Public Agencies Protected Against Lawsuits for Misrepresentation in the Hiring Process

On June 5, 2000, a California Court of Appeal decided the case Robert G. Burden v. County of Santa Clara, 00 C.D.O.S. 4429. The case dealt with governmental immunity from liability for misrepresentation in the hiring process. The court held that under Section 818.8 of the California Government Code the County of Santa Clara was immune from liability for alleged misrepresentation in hiring the plaintiff.

Section 818.8 provides: “A public entity is not liable for an injury caused by misrepresentation by an employee of the public entity, whether or not such misrepresentation be negligent or intentional.” A school district is a “public entity” within the meaning of Section 818.8. [Section 811.2 of the Cal. Gov. Code.] Thus, Section 818.8 applies to school districts, along with all the Section 818.8 case law, including Burden v. County of Santa Clara.

In the case at hand, Mr. Burden was hired as an attorney in the Office of Santa Clara County Counsel. To start his new job, he had to relocate from Southern California to Santa Clara County. Shortly after starting work, the Burden’s employment was terminated. He then filed a lawsuit, alleging that he was wrongfully induced by the County to relocate his residence to the Bay Area by promise of a “permanent position”, only to discover (after he had already been terminated) that he had been hired into a “provisional position.”

The court held that a public entity is immune from liability for misrepresentation in the hiring process, both under common law tort theory and under Labor Code Section 970. (Section 970 prohibits an employer or potential employer from inducing an employee or prospective employee to relocate his/her residence through means of a knowingly false representation concerning the terms or conditions of employment.) The court opinion explained why Section 818.8 provides immunity from Section 970 liability. The legislative intent behind Section 818.8 was to cover tortuous misrepresentations. Therefore, since Section 970 covers tortuous misrepresentation, Section 818.8 covers Section 970.

In summary, the appellate court ruled that a governmental entity is not liable for misrepresentations in the hiring process.

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