LaCour in derogation of ExxonMobil Corp. We decline
to do so because, as we explain below, CPG has not persuaded us
to reject ExxonMobil Corp.’s holding. (See The MEGA Life &
Health Ins. Co. v. Superior Court (2009) 172 Cal.App.4th 1522,
1529 [noting that “ ‘we ordinarily follow’ ” another Court of
Appeal’s decision unless we have “ ‘good reason to disagree’ ” with
it].)
In LaCour, an employee of the defendant served on the
Labor and Workforce Development Agency (LWDA) a notice
under PAGA alleging Labor Code violations for off-the-clock work
relating to time employees spent undergoing an antitheft bag
check procedure at the end of their shifts. (See LaCour, supra,
94 Cal.App.5th at pp. 1181–1182 & fn. 1, 1193 [describing
plaintiff Joan Paulino’s notice to the LWDA].) That employee
filed a PAGA complaint against the defendant that “focus[ed]
narrowly on compensation for [the aforementioned] off-the-clock
work,” and a federal district court later approved the parties’
settlement and entered a consent judgment dismissing the action
with prejudice. (See id. at pp. 1181–1182 & fn. 1, 1192.)
Subsequently, the plaintiff in LaCour, who was a former
loss prevention specialist at one of the defendant’s stores, served
a PAGA notice on the LWDA, which the plaintiff claimed had
raised “Labor Code violations not encompassed in [the other
employee’s] notice,” including the “failure to reimburse uniform
maintenance and other expenses . . . .” (See LaCour, supra,
94 Cal.App.5th at pp. 1181–1182 [indicating the first PAGA
action was settled on July 31, 2020]; id. at p. 1185 [indicating the
22
plaintiff in LaCour served LWDA with his PAGA notice in
Nov. 2020].) After the LaCour plaintiff filed his PAGA action in
state court, the defendant moved to strike all Labor Code
violations predating November 17, 2020, arguing these violations
were released by the settlement of the prior PAGA action. (See
id. at pp. 1181–1182.) The trial court granted the motion and
struck all allegati